Maximise Your Rental Property Tax Deductions this EOFY

As the end of financial year (EOFY) approaches, savvy property investors across Western Australia are asking one key question: Am I making the most of the tax deductions available on my investment property?

Whether you’re a first-time landlord or managing a growing portfolio, knowing exactly what you can legally claim can have a substantial impact on your cash flow, tax position, and long-term return on investment.

At Ascent Accountants and Ascent Property Co, we work closely with our clients to ensure they’re well-prepared at tax time. Below, we’ve outlined the most common (and often overlooked!) deductions you should be aware of.

 

Common rental property tax deductions.

1. Loan interest
   The interest portion of your investment loan is often the single largest deduction available. Just ensure the loan is used solely for investment purposes—mixed-use loans may complicate your claim.
2. Property management fees
   All fees paid to your property manager—management fees, leasing commissions, annual statements—are 100% deductible.
3. Maintenance and repairs
   Repairs that restore an item to working condition (e.g. fixing a leak or patching a wall) are fully deductible. Improvements (e.g. new cabinetry) are depreciated over time.
4. Depreciation (capital works & assets)
   Claiming depreciation on your building and fixtures (carpets, blinds, appliances, etc.) can unlock thousands in deductions. You’ll need a tax depreciation schedule prepared by a qualified quantity surveyor.
5. Insurance premiums
   Landlord insurance, building insurance and contents insurance premiums are all deductible and provide essential protection for your property.
6. Council rates and water charges
   You can claim council rates, emergency services levies, and water charges you pay directly (when not paid by the tenant).
7. Advertising costs
   Expenses for advertising your rental—online listings, brochures, signage—are fully deductible if the property is available for lease.
8. Travel (some exceptions)
   Since 2017, individual investors can no longer claim travel expenses related to their residential rental property. However, trusts and companies may still qualify—check with your accountant.
9. Legal and professional services
   Accounting fees, lease preparation, and property-related legal advice are deductible if they relate directly to managing the rental.

 

What to prepare for your tax return.

To make EOFY as smooth as possible, provide your accountant with:

1. End-of-Year Agent Summary. This is issued by Ascent Property Co. around 1 July.
2. Receipts for expenses you paid personally. This is not covered by your agent.
3. Loan statements covering the full financial year (1 July to 30 June).
4. Depreciation Report if you’ve had one prepared for the building depreciation.

These documents help us accurately assess your entitlements and ensure nothing is missed.

 

EOFY is also the ideal time to review your investment strategy.

The end of the financial year isn’t just about deductions—it’s also a great time to assess:

• Your property’s current value
• Available equity for future investments
• Whether your loan is still competitive

Through our trusted associates, we offer free property appraisals and loan health checks to help you stay financially fit. You might discover opportunities to refinance, access equity, or structure your loans more effectively.

 

Let’s make the most of your investment

We support property investors with clear advice, accurate reporting, and expert insights to help you grow your portfolio with confidence. Get in touch today for personalised tax support, or contact Luke Langford directly at Ascent Property Co on 0493 672 956 to book your free appraisal.