Tax Incurred by an Investor: Tax Refund On Spot

There are several taxes that you will incur when acquiring and owning an investment property:

  • Income Tax
    You will be required to pay tax on income (rent and any other money) which you receive from your property. This may be offset however; by interest repayments on your loan as well as other deductions.
  • Capital Gains Tax (CGT)
    Capital gains tax is required to be paid on any profit made from your investment property once sold. The applicable rate of CGT is the same as the income tax rate which we pay, however if we own the property for more than 12 months, you gain a 50 percent discount on the capital gain.
  • Property Taxes
    Sometimes referred to as council rates, this local tax typically funds local government investment and expenditure, such as rubbish collection, parks and public facility maintenance and other community services. The frequency and amount of tax will depend on the local municipality and the market value of our property.
  • Land Tax
    Land tax is imposed by all state and territory governments, excluding the Northern Territory. It is payable based on the combined unimproved value of the land we own and is calculated on what our land would be worth if it was vacant; therefore it does not include existing dwellings on the property. Land tax is payable on all property we own, except our principal place of residence. The amount of this annual payment will vary by locality


For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

The Deductions of an Investor – Tax Refund on Spot

As an investor, there are three categories of expenses which you have the luxury of deducting from your tax:

  1. Acquisition and Maintenance Costs
    We can counteract expenses relating to our investment property against fee income; whether it was negatively geared or not. Some expenses which can be claimed are:

    • Advertising expenses to find tenants
    • Bank fees and charges on our loan accounts
    • Borrowing expenses
    • Body corporate fees
    • Cleaning costs
    • Council rates
    • Electricity and gas not paid by the tenant
    • Insurance – building, landlord, etc.
    • Interest on your investment loans
    • Land tax
    • Legal expenses
    • Property manager fees and commissions
    • Surveyors’ fees
    • Repairs and maintenance
    • Stationery and postage expenses
    • Investment related telephone bills
    • Tax-related expenses
    • Travel and car expenses for rent collection or inspections
    • Costs incurred for the inspection or maintenance of our property
    • Water charges.
  2. Depreciation Allowances
    All landlords who own an investment property are entitled to claim depreciation on newly purchased items. We can deduct depreciation on fixtures and fittings in the property, such as:

    • Appliances
    • Blinds
    • Carpets
    • Furniture
    • Hot water system.
  3. Negative Gearing
    Negative gearing occurs when the annual cost of our investment is greater than the return which we receiving. In simple terms, when the ongoing costs such as maintenance and loan repayments are greater than rental income, then the property is negatively geared. If we re negatively geared, the government allows the loss on our property to be deducted from our gross income, creating a reduction in our tax liability.

For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au