If you own an income producing property, such as a DHA property, the Australian Taxation Office (ATO) allows you to claim related expenses as a tax deduction.


Immediate deductions
The ATO provides an extensive list of expenses that you may claim immediately in the income year they are incurred.




Examples include:

•  fees and charges payable under any Strata Scheme (Body Corporate)
•  council rates
•  insurance (building, contents and public liability)
•  land tax
•  pest control
•  property management fees, and
•  repairs and maintenance.

Other deductions
The ATO identifies three types of expenses you may incur that have to be claimed over a number of years:

Borrowing expenses: You may claim a deduction for the expenses you directly incur in taking out a loan for the property (see Financing your investment). If your total borrowing expenses are more than $100, the deduction is generally spread over 5 years. The first deduction will be apportioned according to the number of days in the year you had the loan.

Decline in value of depreciating assets: You may claim a deduction for the decline in value of certain items, known as depreciating assets, you acquired as part of the property or subsequently purchased. These removable assets are commonly referred to as plant and equipment, and include items such as the oven, hot water system, carpet and floor coverings.

Capital works deductions: You may claim a deduction for the construction costs of your property. This is commonly referred to as building write-off. Generally, the rate applied is 2.5%; claimable for 40 years from the date of construction.

When you buy a DHA property, to ensure you maximise your tax deductions, we cover the cost of having a tax-compliant depreciation report prepared. Each report is compiled by a qualified quantity surveyor and is valid for the life of the property or until capital improvements are undertaken.


More information
Taxation implications vary depending on the property and your personal situation. For this reason we recommend you seek professional financial, taxation and legal advice.

Visit the ATO website for more information.



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Attention: This guide is intended to provide general information only. Legislative interpretation may vary and legislative and other changes may occur. Taxation implications vary based on the property and personal situation of the purchasers. Prospective investors should seek professional financial, taxation and legal advice. DHA will not accept responsibility for any inaccuracy or actions taken in reliance on this information.