Maximising Tax Deductions for Real Estate Professionals

Real estate professionals — agents, property managers, auctioneers, and support staff — often incur significant work-related expenses that can be claimed as tax deductions. Understanding what you can and cannot claim is essential to ensuring you pay only the tax you owe.

Vehicle and Travel Expenses

Real estate agents typically spend a large portion of their working week on the road — attending property inspections, open homes, client meetings, and auctions. Travel between the office and these work locations is deductible, though travel between home and a regular workplace generally is not.

If you use your own vehicle for work purposes, you can claim using either the cents-per-kilometre method (currently 85 cents per kilometre, capped at 5,000 business kilometres) or the logbook method, which requires maintaining a logbook for a continuous 12-week period to establish the business-use percentage.

For agents who travel interstate or regionally for work — such as attending conferences, networking events, or managing properties outside their local area — accommodation, meals, and incidental costs may also be deductible, provided the travel is primarily for work purposes.

Phone, Internet, and Technology

Mobile phones, tablets, and laptops are standard tools for real estate professionals. Where a device is used for both work and personal purposes, you can claim the work-related portion. If a device costs more than $300, the deduction must be spread over the effective life of the asset through depreciation rather than claimed in full in the year of purchase.

Phone and internet expenses are deductible to the extent they are used for work. The ATO accepts a reasonable estimate of the work-related percentage, but keeping records — such as an itemised phone bill for a representative month — strengthens your claim.

Marketing and Advertising

Agents who pay for their own marketing materials, signage, online advertising, or property listing costs can claim these expenses. This includes business cards, branded clothing (where it is not suitable for everyday wear), and contributions to office advertising campaigns where the cost is borne by the individual agent.

Photography and videography costs for property listings are deductible where the agent pays for them directly.

Professional Development and Licensing

Costs associated with maintaining your real estate licence, including renewal fees and required continuing professional development (CPD) courses, are deductible. Training courses, seminars, and industry conferences that relate directly to your current role are also claimable.

However, study expenses for qualifications that would open up a new career — such as a university degree in property valuation when you are currently an agent — are generally not deductible unless the study has a sufficient connection to your current income-earning activities.

Home Office Expenses

Agents who perform administrative work from home — preparing contracts, responding to emails, managing client communications — can claim a deduction for home office expenses. The ATO provides a fixed-rate method of 67 cents per hour for the combined costs of electricity, phone, internet, stationery, and computer consumables.

Alternatively, you can calculate actual costs for each expense category, but this requires detailed records.

What You Cannot Claim

Not all expenses are deductible. Common items that agents cannot claim include the cost of conventional clothing (even if worn to open homes), fines and penalties, childcare expenses during work hours, and the personal-use portion of any shared expense.

Record Keeping Is Essential

The ATO has flagged real estate agents as a profession subject to targeted compliance activity. Maintaining clear records — receipts, logbooks, invoices, and bank statements — is the best protection against an audit adjustment. Digital record-keeping tools can simplify this process significantly.

A tax adviser who understands the real estate industry can help you identify all available deductions and ensure your claims are defensible.