Australian Taxation legislation allows for a number of deductions/allowances, including but not limiting to:

• Interest payable on borrowings used to buy an investment property;
• Depreciation on the building, renovation costs and fixtures & fittings;
• Repairs and maintenance costs;
• Property management fees

for investment properties which can be offset against rental income. Property tax deductions/allowances can reduce an investors assessable income, and by correctly claiming and maximizing these deductions, property investors can significantly enhance their after tax return from their investment.

Property investors should seek professional advise on property deductions/allowances, to ensure that the deductions/allowances are calculated correctly and investors receive the maximum benefit of deductions/allowances available.

When a property is sold, including both investment properties and in some cases non-investment properties, Capital Gains Tax may be payable on any capital gain generated from owing the property. Potential property buyers should seek professional advice on such issues prior to buying any property.