Maximise tax benefits from your investment property

Maximise tax benefits from your investment property

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Research indicates more than one million Australian property investors fail to claim free money owing to them because they overlook some important tax deductions.

This tax season investors are encouraged to utilise and take advantage of the available tax depreciation benefits of their investment property.

Tass Assarapin, associate at quantity surveyors Mitchell Brandtman, says tax depreciation is a right that too many investment property owners don’t fully understand and ignore the benefits that are readily available to them.

“Paying taxes on rental income generated from an investment property can take a huge chunk out of the return on investment calculation come tax time.

“One of the best ways for property investors to improve that cash flow is to take advantage of the lucrative tax allowances on property depreciation,” says Mr Assarapin.

In fact, according to the ATO only 40% of rental investors have actually claimed depreciation on their investments.

“Just like you claim expenses on property repairs or renovations, owners of investment properties can claim deductions on the inevitable annual wear-and-tear of the investment.”

The Australian Tax Office (ATO) allows investment property owners to claim the depreciation or write down of assets on expenses incurred as the building and assets gradually wear out over time.

“Land doesn’t wear out, but the buildings we put on it and the fittings like carpet and blinds inside that building do wear out.

“Claiming this depreciation on your annual tax return reduces your taxable income, which means you pay less tax each year. It can literally reduce your taxable income by as much as $15,000 each year.

“I haven’t met an investor yet that would say no to that kind of reduction. That’s considerable cash flow back in your own pocket,” says Mr Assarapin.

Mitchell Brandtman are recognised by the Tax Practitioners Board to complete Tax Depreciation reports.

Investment property owners are encouraged to consider obtaining a Tax Depreciation Report on their investment properties for maximum gain this tax season. These reports can also be claimed as a tax deduction so to claim this financial year, contact Mitchell Brandtman before June 30.

To help put money back in your own pocket Smarter Communities has negotiated a special offer with Mitchell Brandtman. For further details visit us at

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The information provided is a general guide only and is not intended as a substitute for legal advice. The company disclaims all responsibility and liability for any expenses, losses, damages, and costs which might be incurred as a result of the information provided by the company.

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