Hi, I have an owner occupied home with $700k loan, I have early paid most part of the loan and aim to withdraw $600k to pay a deposit on an investment apartment. I intend to continue living in my current place. Is the interest paid on $600k drawn against the owner occupied to buy an investment tax deductable? Regards MK
Rental expenses you can claim now | Australian Taxation Office (ato.gov.au)
Interest expenses
Charges on the principal amount of the loan that you take out for a rental property are known as interest expenses. The principal amount is the money you borrow from your bank or lender.
If you take out a loan to purchase a rental property, you can claim a deduction for the interest charged on the loan or a portion of the interest.
You can't claim a deduction for the additional payments you make to reduce the principal amount of the loan.
The property must be rented or available for rent in the income year you are claiming a deduction for the interest expenses.
Unless the investment property has been used as security for the loan, it doesn't appear that interest is deductible.
Rental expenses you can claim now | Australian Taxation Office (ato.gov.au)
Interest expenses
Charges on the principal amount of the loan that you take out for a rental property are known as interest expenses. The principal amount is the money you borrow from your bank or lender.
If you take out a loan to purchase a rental property, you can claim a deduction for the interest charged on the loan or a portion of the interest.
You can't claim a deduction for the additional payments you make to reduce the principal amount of the loan.
The property must be rented or available for rent in the income year you are claiming a deduction for the interest expenses.
Unless the investment property has been used as security for the loan, it doesn't appear that interest is deductible.
20 June 2024 · 3 min read time
6 Feb 2026 · 4 min read time
24 Aug 2025 · 3 min read time
161 views
1 replies