2. Declaring rental income and expenses
Are you missing out on claiming certain deductions? The ATO considers rental income as taxable income, however, you can claim expenses to reduce this amount, including:
- Property management fees and maintenance costs
- Property depreciation
- Bank fees and loan charges
- Insurances
- Legal costs and land tax
3. Claim correctly for repairs and renovations
There is a difference between a repair and a capital works improvement and this will affect your claim. The full cost of repairs can be claimed in full in the same financial year they are completed. An improvement or renovation, on the other hand, must be depreciated over time.
If you’ve made any improvements to your property in the last financial year, we recommend seeking the advice of a Quantity Surveyor to ensure this is in your claim correctly.
