Claiming maximum investment property tax benefits

More than one million Australian property investors fail to claim free money owing to them merely because they overlook key tax deductions.

Associate at quantity surveyors Mitchell Brandtman, Tass Assarapin, says tax depreciation is a right that too many investment property owners don’t fully understand and ignore the benefits that are readily available to them.

“Paying taxes on rental income generated from an investment property can take a huge chunk out of the return on investment calculation come tax time.

“One of the best ways for property investors to improve that cash flow is to take advantage of the lucrative tax allowances on property depreciation,” says Mr Assarapin.

According to the Australian Tax Office (ATO) only 40% of rental investors have claimed depreciation on their investments.

“Just like you claim expenses on property repairs or renovations, owners of investment properties can claim deductions on the inevitable annual wear-and-tear of the investment.”

The ATO allows investment property owners to claim the depreciation or write down of assets on expenses incurred as the building and assets gradually wear out over time.

“Land doesn’t wear out, but the buildings we put on it and the fittings like carpet and blinds inside that building do wear out.

“Claiming this depreciation on your annual tax return reduces your taxable income, which means you pay less tax each year. It can literally reduce your taxable income by as much as $15,000 each year.

“I haven’t met an investor yet that would say no to that kind of reduction. That’s considerable cash flow back in your own pocket,” says Mr Assarapin.

Mitchell Brandtman are recognised by the Tax Practitioners Board to complete Tax Depreciation reports.

Investment property owners are encouraged to consider obtaining a Tax Depreciation Report on their investment properties for maximum gain this tax season. These reports can also be claimed as a tax deduction.

To help put money back in your own pocket Smarter Communities has negotiated a special offer with Mitchell Brandtman. For further details visit us at


Disclaimer: The information provided is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

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