The Property Investor's Tax Checklist

Records to keep, deductions to claim, traps to avoid. Built around the way Australian property investors actually own — single property to growing portfolio.

RECORDS What to gather before you start

If you can put these in one folder, the whole return runs smoothly.

• Annual rental income statement from the property manager (or your own tally for self-managed)
• All loan statements showing interest paid and any redraws / splits
• Council rates, water rates and emergency services levy notices
• Strata levies (admin + sinking + special)
• Land tax assessment notice for the year Track this per state — NSW, VIC, QLD, WA, SA all differ.
• Landlord, building and contents insurance premium notices
• Repairs invoices — separated from improvement / capital works invoices
• Quantity Surveyor's depreciation schedule (or the prior year's — we'll apply it again)
• Sales contracts for any properties bought or sold this year
• Settlement statements from your conveyancer / solicitor

DEDUCTIONS What we'll claim against rental income

Every property's situation differs — these are the standard categories we'll comb through with you.

• Interest on the loan (correctly apportioned to the rental purpose)
• Property management fees & advertising for tenants
• Council, water and ESL — for the period the property was available to rent
• Strata levies — admin and sinking (special levies treated separately)
• Repairs & maintenance — distinct from improvements Repairs restore; improvements add value or extend life. Big difference.
• Capital works deduction (Division 43) for the building structure
• Plant & equipment depreciation (Division 40) — only if eligible Second-hand residential property bought after 9 May 2017 may lose Div 40 entitlements.
• Landlord, building & contents insurance premiums
• Property-related travel — only in narrow circumstances (mostly non-deductible for residential)
• Pest control, gardening, cleaning between tenants
• Bank fees on the loan account & LMI amortisation over the loan term
• Quantity surveyor's fee (deductible itself)
• Tax agent fees (yes, our fee is deductible)

DECISIONS Things to think about before lodging

This is where a specialist saves you real money. Don't skip.

• Did you buy or sell this year? CGT or cost-base capture needed
• Did you move out of your former main residence? Six-year absence rule may apply
• Any property destroyed or demolished? Balancing adjustment may apply
• Spouse income changed materially? Ownership / structure review may save tax
• Refinanced during the year? Interest deductibility on the new loan needs review
• Redraw used for private purposes? Mixed-purpose loan split needed
• Negative gearing PAYG variation worth lodging for next year?
• Land tax thresholds re-checked across all states you hold property in?

CGT If you're selling — or even thinking about it

Run this before you sign the contract — not after.

• Cost base assembled (purchase price + acquisition costs + improvements)
• Reduced cost base for partial losses scenarios
• 12-month hold period confirmed for the 50% discount
• Main residence exemption tested (full / partial / six-year absence)
• Foreign resident status reviewed — discount & exemption restrictions apply
• Buyer's CGT withholding obligation (15%) checked if you're a foreign resident
• ATO clearance certificate ordered (avoids withholding at settlement)
• Loss carry-forward and prior capital losses applied

SHORT-STAY Airbnb / Stayz / mixed-use

If any property was on a short-stay platform this year, work through these.

• Income reconciled to platform statements (gross, before host fees)
• Deductions apportioned for personal-use days
• GST registration tested if turnover exceeded $75,000
• Council short-term rental levy (where applicable) captured
• Main residence partial-exemption test if you also lived in the property

BONUS 40 deductions property investors commonly miss

Skim before you sign your return. Real money sits in this list.

1. Quantity Surveyor's fee itself
2. Capital works (Division 43) at 2.5% per year
3. Mortgage discharge / break costs
4. Borrowing expenses amortised over 5 years
5. Lender's Mortgage Insurance (LMI) over loan term
6. Loan establishment & valuation fees
7. Solicitor fees on refinance
8. Body corporate admin fund levies
9. Body corporate sinking fund levies (deductibility nuance)
10. Special levies (case-by-case treatment)
11. Council infrastructure charges
12. Strata management fees
13. Building inspection reports (revenue ones)
14. Pest control treatments
15. Gardening & lawn mowing between tenants
16. Plumbing & electrical repairs (revenue items)
17. Locksmith / re-keying between tenancies
18. Tenancy advertising
19. Tenancy database checks
20. Landlord insurance premium
21. Building insurance premium
22. Contents (furnished rentals)
23. Public liability cover
24. Cleaning between tenants
25. Smoke alarm servicing & certificates
26. Bond cleaning & carpet steam clean
27. Window & gutter cleaning
28. Tree lopping (maintenance)
29. Tax agent fees
30. QS report fee
31. Property-related phone / internet portion
32. Postage & stationery
33. Bank charges on the rental loan account
34. Land tax (the year it relates to)
35. Council rates
36. Water rates & sewerage
37. Emergency services levy
38. Strata search fees on sale
39. Council certificate fees on sale
40. Settlement agent / conveyancer (revenue portion)

General information only. This checklist is general in nature and does not constitute personal tax, financial or legal advice. Every investor's situation is different — speak to a registered tax agent before acting on anything here. Property Tax Agent is a service of Ace Biz (ABN 89 168 839 076), a Registered Tax Agent in Norwest NSW. Liability limited by a scheme approved under Professional Standards Legislation.