Maximising Tax Deductions for Property Owners This EOFY

With the financial year about to wrap up, now is your last window to check you’re not missing any valuable tax deductions. Whether you’re renting out your property, considering a sale, or just want to make sure your investment is working as hard as it should, it’s worth knowing exactly what you can claim before June 30.

From loan interest and council rates to depreciation schedules and capital works deductions, there are a number of ways to reduce your taxable income and improve your return. Below, we’ll cover some of the most common (and often overlooked) deductions, plus why it’s smart to act now.

1. Rental Property Expenses

If you own an investment property, you may be entitled to claim a wide range of rental-related expenses. These include:

• Loan interest on your investment mortgage (interest portion only)
• Council rates and water charges
• Landlord and building insurance premiums
• Property management and leasing fees
• Repairs and general maintenance (but not capital improvements)
• Advertising costs for finding tenants
• Depreciation on fittings and appliances

To claim, make sure you have clear documentation and receipts. Even if your property was only rented part of the year, you can still claim a portion of these expenses. ATO: Rental property expenses – full list

2. Depreciation Schedules

A depreciation schedule, prepared by a qualified quantity surveyor, outlines the declining value of your property’s structure and its assets. This can be claimed each year and often results in significant deductions, especially for newer builds or recently renovated homes.

If you haven’t had a depreciation report done, it’s not too late. You can backdate claims for up to two years in some cases but acting now gets you set up for this year’s return. ATO: Depreciation Overview

3. Capital Works Deductions

For properties built after 1985, you may be eligible to claim part of the original construction costs each year for 40 years. This also applies to qualifying renovations, even if they were completed by a previous owner. These deductions fall under capital works and are typically included in your depreciation schedule. ATO: Capital Works Deductions

4. Thinking of Selling? Timing Matters

If you’re planning to sell an investment property, consider the impact of Capital Gains Tax (CGT). The date you sign the contract, not settlement, determines which financial year the gain is assessed in. Depending on your circumstances, it may be worth speaking with your accountant or financial advisor before finalising a sale. ATO: CGT Events

5. Don’t Leave It Too Late

There’s still time to get your property tax-ready but things move quickly in the final weeks of June. Now is the moment to pull together your records, speak with your accountant, and make any last-minute moves that could benefit your return.

Need Help with Your EOFY Property Strategy?

Still unsure what you can claim? There’s still time to get things in order before June 30 and the team at Love & Co can help you understand what to prioritise. Whether it’s reviewing your property’s performance, timing a sale, or planning ahead for the next financial year, we’re here to support you. Contact the Love & Co team today.