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How to claim the cost of painting a property on taxes in Australia
Ever wondered if you can claim painting expenses on your tax return? You’re not alone. Every year, homeowners, landlords, and investors across Sydney ask whether that fresh coat of paint qualifies as a tax deduction.
The short answer? Sometimes yes, sometimes no.
It all depends on whether your property is a rental investment, your main residence, or used for business purposes. Let's unpack it in plain English so you can understand what’s claimable, what’s not, and how to stay on the right side of the ATO.
Can You Claim Painting on Tax?
If you own a rental property, yes, painting is often tax-deductible.
If it's your own home, no, you generally can't claim painting costs.
Here's why:
The Australian Taxation Office (ATO) treats painting as a maintenance or capital improvement, depending on the situation.
Understanding this difference is the key.
Maintenance vs. Improvement
Maintenance and repairs:
If the painting work is done to repair damage, restore the property to its original condition, or keep it rentable, it's usually deductible.
Example:
Let’s say your tenants move out and the walls are scuffed or stained. You hire professional painters in Sydney to repaint the unit so you can rent it again. That's considered maintenance, fully tax-deductible in the same financial year.
Capital improvements:
If the painting work improves your property beyond its original condition, like upgrading to a higher-quality finish, changing colour schemes for aesthetic reasons, or painting a newly built extension, that’s a capital expense.
You can't claim it immediately, but you may depreciate it over time as part of your property's capital works deduction.
Claiming Painting for a Rental Property
Painting a rental property is one of the most common (and easiest) property-related deductions.
According to ATO guidelines, you can claim painting expenses under "repairs and maintenance" if:
- The property was rented or available for rent when the painting occurred.
- The purpose was to fix damage, wear, or deterioration caused by tenants.
- The work didn't improve the property beyond its original condition.
Example:
You own a unit in Parramatta that's been rented for years. After your last tenants leave, you repaint the living room walls with a neutral colour using professional painting services before re-listing it.
This is a repair and maintenance cost, so you can claim it in full for that financial year.
When Painting Is Considered a Capital Expense
Painting becomes a capital expense when it's part of a major renovation, improvement, or initial preparation of a property.
Here are some scenarios where you can’t claim the painting cost right away:
- Before renting for the first time, If you bought a unit and painted it before putting it up for lease, it's considered an "initial cost."
- As part of a renovation or extension, Painting after adding a new room, deck, or kitchen upgrade is an improvement, not maintenance.
- For personal enjoyment, If you repaint your investment property for aesthetic reasons rather than to fix damage, that’s a capital improvement.
In these cases, you can't claim the cost immediately, but you can include it in your capital works deduction (Division 43), usually spread over 40 years at 2.5% per year.
Rental Property Painting Tax Deduction Calculator
Use this simple calculator to get an estimate of how much of your painting cost may be treated as an immediate deduction or as capital works for an Australian rental property. This is a general guide only. Always confirm with your tax adviser or the ATO.
Can You Claim Painting on Your Home?
If you live in the property yourself, painting is considered a private expense. The ATO doesn't allow deductions for home improvements or maintenance on your primary residence.
However, there are a few exceptions:
a) Home Office Area
If you work from home and use a dedicated area exclusively for business, you can claim a portion of painting costs that relate to that space.
Example:
You repaint your home office walls where you run your small business. You can claim that cost as part of your home office maintenance deduction.
Just be careful, you'll need to keep receipts and show that the room is used only for work.
b) When You Convert Your Home to a Rental Property
If you start renting out your former home, any painting done to make it rentable may qualify as a capital improvement or maintenance deduction, depending on when and why the work was done.
For example, if you paint the walls before advertising it for rent, it's a capital cost.
If you paint it later to fix wear caused by tenants, it’s a repair and maintenance cost.
How to Claim Painting Expenses
Here’s what you’ll need to do to make sure your painting expenses are tax-compliant and properly documented.
Step 1: Keep All Invoices and Receipts
Keep detailed records from your painters or suppliers. If you hired professional painters in Sydney, make sure the invoice clearly states:
- Business name and ABN
- Date of work
- Property address
- Scope of work (interior, exterior, repairs, etc.)
- Amount paid and GST
Step 2: Determine the Type of Expense
Ask yourself: Was it maintenance or improvement?
