EOFY Tips to Boost Your Property Tax Deductions

As we approach the end of the financial year, now is the perfect time to ensure you’re making the most of the deductions available to you as a property investor. Strategic planning now can result in significant savings come tax time.

We’ve put together a quick guide and useful resources to help you feel confident and prepared, whether you manage one investment property or an entire portfolio. From understanding what you can claim, to knowing how to organise your records and when to seek professional advice, this guide is designed to give you a clear path forward.

Understanding Rental Income

All rent received from your tenants is considered taxable income by the Australian Taxation Office (ATO). This includes:

• Rent paid in advance
• Late payment fees
• Any additional amounts outlined in your lease agreement

Keeping clear and accurate records is essential. Make sure you maintain:

• Review your income and expenses for the year
• Ensure all receipts, invoices, and documentation are up to date and stored securely
• Loan and mortgage documents
• Contracts related to property purchase or sale
• Details of depreciable assets and how they are used

Well-organised documentation not only supports accurate income reporting but is crucial in the event of an audit.

 

Key Deductions to Help Reduce Your Taxable Income

Make the most of your investment by understanding where you can legitimately reduce your tax:

• Loan Interest: Mortgage interest and interest on loans used for property improvements are generally tax-deductible.
• Repairs vs. Improvements: Repairs (e.g. fixing a leaking tap) are immediately deductible. Improvements (e.g. installing a new kitchen) are claimed over time. Proper classification is key.
• Property Depreciation: A Tax Depreciation Schedule (TDS) helps you claim depreciation on your building and fittings. Even the cost of the schedule itself is deductible.
• Property Management Fees: Expenses related to professional property management, including tenant handling, routine inspections, and advertising, are deductible in the year they’re incurred.
• Insurance & Legal Fees: Building, contents, landlord, and public liability insurance are all claimable. Legal fees for tenancy disputes or debt recovery are also deductible.
• Land Tax & Council Rates: These ongoing costs are deductible in the financial year they’re paid.
• Pest Control: Regular inspections and treatments are deductible and help maintain the condition of your property.

Lodging Your Tax Return

Rental income and associated expenses must be declared when lodging your tax return with the ATO. If you lodge your own return, the due date is 31 October 2025. If you’re using a registered tax agent, you may be eligible for an extended deadline—check with them early.

 

Don’t Do It Alone

Rental property tax rules can be complex. Partnering with a registered accountant or tax agent is highly recommended. They can guide you through your obligations and help you identify all eligible deductions—potentially saving you time, stress, and money.

Owning an investment property in South Australia can be both financially and personally rewarding. With the right tax knowledge and professional support, you can confidently manage your property and make the most of your investment this financial year.