Investment Property Tax Deductions in Queensland
Last updated: 2026 · Financial year 2025-26
A comprehensive guide to every tax deduction available to QLD property investors, including QLD-specific land tax rules, depreciation claims, and ATO record-keeping requirements.
Common Deductions for QLD Investors
These deductions are available to all Australian property investors under ATO rules, regardless of which state or territory the property is located in.
Loan interest
Interest on your investment property loan is your single largest deduction. This includes interest on the original purchase loan and any loans for capital improvements.
Property management fees
Fees paid to a property manager for tenant sourcing, rent collection, inspections, and ongoing management.
Council rates
Local council rates are fully deductible for investment properties in the financial year they are paid.
Water rates and charges
Water supply charges and usage (where the landlord pays) are deductible.
Insurance premiums
Landlord insurance, building insurance, and contents insurance for the rental property.
Repairs and maintenance
Costs to repair or maintain the property in its current condition (not improvements). Includes plumbing, electrical, painting, and pest control.
Body corporate / strata fees
Quarterly strata levies for apartments and townhouses, including special levies for repairs (but not capital improvements to common property).
Land tax
Annual state land tax is fully deductible against your rental income in the year it is paid.
Advertising for tenants
Costs of advertising the property for rent, including online listings and signage.
Legal expenses
Legal costs related to tenant disputes, lease preparation, and eviction proceedings.
Travel to property (limited)
Travel costs to inspect the property, collect rent, or carry out maintenance. Note: the ATO scrutinises travel deductions closely since 2017 changes.
Depreciation — Division 40 (plant & equipment)
Deductions for the decline in value of removable assets like carpets, blinds, hot water systems, air conditioners, and appliances.
Depreciation — Division 43 (capital works)
Deductions for the building structure itself. Residential buildings constructed after 15 September 1987 qualify for a 2.5% annual deduction on construction costs.
Tax agent and quantity surveyor fees
The cost of preparing your tax return (the investment property portion) and obtaining a depreciation schedule from a quantity surveyor.
QLD-Specific Considerations
Key rules and factors that apply specifically to investment properties in Queensland. Managed by Queensland Revenue Office.
Queensland assesses land tax as at 30 June (not 31 December like most other states), so timing of purchases matters for the first year of ownership.
Interstate investors beware: From 2023-24, Queensland can include the value of your interstate landholdings when determining your QLD land tax rate bracket. This means owning property in NSW and QLD can push you into a higher QLD rate bracket even if your QLD landholdings alone are below the threshold.
Queensland does not have a separate vacant property tax like Victoria.
Strong population growth from interstate migration has driven rental demand, particularly in South-East Queensland, Gold Coast, and Sunshine Coast.
Body corporate disclosure requirements in QLD are among the most comprehensive in Australia — review the body corporate records carefully before purchasing a unit.
Land Tax in Queensland
Rate
1% to 2.75% on a progressive scale
Rate Brackets
- •Tax-free threshold of $600,000 for individuals
- •$600,001 to $1,000,000: 1% of amount over $600,000
- •$1,000,001 to $3,000,000: $4,000 + 1.75% of excess
- •$3,000,001 to $5,000,000: $39,000 + 1.25% of excess
- •$5,000,001 to $10,000,000: $64,000 + 1.75% of excess
- •Above $10,000,000: $151,500 + 2.75% of excess
- •Assessed on total Queensland landholdings as at 30 June
Foreign owner surcharge: 2% surcharge on foreign owners
Land tax is fully deductible against your rental income for investment properties. Use our Land Tax Calculator to calculate your exact land tax across all states.
Stamp Duty in Queensland
Queensland charges transfer duty on property purchases. Investment properties pay the standard rate.
