End of financial year is not just a tax deadline, as for property investors, it is a useful checkpoint. It’s a chance to look at what your property actually did over the last 12 months, what it cost you to hold, what your loan is doing, what deductions you may be entitled to and whether your portfolio is still moving in the right direction.
Too many investors treat EOFY as an admin exercise. Collect receipts. Send statements. Lodge return. Move on.
But the better investors use it as a strategy moment.
Start with your rental income
The first step is simple: make sure all rental income has been captured. That includes regular rent, short-term rental income, insurance payouts for lost rent, retained bond amounts and any tenant reimbursements that may need to be declared. The ATO states that rental income must be declared, and expenses can generally only be claimed for periods where the property was rented or held to produce rental income.
This matters more than ever for holiday homes and short-term rentals. If a property has been used privately, partly rented, vacant, or only available at certain times, expenses may need to be apportioned. That is an accountant conversation, not a guess.
Repairs are not the same as improvements
This is one of the most common areas where investors get caught: A repair generally restores something to its previous condition, and an improvement makes the property better than it was before. That distinction matters because repairs may be immediately deductible, while improvements or capital works may need to be claimed over time or included in the cost base. The ATO notes that where repairs and improvements happen together, the repair component can only be claimed separately if it can be clearly identified.
For example, fixing a broken window may be a repair. Replacing all windows with higher-grade double glazing may be an improvement. Painting a damaged wall may be a repair. Renovating the whole kitchen is likely a capital improvement.
Before lodging, make sure your accountant understands what work was done, why it was done and when the issue first arose.
Check your depreciation and capital works
If you own an investment property, a depreciation schedule may help identify deductions for eligible depreciating assets and capital works. Capital works deductions are generally claimed over time, often at 2.5% or 4% per year depending on the type of construction and eligibility. For newer properties, renovations or properties with qualifying assets can make a meaningful difference.
If you have completed renovations during the year, bought a newly built property, or never obtained a depreciation schedule, EOFY is a good time to ask whether one is worth getting.
Keep proper records
Good records are not glamorous, but they matter. The ATO says rental property records generally need to be kept for at least five years, and records relating to buying, owning and selling the property may need to be kept for at least five years after disposal.
At EOFY, gather:
- Loan statements
- Rental statements
- Property management summaries
- Council and water rates
- Strata notices
- Insurance invoices
- Repair and maintenance invoices
- Land tax assessments
- Depreciation schedules
- Legal or accounting invoices
- Purchase or refinance documents
- Evidence of private use, if relevant
The better your records, the easier it is for your accountant to claim correctly and defend the position if needed.
Review your loan structure
EOFY is also a smart time to review your finance. Ask yourself the following questions:
- Is my interest rate still competitive?
- Am I using the right loan structure?
- Do I have enough offset funds or buffers?
- Is my loan split correctly between personal and investment debt?
- Has my property increased in value?
- Could I access equity for the next purchase?
- Is my current lender still the right fit?
This is especially important if you are planning to buy again.
Your tax return looks backward.
Your finance strategy should look forward.
Think about cash flow before tax time
A tax refund can help, but it should not be the only thing holding the property together. With the Federal Budget proposing changes to negative gearing from 1 July 2027, investors need to be more conscious of how property losses may be treated in future years.
The Government has announced that established residential properties purchased after Budget night may have losses limited to residential property income, with unused losses carried forward, while new builds retain broader negative gearing treatment.
That makes EOFY a good time to ask:
- Is this property costing more than expected?
- Has the rent kept pace with expenses?
- Are interest costs eating into cash flow?
- Can I still hold comfortably if tax treatment changes?
- Do I need to restructure before buying again?
- This is not about reacting to every rule change.
- It is about making sure the numbers still work.
Plan before 30 June, not after
The biggest mistake investors make is leaving EOFY too late. By the time the financial year has ended, some planning opportunities may already be gone.
Before 30 June, speak to your accountant about deductions, repairs, prepayments, depreciation, record-keeping and your broader tax position. Speak to your broker about loan structure, equity, refinancing and borrowing capacity.
If you are thinking about buying again, do not wait until you find a property. Get the finance position clear first.
From Our Perspective:
EOFY should not just be about lodging your tax return, but it’s actually about a yearly review of your investment position.
What worked?
What cost more than expected?
What needs to be fixed?
What is the next move?
A strong property portfolio is not built by accident. It is built through good assets, smart finance, strong cash flow, clean records and the right advice at the right time. So before 30 June, take the time to review where you are as it could make the next financial year a lot clearer.
General information only. This article does not take into account your personal financial, tax or legal circumstances. Speak to your broker, accountant and financial adviser before making any decision.
