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Investment Deductions

Rental properties, shares, and managed funds

2 sections6 claimable items

Rental Property

Interest, repairs, depreciation, and management fees

Interest on loans used to purchase or improve your rental property.

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Example

Paying $20,000/year in interest on your investment property loan — claimable against rental income.

⚠️The loan must be for the rental property, not your home

Fixing things that are broken or worn — not improvements.

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Example

Replaced a broken tap for $200 — claimable. Renovated the whole bathroom for $15,000 — that's a capital improvement (depreciate instead).

⚠️Repairs = claim now. Improvements = depreciate over time.

Fees paid to a property manager to look after your rental.

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Example

Your property manager charges 7% of rent collected = ~$2,000/year — fully claimable.

Decline in value of the building and assets inside (carpet, appliances, blinds).

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Example

A quantity surveyor finds $8,000/year in depreciation on your 10-year-old investment unit. That's $8,000 off your taxable income.

⚠️Get a depreciation schedule from a qualified quantity surveyor

Management fees and interest on investment loans

Fees paid to manage your share portfolio or managed fund.

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Example

Your financial adviser charges $1,500/year to manage your share portfolio — claimable.

Interest on money borrowed to buy shares or other investments.

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Example

Borrowed $50,000 to invest in shares, paying $2,500 interest — claimable against investment income.

⚠️The loan must be used to produce assessable income