Key takeaways:
FY2025–26 tax rules still apply for FY2025–26. The proposed 2027 reforms do not affect this year’s tax return.
Accurate records and correctly apportioned claims remain critical. The ATO continues to focus on rental income, interest deductions, holiday homes and mixed-use expenses.
The proposed 2027 negative gearing and CGT changes may affect future investment decisions. The reforms are not yet law and are intended to apply from 1 July 2027, subject to legislation.
EOFY is a good time to review your investment position. Checking your deductions, loan structure, super contributions and records before 30 June may help reduce tax-time pressure.
EOFY 2026 is an important checkpoint for Australian property investors. The FY2025–26 tax rules have not changed, but the Federal Government's proposed negative gearing and capital gains tax changes may affect how some investors plan from 1 July 2027, subject to legislation.
For this year's return, the focus is still on the basics: declare all rental income, claim only eligible investment property deductions, keep clear records and understand how capital gains tax may apply if you sell.
The ATO continues to emphasise correct claiming for interest deductions, holiday homes, short-stay accommodation and expenses that need to be apportioned between private and income-producing use.
This guide explains what investors may be able to claim this EOFY, what the ATO is likely to review, and how the proposed negative gearing and CGT changes could affect future tax years.
What does the 2026 Federal Budget mean for property investors?
The 2026–27 Federal Budget included proposed changes to negative gearing and capital gains tax (CGT) that may affect how some property investors plan future purchases, deductions and sale timing. These changes are proposed, not yet law. They do not affect FY2025–26 tax returns. The reforms are intended to apply from 1 July 2027, subject to legislation.
What's changing?
Under the proposed reforms, negative gearing for residential investment properties would be limited to new builds from 1 July 2027.
Investors who buy affected established residential properties may no longer be able to offset rental losses against non-rental income, such as salary or wages. Instead, excess rental losses from affected established properties may be carried forward and used against future rental income or capital gains from residential property.
The Government has also proposed replacing the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains from 1 July 2027. This may change how some future capital gains are taxed. However, it does not change the CGT rules for FY2025–26 returns.
Who may be affected?
The proposed negative gearing changes are most relevant to investors who bought, or plan to buy, an established residential investment property from 7:30 PM AEST on 12 May 2026. If the proposal becomes law, these investors may not be able to offset rental losses from affected established properties against wages or other non-rental income from 1 July 2027.
Who is not expected to be affected?
Investors who held their investment property before Budget night are expected to be grandfathered. This means the current rules would continue to apply to those properties, subject to the legislation being passed in that form.
New builds are also expected to be treated differently. Investors who buy new residential properties may still be able to deduct rental losses against other income. Investors in new builds may also be able to choose between the current 50% CGT discount and the proposed new CGT arrangements.
Important: The proposed negative gearing and CGT changes are intended to apply from 1 July 2027 and are not yet law. They do not affect your FY2025–26 tax return. Speak with your accountant or registered tax agent before making tax decisions.
What should property investors do now?
For FY2025–26, prepare your tax return under the current rules. This includes existing negative gearing and CGT settings, where eligible. If you already own an investment property, focus on accurate records for rental income, loan interest, repairs, capital works, depreciation, property management fees and any private-use adjustments.
If you are considering buying, selling, refinancing or changing your investment strategy, speak with your accountant about the tax position and an Aussie Broker about the lending position.
What can you claim on tax for an investment property in Australia?
If you own an investment property, tax time isn't just about ticking boxes; it's a chance to make the most of what you've spent across the year. From loan interest to maintenance costs, plenty of potential deductions could reduce what you owe or increase what you get back. But it's not always clear what counts (and what doesn't).
So, we've broken down some of the most common tax deductions for property investors to help you claim with confidence and avoid the common traps.
Common deductible expenses
Depending on your circumstances, deductible rental property expenses may include:
Loan interest
Property management fees
Landlord insurance
Advertising for tenants
Council rates and water charges
Body corporate fees
Accounting or tax agent fees relating to the investment property
Repairs and maintenance costs
Depreciation and capital works deductions
Not all expenses are immediately deductible, and some claims may need to be apportioned where there is private use.
Repairs or improvements: What’s the difference?
Repairs that restore part of a property to its original condition may be immediately deductible. Improvements, upgrades or structural changes are generally treated as capital works and claimed over time instead. The distinction matters because claiming the wrong category may affect how and when deductions can be claimed.
Borrowing expenses
Some borrowing expenses relating to an investment property loan may also be deductible over time. Depending on the loan purpose and structure, this may include loan establishment fees, mortgage registration fees and title search costs.
