As we approach 30 June 2025, it’s time for property investors to get tax-ready. Whether you’re a seasoned landlord or facing your first end-of-financial-year as a property investor, taking the right steps now can help you maximise deductions, stay compliant, and set yourself up for a smoother year ahead.
From gathering your records to understanding depreciation and capital works deductions, here’s your comprehensive guide to EOFY 2025 tax planning for residential property investors in 2025.
- Get Your Documentation in Order
Being organised will save time and reduce the risk of missed deductions. Start gathering:
- Annual income and expense statements from your property manager
- Council rates and water bills (available online via your provider or council portal)
- Landlord and building insurance policies (plus premium invoices)
- Receipts for repairs and maintenance throughout the year
- Separate receipts for improvements (e.g. new kitchen appliances, flooring upgrades)
Pro tip: Create a digital folder (Dropbox or Google Drive) for all your records with clear labels like “Rates – March 2025” to stay organised next year.
- Understand What You Can and Can’t Claim
You may be entitled to claim a wide range of property-related expenses—provided they are for the purpose of earning rental income.
Commonly claimable expenses include:
- Interest on your investment loan
- Property management fees
- Council and water rates
- Repairs and maintenance (not capital improvements)
- Insurance premiums (landlord, building, contents)
- Depreciation (on both building and eligible assets)
You can’t claim:
- Private or personal expenses
- Travel to inspect the property (no longer deductible)
- Some second-hand depreciating assets purchased after 9 May 2017
- Expenses not related to rental income (e.g. during personal use)
- Organise a Depreciation Schedule
A tax depreciation schedule can significantly increase your deductions by identifying how much you can claim each year for building wear and tear and depreciable assets.
How to arrange one:
- Contact a qualified Quantity Surveyor
- They will assess your property and provide a schedule for use each year
- The cost is tax deductible
Even older properties may be eligible for asset depreciation or capital works deductions—so don’t assume it’s too late.
- Plan Ahead for the New Financial Year
EOFY is a perfect time to review your portfolio’s performance and plan proactively.
Steps to take:
- Review rental income vs expenses – Are you cash flow positive or negative?
- Check rental returns – Is your rent at market rate? Ask your property manager for comparisons.
- Book maintenance proactively – Fix issues now to avoid emergencies (and claim eligible repairs this year).
- Check your insurance coverage – Ensure policies are current and sufficient.
- Set monthly reminders – Save invoices and bills regularly to make next EOFY easier.
- Understand Rental Expense Categories
The ATO separates rental deductions into three categories:
| Category | Examples | Claim Timing |
| Immediate deductions | Loan interest, council rates, pest control, repairs, insurance | Same financial year |
| Claim over time | Capital works, borrowing costs, depreciation on assets > $300 | Spread across years |
| Not deductible | Private expenses, some capital costs, second-hand assets post-2017 | Not claimable |
- Apportion Expenses Correctly (for Part-Time or Shared Use)
Do you rent out:
- Just a portion of your home? (e.g. a room on Airbnb)
- Your property for part of the year only?
In these cases, you must apportion your expenses to reflect only the income-producing use of the property. You cannot claim full deductions for personal use or below-market rental periods.
- Don’t Miss Multi-Year Deductions
Some deductions extend beyond one year:
| Deduction | How it’s claimed |
| Borrowing costs (e.g. loan fees) | Over 5 years or loan term (whichever is shorter) |
| Capital works (building improvements) | Over 40 years at 2.5% per year |
| Asset depreciation | Based on asset’s effective life (per depreciation schedule) |
Claiming these correctly could lead to substantial tax savings year over year.
- Final Maintenance Push
Last-minute repairs before EOFY can be deductible this year.
Examples:
- Fix leaky taps or broken locks
- Annual pest control
- Smoke alarm servicing
- Replacing faulty fittings (if not considered an improvement)
- Finance and Insurance Costs
You can generally claim:
- Interest on investment loans
- Bank fees, loan application fees, and mortgage insurance
- Premiums for landlord, building, contents, and rental loss insurance
These deductions are often overlooked—make sure they’re included in your return.
FAQs – EOFY for Property Investors 2025
1: Can I still claim depreciation if my property is old?
Yes. Even if the building is too old for structural depreciation (built before 1987), you may still be able to claim depreciation on newer renovations or fittings. A depreciation schedule can identify these.
2: Are travel expenses to inspect my rental property tax deductible?
No. Since July 1, 2017, travel costs for inspecting or maintaining a rental property are no longer deductible for individual investors.
3: If I rent out a room on Airbnb, can I still claim deductions?
Yes, but only for the portion of expenses related to the rented area and time it was available for rent. You must apportion costs accordingly.
4: What’s the difference between a repair and an improvement?
Repairs restore something to its original state (e.g. fixing a leaking tap), and are fully deductible. Improvements (e.g. renovating a kitchen) must be claimed over time as capital works.
5: Is the depreciation schedule a one-time cost?
Yes. You only need to purchase a depreciation schedule once. It can then be used by your accountant to maximise claims every year.
Conclusion
EOFY is an excellent opportunity to review, claim, and prepare. As a property investor, knowing your eligible deductions, staying organised, and taking advantage of depreciation and long-term deductions can lead to significant tax savings.
Don’t leave money on the table—get your documents ready, consult your accountant, and take proactive steps to ensure your property portfolio is working hard for your financial future.
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