Are economic costs tax deductible when selling investment property?

Hi Everyone,

Last year i sold my investment property in NSW and as i was on a fixed interest rate with NAB for 5 yrs they hit me with an economic cost fee of approx $6,000 which i had to pay to NAB when i sold my unit and paid out the loan.

For those who have not heard about economic costs they are (from the NAB website): Economic cost is NAB’s calculation of its loss on a fixed term loan due to movements in the cost of funds ie. loan payout.

I was wondering if anyone knows whether this amount would be tax deductible for tax return purposes or is it simply a capital cost and taken into account in working out capital gains (this property is exempt under the principal place of residence exemption).

This is the first investment property i have owned and sold so i have never came across these economic costs before and do not know how to treat them for tax purposes (it would be nice if they were a tax deduction)…

Any advice would be very much appreciated – i'm hoping someone else has been in this situation before.

Thanks!

Investor1985