FY2026 rules remain unchanged. Enacted negative-gearing and CGT reforms begin from 1 July 2027.
This guide applies to the 2025–26 income year, being 1 July 2025 to 30 June 2026.
Many of our clients own an investment property (or multiple).
Owning an investment property involves more than reporting the rent deposited into your bank account. You must declare all rental and rental-related income, correctly classify expenses, separate repairs from capital improvements, apportion private use, and retain records for any future capital gains tax calculation.
This guide explains the main rules for Australian residential rental properties. Different rules may apply to commercial property, foreign property, property development, build-to-rent projects and taxpayers carrying on a business of property letting.
Important 2026 Budget Changes
Does the new negative-gearing rule affect my 2026 tax return?
No.
For the FY2026 tax return, covering 1 July 2025 to 30 June 2026, the existing negative-gearing rules continue to apply.
If your allowable rental deductions exceed your rental income, the rental loss may generally be offset against other assessable income, such as salary or business income, subject to the ordinary deduction rules.
The same existing treatment continues for the 2026-27 income year, ending 30 June 2027.
Negative gearing changes from 1 July 2027
From the 2027–28 income year, negative gearing for residential property will generally be limited to:
qualifying new residential dwellings;
established residential properties grandfathered under the acquisition cut-off;
certain approved social, affordable or special-purpose housing; and
specific excluded entities or arrangements.
For an affected established residential property, expenses will still be deductible - but only up to available residential property income.
Any excess rental loss:
cannot generally reduce salary, wages or unrelated business income;
may be applied against relevant residential property income or residential capital gains; and
may be carried forward for use in a later year.
Grandfathered properties
The new restriction generally does not apply to an ownership interest in a residential dwelling that you last acquired before: 7:30 pm AEST on 12 May 2026
For a property acquired under a contract, the relevant time is generally when the contract was entered into - not the settlement date.
Example - contract before Budget night
Ahmed signed an unconditional contract to purchase an established rental property at 3:00 pm on 12 May 2026. Settlement occurred in June 2026.
The contract was entered into before the Budget cut-off. Subject to the final facts, the property should come within the grandfathering rule.
Example - established property purchased after Budget night
Sarah signed a contract to purchase an established rental property on 20 May 2026.
She may use the current negative-gearing rules for:
FY2026, to the extent relevant; and
FY2027.
From 1 July 2027, an excess loss from that affected property generally cannot be used against her salary. The excess is quarantined for use against residential property income or relevant residential gains.
❗️ New-build warning
A property advertised by a developer or agent as “brand new” does not automatically qualify under the tax definition.
The legislation requires detailed conditions for a qualifying new residential dwelling to be prescribed. Obtain advice before relying on the new-build exception.
Capital gains tax changes from 1 July 2027
For eligible CGT events occurring before 1 July 2027, the current 50% CGT discount generally continues to apply to Australian-resident individuals and trusts where the asset has been held for at least 12 months.
From 1 July 2027:
the 50% CGT discount is generally replaced by inflation-based cost-base indexation;
a minimum 30% tax mechanism applies to relevant real capital gains of affected Australian-resident individuals;
transitional rules separate gains accruing before and after 1 July 2027; and
qualifying new residential dwellings may retain a choice between the existing 50% discount and the new indexation system.
Unlike the negative-gearing reforms, there is no general Budget-night grandfathering that preserves the existing CGT discount for all future gains on properties owned before 12 May 2026.
Property held at 30 June 2027
The transitional rules broadly deem certain assets to have been sold immediately before 1 July 2027 and reacquired at that time.
The pre-1 July 2027 gain is deferred until the property is eventually sold. The post-1 July 2027 component is dealt with under the new rules.
Property owners should preserve:
purchase records;
improvement invoices;
depreciation schedules;
capital works records;
evidence of market value around 30 June 2027; and
records of property use before and after that date.
A contemporaneous qualified valuation around 30 June 2027 may materially reduce future uncertainty.
Rental Income - What You Must Declare
You must declare all rental and rental-related income earned between 1 July 2025 and 30 June 2026.
Rental income must generally be reported gross, before deducting property management fees, repairs or other expenses. Do not report only the net amount deposited into your bank account.
Regular rent
Declare all rent paid by tenants to:
you;
your property manager;
your real estate agent; or
another person on your behalf.
Income is generally derived when the tenant pays you or your agent, even if the agent transfers the balance to your bank account after 30 June.
