Your home is generally exempt from tax.

However – if you own an investment property, renovate, or build to make a profit, or at any stage use a property to run a business, there may be implications for income tax – such as and goods and services tax (GST) and capital gains tax (CGT).
tax benefit that property investors can claim as a deduction


Expenses relating to your rental property can be claimed, but only for the period your property was rented or available for rent.


Examples of claimable expenses are:

Cleaning, interest expenses, property agent fees and commissions, repairs and maintenance, advertising for tenants, pest control and more.


If only a portion of your property is used to earn rent, you can only claim expenses relating to that portion. A good way to calculate this is the divide the floor space of the property, and calculate how much is used to earn an income (ie: dedicated office space), This can include garage and outdoor areas as well.

loan to purchase a rental property you can claim the interest charged on that loan
Visit our How It Works page and follow the steps to lodge your tax online now.

You must declare your rental income in your annual tax return

You can also claim deductions for the associated expenses (as listed above).
Payments for board, lodging, or from a family member are not considered to be rental income, as it is a domestic arrangement and therefore does not need to be declared. In this situation, you also can not claim deductions from your income tax such as interest, cleaning and and maintenance costs.


Your home also is exempt from CGT.
However, you cannot obtain the full main residence exemption if the following apply:
Interest deductibility Test – would deductions be allowed for interest had you incurred it on money borrowed to acquire the dwelling
Used any part of it to produce income during all or part of the period you owned it, and
You acquired the property on or after 20 September 1985 and used it as your main residence.


This Audio File Explains How You Can Pay Less Tax By Claiming Losses On Rental Property



Visit our How It Works page and follow the steps to lodge your tax online now.

example of how to calculate your net rental income or loss the australian taxation office ato allows property owners to claim this wear and tear depreciation as a deduction