EOFY Is Nearly Here in Queensland, Australia – Do You Know You Can Claim Expenses for Your Investment Property?

As the End of Financial Year (EOFY) approaches in Queensland, many property investors are starting to sort out receipts, review rental statements, and prepare for tax time. But did you know that owning an investment property can unlock a significant number of deductions that could reduce your taxable income and potentially lead to a healthy refund?

If you’re a property investor—new or experienced—understanding what you can legally claim is essential. This blog will walk you through the process, from the types of expenses you can deduct, to the common mistakes to avoid, and tips to maximise your returns. Whether you own a single rental home in Brisbane or a portfolio across Queensland, this guide is for you.

Table of Contents

1. Understanding EOFY in Australia

2. The Basics of Property Tax Deductions

3. Types of Deductible Expenses

   • Immediate Deductions

   • Depreciation and Capital Works

4. The Importance of Accurate Record Keeping

5. How to Maximise Depreciation Deductions

6. Common Mistakes Property Investors Make

7. What You Can’t Claim

8. Special Considerations for Queensland Investors

9. EOFY Checklist for Property Owners

10. Working With a Tax Agent or Accountant

11. Final Words: Get Rewarded for Being a Smart Investor

1. Understanding EOFY in Australia

The End of Financial Year in Australia runs from 1 July to 30 June. For the 2024–2025 financial year, it ends on 30 June 2025.

This is the time when:

• Individuals lodge their tax returns.

• Businesses and investors calculate their income and deductible expenses.

• The ATO assesses whether you owe additional tax or are eligible for a refund.

EOFY is especially important for property investors because a well-prepared tax return can significantly improve your financial outcomes. Knowing what deductions you’re entitled to ensures you claim every cent you’re legally owed.

2. The Basics of Property Tax Deductions

The Australian Taxation Office (ATO) allows property investors to claim a range of expenses incurred while earning rental income. If you own a property that is rented or available for rent, you can generally claim:

• Operating expenses (e.g., council rates, insurance, property management fees)

• Repairs and maintenance

• Loan interest

• Depreciation on the building and fixtures

These deductions are designed to offset your rental income, thereby reducing your taxable income. The higher your eligible deductions, the less tax you pay.

3. Types of Deductible Expenses

Immediate Deductions

These are expenses you can claim in full in the year they were incurred:

• Advertising for tenants – costs for online, print, or signboard marketing.

• Body corporate fees – if they relate to maintenance and management (not capital works).

• Council rates – water and general property rates.

• Property management fees – letting fees, inspection costs, ongoing management fees.

• Repairs and maintenance – fixing a leaky tap or replacing broken glass (not improvements).

• Interest on loans – only the interest portion is deductible, not the principal.

• Pest control – annual treatments or emergency callouts.

• Insurance – landlord insurance, building insurance, and public liability.

• Stationery and phone calls – associated with managing your property.

Depreciation and Capital Works

These are deductions spread out over several years:

• Capital works deductions – for buildings constructed after 1985, you may claim 2.5% annually for 40 years.

• Plant and equipment depreciation – this includes items like carpets, air-conditioners, and dishwashers. However, since 2017, depreciation rules have changed, especially for second-hand properties.

Tip: A Quantity Surveyor can prepare a Tax Depreciation Schedule to maximise your long-term claims.

Source: Deductions you can claim – ATO

4. The Importance of Accurate Record Keeping

Record keeping is not just about having receipts—it’s about protecting your claims.

You should maintain records of:

• Rental income

• Property purchase documents

• Loan statements

• Invoices for expenses

• Insurance policies

• Agent statements

• Depreciation schedules

Store these documents for at least five years. Digital copies (PDFs, photos, cloud storage) are acceptable as long as they are legible and accessible.

5. How to Maximise Depreciation Deductions

If your investment property was built after 1985 or had significant renovations, you may be eligible for thousands in annual depreciation deductions.

Why you should consider a depreciation schedule:

• It includes both capital works and plant & equipment.

• It can be backdated if you’ve never claimed before.

• It’s valid for 40 years.