Property manager example
Your tenant pays A$30,000 to the property manager during FY2026.
The property manager deducts:
management fees: A$2,000;
repairs: A$1,200; and
advertising: A$500.
The agent transfers A$26,300 to your bank account.
Your rental schedule should generally show:
Item | Amount |
|---|---|
Gross rental income | A$30,000 |
Property management fees | A$2,000 |
Repairs - subject to review | A$1,200 |
Advertising | A$500 |
Net amount received | A$26,300 |
The net bank receipt is not the gross rental income.
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Other rental-related income
Rental income may also include:
rent paid in advance;
amounts received in cash;
non-cash payments or services received instead of rent;
tenant reimbursements for rates, water or other expenses;
retained bond money;
insurance payments for lost rent;
lease surrender payments;
letting or booking fees received;
government rental assistance paid to the landlord;
short-term accommodation income;
Airbnb, Stayz or similar platform income;
income from renting a room or part of your home.
Retained rental bond
Bond money is not income merely because it is held by the bond authority.
It generally becomes income when you become entitled to retain it - for example, because it is applied to:
unpaid rent; or
damage requiring repairs or maintenance.
Short-term rental platforms
Declare the gross guest charges attributable to you, before deducting:
platform commission;
booking fees;
cleaning costs;
management fees; or
other expenses.
The platform commission and other allowable costs are claimed separately.
The ATO receives information from sharing-economy platforms, property records and other third parties. Platform income should be reconciled to annual platform reports and bank deposits.
Co-owned rental property
Rental income and deductions are generally divided according to legal ownership.
Examples:
Legal ownership | Usual income and deduction allocation |
|---|---|
Joint tenants | Equal shares |
Tenants in common - 70%/30% | 70% / 30% |
One owner pays all expenses but title is 50%/50% | Generally still 50% / 50% |
When Can Rental Expenses Be Claimed?
Expenses may generally be deductible for a period when the property is:
rented at a commercial rate; or
genuinely available for rent at a realistic market rate.
Expenses must be:
incurred by you;
related to earning rental income;
not private;
not capital, unless claimed under a specific capital allowance; and
supported by records.
Genuinely available for rent
Evidence may include:
a listing with a real estate agent;
online advertisements;
a realistic asking rent;
prompt responses to enquiries;
genuine availability to unrelated tenants;
reasonable lease conditions;
evidence of tenant applications.
A property may not be genuinely available where:
the asking rent is materially above market;
unreasonable restrictions make tenants unlikely to rent it;
it is advertised only to friends or a limited group;
it is reserved for the owner’s use;
the owner refuses reasonable tenants;
renovations make it uninhabitable;
it is not lawfully able to be occupied.
Renting below market value
If you rent to a family member or friend at less than market rent:
the rent received must still be declared;
the arrangement may be treated as non-commercial; and
deductions may be limited so the arrangement does not produce a tax loss.
Keep evidence of:
market rental appraisals;
lease terms;
rent actually received;
relationship with the tenant;
reasons for any rent discount.
Expenses You May Be Able to Claim Immediately
Subject to the circumstances, common expenses include:
Expense | General |
|---|---|
Advertising for tenants | Usually deductible |
Property agent fees and commissions | Usually deductible |
Council rates | Deductible for eligible rental periods |
Water charges | Deductible to the extent paid by the owner |
Land tax | Generally deductible for eligible rental periods |
Insurance | Landlord, building, contents and public liability |
Interest | Deductible according to the use of borrowed funds |
Cleaning | Deductible where related to rental use |
Gardening and lawn mowing | Usually deductible |
Pest control | Usually deductible |
Bank fees | Deductible where related to the rental loan/account |
Legal expenses | Depends on purpose |
Repairs and maintenance | Only where not capital or initial repairs |
Stationery and postage | Work-related rental management portion |
Tax-related expenses | Subject to the managing-tax-affairs rules |
Quantity surveyor fees | Generally deductible where incurred to prepare a depreciation schedule |
Interest on Rental Property Loans
Loan interest is commonly the largest rental deduction - and one of the most frequently calculated incorrectly.
The use of the borrowed money determines deductibility
The key question is not which property secures the loan.
The key question is: What were the borrowed funds used for?
Interest may generally be deductible where the borrowed money is used to:
acquire the rental property;
pay eligible rental property expenses;
undertake income-producing repairs;
purchase eligible rental property assets;
fund qualifying rental renovations or construction.