Deductibility depends on how borrowed funds are used, including after refinancing, redraws or loan restructures. Speak with your accountant or registered tax agent if you are unsure how your loan structure affects your claim.
Negative gearing
Negative gearing remains an important tax consideration for Australian property investors. For EOFY 2026, the current rules still apply.
A property is generally negatively geared when the deductible costs of holding the investment exceed the rental income it earns. These costs may include loan interest, property management fees, repairs, insurance and other eligible rental expenses.
For your FY2025–26 tax return, eligible rental losses may still be offset against other income, such as salary or wages, where the claim is correctly calculated, properly apportioned and supported by records.
The ATO requires rental property owners to declare all rental income and only claim eligible expenses. Claims may need to be apportioned where there is private or non-income-producing use, such as holiday homes, short-stay accommodation, or mixed-use properties.
For EOFY 2026, focus on the fundamentals:
Declare all rental income
Check that loan interest claims are correctly calculated
Separate private and investment loan use
Keep records for repairs, maintenance and property expenses
Confirm whether each cost is immediately deductible or treated as a capital expense
Apportion expenses where required
Capital gains tax
If you sold an investment property in FY2025–26, CGT rules still apply. Australian residents who have owned an eligible asset for at least 12 months may be eligible for the 50% CGT discount. This generally means 50% of the net capital gain is included in assessable income.
Eligibility depends on your ownership structure, residency status, ownership period and how the property was used. Your accountant or registered tax agent can help confirm your:
Cost base
Capital proceeds
Ownership period
Capital losses
Selling and settlement costs
Eligibility for any CGT discount or exemption
Good records matter. Keep evidence of the purchase price, settlement costs, selling costs, capital improvements, ownership dates, rental periods and any private-use periods, and keep CGT records for at least five years after you dispose of the property.
Depreciation schedules
A depreciation schedule prepared by a qualified quantity surveyor may help investors identify eligible depreciation deductions for capital works and plant and equipment assets. Eligibility depends on the age of the property, when assets were installed and how the property is used.
Travel expenses for residential investment properties
Most travel expenses relating to residential rental properties are generally not deductible for individual investors, even where the travel relates to inspections, maintenance oversight or collecting rent. Limited exceptions may apply in some circumstances.
Super contributions before 30 June
Property investors looking to review your tax position before EOFY may want to check their concessional super contributions before 30 June.
For FY2025–26, the concessional contributions cap is $30,000. This includes employer super guarantee contributions, salary sacrifice amounts and personal contributions you claim as a tax deduction. From 1 July 2025, the super guarantee rate is 12%, so employer contributions should be included when checking how much cap space may be available.
This may be relevant if you received rental income, sold an investment property or expect higher taxable income this financial year. If your total super balance was under $500,000 on 30 June 2025, you may be able to use unused concessional cap amounts from previous years. Unused amounts are available for up to five years, but eligibility depends on your circumstances.
Timing matters. Your super fund must receive contributions before 30 June to count for FY2025–26. Allow time for processing and speak with your accountant or financial adviser before contributing, especially if you may exceed your cap or be affected by Division 293 tax.
You might also be interested in: Buying property with super: A guide to SMSF investment
Reminder: Keep thorough records
Keep records relating to rental income, deductions, loan documents, depreciation schedules, repairs and capital improvements. In many cases, records should be retained for at least five years after lodging your tax return, or longer where CGT records are relevant.
What do I need to know about capital gains tax on investment property?
Let's talk about CGT. It's easy to put it aside until you're ready to sell. But getting your head around capital gains tax on investment property now could save you a decent sum come tax time. CGT applies to the profit if you sell a property for more than you paid. Sounds simple enough. But without smart planning, a chunk of that gain could go straight to the ATO.
Here are some of our top property investor tax tips to help you get ahead before 30 June.
Timing matters. CGT is generally triggered at the time of the contract, not settlement, so the date you sign the contract determines which financial year the gain falls into. That means if settlement lands before 30 June, the gain goes into this year's return. Push it to after 1 July, and you have a full financial year to prepare or reduce your income for a better outcome.
Hold for 12+ months? You could save 50%. Own the property for over a year? You might qualify for a 50% CGT discount. That's a big win, especially if you've built up equity in a high-growth area. Even waiting a few weeks to hit the 12-month mark could be worth it.
Offset with losses. If you've sold another property or asset at a loss, you can use it to offset your capital gain. But make sure your records are current so you can claim the deduction properly.
