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.
- 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. - Property management fees
All fees paid to your property manager—management fees, leasing commissions, annual statements—are 100% deductible. - 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. - 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. - Insurance premiums
Landlord insurance, building insurance and contents insurance premiums are all deductible and provide essential protection for your property. - 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). - Advertising costs
Expenses for advertising your rental—online listings, brochures, signage—are fully deductible if the property is available for lease. - 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. - 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:
- End-of-Year Agent Summary. This is issued by Ascent Property Co. around 1 July.
- Receipts for expenses you paid personally. This is not covered by your agent.
- Loan statements covering the full financial year (1 July to 30 June).
- 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.
Need help with your accounting?
June is zooming by! Here’s another handy checklist for business owners—let’s get you sorted for EOFY and tick off those to-dos.
EOFY is almost here. Are you ready? Now’s the time to get your finances in order and maximise your tax return. Our latest guide covers top tax deductions, super contributions & co-contributions, SMSF must-dos, PAYG instalment tips and a 30 June checklist.
Buying and selling property rarely lines up perfectly. The logistics of it all can be incredibly stressful. If you’ve found the perfect next home but haven’t sold your current one yet, a bridging loan can make your move easier, without having to wait on your current property sale. What is a bridging loan? A bridging loan is a short-term loan that gives you the funds to buy a new property before your current property has sold. It’s designed to bridge the gap between buying and selling. These loans are generally interest-only and are typically offered for up to 12 months, giving you time to sell and settle on your current home while already owning the next one. When would I need a bridging loan? You might consider bridging finance if: You’ve found your next home but haven’t yet sold your current one. You want to avoid renting or moving twice between sales. You want more time to prepare your home for market to get the best sale price. You're building a new home while still living in your existing one. How does it work? Peak Debt: The lender combines your current mortgage, the cost of the new property (including stamp duty and legal fees), and any interest (if it’s being capitalised). This total is known as your Peak Debt. Interest Only: During the bridging period, you’ll typically pay interest only — or the interest may be capitalised (meaning it’s added to your loan rather than paid upfront). Sell Your Property: Once you sell your existing home, the sale proceeds are used to reduce your Peak Debt. End Debt: The remaining balance becomes your End Debt, which then continues as a standard mortgage. An example of a bridging loan. Your current home loan = $200,000 New home = $800,000 Total bridging loan (Peak Debt) = $1,000,000 After selling your home for $600,000, that amount is used to pay down your loan Remaining loan (End Debt) = $400,000 Things to consider. Like any major financial decision, it’s important to understand all the moving parts before you commit. Time pressure: You typically have 6–12 months to sell. If you don’t sell in time, the lender may step in to sell the property and/or charge default interest. This is an extra interest rate that a lender charges when you fail to meet your loan obligations — in this case, not selling your property within the agreed timeframe. Interest costs: If interest is capitalised, it means you're not making repayments during the loan period, so the interest gets added to the loan balance instead of being paid separately. This means your loan grows each month. Making even small repayments can help keep this under control. Equity & serviceability: Lenders will assess how much equity you have and whether you can manage the loan during the bridging period. Loan-to-value ratio: If your End Debt ends up being more than 80% of the new property’s value, you may have to pay Lenders Mortgage Insurance (LMI). Existing loan setup: If your current lender doesn’t offer bridging loans, refinancing may be required — sometimes triggering break fees if your existing loan is fixed. This means you may have to pay a penalty if you end a fixed-rate home loan early (before the agreed term is up). Is a bridging loan right for you? That’s the big question. Bridging finance can offer flexibility and peace of mind, helping you move forward with confidence rather than being held back by uncertain sale timing. But it’s not without risk or cost — so it’s vital to understand the structure, timeframe, and repayment expectations. If you’re considering your next property move and want tailored advice on whether bridging finance suits your situation, talk to the team at Ascent Property Co. or Ascent Accountants. We can also put you in touch with finance brokers to discuss what is best for you.
That work perk might be costing you more than you think… Fringe Benefits Tax (FBT) is charged at a whopping 47% — the same as the top personal tax rate. That means lower salary or fewer benefits. So, while salary packaging can save tax, in many cases it ends up costing you more.
If you’re expecting a higher income this financial year, now is the time to act. We’ve put together 9 Smart Tax Planning Tips that could save you thousands — but they only work before 30 June.
Thinking of buying or selling a business in 2025? Now might be the perfect time to make your move. With interest rates tipped to drop, new regulations coming in 2026, and a surge in buyer activity, the opportunities are out there. Click the link to learn more.
