Tax Deductions on Property are still Available
Even with recent changes to Negative Gearing, investment properties can still provide substantial Tax Deductions through Depreciation, particularly newer properties and recently renovated homes.
At R24, we help property investors across Australia understand the Depreciation related Tax Deductions available on both Residential and Commercial investment properties.
Types of Investment Properties with strong Negative Gearing Potential
Brand new investment properties often generate stronger depreciation deductions due to their higher construction costs, fixtures and fittings, and eligible capital works.
When combined with interest payments and other eligible expenses, these deductions may contribute to Negative Gearing outcomes that can reduce an investor’s taxable income from all sources, including income earned from salary and wages.
The examples below illustrate how Depreciation deductions can vary across different property types and construction styles.
Luxury Apartment
North Sydney
1×1 in The McLaren North Sydney
From $
Why It Generates Strong Deductions:
Newly completed apartment with premium fixtures and common area assets
Estimated 5-Year Depreciation Deductions:
$122,818
CBD Apartment
South Bank
3×3 in Melbourne Square
From $552,000
Why It Generates Strong Deductions:
High-density residential tower with substantial building and plant depreciation
Estimated 5-Year Depreciation Deductions:
$94,834
Dual Occupancy
Sunrise Estate QLD
3×2 (Main Residence) + 2×1 (Granny Flat)
From $1,131,350 (House + Land)
Why It Generates Strong Deductions:
Dual-income property with multiple depreciable assets
Estimated 5-Year Depreciation Deductions:
$63,447
Co-Living Investment
Greenhill Lake Estate VIC
4×3
From $566,500 (House + Land)
Why It Generates Strong Deductions:
Newly constructed co-living property with multiple depreciable assets
Estimated 5-Year Depreciation Deductions:
$58,638
Want To Understand The Deductions Available On A Property Before You Buy?
We regularly work with builders, developers and property professionals across Australia specialising in newly built investment properties.
If you are specifically looking for newer investment stock that provide strong Depreciation deductions and Negative Gearing benefits, we can connect you with a range of property professionals specialising in these types of opportunities.
Alternatively, if you already own an investment property or are considering purchasing one, we can provide a free Depreciation Estimate to help you better understand the deductions available before purchase.
Property Investing has long been used to Build Wealth in Australia
Property investment has been one of the most common ways Australians build long-term wealth.
While higher-income earners have traditionally used property as part of their investment strategy to build wealth and reduce taxable income through legitimate property-related deductions, many everyday Australians have also used investment properties to improve their long-term financial position.
In fact, some of the largest groups of property investors in Australia include:
Teachers
Nurses
Tradies
Small business owners
For many Australians, investment property is not about becoming a full-time property investor. It is simply about building long-term financial security over time.