Know what's exempt and what's not. Your main home (Primary Place Of Residence) is usually CGT-free. But if you've rented it out or used it to generate income, you may need to pay CGT on part of the gain. The ATO is closely monitoring short-term rentals and homes converted into investment properties. Clear usage records, intent, and valuations will help if questions arise.
Repairs vs capital works. Some tax deductions on investment property, like repairs made before selling, can reduce your taxable gain. Just be careful: capital improvements fall into a different bucket. An accountant can help you get this right.
CGT doesn't have to catch you off guard. With the right support and these smart EOFY tax tips in Australia designed to help you retain more of what you've earned, you can stay in control of your outcome. If you're tossing up whether to sell, renovate, refinance, or reinvest, chat with your local Aussie Broker. We're here to help you make the most of it.
You might also be interested in: Understanding taxes when buying and selling a home in Australia
How can depreciation schedules boost your return?
Here's one of the most underused property investor tax tips, and it could be putting real money back in your pocket. If you haven't set up a depreciation schedule for your investment property, you're missing out on thousands in potential tax deductions on investment property costs.
Let's break it down.
But first, what's a depreciation schedule, and why does it matter? A depreciation schedule is a report prepared by a qualified quantity surveyor. It outlines how much value your property (and everything inside it) loses over time, from the walls and structure to carpets, dishwashers and hot water systems.
You can legally claim that loss as a deduction even if you haven't spent anything new.
Aussie tip: You don't need to renovate or replace appliances to benefit. You just need the report.
Depreciation is grouped into two categories:
Capital works (Division 43): This covers the building itself, things like brickwork, walls, concrete, and roofing.
Plant and equipment (Division 40): These are removable or mechanical items like blinds, flooring, ovens and A/C units.
If your property was built after 1987, you're likely eligible to claim for capital works. Your deductions could be even more generous if it's been recently built or renovated.
Pro tip: Even if your property is older, a quantity surveyor can assess it and uncover potential claims based on the construction date and past upgrades.
How does a depreciation schedule help at tax time?
Once set up, your accountant can use the schedule to apply the correct deductions every year. No guesswork. No scrambling for receipts. Just reliable, long-term savings are especially helpful in your early years of renting a rental. A set-and-forget tool that keeps working for you.
Most reports cost a few hundred dollars. But in many cases, the first year's tax return can cover that cost and then some. Plus, the report itself is deductible.
Sorting your depreciation schedule is one of those behind-the-scenes wins that makes tax time easier and more rewarding. For smart investors looking to maximise their return, it's a no-brainer.
You might also be interested in: Perks of buying a car during EOFY
How can you get tax time ready for this EOFY?
When it comes to end-of-financial-year prep, a little forward-thinking can go a long way, especially if you own investment property.
Whether it's your first tax return as a landlord or you've been doing this for years, getting organised now could mean bigger deductions, fewer headaches and better results.
From record-keeping to CGT, here are a few smart moves to help you feel confident, stay compliant and get the most out of your return this EOFY.
1. Keep records of everything related to your property.
One way to get the most out of your tax return is to be exceptionally organised when keeping records of all property-related expenses and documents. Keep receipts from property expenses and documentation of damage and repairs.
If the Australian Taxation Office (ATO) audits your tax return and you cannot provide evidence of your claims, you could be denied these deductions or even face penalties.
Consider keeping both physical and digital copies of receipts and other documents that can support your tax deduction claims. This will make it easier come tax time.
2. Consider getting a tax accountant.
Time is money, and doing your taxes yourself can be complicated, time-consuming and stressful – even more so as a property investor. A tax accountant can help ensure you comply with tax laws and help optimise your tax return and deductions.
Don't just go with any old tax accountant; spend time researching for a reliable and trustworthy one. If you have friends who own investment properties, consider reaching out to them for potential recommendations.
3. Start thinking about the next financial year.
As mentioned, being organised is crucial if you're going to own rental properties. Think about any renovation you intend to undertake on your investment property and any repairs needed. Getting them done before 30 June means you can claim the costs as a deduction in the following tax return.
4. Apply for a PAYG withholding variation.
Property investors often wait until the end of the financial year to claim expenses and the interest paid on their home loan as tax deductions. This means you'll get your tax refund in a single lump sum once per year. While this isn't necessarily a bad strategy, it can create cash flow problems for some investors. Alternatively, you can apply for a PAYG withholding variation with the ATO.
This enables you to spread the tax you pay yearly and receive tax deductions more frequently. Discussing a PAYG withholding variation with your financial advisor or accountant is a good idea, as they could help determine whether it's a good move for you.
