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Aditi Bohara

Rental Property – Beware, You Can’t Claim These Expenses

Updated: Jul 2



When it comes to rental property, there are a range of deductions you can claim on your investment property, as we saw in our previous post ‘Rental Property-What can you claim as a deduction?


But beware, the ATO has a close interest in incorrect rental property tax claims as part of its compliance. If you are the owner of a rental property you must know there are some expenses the ATO doesn’t let you claim as a deduction, such as:


  • Expenses by the time the property was not genuinely available for rent.

  • Acquisition and disposal costs of the property, conveyancing and advertising costs and stamp duty on the title transfer. In this case, unlike the stamp duty on the transfer of a property under the ACT’s leasehold system, the stamp duty on the transfer of freehold title is not deductible.

  • Expenses not actually incurred by you, such as water or electricity usage charges borne by your tenants.

  • Expenses not related to the rental property that are connected to your own use of a holiday home that you rent out for part of the year, costs of maintaining a non income producing property used as collateral for the investment loan.

  • According to the ATO, from 1 July 2017, travel expenses relating to a residential investment property are not deductible.

  • Expenses incurred in relocating assets between rental properties prior renting.

  • Expenses for rental seminars about helping you to find a rental property to invest in.



More Information


If you need any help with your rental property expenses, please feel free to contact our professional Precent Tax and Accounting team at (+61) 2 8317 1281, or send us a message to hello@precent.com.au.

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