Top Property Investor Tax Deductions Many Australians Are Still Missing And Why It’s Costing Them Thousands.

Despite rising rents and strong investment activity heading into 2026, a surprising number of Australian property investors are continuing to miss out on significant tax deductions that could dramatically improve their annual cash flow. Accountants and tax specialists are reporting that many investors—particularly first-time landlords and those managing their own returns—are still failing to claim deductions worth hundreds, and in many cases thousands, of dollars each financial year. It’s an oversight that industry experts say is entirely avoidable with the right documentation and advice.

One of the most commonly overlooked opportunities remains property depreciation, a deduction that allows investors to claim the ageing of both the building itself and the assets inside it. Quantity surveyors say the misconception that only new properties qualify still persists among everyday investors, despite older buildings often containing substantial depreciable components. Items such as carpets, blinds, air-conditioning units, appliances and past renovation work can all contribute to a sizeable annual deduction—provided a formal depreciation schedule is in place. For many investors, this single report can unlock thousands of dollars in tax benefits over the life of the property.

Another area where investors frequently fall short is in claiming the full interest expense on their investment home loans. With offset accounts, redraw facilities, split loans and refinancing becoming increasingly common in the past two years, many investors mistakenly under-claim interest simply because their records don’t clearly track the loan components. Mortgage brokers warn that as lending structures become more complex, accurate record-keeping is essential to avoid leaving legitimate deductions on the table.

A further source of confusion continues to arise around repairs and maintenance, particularly the distinction between immediate deductions and capital improvements. The Australian Tax Office remains strict on this divide: fixing a leaking tap or repainting walls is treated very differently from a bathroom upgrade or new flooring. Misunderstanding the difference is one of the leading reasons investors miss deductions or claim incorrectly. Routine repairs, pest treatments, garden upkeep and replacement of broken items are all typically claimable in full, but renovation work must be depreciated over time rather than claimed upfront.

Property professionals also note that many landlords forget to deduct the ongoing professional fees associated with owning an investment property. These include property management charges, advertising and letting fees, accounting and legal advice, landlord insurance premiums and even some dispute-related costs. Individually they may seem minor, but over a 12-month period they often represent one of the largest deductible categories for investors.

While the ability to claim travel for residential property inspections has largely been removed, tax agents say there are still limited exceptions, particularly for those operating property investment as a bona fide business or managing commercial properties. Even so, accountants recommend clarifying eligibility before claiming, as ATO scrutiny in this area has increased.

For apartment and townhouse investors, strata levies and special fees remain another crucial deduction that is frequently forgotten. Given the rising cost of building maintenance and the prevalence of major upgrade projects across ageing complexes, these contributions can be substantial—and fully deductible.

Specialists are urging investors to take a more proactive approach to tax planning. Missing deductions, they argue, isn’t just an accounting error—it’s a direct hit to cash flow in a market where holding costs remain elevated. The message is clear: understanding what you’re entitled to claim and keeping meticulous records throughout the year is no longer optional for investors aiming to maximise returns. For many, the money they’re overlooking could be the difference between a cash-strapped investment and a high-performing portfolio.

---

Ready to Find Your Dream Home?

Navigating the property market can be overwhelming, but you don't have to do it alone. Homeowner's Buyer Assist platform connects you with expert buyers agents who know the local market inside out and can help you secure the perfect property at the right price.

Whether you're a first home buyer, upgrading, or investing, our network of trusted professionals will guide you through every step of the journey.

Get Started Now Watch a Demo