What is the rental property tax deductions checklist?

It is a short list of the deductions Australian rental property owners commonly claim, grouped into expenses you claim now, expenses you claim over several years, and expenses you can't claim, plus the records you need to keep. Use it to make sure nothing is missed before you lodge or see your accountant.

What can I claim on my investment property in Australia?

Common immediate claims include loan interest, council and water rates, land tax, insurance, agent fees, repairs and maintenance, cleaning, gardening and pest control. Borrowing expenses, the decline in value of depreciating assets, and capital works are claimed over several years. See the full guide for detail on each.

What investment property expenses can't I claim?

You generally can't claim travel to a residential rental property (since 1 July 2017), the decline in value of second-hand assets that came with the property (for properties acquired or first rented on or after 1 July 2017), the purchase price and transfer stamp duty (these affect capital gains tax instead), and any portion relating to private use.

Do I need a depreciation schedule for my rental property?

It isn't compulsory, but for most investors a quantity surveyor's tax depreciation schedule captures capital works and depreciating-asset deductions you would otherwise miss, and the fee is deductible. ledger.rent isn't a quantity surveyor, but it gives you a place to record the schedule and track those deductions each year.

How long do I need to keep rental property records?

Keep records for 5 years from the date you lodge the return that includes the claim. For records that affect capital gains tax, such as purchase costs and improvements, keep them for the whole period you own the property plus 5 years after you sell.

Can I claim deductions while the property is vacant?

You can claim for periods the property is genuinely available for rent, even if temporarily vacant between tenants, provided you are actively trying to rent it at a commercial rate. You can't claim for periods of private use or while it is held off the market.

Rental Property Tax Deductions Checklist (Australia, 2025–26)

Use this checklist to make sure you have organised every common rental property tax deduction before you lodge or see your accountant. It is deliberately short and scannable. If you want the full explanation behind any item, read the companion guide, Rental Property Tax Deductions: What You Can Claim in Australia, which walks through each deduction in detail.

Print this page, or work through it inside ledger.rent, and tick each item as you confirm you have both the expense and the record to prove it.

The quick rule before you start

You can claim a deduction only to the extent an expense relates to earning rental income, and only for the period the property was rented or genuinely available for rent. If a cost is partly private (a holiday home you also use, or a property you co-own), claim only your share. Keep that in mind as you work down the list.

Checklist 1: Deductions you can usually claim this year

These are the running costs of holding the property. Tick the ones that apply to you, and confirm you have the invoice or statement for each.

Loan interest on money borrowed for the property (the single biggest claim for most investors)
Property manager / agent fees and commissions
Council rates
Water charges (the portion you pay, not the tenant)
Land tax
Building, landlord and contents insurance
Body corporate / strata fees (administrative fund)
Repairs and maintenance (restoring something to its original condition)
Cleaning, gardening, lawn mowing and pest control
Advertising for tenants
Bank fees on the loan account
Phone, internet and stationery used to manage the property
Registered tax agent fees for managing your rental affairs

For the detail behind each item, see the full deductions guide. Borderline calls like Repairs vs Capital Improvements and Can You Claim Interest on a Rental Property Loan? have their own dedicated walk-throughs.

Checklist 2: Deductions you claim over several years

Some costs are spread across multiple years rather than claimed all at once. Confirm you have a record (and ideally a depreciation schedule) for each.

Borrowing expenses — loan establishment fees, lender's mortgage insurance, mortgage stamp duty and similar. Spread over 5 years or the loan term, whichever is shorter. If they total $100 or less, claim them all in year one.
Depreciating assets over $300 — carpet, blinds, ovens, dishwashers, air conditioners, hot water systems, furniture. Claimed as decline in value over the asset's effective life.
Depreciating assets $300 or less — claim the full cost immediately (unless the item is part of a set costing more than $300).
Capital works (Division 43) — the building structure and fixed improvements, generally 2.5% of the original construction cost per year for 40 years (construction after 15 September 1987).
Tax depreciation schedule — if you don't have one, a quantity surveyor can prepare it; the fee is itself deductible.

Checklist 3: Things you usually can't claim (avoid these mistakes)

These commonly trip investors up. Confirm you are not claiming any of them.

Travel to inspect or maintain a residential rental property (denied for individual investors since 1 July 2017)
Second-hand depreciating assets that came with the property, if you acquired or first rented it on or after 1 July 2017
The property purchase price, conveyancing and transfer stamp duty (these go to your capital gains tax cost base instead, so keep the records)
Costs for periods of private use (your own stays in a holiday home, or the part of a home you live in)
Expenses your tenant pays directly (such as their water usage)
A property held off-market for family rather than genuinely available for rent

Checklist 4: Records to have ready

A deduction you can't substantiate is a deduction you can't keep. See What Records Should Landlords Keep for Tax Time? for the full record-keeping system. Before lodging, make sure you have:

Annual property manager statement
Loan statements showing interest, plus notes on any redraws and their purpose
Rates, water and land tax notices
Insurance and strata invoices
Receipts for every repair and improvement, with a note on what the work was
Your depreciation schedule
A record of private-use days for holiday or short-stay properties
Your ownership percentage and any co-owner details
Records kept for 5 years from lodgment (and for the whole ownership period for anything affecting capital gains tax)

A worked example

Say you own a unit rented all year. Over 2025–26 you might tick: loan interest, agent fees, council rates, water, landlord insurance, strata, a plumbing repair, and the decline in value of a new dishwasher (over $300) and capital works on the building. You would not claim travel to inspect it, or depreciation on the second-hand oven that came with the unit. You keep the agent statement, loan and rates notices, the repair receipt and your depreciation schedule. That is a clean, defensible return.

Get your checklist organised before 30 June

Ticking boxes on paper is a start. Doing it in one place, with the records attached, is what makes tax time painless. ledger.rent gives Australian property investors a guided workspace to track income and expenses against each property, flag the items that need accountant review, and export a clean, accountant-ready summary.

Start your free trial · View the full deductions guide · Rental property tax checklist

Last updated: May 2026. Based on ATO guidance current at the time of writing (Rental properties guide 2025). Tax rules change; confirm the current position with a registered tax agent.