Many investors miss out on these deductions by assuming their property is “too old” or because they lack the right documentation. Engaging a qualified Quantity Surveyor to inspect your property and prepare a compliant report is worth the investment. Speak to DUOTAX online for free consultation

6. Common Mistakes Property Investors Make

Here are some frequent errors that can cost investors money or trigger ATO scrutiny:

• Claiming initial repairs – if you fix damage that existed before you bought the property, it’s not immediately deductible.

• Over-claiming private use – if you use the property yourself, even for a weekend, you must apportion expenses.

• Forgetting to apportion shared expenses – if you own part of a property, you must only claim your share.

• Claiming construction or improvement costs as repairs – these are capital works, not maintenance.

Avoid these mistakes by working with a tax professional who understands investment property rules.

7. What You Can’t Claim

Not all costs related to your investment are deductible. Common non-deductible expenses include:

• Stamp duty on purchase

• Loan principal repayments

• Initial property inspection prior to purchase

• Travel to inspect properties (for most individual investors, post-2017 rules)

• Renovations that improve the property rather than maintain it

• Personal expenses

You can, however, add some of these to your cost base for Capital Gains Tax (CGT) purposes.

Disclaimer: Consult your local tax agent, this information is for guideline only 

Visit ATO Portal for reference.

8. Special Considerations for Queensland Investors

In Queensland, unique conditions can impact your claims:

• Cyclone and flood resilience upgrades (e.g., roofing, drainage, retaining walls) may qualify for capital works deductions.

• Body corporate rules are more prevalent in unit complexes—make sure you understand what’s maintenance vs capital.

• Insurance premiums may be higher in North Queensland—keep good documentation to support higher claim amounts.

• Solar panels or water tanks added for rental purposes may be depreciable.

Also, Queensland has some of the most dynamic rental markets. Ensure your claims reflect true market conditions, especially if the property has periods of vacancy or below-market rent.

9. EOFY Checklist for Property Owners

Before 30 June, you should:

✅ Gather your rental income and expenses
✅ Review your agent’s end-of-year summary
✅ Book a depreciation schedule (if not already done)
✅ Check if any major expenses are worth pre-paying (e.g., insurance or loan interest)
✅ Ensure repairs are completed and documented
✅ Confirm your property was genuinely available for rent (to qualify for claims)
✅ Plan for any capital gains or losses if you’ve sold a property this year
✅ Speak to your accountant or tax agent early

Being proactive before EOFY can make your return smoother and your refund larger.

10. Working With a Tax Agent or Accountant

A tax agent experienced in property investment can be your best asset at EOFY. They can:

• Identify every legal deduction

• Help you structure your claims properly

• Assist in apportioning mixed-use or part-year rentals

• Advise on investment structures (e.g., owning via trust, company, or joint ownership)

Make sure your accountant is aware of:

• All your properties (not just the ones that generated income this year)

• Any capital improvements or renovations

• Changes in tenant occupation or usage

A well-prepared tax return can save you thousands and keep you ATO-compliant.

11. Final Words: Get Rewarded for Being a Smart Investor

EOFY doesn’t need to be stressful—it can actually be an opportunity to unlock the full value of your property investment. The Australian tax system rewards diligent and informed investors with generous deductions. But you must know your rights, keep accurate records, and get the right advice.

Queensland’s property market remains strong, and smart investors use every tool available—including tax planning—to increase their returns. Don’t leave money on the table. As 30 June approaches, take the time to prepare your records, speak to your accountant, and get ready to claim everything you’re entitled to.

Ready to take the next step?
Speak to a property-savvy tax professional or book a depreciation schedule today. EOFY is your moment to make the most of your property investment—don’t miss it.

• Body corporate fees
• Advertising costs
• Council rates
• Land taxes
• Water rates
• Interest on loans
• Landlord, building, contents (if furnished) and public liability insurance
• Cleaning fees
• Garden maintenance costs
• Pest control costs
• Repairs and maintenance costs
• Legal expenses
• Property management fees
• Depreciation on assets
•  

A property manager will keep records of all these expenses for you. Now is a good time to engage a property manager if you haven’t already. Call +61412240939 to talk to Shiva Real Estate about their property management services today!