5 Practical Steps Property Investors Should Take Before 30 June
As the end of financial year approaches, many property investors start thinking about tax returns. However, EOFY preparation is about much more than simply lodging your tax return.
The weeks leading up to 30 June are an opportunity to review your portfolio, organise your records, and speak with the right professionals to ensure you’re making informed decisions and maximising the benefits available to you.
Here are five practical steps property investors should consider before the end of the financial year.
1. Speak With an Accountant Who Understands Property Investment
One of the most important members of your investing team is your accountant.
The Australian Taxation Office has access to more property-related data than ever before, making it essential that your records and deductions are accurate and compliant.
The lead-up to EOFY is the ideal time to meet with your accountant to discuss your current position and any plans you may have for the coming year.
If you’re considering purchasing another investment property, restructuring ownership, or selling an asset, these decisions can have significant tax implications. Having these conversations before 30 June can help you make more informed decisions and avoid unexpected outcomes.
2. Communicate With Your Property Manager and Review Property Expenses
EOFY is a great time to speak with your property manager about any repairs, maintenance, or other deductible works that may be able to be completed before 30 June if you wish to claim the deduction in the current financial year.
Your property manager can also help ensure all property-related expenses have been properly recorded and accounted for.
If your property manager has been paying bills on your behalf throughout the year, they will generally provide you with an Annual Statement summarising the property’s income and expenses. However, if you have paid any bills directly—or covered a portion of expenses yourself—it’s important to ensure these costs are also captured and provided to your accountant.
Take the time to gather records relating to:
- Property management fees
- Council and water rates
- Insurance premiums
- Loan interest and bank fees
- Repairs and maintenance
- Professional services and advisory fees
- Any expenses paid directly by you
Here’s a useful ATO resource covering rental property taxes, record keeping, depreciating assets, and more: Residential Rental Properties – ATO Guide.
3. Review Your Asset Protection and Insurance
Building a property portfolio takes time, effort, and commitment, which is why protecting it should be a priority.
EOFY is a good time to review your insurance arrangements and overall asset protection strategy.
This may include:
- Landlord insurance
- Building insurance
- Income protection insurance
- Life and total permanent disability insurance
You may also wish to discuss ownership structures, trusts, or self-managed super fund (SMSF) strategies with qualified professionals where appropriate.
Every investor’s circumstances are different, so obtaining personalised advice is important.
4. Review Your Depreciation Opportunities
Depreciation is one of the most commonly overlooked tax benefits available to property investors.
A depreciation schedule prepared by a qualified quantity surveyor can identify deductions relating to both the building structure and eligible plant and equipment assets within the property.
If you don’t already have a depreciation report, EOFY is an excellent time to determine whether one could benefit your investment property. Even properties that are several years old may still qualify for depreciation deductions.
If you’d like to arrange a depreciation report, Active Property Investing clients are eligible for a discounted rate through our preferred provider, DuoTax. Contact our team to learn more about the available API client discount.
5. Get Organised Before Tax Time
Good record-keeping can make tax time significantly easier.
Whether you prefer cloud storage, email folders, or accounting software, having a system in place helps ensure important documents are easy to access when needed.
Many investors work closely with their property manager to streamline this process. Annual financial statements, maintenance records, and expense summaries can save considerable time when preparing information for your accountant.
The more organised you are throughout the year, the less stressful EOFY becomes.
Final Thoughts
Successful property investing isn’t just about buying the right property. It’s also about staying organised, working with the right professionals, and regularly reviewing your strategy.
By taking a proactive approach before 30 June, you’ll be better prepared for tax time and in a stronger position to make confident investment decisions in the year ahead.
If you’d like to discuss your investment strategy or explore opportunities to grow your portfolio, the team at Active Property Investing is here to help.