As a rental property owner, strategically navigating tax deductions can significantly reduce your taxable income and ultimately maximise your investment returns. As the end of the financial year approaches, it’s essential to be aware of various deductions available to landlords for the 2025 financial year. Here’s a concise guide to help you capitalise on your opportunities:

Key Tax Deductions for 2025

Loan Interest

You can deduct interest on any mortgage for your rental properties. This is one of the most substantial deductions for many landlords, so be sure to keep track of the interest paid.

Depreciation

Claim depreciation on both the property itself and its contents, including appliances and furnishings. This can be a major deduction over the life of your property.

Get a Depreciation Schedule

To ensure you are maximising your depreciation claims, consider engaging a qualified quantity surveyor. They can create a detailed depreciation schedule tailored to your property.

Property Management Fees

If you employ a property management service, the fees charged are fully deductible. This includes anything from tenant sourcing to day-to-day management.

Repairs and Maintenance

Costs incurred for repairing and maintaining your property can be claimed in the year they occur. Keep detailed records of any repairs made.

Council Rates and Taxes

Local council rates and land taxes are deductible from your taxable income, helping reduce overall costs.

Insurance Premiums

Deduct premiums for insurance related to property, landlord coverage, and contents insurance. These are essential for protecting your investment.

Advertising Costs

Any expenses incurred for advertising to find tenants are fully deductible. This includes online ads, signs, and print advertising.

Legal and Professional Fees

Fees paid for legal advice and accounting services specifically related to your rental property can also be deducted.

Body Corporate Fees

If your property is part of a strata scheme, fees for strata management and maintenance of common areas can be claimed.

Capital Works

The costs associated with significant renovations or construction can be deducted over time, typically outlined in a Quantity Surveyor’s report.

Maximising your tax deductions as a landlord not only helps improve your investment returns but also reduces your taxable income. Be proactive in managing expenses and documenting everything meticulously. Consulting with a tax professional can further ensure that you are claiming all eligible deductions.
As we near the end of the financial year, take action on these points to maximise your returns. Make sure to settle expenses before 30 June 2025 to ensure you benefit from these deductions.