EOFY tax tips for property investors: Maximise your deductions before 30 June.

As the end of the financial year approaches, it’s the perfect time for property investors to review their finances and ensure they’re making the most of available tax deductions. Whether you own one investment property or several, smart tax planning can help you reduce your taxable income and set yourself up for a stronger financial year ahead.

Here are some essential EOFY tax tips for property investors to help you stay compliant and maximise your returns.

Know what rental property expenses you can claim

If you’ve spent money to generate rental income and kept proper records, you may be eligible to claim those expenses as tax deductions. The Australian Taxation Office (ATO) categorises rental property expenses into three main types:

1. Immediately deductible expenses

These can be claimed in the same financial year and include:

• Interest on your investment loan
• Council rates and water charges
• Repairs and maintenance
• Pest control
• Low-cost depreciating assets (under $300)

2. Deductions over time

These are spread across several years and include:

• Capital works (e.g. structural improvements)
• Borrowing expenses (e.g. loan setup fees)
• Depreciation of assets like appliances, flooring, and blinds

3. Non-deductible expenses

You can’t claim:

• Personal expenses (e.g. if you live in the property part-time)
• Certain second-hand depreciating assets purchased after 9 May 2017

Split expenses for part-time or short-term rentals

If your property is only rented part of the year—such as through Airbnb—or you only rent out a portion (like a room), you’ll need to apportion your expenses accordingly. The ATO has strict rules on this, and incorrect claims can lead to penalties. Be sure to check the ATO’s rental property guide for more details.

Claim deductions over multiple years

Some costs, like borrowing expenses and capital improvements, must be claimed over time. For example:

• Loan setup fees can be claimed over five years or the loan term (whichever is shorter)
• Capital works and renovations can be depreciated over several years
• Depreciating assets (e.g. dishwashers, carpets) can be claimed annually using a depreciation schedule prepared by a qualified quantity surveyor

Complete repairs before 30 June

If your investment property needs repairs, try to complete them before the EOFY to claim them in this year’s tax return. Eligible repairs include:

• Replacing a broken hot water system
• Fixing a leaking tap or door lock
• Pest control services

Don’t forget loan and insurance costs

Most finance-related costs tied to your investment property are tax-deductible, including:

• Interest on your investment loan
• Ongoing loan account fees and bank charges
• Insurance premiums (building, contents, landlord liability, and loss of rent)

EOFY checklist for property investors

Here’s a quick summary to help you stay on track:

• Identify what expenses you can claim now vs. later
• Apportion expenses for part-time or shared-use properties
• Review borrowing and capital improvement deductions
• Finalise repairs and services before 30 June
• Include loan interest and insurance premiums
• Keep detailed records and receipts for all claims

Need help with your investment finance?

EOFY is a great time to reset your financial strategy. Whether you’re looking to review your current loan, refinance, or plan your next investment, FinancePath is here to help.

Get in touch today to make the most of your tax deductions and start the new financial year strong!