Who can claim
This deduction is available to individuals and companies.
- Borrowed funds or the account are used to earn assessable investment income.
What you cannot claim
- Interest on a personal tax debt is not deductible.
- Private and non-income-producing use is excluded.
- Mixed-purpose borrowing must be apportioned.
How the amount is worked out
Claim the portion of deductible interest and account fees connected with earning assessable investment income.
Records the ATO expects
- Loan statements
- Account statements
- Tracing and apportionment calculation
Where this rule comes from
Primary source: ATO investment income deductions (ATO investment-income deductions guidance accessed 30 July 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- Income Tax Assessment Act 1997 section 8-1 (Section 8-1)