Property Tax Minimisation Loopholes
16 legal tax minimisation strategies used by Australian property investors, each citing the ATO ruling or legislation that permits it. Educational only. Always seek advice from a registered tax agent or accountant before acting.
Depreciation Schedule
Claim non-cash deductions on your investment property without spending a cent
Six-Year Rule (PPOR Absence)
Maintain your CGT exemption for up to 6 years while renting out your home
Main Residence Exemption
Sell your principal home completely free of capital gains tax
CGT 50% Discount
Halve your capital gain by holding any investment property for at least 12 months
Prepaid Interest (30 June Strategy)
Pay next year's investment loan interest before 30 June to claim the deduction this year
Division 43 Capital Works Deduction
Claim 2.5% of the original construction cost every year for up to 40 years
Scrapping Deduction (Renovation Write-Off)
Write off the remaining book value of demolished fixtures when you renovate
GST Margin Scheme (Property Development)
Pay GST only on your profit margin when selling new property — not the full sale price
Tenancy in Common (Ownership Split)
Split investment property ownership percentages to match each owner's income tax bracket
Interest-Only Loan (Investment Property)
Maximise deductible interest while directing surplus cash to your PPOR offset
Offset Account Redirection Strategy
Keep all cash savings in your PPOR offset while maximising your investment loan balance
Trust Income Distribution
Distribute rental income from a family trust to the lowest-earning adult beneficiary
First Home Super Saver (FHSS) Scheme
Save your house deposit inside super at 15% tax instead of your marginal rate
Land Tax Threshold Splitting
Own investment properties across states or entities to maximise land tax-free thresholds
Small Business CGT Concessions
Access up to 100% CGT exemption when selling business-use property as a small business
Vacant Land Deductions (Construction Period)
Claim interest and holding costs on vacant land while you build your investment property
General Advice Warning
The information on this site is general in nature and does not consider your personal circumstances, financial situation, or needs. Before acting on any information, you should consider its appropriateness having regard to your own situation and seek professional advice from a licensed financial adviser, mortgage broker, accountant, or solicitor.