EOFY Property Investor Checklist (Australia)

The Australian financial year ends on 30 June. This checklist covers the main actions relevant to property investors around EOFY: ordering a depreciation schedule, completing repairs, prepaying eligible expenses, and applying for a PAYG withholding variation. Tax returns are generally due by 31 October, or later if you use a registered tax agent.

What should property investors do before 30 June?

The following actions are relevant before the financial year ends on 30 June. Most of these items cannot be backdated into the current financial year after that date. The timeline table below summarises the key dates and actions.

Why should you get a depreciation schedule before 30 June?

A tax depreciation schedule is the single highest-value action on this checklist. A report from a qualified quantity surveyor typically adds $5,000—$15,000 per year in non-cash deductions on a residential investment property, covering both Division 43 (building) (ATO — Capital works deductions (Div 43)) and Division 40 (plant and equipment) (ATO — Depreciating assets in rental properties) for up to 40 years.

The report costs $500—$770 (tax deductible). Properties built after September 1987 are generally eligible for Division 43 depreciation, and a schedule is required to claim it.

Read the full depreciation guide

Why should you complete repairs before 30 June?

Repairs that restore something to its original condition are generally deductible in full in the year they are completed. If you have been putting off fixing that leaking tap, broken fence, or worn carpet, getting it done before 30 June means the deduction falls into this financial year rather than next.

Important distinction: Improvements (making something better than its original condition) are not immediately deductible — they are depreciated over time. Replacing a damaged laminate benchtop with a similar one is a repair. Upgrading to stone is an improvement.

What expenses can you prepay before 30 June?

Some expenses can be prepaid before 30 June to bring the deduction into the current financial year. The ATO generally allows individuals to deduct prepayments of 12 months or less in the year of payment. Prepayments beyond 12 months are apportioned.

• Insurance premiums — renew or prepay your landlord/building insurance for the next 12 months
• Loan interest — some lenders allow you to prepay interest (check with yours)
• Property management fees — if your manager allows advance payment
• Council rates — some councils offer early payment

Should you review your rent before EOFY?

If market rents have increased, a rent review before EOFY means higher rental income from 1 July. Note that higher rent also reduces the net rental loss (and therefore the negative gearing tax benefit), so both sides are worth modelling.

The rental yield calculator estimates the yield impact of a rent change.

What is a PAYG withholding variation and should you apply?

A PAYG withholding variation (ATO — Varying your PAYG withholding) allows you to have less tax withheld from your salary during the year, based on your expected rental property losses. If your investment property creates a net tax loss, this variation adjusts your regular withholding to reflect the expected deductions, rather than receiving the difference as a lump sum at tax time.

You apply via the ATO (your tax agent can help). The variation applies for the rest of the financial year and needs to be renewed annually.

For the withholding mechanics, see the PAYG tax table guide. To estimate the pay-packet effect of a lower withholding amount, use the weekly tax calculator.

What records do you need at tax time (July—October)?

You need documentation for every deduction you claim. The ATO can request records for up to 5 years after lodgement. Collect the following before preparing your return:

• [ ] Property manager’s annual tax summary — rental income, management fees, letting fees, advertising
• [ ] Loan statement — total interest paid for the year (not principal)
• [ ] Council rate notices
• [ ] Water charge notices
• [ ] Insurance premium notices — building, landlord, contents
• [ ] Body corporate/strata levy statements
• [ ] Repair and maintenance receipts — with dates and descriptions of work done
• [ ] Land tax assessment — from your state revenue office
• [ ] Depreciation schedule — the current year’s deductions from your QS report
• [ ] Quantity surveyor invoice — if you obtained the report this year (the fee itself is deductible)
• [ ] Borrowing cost records — loan establishment fees, mortgage insurance (deductible over 5 years)

Common property deductions to check

The following deductions are worth reviewing to confirm they are included in your return.

1. Depreciation — Division 43 and Division 40 deductions can be substantial, particularly for newer properties. A depreciation schedule is required to claim them.
2. Borrowing costs — loan establishment fees, mortgage registration, title searches. Deductible over 5 years or the loan term (whichever is shorter).
3. Quantity surveyor fees — the cost of the depreciation report itself.
4. Legal fees — costs related to the tenancy (lease preparation, eviction proceedings).
5. Pest control, cleaning, gardening — between-tenancy costs are deductible.
6. Land tax — paid to the state, deductible against rental income.
7. Tax agent fees — the portion of your accountant’s fee for the rental property section.

For the complete list, see our investment property deductions guide.

Why should you check your CGT cost base records at EOFY?

Reviewing your CGT cost base records annually helps ensure complete documentation for a future property sale. The CGT cost base includes:

• Purchase contract and settlement statement
• Stamp duty receipt
• Legal fees on purchase
• Capital improvement invoices (renovations, extensions)
• Depreciation schedule (Div 43 deductions reduce the cost base)

These records need to be kept for 5 years after you lodge the return for the year you sell. If you sell 15 years from now, you will need the purchase records from today.

Read the CGT guide

How should you plan ahead for the next financial year?

The following items are relevant for planning before the new financial year starts.

Related calculators

• Negative gearing calculator — what is the property actually costing you per week after tax?
• Land tax calculator — has your land value changed? Are you approaching a threshold?
• Investment property calculator — full picture in one view

When should you sell to minimise CGT?

If you are thinking about selling, the timing matters for CGT. Selling after holding for at least 12 months qualifies for the 50% CGT discount (ATO — CGT discount). Selling in a lower-income year (career break, reduced hours, retirement) means the gain is taxed at a lower marginal rate. Selling after 30 June pushes the gain into the next financial year, which is useful if this year’s income is already high.

Should you review your ownership structure?

If you are buying additional properties, the ownership structure (individual, joint, trust, company) affects land tax thresholds and rates, how rental income and losses are distributed, CGT discount eligibility (companies do not get the 50% discount), and asset protection. This is worth discussing with your accountant or financial adviser before purchasing — changing structures after purchase is expensive and may trigger CGT.

Related tools

The premium property investment spreadsheet tracks negative gearing, CGT, depreciation, land tax, and cash flow across multiple properties and years in one Google Sheet.

Disclaimer

This checklist is general information only and is not tax advice or financial advice. Tax rules change and your situation is unique. Consider speaking with a registered tax agent or accountant for advice specific to your circumstances.