Archives: Investax FAQs

You can claim a range of expenses as deductions, including interest on your investment property loan, property management fees, council rates, property insurance, repairs and maintenance costs, and depreciation on eligible assets within the property.

Negative Gearing occurs when the expenses of owning an investment property, including loan interest, exceed the rental income received. This creates a loss, which you can offset against other income to reduce your overall taxable income.

For instance, consider Alex, who purchases an investment property, earning $25,000 annually in rent, but incurs $18,000 in loan interest and $10,000 in other expenses like maintenance and management fees, totalling $28,000 in costs. This scenario leaves Alex with a $3,000 loss due to his expenses exceeding his rental income, a situation known as negative gearing. Alex can then deduct this $3,000 investment property loss from his other taxable income, say a salary of $80,000, effectively reducing it to $77,000 and lowering his overall tax liability.

Yes, you may be able to claim car expenses if you travel for work-related purposes. This includes using your car to perform tasks directly related to your job, such as visiting clients, attending meetings, or traveling between different work locations. Keep accurate travel records, including travel distances and related expenses, to support your claims. Remember that personal trips, such as commuting from home to your regular workplace, are generally not eligible for tax deductions.

Yes, you can claim deductions for expenses related to working from home if you meet the eligibility criteria. The ATO introduced a simplified method, which allows you to claim a fixed rate for each hour worked from home.

If you miss the October 31st deadline and you’re not using a tax agent, you might face penalties and interest on any tax owing. It’s best to lodge your return as soon as possible to avoid these additional charges.

Yes, if you’ve paid more tax than you owe, you can receive a tax refund. This usually happens when your employer withholds more tax than necessary from your wage, you’ve made excess payments throughout the year, or you have large investment losses/negative gearing.

In most cases, yes. If you are an Australian resident for tax purposes, you generally need to declare your worldwide income on your Australian tax return. However, certain exemptions and credits might be available based on international tax agreements.

The usual deadline for filing your individual income tax return in Australia is October 31st. However, if you are using a registered tax agent, you might be eligible for an extended deadline, generally up to May 15th of the following year.

You only need one depreciation schedule per investment property. We encourage our clients to obtain the report soon after the property settlement. If you make significant changes to the property at a later date, the schedule may need to be updated.