Investment Loan Interest Repayments – What Can I Claim?
You can salary package the interest charged and paid on an eligible investment loan if this benefit is offered by your employer, provided the loan is through a recognised financial institution, is used 100% for income-producing investment purposes, and the loan is in your name or jointly held with your partner.
What you can claim
- Interest payments on an eligible investment loan where the loan funds are used to generate assessable income, such as purchasing shares, an investment property or stock
- Interest on eligible investment loans in your name, or jointly in your name and your partner’s name, based on your equitable share
- Interest on a loan used to purchase vacant land only once it is generating assessable income, such as when construction of the rental property is complete and the property is available for rent
- Redraw-related interest only where the redrawn funds were used solely for further income-producing investments, repairs, renovations and extensions of the investment/rental property
What you can't claim
- Repayments above the interest charged on the eligible loan
- Loans that are not used to generate assessable income, such as car loans or private-purpose loans
- A loan that is not in your name, including loans held under a trust, superannuation fund or company
- Interest on redraws that were used for private or non-income-producing purposes
- Interest expenses that have already been salary packaged or claimed as a deduction in your tax return
Documentation Requirements
What documents do I need?
You’ll need loan or bank contract documents showing the loan is for investment purposes. The documents should show your name, the loan amount, the investment property address if the loan relates to property, and your equitable share. You may also need evidence of the investment, such as a property title, share certificate, certificate of occupancy or formal lease agreement where relevant.
What proof of payment can I provide?
You’ll need loan or bank statements for the period being claimed showing all transactions, the BSB, account number, account holder name(s) and the interest paid. Full loan statements may also be required to confirm the interest incurred and check for redraws.