Interest is not deductible to the extent the funds are used for:
private living expenses;
holidays;
purchasing a private car;
paying a home loan;
private credit card debt;
school fees;
private investments unrelated to rental income.
Offset account versus redraw
An offset account and a redraw facility are not the same for tax purposes.
Offset
Money placed in an offset account normally reduces the interest charged without changing the original use of the loan.
Withdrawing money from the offset account generally does not change the purpose of the underlying borrowing.
Redraw facility
A redraw is generally treated as a new borrowing.
The deductibility of interest on the redrawn amount depends on how the redrawn money is used.
Example
A rental loan is A$400,000 and was originally used entirely to purchase a rental property.
The owner redraws A$50,000 to buy a private car.
From that point, part of the loan relates to private use. Interest must be apportioned, and the private component generally remains non-deductible until the mixed loan is properly repaid.
Simply repaying A$50,000 later does not necessarily restore the original tax position.
Refinancing
Refinancing does not by itself destroy the interest deduction where the new loan replaces an existing deductible rental loan.
However, apportionment may be needed where:
the refinancing includes private debt;
additional money is borrowed for private purposes;
multiple loans are consolidated;
part of the borrowing relates to another property;
the borrower or legal owner changes.
Provide the old and new loan statements and settlement records.
Principal repayments
The principal component of a loan repayment is not deductible.
Only the eligible interest and certain borrowing costs may be deductible.
Repairs, Maintenance or Capital Works?
This is one of the most important distinctions for rental property owners.
Treatment | Meaning | Tax outcome |
|---|---|---|
Repair | Restores damage, defect or deterioration | May be immediately deductible |
Maintenance | Prevents or addresses deterioration | May be immediately deductible |
Improvement | Makes the property better than before | Capital |
Replacement of an entirety | Replaces a separately identifiable asset or structure | Usually capital |
Initial repair | Fixes a defect existing when acquired | Capital |
Repairs
A repair generally restores something to its former function without substantially improving it.
Examples may include:
repairing a leaking tap;
replacing several broken roof tiles;
repairing damaged plaster;
fixing a broken air conditioner;
repairing part of a fence;
repainting damaged or deteriorated walls;
replacing a damaged part of an appliance.
The damage should generally arise while the property is held for income-producing purposes.
Maintenance
Maintenance keeps the property in tenantable condition or prevents deterioration.
Examples may include:
servicing a hot water system;
cleaning gutters;
pest treatment;
repainting faded walls;
routine servicing of an air conditioner.
Initial repairs
An initial repair corrects a defect, damage or deterioration that existed when you acquired the property.
It is capital even where:
you did not know about the defect at purchase;
the work is completed after settlement;
the property manager calls it a repair;
the work is necessary before the first tenant moves in.
Example
You purchase a property with:
damaged walls;
a broken fence; and
water damage that existed at settlement.
You spend A$18,000 correcting these items before the first tenant moves in.
The expenditure is generally not immediately deductible as repairs. Depending on the work, it may be:
capital works;
the cost of a depreciating asset; or
included in the CGT cost base.
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Improvements
An improvement makes the property better, more valuable or more functional than it was previously.
Examples include:
renovating a kitchen;
adding an ensuite;
constructing a deck;
installing a new pergola;
adding a room;
replacing basic fittings with materially superior fittings;
installing insulation where none existed;
landscaping a previously undeveloped area.
These expenses are generally claimed through capital works, depreciation or the CGT cost base - not as an immediate repair.
Replacement of an entirety
Replacing an entire separately identifiable asset is generally capital.
Examples may include:
replacing an entire stove;
replacing an entire air conditioner;
replacing a complete fence;
installing a new hot water system;
replacing kitchen cupboards;
replacing an entire toilet.
The replacement may be a depreciating asset or capital works, depending on the nature of the item.
Roof replacement - do not assume
Replacing an entire roof is not automatically capital in every case.
A roof is generally part of the building rather than a separate asset. Where an existing roof is damaged and replacement merely restores the building, the cost may be deductible as a repair - even where modern materials provide minor incidental improvement.
However, the expenditure may be capital where:
the defect existed when the property was acquired;
the work forms part of a substantial renovation;
the building is fundamentally altered;
the replacement materially improves the property.
The facts and the tradesperson’s scope of work must be reviewed.
ATO-style mixed-work example
A damaged toilet is replaced and the surrounding wall is repaired.
