Revealed: Complete property investor tax checklist for 2025

If you own a property, there are ways you can legitimately slash thousands from your tax bill through deductions many don’t know exist.

Australia’s property investors can legitimately slash thousands from their tax bills through dozens of deductions many don’t know exist.

With the average property investor able to claim between $8,000-$15,000 in deductions annually, these legal tax breaks represent some of Australia’s most generous concessions.

As the ATO ramps up its AI-driven crackdown on undeclared income, investors who properly document these deductions gain a crucial advantage.

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This Brisbane home is up for rent at $2,800 per week. Investors can claim pool safety and maintenance costs off their tax.

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“You can claim an immediate deduction for some expenses in the income year you incur them provided your property is rented or genuinely available for rent,” an ATO statement said – though the cost must be paid by you not your tenant or someone else and you must keep adequate records for evidence.

Here’s the complete checklist of what you can claim as a property investor for the 2024-2025 financial year which runs from July 1, 2024 to June 30, 2025.

The deadline for self-lodged returns set for October 31, 2025, and the extended deadline for tax agent lodgements May 15, 2026.

Quarterly Business Activity Statements are due July 28, October 28, February 28 and April 28 for those registered for GST.

NOTE: This checklist is a general guide only and should not replace professional tax advice. Consult a registered tax agent before lodging your return if uncertain.

This Victorian home is $380 per week and comes with blinds. Investors can claim depreciation of carpets, curtains, and blinds on their tax.

AUS PROPERTY INVESTOR TAX TIME CHECKLIST:

Immediate Deductions

– Advertising for tenants

– Body corporate administrative fund fees and charges

– Council rates and water charges

– Land tax payments

– Cleaning costs

– Gardening and lawn mowing services

– Pest control services

– Insurance (building, contents, public liability, loss of rent)

– Interest expenses on loans

– Property agent’s fees and commission

– Repairs and maintenance receipts

– Legal expenses (evicting non-paying tenant, court action for loss of rental income, defending damage claims)

– Stationery, telephone, and postage costs for property management

– Bank fees related to property accounts

– Tax depreciation schedule fees

– Secretary and bookkeeping fees

– Smoke alarm maintenance and compliance costs

– Safety inspection costs

– Pool safety and maintenance costs

(Note: From July 1, 2017, travel expenses to inspect, maintain, or collect rent for your residential rental property could no longer be claimed as deductions).

Investors with rentals in apartment complexes like these on the Gold Coast have the option to look into immediate claims for body corporate admin fees.

Body Corporate Fees

– Regular body corporate administrative fund fees

– General purpose sinking fund contributions

– Documentation distinguishing between administrative fees (immediate deduction) and capital improvement levies

– Records of special purpose fund contributions for specific expenses

– Documentation of completed capital works funded by special levies

Pre-paid Expenses Under $1,000

– Insurance premium statements showing coverage periods

– Pre-paid interest documentation

– Records of any prepaid service contracts (e.g., pool maintenance, gardening)

– Documentation showing the eligible service period for each prepayment

– Calculations for prepaid expenses that need to be apportioned over multiple years

Depreciating Assets

– Appliances (ovens, refrigerators, dishwashers, etc.)

– Carpets, curtains, and blinds

– Furniture provided for tenant use

– Airconditioners and heaters

– Hot water systems

– Security systems

– Current tax depreciation schedule

– Receipts for new assets purchased during the year

– Details of assets disposed of or scrapped

Before shot of a South Australian apartment. Major renovation costs should be flagged with tax agents for deduction consideration.

How the apartment looked after renovation.

Capital Works Deductions

– Construction costs of buildings and structural improvements

– Major renovations costs

– Cost of altering a building or making structural improvements

– Fencing and retaining wall expenses

– Paving expenses

– Engineering fees related to capital works

– Special levy payments for capital improvements (details of works completed)

Legal Expenses

– Legal fees for evicting non-paying tenants

– Legal costs for court action for loss of rental income

– Legal expenses for defending third-party damage claims

– Solicitor’s fees for loan document preparation (borrowing expense)

– Legal costs related to purchase/sale (for CGT cost base)

– Legal costs for resisting land resumption (for CGT cost base)

– Legal costs for defending title to the property (for CGT cost base)

DOCUMENTATION REQUIRED:

Loan and Borrowing Documentation

– Loan statements showing interest and principal payments

– Refinancing cost statements

– Loan establishment fees documentation

– Mortgage discharge fees

– Mortgage broker fees

– Loan offset account details

– Records of borrowing expenses (if total exceeds $100, these are claimed over 5 years or the loan term, whichever is shorter)

Records for Partially Deductible Items

– Private usage proportion calculations for any shared expenses

– Documentation for periods when property was not rented or available for rent

– Documentation for personal use periods of the property

– Calculations for apportioning expenses between rental and non-rental use

New Property Investor Items

– Settlement statement

– Contract of purchase

– Conveyancing documents

– Building inspection reports

– Stamp duty costs

– Initial repairs documentation before renting

– Property valuation fees

Property Sale Documentation

– Contract of sale

– Settlement statement

– Conveyancing costs for the sale

– Agent’s commission on sale

– Advertising expenses for the sale

– Original purchase documentation (for CGT calculation)

– Documentation of capital improvements made during ownership

– Legal costs associated with the sale (for CGT cost base)

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Originally published as Revealed: Complete property investor tax checklist for 2025