Your guide to key tax deductions, depreciation schedules and EOFY preparation.
As the end of financial year approaches, it’s the perfect time for Melbourne rental providers to review their expenses and make the most of available rental property tax deductions.
With the right strategy and expert advice, you can improve cash flow, reduce your tax bill and set your investment property up for long-term success.
What Rental Property Expenses Can You Claim?
There are many rental property expenses you may be eligible to claim. Common tax deductions include:
Loan interest, the interest portion of your investment loan repayments
Property management and leasing fees, including advertising for a renter
Council rates and land tax
Repairs and maintenance, relating to general wear and tear while the property is rented
Insurance, including building, rental provider and contents insurance
Utilities, paid on behalf of the renter
Depreciation, on eligible fixtures, fittings and the building structure
Lease preparation and legal fees, associated with managing or maintaining the property
To confirm eligibility, visit the ATO’s Rental Property Investor Toolkit.
Depreciation Schedules, A Missed Opportunity
One of the most overlooked tax deductions for rental providers is depreciation. If your property or its assets have declined in value over time, you may be able to claim this as a deduction.
There are two types of depreciation:
Capital works depreciation, for structural items like walls, roofing and renovations
Plant and equipment depreciation, for removable items such as appliances, carpets, blinds and heating or cooling units
To maximise your claim, consider arranging a professional depreciation schedule, particularly if your investment property was built after 1987 or has been renovated.
If you need a trusted depreciation schedule provider in Melbourne, your local Nelson Alexander team can connect you with a qualified specialist.
End-of-Financial-Year Checklist for Rental Providers.
Use the checklist below to make sure you’re prepared before 30 June.
Do:
Keep detailed records of all income and expenses
Review your annual rental statement for claimable items
Consider prepaying interest or insurance to bring forward deductions
Check whether recent upgrades or renovations are depreciable
Work with a property-focused tax agent or accountant
Don’t:
Confuse immediate repairs with long-term improvements
Forget to adjust expenses if the property was vacant or partly owner-occupied
Overlook small but deductible items like cleaning or garden maintenance
Miss out on claims due to lost receipts or poor documentation
Common EOFY Questions from Rental Providers
Can I claim travel to inspect my rental property?
No. Since 1 July 2017, travel expenses related to residential rental properties are no longer deductible for individual investors.
Do I need a new depreciation schedule every year?
Not usually. A professionally prepared depreciation schedule can often be used for several years. However, it may need to be updated after a renovation or when new assets are purchased.
Can I claim deductions if my property wasn’t rented all year?
You can only claim expenses for the time your property was genuinely available for rent. Expenses must be apportioned accordingly.
Helpful Resources for Rental Providers:
Tax Time Toolkit for Investors
2025 ATO Non-Individual Tax Form Updates
We’re Here to Help You Get EOFY Ready
At Nelson Alexander, we work with thousands of rental providers across Melbourne. From reviewing your annual expenses to helping you arrange a depreciation schedule; our team understands how to maximise your return.
Contact your local Nelson Alexander office today to review your property’s performance or discuss your end-of-financial-year strategy.
