As the end of financial year approaches, it’s important for property owners and investors to review their finances and ensure they're making the most of all eligible deductions. A little preparation now can result in significant tax savings and help you start the new financial year with confidence.
Here are our top tips to get you on the front foot this tax season.
Start by gathering all the relevant documents your accountant will need. These include:
Rental income statements
Loan interest summaries
Invoices for repairs, maintenance, or services
Insurance policy details
Council, water, and strata rate notices
Property management statements
Depreciation schedules (if applicable)
Having this ready early avoids a last-minute scramble and ensures nothing is missed.
The ATO allows deductions on a wide range of investment property expenses. Common deductible items include:
Interest on investment loans
Council rates and land tax
Property management fees
Insurance (building, landlord, and contents)
Repairs and maintenance
Advertising for tenants
Travel expenses related to managing the property (only for certain entities)
Depreciation on building and fittings (via a depreciation schedule)
Always keep receipts and documentation for any claimable expense.
Understanding this distinction is key to claiming correctly:
Repairs return an item to its original condition and can generally be claimed in full in the same financial year.
Improvements increase the property’s value or extend its life and must be depreciated over time.
For example, replacing a broken tap is a repair, while installing a brand new kitchen is an improvement. If you’re unsure, seek advice—misclassification can lead to denied claims or penalties.
If you’ve prepaid items like insurance or interest on a loan (for up to 12 months in advance), you may be able to claim the full amount in the current financial year. This is a smart strategy for managing cash flow and maximising your deductions now.
If your property is relatively new, renovated, or includes updated appliances or fixtures, you may be eligible to claim depreciation. A professional depreciation schedule from a qualified quantity surveyor is essential and can unlock thousands of dollars in tax savings over time.
Even older properties can benefit, especially if capital works or improvements have been made.
A property-savvy accountant is one of your most valuable allies. They’ll ensure you’re claiming everything you’re entitled to while staying compliant with ever-changing tax regulations. If you own multiple properties or run your investments through a trust or company, expert advice is essential.
If you’ve used your investment property for private purposes during the year, your deductions may be reduced accordingly. This applies whether the property was used by you, friends, or family—even for a short period. Be transparent and keep detailed records to avoid audit issues.
Beyond compliance, the end of financial year is a good time to:
Evaluate the performance of each property
Review rent levels and expenses
Refinance or renegotiate your loan
Assess whether your investment goals are on track
A yearly check-in helps you make strategic decisions for the year ahead.
Getting tax time right can significantly boost the financial return on your investment property. With clear records, a solid understanding of what’s deductible, and guidance from a good accountant, you’ll be in a strong position to maximise your return and grow your portfolio with confidence.
If you're looking to appraise your property's current value or explore new investment opportunities, our team is here to help. Get in touch for tailored support from local property experts.
