How a property investor tax engagement usually works
A well-run process with a tax accountant for property investors begins with a quick discovery of your structure (individual, company, trust, SMSF), loan setup and property types (residential, commercial, short‑stay). We check data sources such as property manager statements, loan statements, invoices, and any quantity surveyor depreciation schedules.
Work typically runs in three layers:
- Immediate triage: fix record gaps, apportion mixed-use interest, separate repairs from improvements, and prepare an accurate rental schedule.
- Process design: automate feeds from your property manager, set up folders for settlement and loan docs, and schedule updates so BAS/tax lodgements are smooth.
- Ongoing review: track year-to-date results, pre‑June planning (e.g., timing improvements), and CGT modelling before you sign a sale contract.
If you also need transaction processing, our bookkeeping for property investors service can capture receipts, reconcile loans and keep files audit‑ready.
Australian rules investors should know
- Registration matters: verify tax practitioners on the Tax Practitioners Board public register.
- Interest deductions: claim interest on loans used to produce rental income. Apportion where redraws or offsets are used for private spending.
- Repairs vs improvements: repairs from wear and tear are generally deductible; improvements are capital (depreciated or added to CGT cost base).
- Depreciation: claim Division 43 capital works and eligible Division 40 assets. Second‑hand residential plant acquired after 9 May 2017 is typically not depreciable by subsequent owners. A quantity surveyor schedule helps maximise and substantiate claims.
- Travel: travel to inspect/maintain a residential rental property is generally not deductible for individuals and SMSFs from 1 July 2017.
- CGT: properties held >12 months may qualify individuals/trusts for the 50% discount. Keep complete purchase/sale, improvement and selling cost records. The 6‑year rule can apply when a former main residence is rented.
- GST: residential rent is input taxed (no GST charged, no input credits). Commercial property rent is usually subject to GST if you’re registered. New residential sales may attract GST; get advice on the margin scheme before contracts are finalised.
- Land tax: state-based; generally deductible against rental income. Thresholds and surcharges vary by state and residency.
Need BAS as well? Commercial landlords often register for GST and lodge BAS. See our BAS agent services or the broader accounting services hub for more options.
What to compare when choosing a property tax accountant
Scope
Confirm inclusion of rental schedules, interest apportionment, depreciation review, pre‑June planning, CGT modelling and lodgement support—not just an annual return.
Software fit
Look for fluency with your tools (property manager portals, cloud accounting and receipt apps) and a documented workflow for evidence capture.
Turnaround and communication
Ask about lead times, how queries are handled during peak season, and how sale timing or refinance deadlines are prioritised.
Property depth
Choose a team experienced across residential, commercial, short‑stay/Airbnb, trusts and companies—so advice stays consistent as your portfolio evolves.
Best next steps for property investors
- List your properties and structures, plus any sales/renovations planned in the next 12–24 months.
- Gather your latest property manager statement, loan statements and any depreciation schedules.
- Note special cases: Airbnb use, mixed private/holiday use, commercial leases or development activity.
- Decide whether you need bookkeeping help as well as year‑end tax and CGT planning.
Then contact a tax accountant for property investors who can map the steps, outline timing and provide a clear fixed or scoped fee before work begins. If you’re still exploring, use the related pages to move into bookkeeping, payroll or general tax services.
Frequently asked questions
What can a property investor claim each year?
Typical deductions include loan interest (apportioned if mixed-use), council and water rates, land tax, body corporate fees, insurance, advertising, property management fees, repairs and maintenance, and eligible depreciation. Keep statements and invoices to support your rental schedule.
Are travel costs to inspect a residential rental deductible?
No. From 1 July 2017, individuals and SMSFs cannot deduct travel expenses for residential rental properties. Commercial property and some excluded entities are treated differently.
How do I handle depreciation?
Claim Division 43 capital works (typically 2.5% p.a.) and eligible Division 40 assets you purchase new. For residential properties bought after 9 May 2017, second‑hand plant is generally not depreciable by subsequent owners. A quantity surveyor schedule helps you claim correctly.
What is negative gearing?
Negative gearing occurs when rental expenses exceed rental income, creating a taxable loss that may offset other income. A property‑focused accountant can model cash flow, tax impact and risks.
How is CGT calculated on sale?
Capital gain equals sale proceeds minus cost base (purchase price, buying/selling costs and capital improvements). If held >12 months, individuals/trusts may access the 50% discount. Timing, main residence rules and records all matter—seek advice before exchange.
Do I need to register for GST?
Residential rent is input taxed (no GST). Commercial property rent is usually taxable if you are registered or required to register. Some sales (e.g., new residential) may attract GST—get advice early, including margin scheme considerations.