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A lot gets written about the tax deductions available in Australia for property investors. Negative gearing is often on the parliamentary discussion table, with the left often pushing for limiting or even outright banning negative gearing to help more Australians own their own home. The tax benefits that already exist for owner occupiers are less widely discussed, but remain significant. If you own your own home, there are potentially several tax breaks available that you should know about.

Tax deductions for homeowners in Australia

Home office expenses

Australians who work from home can generally deduct any work-from-home related costs from their taxable income. The general rule of thumb for tax is that any expense in the name of generating income is deductible. That means office chairs, laptops, stationery, even electricity and internet bills. However, the rules specify that you can only claim the portion of these costs that went towards work, so you wouldn’t be able to claim your entire electricity bill for example. This can get a bit complicated to work out so the ATO offer a shortcut called the ‘Fixed rate’ method. As of the 23/24 financial year, the fixed rate is 67 cents for every hour you work from home. This is supposed to cover internet, electricity, gas, and consumables like ink. Larger purchases, like a new monitor for example, need to be deducted separately, so it’s important to hold on to receipts to substantiate these claims come tax time. Expenses under $300 can be deducted in full, while larger purchases are claimed via depreciation.

In some circumstances, homeowners who work from home can also claim back a portion of their occupancy expenses. This includes the interest on mortgage repayments, council rates, land tax and home insurance. To be eligible, you’ll need to demonstrate to the ATO that you have no alternative, but to work from home, and that the area you use is exclusively for work. For example, imagine a self employed sound engineer who converts a room into a studio to work out of. If the room in question was 10% of the total area of the house, the engineer in question might be able to deduct 10% of his/her occupancy expenses. Again, this requires detailed records. The ATO might need to see some of the following:

  • A floor plan, with the working space clearly marked
  • Bank statements for mortgage repayments
  • Land tax notices (and evidence of payment)
  • Water and council rates receipts
  • A record of any time that the working space was used for something other than work

Renting out a room

If you rent out a room in your home, you can claim any expenses that relate to the room and the tenant. This includes occupancy expenses like interest on mortgage repayments and council rates, but again this only applies for the portion of the house being rented out, and during the tenancy. This also applies to short term stays like Airbnb.

The only catch is renting out a room renders you ineligible for a capital gains tax exemption when the time comes to sell the property.

Duty concessions

Certain new homeowners may be able to take advantage of some of the stamp duty concessions available in Australia. Stamp duty, sometimes called transfer duty, is usually charged whenever property changes ownership. It can be a significant expense: someone buying a property in NSW worth $750,000 can expect to pay $28,485 in stamp duty (per the Your Mortgage stamp duty calculator). However, each state/territory has concessions or even exemptions that apply for certain homebuyers.


Stamp Duty concessions/exemptions for home buyers

Australian Capital Territory

Concessions may apply for in the ACT for buyers purchasing a property to live in. These concessions vary based on the property value and the income of the buyer.

New South Wales

First home buyers buying new or existing property can apply for an exemption from stamp duty if the property is valued at less than $800,000. Concessions apply for properties between $800,000 and $1,000,000.

Northern Territory

Stamp duty exemptions sometimes apply in the NT when purchasing a land and property package together.


Concessions are available for anyone buying a home, which can mean savings of up to $7,175. A separate concession may also apply for first home owners buying a property valued under $550,000.

South Australia

First home buyers in SA may be eligible for stamp duty exemptions if the property is valued less than $650,000. For homes between $650,000-$700,000, concessions may apply. Anyone who has lived in a property they owned for more than six months is not eligible.


Until 30 June 2024, first home buyers in Tasmania may be eligible for a 50% stamp duty concession, providing the property is valued below $600,000.


First home buyers may be eligible for a stamp duty exemption when the property is valued below $600,000. For properties between $600,001 and $750,000, concessions may apply.

Western Australia

No stamp duty applies for first home buyers in WA when the property is valued less than $430,000. Concessions may apply for properties valued between $430,001 and $530,000.

*All information accurate as of March 2024

Capital gains tax exemption

When the time comes to sell your home, capital gains tax exemptions may apply. Capital gains tax (CGT) is generally levied on the profit made from selling something for more than it was purchased. When investors sell a rental property for example, CGT generally applies. An exemption from CGT applies for Aussies selling their home, or ‘principal place of residence’. To be eligible for the exemption, you’ll need to:

  • Have lived in the property the entire time you’ve owned it
  • Not have used it to generate income (if a room has been rented out for example, the exemption does not apply)
  • Be selling a property no larger than two hectares

Top refinancing home loans

Below are some of the most competitive refinancing home loans for owner-occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
Principal & Interest
Featured Online ExclusiveUp to $4k cashback
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000
5.94% p.a.
5.95% p.a.
Principal & Interest
5.95% p.a.
5.95% p.a.
Principal & Interest
5.99% p.a.
5.90% p.a.
Principal & Interest
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

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