Tax time might not be everyone’s favourite season—but it’s a golden opportunity to get your finances in order and plan ahead with purpose.
If you own an investment property, being across the deductions you’re entitled to can make a big difference at tax time. Here are some key strategies to help you maximise your return and set yourself up for success in the new financial year.

Understand What You Can Claim

As a general rule, if you’ve spent money to earn rental income and have kept records, you may be able to claim that expense.

The Australian Taxation Office (ATO) breaks up rental property deductions into three main categories:

• Immediately deductible expenses – These are claimable in the same year you incur them. Examples include interest on your investment loan, council rates, pest control, urgent repairs, and items under $300.
• Deductions over time – This covers capital works (like structural improvements), borrowing costs, and asset depreciation, which are claimed over several years.
• Expenses you can’t claim – These include personal costs (if you use the property yourself at times) or some second-hand depreciating assets purchased after 9 May 2017.

Split expenses if the property isn’t always rented

Do you list your property on Airbnb or rent out only part of it, like a single room? You’ll need to split expenses based on the proportion of the property used to generate income — and when.
The ATO has clear guidelines for apportioning expenses correctly. Getting this wrong can mean under-claiming or, worse, over-claiming and triggering an audit. You can find more information about how to apportion expenses correctly in the ATO’s rental properties guide.

Don’t Miss Deductions Spread Over Time

Some costs can’t be claimed upfront, but they still add up.

For example:

• Borrowing expenses, like loan establishment fees, can be deducted over five years or over the loan’s term—whichever is shorter. If the cost is $100 or less, you can claim it in full right away.
• Capital expenses (such as major improvements or renovations) may be depreciated over time, depending on the nature of the works.
• You can also claim for the decline in value of depreciating assets (e.g., appliances, carpets, curtains). A qualified quantity surveyor can prepare a depreciation schedule to help ensure you claim the correct amount each year.

Book Repairs Before 30 June

Need to fix that leaky tap or replace the hot water system? Taking care of maintenance before 30 June means you may be able to claim the deduction this financial year—rather than waiting another 12 months.

Examples of deductible repairs include:

• Replacing broken fixtures
• Fixing door locks
• General pest control

Don’t Overlook Loan and Insurance Costs

In most cases, your finance-related expenses are deductible, including:

• Interest on your investment loan
• Loan account and bank fees
• Borrowing costs

You may also be able to claim insurance premiums for your investment property, including building, contents, landlord liability, and loss of rent coverage.

EOFY Property Investor Checklist

• Know what you can claim now vs. over time
• Split expenses for short-term or partial-use rentals
• Review borrowing costs and depreciation
• Finalise repairs and maintenance before 30 June
• Include all eligible loan interest and insurance costs
• Keep detailed records and receipts

Let’s Plan Ahead—Together

The end of the financial year is a great time to take stock, claim what you’re entitled to, and make plans for the year ahead.
While your accountant can assist with tax strategy, as your local 1st Street Mortgage Broker, I’m here to help with your finance goals. Whether it’s reviewing your current loan or arranging finance for your next property purchase, I’m just a call away.

Get in touch today – let’s set you up for a smarter financial year.