The Tax Benefits of Property Investment

Property investment has some major tax benefits. You should ensure you are taking full advantage of these benefits to maximise the return on your investment.

These tax benefits can include:


Negative gearing occurs when the costs of owning your investment property are higher than the income you receive from that property.

In the short term, this ‘investment loss’ means that your taxable income will decrease, providing a tax benefit.

In the long term, the ideal situation is to sell your property at a higher price, for an overall profit.


These are some of the tax deductions you may be able claim on your investment property.


The interest that you pay in relation to an investment property is being paid to generate an income and is therefore a tax-deductible expense.

Rental Expenses

You may be able to claim expenses associated with owning a rental property such as body corporate fees, council rates, utilities, insurances etc.


You may be able to claim the depreciation of the value of your property, as in the building itself, or things within that property as they decline in value over time (e.g., carpet, refrigerator).

Note: When selling your investment property or a main residence that you have rented out, you may have to pay Capital Gains Tax (CGT). This tax is applicable when you sell your property for higher than what you purchased it for (capital gain).

You should speak with your accountant and/or financial planner to discuss these matters and how they apply to you.

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