Tax Benefits For Homeowners

Tax Benefits For Homeowners

Beyond the obvious advantage of owning a home that allows you to live your dream coastal lifestyle, owning a Capricorn Beach property could also provide significant tax benefits.

In today’s article, we explore the tax breaks and benefits that come with owning a home.


Working From Home

In early 2021, a survey showed that 41% of the Australian workforce now work remotely. If you own your home, staying home from the office may actually be to your tax advantage.

If you have a dedicated office space within your home that you operate from, you may be able to claim the following expenses:

  • Mortgage payments
  • Home insurance
  • Depreciation of home office equipment (desks, chairs, etc.)
  • Maintenance for your office
  • Telecommunications costs – WIFI and phone bill
  • Utility expenses such as gas and electricity


However, it is essential to chat with your employer and a financial advisor before claiming these deductions.

Negative Gearing

For many, negative gearing can seem like a bit of a mystery. However, negative gearing is an important strategy to explore if you plan to rent out your property. If you are looking to purchase an investment property in Capricorn Beach, check out the information below:

  • What is negative gearing?

Negative gearing occurs when the total cost of your interest payments and other expenses exceed the total income generated by the rental property.

  • Why is it a helpful strategy?

Property investors can offset the loss acquired through the expenses of the property against their income. Therefore, their taxable income is less – which can be a sound strategy, especially if the property owner is in a high tax bracket.

  • What types of expenses can I claim as tax deductions?


The expenses that you can claim as offsets from your income tax include:

  • Interest paid on the property
  • Insurance
  • Maintenance costs
  • Property agent fees
  • Cleaning fees

There are risks involved in negative gearing. Before utilising this tax strategy, consult with a financial advisor and see the ATO’s “Rental Expenses to Claim” website.


Renting Out A Room

If you rent out one of the rooms in your new Capricorn Beach home, you may be able to claim some tax deductions.

First, determine how your expenses work based on how the floor area is divided between you and your renter. Then, you can claim tax deductions in the same way you would if you had a regular rental property.

Speak to a tax accountant or financial advisor to confirm if this applies to you before claiming with the ATO.


Own Your Dream Coastal Home at Capricorn Beach

Beyond the tax benefits, being a homeowner of a Capricorn Beach property comes with a whole other set of perks. From the stunning, white-sand Yanchep beaches to the development of the brand-new Capricorn Foreshore, there are so many reasons to join the Capricorn Beach community. Check out our House and Land Packages, or contact our team to explore the options.