For property investors, it’s a natural time to review your position and get records in order before the financial year closes.
This year there’s an added reason to take stock. The Federal Budget introduced changes to negative gearing and capital gains tax that will affect the way residential property investments are treated from 1 July 2027. Existing properties are grandfathered, but if you’re planning your next move, it’s worth being across the details.
With that in mind, here are a few general practical areas worth reviewing before 30 June.
Review your rental income
When was the last time you reviewed your rental return?
If it hasn’t changed for a while, it may be worth checking how it compares to similar properties in your area, particularly in the context of recent rate changes.
You can get a sense of current market conditions by researching comparable listings online or speaking with a local real estate agent. We can also provide a market insights report if that’s helpful.
If you’re considering any changes, it’s important to understand the relevant rules and requirements around rental increases, as these can vary.
Review your property expenses
It may also be a good time to take a closer look at your property-related expenses and how they compare to previous years. This can help you understand where your costs are sitting and whether there may be opportunities to review them.
Depending on your situation, some areas investors often look at include:
• Property management fees
• Advertising or leasing costs
• Repairs and maintenance services
• Insurance premiums
• Accounting fees
• Loan structure and interest rate
If it’s been a while since you reviewed your investment loan, we can help you understand how it compares in the current market.
Consider whether any deductions apply to your circumstances
The Australian Taxation Office (ATO) provides a list of common investment property expenses on its website.
These expenses can be broken into three categories:
• Expenses you can claim a deduction for immediately, in the income year you incur them, such as interest on loans, council rates, repairs and maintenance, and depreciating assets costing $300 or less.
• Expenses you can claim a deduction for over several years, for example, capital works, borrowing expenses and the decline in value of depreciating assets.
• Expenses you can’t claim a deduction for, such as personal expenses, some capital expenses and the purchase of second-hand (or used) depreciating assets after 9 May 2017).
It’s important to ensure any claims are accurate and supported by appropriate records. Common issues can include inaccurate claims, incomplete records, or uncertainty about how particular expenses may be treated for tax purposes.
Some expenses may also have different tax timing treatment depending on your circumstances, so you should discuss what may apply to your situation with your accountant or tax adviser before making any decisions.
Get a depreciation schedule
If you haven’t already arranged one, you may wish to look into getting a depreciation schedule prepared for your investment property by a qualified quantity surveyor.
A depreciation schedule is a report that outlines the value of your property’s assets, and how they may decline in value over time. This can include items such as flooring, appliances, fittings, and other fixtures. It’s commonly used by accountants when assessing depreciation-related tax treatments.
For more information on depreciating assets and how this may apply to your situation, you can visit the ATO website or speak with your accountant.
Get your records in order
You need to keep records associated with your rental property for at least five years. Ensuring you have all the paperwork ready to go for your accountant will help streamline your tax preparation.
Using digital tools like the ATO’s myDeductions app or software such as Xero is a convenient way to store records in one place.
Review your finance
With the cash rate now at 4.35% following three consecutive rises in 2026, it’s a suitable time to review your loan structure and finance. Refinancing may help reduce your interest costs or provide access to loan features that better suit your circumstances, depending on lender options and your individual needs.
The EOFY can also be a time to review your longer-term property and finance goals. In some cases, borrowers may consider whether existing equity could support future borrowing, subject to lender assessment and their own circumstances.
If you’re curious about what the right move could be for you, chat to us today to talk through your finance options.
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