As 30th June is approaching, it is now the time for property investors to review their position and prepare for the end of the financial year.
2026 is particularly important, following the changes of Federal Budget to negative gearing and capital gains tax, which will be applied to new investments effective from 1st July 2026. Even though the existing properties are unaffected, it is worth important to plan ahead if you are considering to purchase properties in the near future.
Below are some areas you need to consider:
RENTAL INCOME
You should check whether your rental return is still in line with current market conditions. Comparing similar properties or discuss with a local agent to help you identify opportunities to optimize your income.
PROPERTY EXPENSES
Considering the economics situations, identifying changes or savings opportunities can improve your overall return. You should review your ongoing costs including:
- · Loan structure and interest rate
- · Insurance premiums
- · Maintenance and repairs
- · Property management fees
TAX DEDUCTIONS
You should ensure all your records are accurate and understand what expenses are claimable, such as:
- · Immediate deductions (e.g. loan interest and repairs)
- · Long term deductions (e.g. depreciation and capital works)
- · Non-deductible expenses
DEPRECIATION SCHEDULE
If you already did not have one, you should consider to obtain a depreciation schedule. It outlines the value of your assets and helps to maximize your tax position.
KEEP YOUR RECORDS
It is important to ensure that all your documents are stored for at least 5 (five) years. Get digital storage will be a great choice.
FINANCIAL REVIEW
With the interest rising, it is now a good time to review your loan. Refinancing or restructuring may help to reduce cost.
And, End of Financial Year is not only about compliance. It is an opportunity for Sydney investors to reassess your strategy and position for the year ahead. It is your chance to reset and optimize your properties and assets.
