Claiming rental expenses as a landlord involves deducting costs incurred in generating rental income from your investment property. As of December 2025, these deductions reduce your taxable income, potentially lowering your overall tax liability.
In 2026, landlords in Victoria can typically claim expenses like property management fees (currently around 7-10% of weekly rent in Melbourne’s Eastern Suburbs), insurance premiums, rates and taxes, repairs and maintenance (excluding capital improvements), and interest on the mortgage. Depreciation on building structure and assets like appliances is also claimable, often requiring a quantity surveyor’s report. It’s important to note that expenses must be directly related to the rental property and properly documented. Many landlords in areas like Balwyn and Doncaster engage accountants to maximise legitimate deductions. The ATO’s rules around claiming expenses are regularly updated; announced changes for 2027 regarding depreciation allowances are currently being monitored by Fletchers to advise our clients. We observe that understanding these rules is often a key consideration for property owners contemplating selling, as potential tax implications can influence their timing.
Accurate record-keeping and professional advice are essential for claiming all eligible rental expenses in Victoria.