Buying guide
Interest deductibility on rental property explained
The laws are changing so we’ve got up to date answers to make life easier.
AI summary
The government is reintroducing interest deductibility for rental properties, allowing landlords to deduct mortgage interest costs from their rental income. This reverses the previous phase-out policy.
The new phase-in schedule for deductions is:
- 2023/24 tax year: 60%
- 2024/25 tax year: 80%
- 2025/26 tax year: 100%
Additionally, the bright-line test has been shortened to two years. Landlords should consult a tax professional to navigate these changes and ensure they remain compliant.
But first, what is interest deductibility on rental property?
Current rules — what's deductible now?
There are tax advantages to owning a new build property.
Other changes for investors to note
Should I be doing anything now?
Get the right help
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