End of Financial Year Tips for Property Investors

As the end of the financial year approaches, it’s the perfect time for property investors to take stock and prepare for tax time. Whether it’s organising records, planning repairs, or consulting with your accountant, a little preparation now can save you time, stress, and even money. With the right advice and strategies, you can maximise your property’s potential, ensure compliance with tax obligations, and position yourself for financial success in the year ahead. Let’s break it down step-by-step to make EOFY simple and effective for you!

Speak to Your Accountant
A great accountant is an essential part of your property investment team. They’ll understand your financial position and provide advice on how to best structure your investments. From tax implications to potential benefits, their insights are invaluable. For negatively geared investments, they can also help maximise cash flow by ensuring you receive tax benefits throughout the year, not just at tax time.

Keep Accurate Records
Investment properties come with significant tax advantages, like claiming interest, travel, repairs, and depreciation. To make the most of these, ensure your records are in top shape. Keep all receipts and documents organised. A depreciation schedule prepared by a qualified quantity surveyor is also crucial—it outlines all items in your property eligible for depreciation, which gets lodged with your annual tax return.

Plan Repairs Wisely
Repairs can be fully tax-deductible in the financial year they occur, making them one of the most beneficial deductions for landlords. However, be mindful of the distinction between **repairs** and **improvements**. Repairs are immediate deductions, while improvements (like renovations or extensions) are depreciated over time. Unsure? Speak to your tax advisor for clarity.

Get the Timing Right
Timing is key when it comes to tax. Most expenses are deductible in the financial year they’re incurred, while rental income or profits from selling a property are assessed in the year they’re received. For example, if you sell a property before 30 June, any Capital Gains Tax (CGT) is calculated based on this year’s income. Sell after 30 June, and it counts towards the next financial year.

Consider Prepaying Next Year’s Interest
If reducing your taxable income is a priority, you may be able to prepay next year’s interest on your investment property loan. This works best with a fixed-rate loan that’s separate from your personal finances. You might also prepay expenses like rates, levies, or insurance premiums before 30 June to maximise deductions. Check with your accountant to see if this strategy works for you.

We’re Here to Help

At RealWay, we’re committed to making EOFY stress-free for our clients. Here’s how we can assist:

Practical Advice:

We can help you identify ways to boost your property’s value while potentially minimising tax—for instance, outdoor maintenance is often tax-deductible and keeps your property looking its best.

Disclaimer:Always consult a qualified accountant or financial advisor to ensure compliance with Australian tax laws and to tailor advice to your circumstances.