If you're unsure, check the ATO's official repair vs improvement guidelines or talk to a tax agent.
Step 3: Apportion the Expense (if needed)
Step 4: Record It in Your Tax Return
You'll usually list it under:
"Repairs and maintenance" for immediate deduction, or "Capital works" for long-term depreciation
Most property investors use accounting software or rely on a property tax accountant to ensure these details are entered correctly.
The ATO's View on DIY Painting vs Professional Painting Services
Yes, you can claim painting costs even if you do the work yourself, but only for the materials (paint, rollers, brushes, other painting tools.), not your own time or labour.
If you hire professional painting services, you can claim the full invoice (labour + materials) as long as it's a deductible expense.
Example:
You repainted your rental apartment in Sydney yourself and spent $300 on Dulux paint and brushes, you can claim $300.
But if you paid professional painters $1,200, you can claim the whole $1,200.
Many landlords prefer using qualified painters in Sydney because it ensures a high-quality finish, quicker turnaround, and proper documentation, all important for rental compliance and insurance purposes.
What Paint Jobs Are Tax Deductible?
| Type of Painting Job | Deductible | Category |
| Repainting walls after tenant damage | Yes | Repair & Maintenance |
| Touch-up after storm or water leak | Yes | Repair & Maintenance |
| Painting before leasing property for the first time | No | Capital Expense |
| Painting as part of renovation | No | Capital Expense |
| Painting a home office | Partial | Work-Related |
| Painting your own residence | No | Private Expense |
| Painting fences or decks on rental property | Yes | Repair & Maintenance |
| Repainting exterior of investment property | Yes | Maintenance |
DIY vs Professional Painter Cost Comparison
Use this quick calculator to compare the real cost of doing the painting yourself against hiring professional painting services. It also factors in the value of your time.
Common mistakes when claiming painting on tax to Avoid
- Claiming before the property is rented: You can only claim once the property is available for rent.
- Not keeping invoices: ATO may reject your claim without proper receipts.
- Claiming full cost of improvements: Big upgrades should be depreciated, not deducted immediately.
- Forgetting GST: If you're registered for GST (e.g. through a business structure), make sure you’re claiming correctly.
- Ignoring apportionment: If only part of your property earns income, only part of the cost is claimable.
Two Painting Tax Deduction Scenarios
Scenario 1:
You own a rental unit in Marrickville.
After tenants move out, you notice mould stains in the bathroom and faded exterior paint.
You hire a local painting company in Sydney to repaint both areas for $2,800.
This is a repair and maintenance expense, so you can claim the full $2,800 this year.
Scenario 2:
You buy a new investment apartment and paint it before the first tenants move in.
That $2,800 becomes a capital expense and can't be claimed right away. Instead, it's added to your property's cost base or depreciated over time.
How Professional Painters Can Help
While painting might seem like a simple job, using professional painting services can make your tax life easier.
Reputable painters in Sydney, like those at Painters Link, provide detailed invoices and use premium materials like Dulux Professional Interior Acrylic Low Sheen or Dulux Weathershield Exterior, which can be important for long-term durability and compliance with property standards.
Having professional documentation also helps your accountant categorise expenses correctly.
Plus, a professional job adds value, which, even if it's a capital improvement, strengthens your property's rental appeal and long-term return.
Tips for Maximising Your Painting Deduction
- Time it right: If you know the walls need painting, schedule it after tenants leave but before the end of the financial year to claim it sooner.
- Use neutral colours: The ATO doesn't care about colour, but future tenants might. Neutral tones help maintain rental demand.
- Keep before-and-after photos: These can support your claim as "repairs" rather than "improvements."
- Consult a property tax specialist: A good accountant can help you distinguish between immediate deductions and depreciable improvements.
FAQs About Claiming House Painting on Taxes
Final suggestions
Painting might not seem like a big deal, but it can make a noticeable difference on your tax return, and your property's appeal.
The key is knowing when it's maintenance and when it’s an improvement.
If your property is used to generate income, you can likely claim at least part of your painting costs. But if it's your own home, it's purely a lifestyle expense.
So before you grab the brush, or call your trusted painters in Sydney, take a moment to think about timing, purpose, and paperwork.
In our experience, a fresh coat of paint not only keeps your property looking sharp but also helps maintain its long-term value, and that's a win whether or not you can claim it.