- •Up to $5,000: 0%
- •$5,001 to $75,000: $0 + 1.50% of excess over $5,000
- •$75,001 to $540,000: $1,050 + 3.50% of excess
- •$540,001 to $1,000,000: $17,325 + 4.50% of excess
- •Over $1,000,000: $38,025 + 5.75% of excess
- •7% surcharge for foreign purchasers
- •No first home concessions for investment properties
Stamp duty is not an annual deduction but forms part of your CGT cost base. Use our Stamp Duty Calculator to estimate your upfront costs.
Depreciation Claims
Depreciation is one of the most powerful (and often overlooked) deductions for property investors. It allows you to claim the decline in value of the building and its fittings without spending any additional money.
Covers the building structure itself — walls, roof, floors, fixed cupboards, doors, and windows.
- 2.5% per year of original construction cost
- Applies to buildings constructed after 15 September 1987
- Claimed over 40 years
- Must have a quantity surveyor's report
Covers removable assets and fittings — items that are not permanently fixed to the structure.
- Carpets, blinds, curtains (typical life: 8-10 years)
- Hot water systems, air conditioners (10-20 years)
- Ovens, cooktops, dishwashers (12-15 years)
- Available regardless of building age
Important for QLD investors: Since March 2017, Division 40 deductions for previously used plant and equipment in second-hand residential properties are no longer available to the new owner. You can only claim Division 40 on items you purchase and install yourself. Division 43 capital works deductions are unaffected by this change.
Estimate your depreciation claims with our Depreciation Estimator.
Record Keeping Requirements
The ATO requires all property investors to maintain accurate records to substantiate deduction claims. Failure to keep adequate records can result in disallowed deductions and penalties.
Retention period
Keep records for at least 5 years from the date you lodge your tax return. For CGT purposes, keep records for the entire period of ownership plus 5 years after disposal.
Rental income
Bank statements, rental ledgers, and property management statements showing all rental income received.
Expenses
Receipts, invoices, and bank statements for all deductible expenses including repairs, insurance, management fees, and council rates.
Loan records
Annual loan statements showing interest charged. If the loan was refinanced or redraw used for personal purposes, keep records to show the investment portion.
Depreciation
A tax depreciation schedule prepared by a qualified quantity surveyor, plus receipts for any new plant and equipment you install.
Capital improvements
Receipts for renovations, additions, and improvements (not repairs). These are not immediately deductible but form part of your CGT cost base.
QLD-specific records
Keep your Queensland Revenue Office land tax assessments, stamp duty receipts, and any state-specific levy notices (e.g., emergency services levies, water authority charges).
Frequently Asked Questions
From 2023-24, Queensland can consider the total value of your Australian-wide landholdings (not just QLD land) when working out your land tax rate. Your taxable amount is still based only on your QLD land, but the rate applied may be higher because the rate bracket is determined by your total Australia-wide land value. This affects investors who own property in multiple states.
Queensland land tax is assessed as at 30 June each year, unlike most other states which use 31 December. This means if you settle on a property on 29 June, you will be liable for land tax for that full financial year.
Yes. All the standard ATO deductions apply regardless of which state your property is in. This includes loan interest, property management fees, insurance, repairs, council rates, water rates, and depreciation. State-specific deductions include QLD land tax and body corporate fees.
Companies and trustees have a lower threshold of $350,000 (compared to $600,000 for individuals). Absentee owners also have a $350,000 threshold plus a 2% surcharge.
No, depreciation rules are set by the ATO at the federal level and apply equally in all states. Division 43 (2.5% for buildings post-1987) and Division 40 (plant and equipment effective life) are the same in QLD as everywhere else.
Track Your QLD Property Deductions Automatically
PropBoss automatically categorises your rental income, expenses, depreciation, and tax deductions for your Queensland investment properties — no spreadsheets, no missed claims.
Related Calculators
Related State Guides
This guide is for general information only and does not constitute financial or tax advice. Tax laws change frequently — thresholds and rates shown are for the 2025-26 financial year. Always consult a qualified tax professional or registered tax agent for advice specific to your situation. Last reviewed 2026.