Estimate common rental property deductions and see how eligible expenses may affect the net rental income or loss reported for an investment property.
Rental property deductions can include eligible costs incurred in earning rental income, but not every property expense is immediately deductible. Interest on an investment loan, property management fees, council rates, insurance and certain repairs may be deductible where the relevant conditions are met and the property is rented or genuinely available for rent.
Capital improvements, initial repairs and some borrowing or construction costs are treated differently and may need to be claimed over time or included in the property’s CGT cost base. Private use must also be apportioned. This calculator helps organise common rental income and expense figures so you can estimate a net rental result before completing the tax return.
Understand interest, repairs, depreciation and private-use adjustments before estimating your claim.
No. The principal component of a loan repayment is not generally deductible. Interest on money borrowed for the rental property may be deductible to the extent the borrowing is used for an income-producing purpose.
No. Repairs that restore damage or wear arising while the property is used to earn rent may be immediately deductible in some cases. Improvements, renovations and initial repairs are generally capital in nature and are treated differently.
Potentially, but restrictions apply. The decline in value of eligible depreciating assets can be deductible, while deductions for certain second-hand depreciating assets in residential rental properties are restricted unless an exception applies.
Expenses generally need to be apportioned so only the income-producing portion is claimed. This can apply to holiday homes, mixed private and rental use, or periods where the property is not genuinely available for rent.
For 2026–27, an eligible net rental loss may generally be deductible against other income under the current rules. From the 2027–28 income year, enacted reforms limit negative gearing for certain residential properties, with transitional treatment for properties held before 7:30 pm AEST on 12 May 2026 and ongoing access for eligible new builds. The calculator should therefore apply the rules for the relevant property and income year.
We can review rental income, interest, repairs, capital works and depreciation so your property schedule reflects the right tax treatment.
