What rental property expenses can I claim in Australia?
Updated 2026-10-15 · Australia
The ATO splits rental expenses into three groups: ones you can claim in the year you pay them (like interest on the loan, council rates, water, strata levies, insurance, agent fees and repairs), ones claimed over several years (borrowing costs, decline in value of assets, capital works), and ones you can't claim (like loan principal and most travel to inspect the property). Keep records for each.
Usually claimable in the year you pay
- Interest on the loan (not the principal)
- Council rates and water charges
- Body corporate / strata fees
- Landlord and building insurance
- Property agent fees and commission
- Repairs and maintenance (not improvements)
- Land tax
- Advertising for tenants, pest control, gardening, cleaning between tenants
Claimed over several years
- Borrowing expenses (for example loan establishment fees)
- Decline in value of depreciating assets
- Capital works (building and structural improvements)
Not claimable
Loan principal repayments, the purchase costs of the property, and expenses for periods when the property wasn't genuinely available for rent. Check the ATO's full list before lodging.
How to track it without a shoebox
Use a separate account for the property and download its CSV each quarter. Sorted Budget's Property tab groups every transaction from a tagged account under ATO-style labels and splits out loan principal, so you see your net rental result for the financial year.
Frequently asked questions
Is the whole mortgage repayment deductible?
No. Only the interest portion is generally deductible; principal isn't.
Repair or improvement?
Fixing something back to how it was is generally a repair; making it better than it was is generally an improvement (capital works). See the ATO's repairs guidance or ask a registered tax agent.
Is this tax advice?
No — it's a summary for record keeping. Check ato.gov.au or a registered tax agent for your situation.
Sources
Last checked 2026-10-15.