The invoice shows:
Work | Amount | Likely treatment |
|---|---|---|
Replace complete toilet | A$1,500 | Capital works |
Repair and repaint damaged wall | A$900 | Repair - potential immediate deduction |
Ask the contractor to itemise mixed invoices. If costs are not separated, they must be apportioned on a fair and reasonable basis.
Insurance payments
You cannot claim an expense that was paid directly by the insurer.
Where you pay for deductible repairs and later receive an insurance reimbursement, the insurance amount may need to be included as income or treated as a recoupment.
Provide:
the insurance claim;
insurer correspondence;
repair invoices;
insurance settlement breakdown;
evidence of who paid each contractor.
Body Corporate and Strata Levies
Ordinary body corporate fees may generally be deductible where they fund items such as:
administration;
cleaning;
gardening;
insurance;
routine maintenance;
minor repairs.
Special levies require review. A special levy used for capital works - such as replacing lifts, major structural remediation or replacing a roof - may not be immediately deductible.
The amount may instead be claimable through capital works when the work is completed and the relevant requirements are met.
Please provide:
body corporate levy notices;
AGM and committee minutes;
sinking fund statements;
special levy resolutions;
invoices or descriptions of the work.
Do not separately claim an expense already included in deductible body corporate levies.
Depreciation - Plant and Equipment
Depreciating assets may include:
removable appliances;
dishwashers;
freestanding furniture;
blinds and curtains;
certain carpets;
air-conditioning equipment;
hot water systems;
ceiling fans;
washing machines;
dryers;
some security systems.
The precise treatment depends on whether the item is:
a depreciating asset under Division 40; or
part of the building and therefore capital works under Division 43.
New assets
Where you purchase a new eligible depreciating asset for the rental property, you may claim its decline in value over its effective life, adjusted for:
days held;
rental use;
private use;
ownership percentage.
Second-hand assets
Individual residential property investors generally cannot claim depreciation on certain previously used depreciating assets acquired with a second-hand property.
Examples may include an existing:
stove;
dishwasher;
air conditioner;
carpet;
washing machine;
furniture package.
The restriction may not apply where:
you purchased a brand-new asset;
the property is genuinely new and the assets have not previously been used;
you are carrying on a business of property letting;
an excluded entity rule applies.
The value of a denied second-hand asset may still be relevant to CGT.
Assets costing A$300 or less
An immediate deduction may be available for an eligible non-business depreciating asset costing A$300 or less where:
it is used mainly to produce assessable rental income;
it is not part of a set costing more than A$300;
it is not one of several identical or substantially identical assets whose total cost exceeds A$300;
the taxpayer incurred the cost;
private use is excluded.
The rule is based on each owner’s interest in the asset, but the ownership and set rules still need to be checked.
Low-value pool
Eligible low-cost assets costing less than A$1,000 and eligible low-value assets with an adjustable value below A$1,000 may be allocated to a low-value pool.
Broadly, the pool is depreciated at:
18.75% for eligible additions in the first year; and
37.5% in later years.
The rental-use percentage must be applied.
Diminishing-value method
For most depreciating assets acquired after 9 May 2006, the diminishing-value calculation broadly uses:
Base value × days held ÷ 365 × 200% ÷ effective life
The result is then adjusted for:
rental use;
private use;
joint ownership; and
any applicable second-hand asset restriction.
The effective life depends on the particular asset and the relevant ATO schedule or a properly supported self-assessment.
Quantity surveyor’s depreciation schedule
A properly prepared quantity surveyor’s schedule can identify:
eligible capital works;
eligible plant and equipment;
construction dates;
construction costs;
effective lives;
annual deductions;
low-value pool treatment.
Do not estimate or “improvise” construction costs merely because original invoices are missing.
A quantity surveyor can estimate qualifying construction expenditure. An accountant or real estate agent generally cannot estimate construction costs without appropriate qualifications.
Capital Works - Building Write-Off
Capital works deductions may be available for qualifying construction expenditure on:
the building;
extensions;
structural renovations;
garages;
patios and pergolas;
driveways;
retaining walls;
fences;
certain common-property works.
The usual residential capital works rate is 2.5% per year, although different rates may apply depending on:
construction commencement date;
building type;
use;
qualifying build-to-rent status.
Certain eligible new build-to-rent developments may qualify for a 4% capital works rate.
No capital works deduction is available until construction is complete. The property must also be used or genuinely available for income production.
