One of the investment property tax benefits is that furniture purchased for a rental property can be tax-deductible in Australia.
However, the deduction method depends on the cost and whether the furniture is new or second-hand.
What’s the easiest way to claim deductions for furniture?
Use the instant asset write-off: In some cases, furniture under the threshold can be deducted immediately (varies by year and state).
Apply depreciation schedules: Items above the threshold must be depreciated over several years.
Hire a quantity surveyor: They can prepare a depreciation report to maximize claims, especially for furnished properties.
Can I claim deductions on second-hand furniture?
No, under Australian tax law, depreciation on second-hand furniture is not claimable for properties purchased after 9 May 2017. However, exceptions apply:
If you purchased a property before this date, second-hand furniture may still be deductible.
If you run a short-term rental (Airbnb), second-hand furniture might still be claimable.
Commercial properties are not affected by this rule and can still depreciate second-hand furniture.
What happens if my furniture is damaged?
You can claim a deduction based on the method used for the original deduction:
Repair (deductible immediately): If you repair a damaged dining table, the cost is an immediate deduction.
Replacement (depreciated if over threshold): If a $2,500 fridge is replaced, the new fridge must be depreciated.
Insurance coverage: If insured, claim the repair or replacement through insurance rather than a tax deduction.
Is it true that items under $300 can be expensed as “supplies” or “other expenses”?
Yes, in Australia, items under $300 can typically be claimed as an immediate deduction. Examples include:
- A $250 kettle for a rental property.
A $180 lamp for a furnished apartment.
A $295 microwave for a tenant’s use.
However, this does not apply to bulk purchases — for instance, buying 10 chairs at $250 each would require depreciation instead of an instant deduction.
