Financial Year End Tips

How time flies; the end of the 2023-2024 financial year is upon us!

We have gathered some tips for rental property owners to consider at this time of year:

1. Before looking forward - look back
Review the past years accounts and assess expenses and income. You can use the insights gained to plan for the coming financial year and make adjustments or review budgets.

2. Review your interest deductibility claim
The rules around this have recently been changed by the new government with 80% of interest expenses now being able to be claimed for the 2024-2025 financial year. 

100% of interest costs will be able to be deducted as of the 2025-2026 financial year.

3. Claim deductible expenses and depreciation
Understanding what expenses you can claim as a property owner is important at tax time. These can include:

  • the rates for the property

  • the cost of insuring your rental property

  • payments to agents who collect rent, maintain your rental, or find tenants for you

  • fees paid to an accountant for managing accounts, preparing tax returns and advice

  • repair and maintenance costs

  • fees for arranging a mortgage to finance the rental property

  • fees for drawing up a tenancy agreement

  • the cost of getting a valuation required to get a mortgage, but not insurance valuations

  • the costs of taking legal action to recover unpaid rent

  • the costs for evicting a tenant

  • depreciation on capital expenses

  • travel expenses for travelling to inspect your property or to do repairs

  • legal fees involved in buying a rental property, if the expense is $10,000 or less.

Make sure to include these as part of your deductions, or if you are unsure - talk to your accountant.

4. Talk to your Property Manager
Having a good understanding of your situation helps us manage your property more effectively. If you need to adjust your spend limit, look at implementing a more pro-active maintenance approach, or discuss the rent level of your property, its best to have a conversation with the property manager to see where we can help.


James Moran