Capital works deductions that have been claimed - or that could generally have been claimed - may reduce the property’s CGT cost base.
Borrowing Expenses
Borrowing expenses may include:
loan establishment fees;
mortgage registration fees;
title search fees;
lender’s valuation fees;
mortgage broker fees;
legal costs associated with establishing the loan.
They do not include:
the property purchase price;
stamp duty on purchasing the property;
conveyancing fees for the purchase;
principal loan repayments.
If total deductible borrowing expenses are:
Total | General treatment |
|---|---|
A$100 or less | Potential immediate deduction |
More than A$100 | Deduct over five years or the loan term, whichever is shorter |
The first and final years usually require a day-based calculation. If a loan is refinanced or repaid early, any remaining borrowing expenses require review. They are not automatically deductible in full in every refinancing arrangement.
Travel to a Residential Rental Property
Individual investors generally cannot claim travel expenses relating to a residential rental property.
This includes:
driving to inspect the property;
travelling to collect rent;
travelling to supervise repairs;
flights;
accommodation;
meals;
taxis;
hire cars.
Exceptions may apply where:
the property is not residential;
the taxpayer is an excluded entity; or
the taxpayer is genuinely carrying on a business of letting rental properties.
Merely owning several rental properties does not automatically mean you are carrying on a rental property business.
Short-Term Rentals and Holiday Homes
Where a property is used for both rental and private purposes, expenses must be apportioned.
Relevant factors include:
days rented;
days genuinely available for rent;
days reserved for private use;
floor area rented;
number of rooms rented;
direct rental expenses;
market rental rate.
Short-term rental example
You rent a holiday property to unrelated guests for 100 nights and reserve it for private use for the remaining 265 nights.
Annual ownership expenses are A$18,250.
Deductible ownership portion: 100 ÷ 365 × A$18,250 = A$5,000
Cleaning costs incurred directly after guest stays may be fully rental-related.
However, if the property was genuinely available for rent at market rates for additional periods and not reserved for private use, a different apportionment may apply.
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Renting part of your home
If you rent one bedroom or part of your home, declare the rental income and apportion expenses using a reasonable method.
The calculation may consider:
tenant’s exclusive floor area;
shared areas;
number of occupants;
rental period;
private-use period.
Renting out part of your home may affect the main residence CGT exemption when the property is sold.
Expenses You Generally Cannot Claim Immediately
Expense | Treatment |
|---|---|
Purchase price | Capital |
Transfer duty on purchase | Generally CGT cost base |
Conveyancing on purchase | Generally CGT cost base |
Buyer’s agent fee | Generally CGT cost base |
Building and pest inspection before purchase | Generally capital |
Principal loan repayments | Not deductible |
Private-use interest | Not deductible |
Initial repairs | Capital |
Improvements and renovations | Capital |
Second-hand asset depreciation where restricted | Not deductible under Division 40 |
Residential rental travel for ordinary individual investor | Generally not deductible |
Private holiday-home expenses | Not deductible |
Fines and penalties | Not deductible |
Meals while inspecting the property | Private / Not deductible |
Expenses paid directly by the tenant where you did not incur them | Generally not deductible |
Vacant land holding costs | Restricted, subject to limited exceptions |
ATO GIC or SIC incurred from 1 July 2025 | Not deductible |
Vacant Land
Deductions for holding vacant land are restricted for individuals and certain other entities.
Restricted expenses may include:
interest;
council rates;
land tax;
maintenance;
insurance.
Limited exceptions apply, including certain business activities and exceptional circumstances.
For residential construction, deductions generally require careful consideration until:
construction is complete;
the premises can lawfully be occupied; and
the property is rented or genuinely available for rent.
Vacant-land rules are technical. Provide the contract, construction dates, occupancy certificate and rental advertising records.
GST and Residential Rent
Ordinary residential rent is generally input taxed.
This normally means:
no GST is added to the residential rent;
residential rent is not reported as a taxable sale;
GST credits are generally not available for expenses relating to input-taxed residential rent.
Different GST rules may apply to:
commercial property;
new residential premises;
property development;
commercial residential premises;
hotels, motels, hostels or boarding houses;
certain managed short-stay accommodation.
Do not assume Airbnb income is automatically subject to GST merely because it is short-term. The physical nature of the premises and the way the accommodation enterprise is operated must be considered.
Selling a Rental Property
Selling a rental property can result in:
capital gains tax;
a capital loss;
balancing adjustments for depreciating assets;
adjustments to the CGT cost base;
main residence exemption considerations;
foreign-resident capital gains withholding.