They can guide you on how much to adjust your PAYG so you don't have to reimburse the ATO when you lodge your tax return.
5. Get your capital gains tax right.
House prices have reached record highs in many parts of Australia over the past year. If you have sold an investment property during the past financial year, you likely will be required to pay CGT.
Your net capital gain is added to your assessable income and taxed at your marginal rate for that financial year. If you have held the investment property for over a year, you can apply for a 50% capital gains tax discount. It's crucial to record your capital gains correctly in your tax return to avoid facing penalties.
CGT can also be charged for other investment capital gains, e.g., shares and cryptocurrency.
Investors who have made a capital loss do not have to pay CGT.
You might also be interested in: CGT indexation is back: What it means for your investment property
What common mistakes should I avoid this EOFY?
Even the most experienced investors can get caught out at tax time. With the ATO using smarter tech and data-sharing to scan returns, it pays to double-check your details. So, before you hit submit, here are some easy-to-miss traps and practical property investor tax tips to help you steer clear of trouble and make the most of your deductions.
Mixing personal and investment expenses
Using the same account or loan for your home and investment property might seem convenient, but it can make your tax deductions on investment property harder to claim. The ATO expects a clear split between personal and investment expenses.
Not updating your depreciation schedule
Think your depreciation schedule is set-and-forget? Think again. If you've renovated or added new appliances, you must update your schedule to claim what you're entitled to. Missing this step could mean leaving thousands in deductions on the table year after year.
A quantity surveyor can update your schedule; the report cost is also tax-deductible.
Over-claiming repairs and maintenance
There's a fine line between a repair and a renovation, which matters at tax time. Fixing a leaky tap is a repair (and immediately deductible). Replacing the whole bathroom is a capital improvement (and must be claimed over time).
You could be penalised or lose part of your refund if you get it wrong. If unsure, check with your accountant or use ATO guidance tools. It's better to ask early than address it later.
Forgetting rental income from short stays
Platforms like Airbnb and Stayz now share data with the ATO. So, if you skip over rental income from your short-stay property, you will likely get flagged. This is especially important for holiday homes. You can only claim tax deductions on investment property when it's available for rent, not during family stays or when it's blocked out.
Leaving it all to the last minute
Trying to pull everything together on 29 June is a recipe for missed deductions and avoidable errors. One of the best EOFY tax tips in Australia is simple: get organised early. Keep your receipts, review your records, and plan, not the night before your tax appointment.
Avoiding these slip-ups means less stress and more certainty and ensures you claim every dollar you're legally entitled to. If you want a second set of eyes before tax time, your local Aussie Broker can work with your accountant to ensure your loan is structured properly, your claims are on point, and your investment strategy works as hard as you are.
Get tax time ready with Aussie
EOFY doesn't have to be overwhelming, not when you have the right tools (and people) in your corner. Whether you're sorting your statements, checking in on your investment loan, or figuring out the next steps, Aussie's here to help you make it all a bit easier.
Here's how we can back you in and make this tax season smarter, not harder.
Need to know what your property's worth or how much equity you've built? Track your property and equity with the Aussie App. Our app gives you a personalised dashboard that helps you:
See updated values on your home and investment properties.
Monitor market changes in real-time.
Estimate usable equity for your next move, whether it's refinancing, renovating or reinvesting.
If you're considering selling, this tool helps you factor in capital gains tax on investment property before you make the decision.
Use our free tools to run the numbers. Some of Australia's best EOFY tax tips start with knowing where you stand. Use these tools to get clearer on your cash flow and potential:
Borrowing power calculator: See how much you could borrow with your current income and expenses.
Repayments calculator: Test out different loan scenarios and payment strategies.
Property report generator: Download suburb-specific insights, including price trends, rental yields and estimated values.
These tools can help flag untapped tax deductions on investment property or opportunities to do things smarter next year.
One of the most underrated property investor tax tips? Chat with an Aussie Broker who sees the full picture. Get someone who understands more than just tax. Our brokers are trained to help you:
Review your loan to make sure it's still tax-effective.
Identify equity opportunities you could be using.
Connect you with quantity surveyors to sort your depreciation schedule.
EOFY is the time to reflect on your claim and move forward with what you can build next. Tax time doesn't have to be stressful.
With the right tools, a supportive broker, and a clear view of your finances, EOFY can be your opportunity to reset, refocus and make your investment strategy work even harder. If you're ready to take action, your local Aussie Broker is just a call or a tap in the app away.
