6 SMART Tax Strategies
before June 30...
As the end of the financial year approaches, it’s time to take a closer look at your investment property and ensure you’re maximising every possible tax benefit. While building wealth through property often focuses on income, capital growth, and equity, smart investors also pay close attention to what’s going out, especially when it comes to tax.
To help you make the most of your investment, here are 6 essential strategies every property investor should consider before June 30.
1. Property Depreciation
If you own an investment property, it's subject to wear and tear over time — this is known as depreciation. The amount you can claim depends on several factors: the property’s age, condition, and ownership structure.
A Tax Depreciation Schedule identifies all the items in your investment property that depreciate and allows you to claim them as tax deductions.
We encourage every investor to explore this opportunity. In fact, we’re so confident in the value of our service that we guarantee your total first full-year deductible amount will be at least four times our fee — or you pay nothing.
Some key points to keep in mind:
- A tax depreciation schedule starts when your tenant begins paying rent, not when we inspect the property.
- The schedule lasts up to 40 years — you only need to do it once.
- The fee is 100% tax deductible, so you pay once and benefit year after year.
- If you haven’t done one before, the schedule can be backdated several years, potentially unlocking significant savings.
- There is still time to get this happening before June 30, allowing you to claim the expense back straight away.
And best of all, it’s free to have a chat with us. The worst-case scenario? You walk away better informed.
2.Repair's & Maintenance vs. Improvements
Immediate deduction vs. Capital improvement (depreciated over time)
Money spent on your investment property for repairs or maintenance can typically be claimed as an immediate deduction when you lodge your tax return.
However, if the work carried out improves the property, such as replacing an old kitchen with a new one or upgrading to higher-quality fixtures, it’s classified as a capital improvement. In this case, the cost cannot be fully claimed upfront. Instead, it must be included in your tax depreciation schedule and claimed gradually over a period of time.
Understanding the difference between repairs and maintenance versus capital improvements is crucial to ensure you’re claiming expenses correctly. The ATO pays close attention to incorrect or misleading claims in this area.
If you’re unsure how your expenses should be treated, don’t hesitate to get in touch with us at Real Property Matters. We're happy to help you get it right.
3. Borrowing Interest
With current property prices, most investors rely on borrowed funds to grow their portfolios. The interest component of your investment loan can be one of the largest tax deductions available to you.
Importantly, if you’ve taken out additional finance to upgrade the property—such as installing a solar system, air conditioning, or other improvements—the interest on that finance is also tax-deductible, provided the funds were used for income-producing purposes.
If you’re in a position to reduce your borrowings consider paying down your home loan first. Unlike investment loans, the interest on a home loan is not tax-deductible, meaning there’s no tax benefit to maintaining that debt.
If you’d like guidance on maximising your deductions through smart borrowing strategies, we work with many Finance Specialist daily and are able to help.
4. Borrowing Expenses
When securing finance for your investment property, there are often a range of upfront costs involved—such as loan establishment fees, title searches, and mortgage registration fees.
These are known as borrowing expenses, these are often overlooked and the good news is: they are a valuable tax-deductible.
According to the ATO:
- If your total borrowing expenses exceed $100, they must be apportioned over five years or over the term of the loan (whichever is shorter).
- If they’re $100 or less, you can claim the full amount immediately in the year the expense was incurred.
Borrowing expenses can offer valuable deductions, so it’s worth gathering your loan documentation to ensure nothing is missed at tax time.
5. Property Management & Advertising
Good management of your investment property comes at a cost—but it’s one that can bring significant returns and keep you compliant with regulations.
Effective advertising and presentation are essential to attract quality tenants and secure the best possible rental income. Advertising costs may include professional photography, on-line listings, brochures, and signage and all of these expenses are tax-deductible in the year they are paid.
Likewise, fees paid to a property management service, covering tenant screening, rent collection, routine inspections and property maintenance, are also fully deductible in the financial year the expense is incurred.
These services not only reduce your stress as a landlord but also ensure your investment is professionally managed and legally compliant.
6. Insurance – Protect Your Income & Your Asset
In 2025, protecting both your investment and your income is simply smart investing. Landlord insurance is an essential tool for safeguarding your property and financial return. It typically covers:
- Property damage
- Loss of rental income
- Public liability
- Contents within the property
Also make sure your building insurance provides adequate coverage... With real estate values rising significantly post COVID, and construction and repair costs increasing just as fast, it’s important to make sure your building insurance provides adequate coverage for full restoration in the event of damage.
Review not only your landlord insurance, but also your building, its your largest asset and any adjustments need to reflect current building trends.
And don’t forget—all of these premiums are tax-deductible in the year they are paid.
If you’re unsure with your building cover, don’t hesitate to get in touch with us at Real Property Matters. We're happy to help.
Need Help Before June 30?
Get in touch today and let’s make sure your property is working as hard for you as it should be.
Whether you're reviewing deductions, looking into depreciation, or just have a few questions, our team is here to help.