Important Information ? Not Tax Advice
This page is general information only. It does not consider your personal objectives, financial situation or needs, and it is not tax, financial, legal or investment advice.
Iconic Assets is not a registered tax agent or tax adviser. We cannot tell you whether any particular buyers agent fee is tax deductible for you. That decision rests with you and your qualified tax adviser.
Tax law and ATO guidance can change over time. You should obtain up-to-date advice from a registered tax agent or accountant before relying on any assumption about deductibility.
Why Do People Ask if Buyers Agent Fees Are Tax Deductible?
When buying property, many people look for ways to manage their overall costs. It is common for property investors to ask whether certain costs, including buyers agent fees or buyers advocate fees, might be deductible for tax purposes.
From an information perspective, it can be helpful to separate:
- costs related to buying a home to live in (owner-occupied), versus
- costs related to buying an investment property that may generate rental income.
General Issues You May Wish to Discuss With Your Tax Adviser
Without giving any view on what is or is not deductible, some of the general topics people often raise with their tax adviser include:
- Whether the property is being purchased as a principal place of residence or as an investment property.
- Whether the buyers agent fees are treated as part of the cost of acquiring the asset, or as an ongoing expense related to generating income.
- Whether any part of the buyers advocate fees or commissions relates to research or advice that your adviser considers to be deductible in your circumstances.
- How any costs that are not deductible immediately may be treated for capital gains tax (CGT) purposes when the property is eventually sold.
These are technical questions. Your tax adviser can help you apply the law and ATO guidance to your specific situation.
Home to Live In vs Investment Property
In very broad terms, tax treatment in Australia often depends on whether a property is:
- an owner-occupied home (your principal place of residence), or
- an investment property held to earn rental income and potentially capital growth.
Your accountant may look at buyers agent fees for an investment property differently to fees connected with buying a home to live in. Again, this is a matter for personal tax advice, rather than something a buyers agent can determine.
If you are unsure how your planned purchase will be treated for tax purposes, raising this early with your accountant or tax adviser can sometimes help avoid surprises later.
How This Page Relates to Our Main Buyers Agent Fees Overview
This page does not explain how much buyers agents charge or how their fee structures work. It simply highlights the kind of tax questions some people choose to discuss with their advisers.
For a neutral overview of typical buyers agent fee models ? fixed, percentage-based and retainer + success fee ? you can read our Buyers Agent Fees in Australia guide. Together, that page and this one may help you frame the questions you wish to put to your accountant, solicitor or financial adviser.
Next Step: Discuss the Details With Your Tax Adviser
If you are considering engaging a buyers agent and want to understand how any buyers agent fees might be treated for tax purposes, the safest course is to speak with a registered tax agent or accountant before you sign an agreement. They can consider your circumstances, the type of property you are buying and the current tax law.
Iconic Assets can provide practical research, suburb comparisons and negotiation support as your licensed buyers agent in Sydney, while your tax adviser assists with the tax implications of your decisions.