Contract date - not settlement date
For a normal property sale, the CGT event generally occurs when the sale contract is entered into.
Example:
contract signed: 28 June 2026;
settlement: 15 August 2026.
The CGT event will generally fall in FY2026, because the contract was signed before 30 June 2026.
📝 Records required for the CGT cost base
Keep:
purchase contract;
purchase settlement statement;
stamp duty;
conveyancing and legal costs;
buyer’s agent fees;
capital improvement invoices;
special levy records;
sale contract;
sale settlement statement;
agent commission;
advertising costs;
sale legal fees;
capital works schedule;
depreciation schedule;
ownership records;
main residence dates;
rental-use dates.
Current FY2026 CGT discount
For a sale contract entered into during FY2026, an Australian-resident individual may generally qualify for the 50% CGT discount where the property was held for at least 12 months.
The discount does not apply to:
companies;
gains where the 12-month test is not met;
certain foreign-resident periods;
gains calculated under another method;
revenue gains from property development or profit-making schemes.
Former home converted to rental property
If a former home becomes a rental property:
the six-year main residence absence rule may be relevant;
generally, only one property can be treated as the main residence for the same period, apart from a limited moving-home overlap;
a market valuation may be required when the property is first used to produce income;
renting part of the home may result in a partial CGT exposure.
Obtain a defensible market valuation at the date the property first becomes income-producing where the “first used to produce income” rule may apply.
Do not wait until the property is sold many years later.
Foreign-resident capital gains withholding clearance certificate
For property sale contracts entered into on or after 1 January 2025:
the previous monetary threshold has been removed;
the withholding rate is 15%;
Australian-resident vendors should obtain an ATO clearance certificate before settlement.
Without a valid clearance certificate, the purchaser may be required to withhold 15% from the sale proceeds.
Each legal owner requires their own clearance certificate.
Apply early - the ATO may take time to process the application.
Records to Keep
Rental income
Keep:
annual property manager statements;
lease agreements;
platform statements;
bank statements;
rent ledgers;
bond records;
insurance payments;
tenant reimbursement records.
Rental expenses
Keep:
tax invoices;
receipts;
bank evidence;
body corporate statements;
special levy documents;
rates notices;
insurance schedules;
legal invoices;
repair descriptions and photographs.
Loans
Keep:
original loan contracts;
annual loan statements;
redraw transaction histories;
offset account statements;
refinancing documents;
evidence tracing how borrowed funds were used.
Depreciation and capital works
Keep:
purchase invoices;
quantity surveyor schedules;
construction invoices;
effective-life calculations;
low-value pool records;
asset disposal records.
Rental income
Keep purchase, ownership, improvement and sale records for the entire ownership period and generally for at least five years after the CGT event is reported.
Do not destroy purchase documents merely because more than five years have passed since purchase.
ATO Rental Property Review Hotspots
Common issues include:
reporting net rent instead of gross rent;
omitting Airbnb or cash income;
claiming expenses for private-use periods;
claiming an initial repair as an immediate deduction;
claiming renovations as repairs;
claiming a second-hand asset depreciation deduction;
claiming travel to a residential property;
claiming 100% of mixed-purpose loan interest;
failing to trace redraws;
claiming body corporate special levies incorrectly;
claiming full-year expenses where the property was not genuinely available;
splitting income and expenses contrary to legal ownership;
failing to adjust the CGT cost base for capital works;
using settlement date instead of contract date for CGT.
What to Bring to Your Tax Appointment
For each rental property, provide:
property address and legal ownership percentages;
annual property manager statement;
rent ledger or short-stay platform annual report;
full-year loan statements;
redraw and offset details;
council and water rates;
land tax;
insurance;
body corporate statements;
repair and maintenance invoices;
special levy documents;
new asset invoices;
quantity surveyor depreciation schedule;
details of private use;
advertising evidence for vacant periods;
purchase or sale settlement statements;
dates the property was your main residence, if applicable.
Please keep separate records for each property.
Final Reminder
A rental property loss is not automatically deductible merely because expenses exceeded rent.
Every item must be:
incurred;
income-producing;
correctly classified;
properly apportioned;
supported by records; and
claimed in the correct income year.
Where an expense is borderline, we will adopt the treatment that is supportable under the tax law and ATO guidance. The largest possible claim is not always the correct claim.