The end of the financial year (EOFY) is just around the corner, and for property investors, it’s more than just paperwork, it’s a great opportunity to maximise deductions and reduce your tax liability. With a little preparation now, you can head into tax time confident and in control.

Here’s our tips on how to get your investment property finances in order before June 30, 2025.

What Can You Claim as a Property Investor?

As a rental provider, you’re entitled to claim various expenses associated with your investment property, but not all costs are deductible, and timing plays a critical role.

Common deductible expenses include:

• Interest on your investment loan
• Council rates and strata levies
• Property management fees
• Advertising for renters
• Repairs and maintenance
• Landlord and building insurance premiums

Don’t forget depreciation.

This often-overlooked deduction applies to the building itself (if built after July 1985) and assets inside like appliances, flooring, and blinds. If you haven’t already, consider engaging a quantity surveyor to prepare a depreciation schedule. We recommend BJT Business Advisors in Berwick.

Note: If your property was purchased after May 2017, some depreciation rules have changed. Always consult your tax advisor to ensure you're compliant.

Strategically Time Your Spending

Planning to undertake repairs or pay for insurance renewals? You may benefit from bringing these expenses forward into the current financial year. Doing so can help lower your taxable income for 2024/25.

Some investors also prepay interest on investment loans (where permitted) to increase deductions in a single financial year. Remember to always weigh the pros and cons with your accountant first.

Sold a Property This Year? Know Your CGT Obligations

Selling an investment property can trigger Capital Gains Tax (CGT). How much you’ll owe depends on:

• The date of sale
• Length of ownership
• Whether the property was ever your primary residence

If you’ve owned the property for more than 12 months, you may qualify for a 50% CGT discount. At Neilson Partners, we recommend you always get professional advice to calculate your liability accurately and avoid unnecessary payments.

Keep Your Records Clean and Complete

EOFY is the perfect time to organise and review your paperwork. The ATO relies on data matching to spot errors and inconsistencies, so make sure your documentation is airtight.

You should have:

• Receipts for all claimable expenses
• Rental income statements
• Loan and interest records
• Details of any renovations or capital works

Common mistakes to avoid:

• Reporting net rental income instead of gross
• Double-claiming expenses
• Confusing repairs with capital improvements
• Incorrectly declaring jointly owned properties

Review Your Investment Strategy

Tax time is a good excuse to assess the broader performance of your investment. Ask your First National Neilson Partners Property Manager:

• Is your rent in line with market value?
• Are your expenses increasing year-on-year?
• Could your loan structure be more tax-effective?
• Should you consider adjusting your ownership structure (e.g. Self Managed Super Fund or trust)?

End of financial year isn’t just about ticking compliance boxes, it’s about ensuring your property portfolio is working hard for you.

Don’t Go It Alone – Get Expert Advice

With changing tax laws and ever-evolving ATO requirements, expert guidance is more than helpful, it’s essential. A knowledgeable property-focused accountant can help you:

• Maximise your deductions
• Avoid red flags
• Navigate CGT and depreciation rules
• Plan for long-term tax efficiency

Wrapping Up: EOFY is an Opportunity, Not a Chore

By planning ahead and getting your paperwork in order now, EOFY can be a rewarding time for property investors. Whether it’s minimising tax, reviewing your strategy, or boosting your bottom line, a proactive approach pays off.

And let’s be honest: a smooth tax season is almost as satisfying as seeing that rent hit your bank account.