A guide to tax time for landlords
By Carolyn Parrella | Published 22 November 2024 | Last Updated 19 October 2026
Tax time can feel complex when you own a rental property. Between rental income, property expenses, maintenance, insurance records and end-of-financial year (EOFY) documents, there can be a lot to organise. Planning ahead can help landlords understand what they may be able to claim, reduce last-minute stress and keep their tax return accurate.
Keep in mind, the information in this article is current as of the published or last updated date. Rules and laws change. Always review information the ATO provides, alongside information like that which is in this article.
Why tax planning matters for landlords
Tax planning can make it easier to review rental property expenses, gather receipts and confirm what may be deductible for the current financial year before 30 June. Planning ahead may also support cash flow, as eligible deductions can affect the overall tax position of an investment property.
Tax planning can also reduce pressure at the EOFY. Leaving maintenance issues to the last minute may mean a tradesperson can’t be booked before 30 June. This could affect whether the expense is included in the current year’s tax return.
What rental property expenses can landlords claim?
Ongoing expenses
Before claiming any rental property expense, landlords should check that the cost meets current ATO requirements, is connected to earning assessable rental income, has been actually incurred, and is supported by adequate records. If eligible, ongoing costs may include:
- property management fees
- landlord insurance premiums, and
- body corporate fees.
It’s wise to know how much you should set aside for property maintenance when you have an investment property.
Maintenance and repairs
Maintenance and repairs may be deductible when they are connected to earning rental income and meet ATO requirements. However, initial repairs, improvements and capital works may need different tax treatment. Landlords should check whether a cost is a repair, maintenance item or capital expense before claiming it.
Completing eligible maintenance before EOFY may help ensure the expense is considered for the current tax return.
Advertising and tenant costs
Advertising for tenants may also be a potential rental property expense. As with all deductions, landlords should confirm the current ATO rules and keep records that show the cost relates to earning rental income.
Deductions depend on current ATO rules and each landlord’s circumstances. Landlords should speak with a registered tax professional before lodging their return.
Rental property tax checklist for landlords
- Review all rental property expenses before 30 June
- Complete eligible maintenance work before EOFY where possible
- Gather receipts, invoices and bank records
- Confirm which expenses may be deductible
- Organise financial statements from your property manager or managing agent
- Keep records for the required period. The ATO recommends keeping rental records for 5 years, although some records may need to be kept longer depending on the situation.
EOFY documents you may need:
- proof of your rental income
- property management fees and statements
- rent records
- bank statements
- repair and maintenance invoices and receipts, and
- insurance expenses.
The ATO also recommends keeping records from the time you buy the property, while you own it, and when you sell it. These records can help calculate any capital gain or loss later.
How property managers can help at tax time
Property managers can play a useful role in helping landlords prepare for tax time. They may provide:
- detailed EOFY statements
- track expenses during the year, and
- help identify costs that may need to be reviewed by an accountant.
They can also help landlords stay on top of maintenance, invoices and rental income records. This can make it easier to provide accurate information to a tax professional come tax time.
Importance of professional tax advice
Rental arrangements can vary, including long-term rentals, short-term rentals, renting part of a home, holiday homes and arrangements with family or friends. Your type of rental arrangement adds complexity to tax rules. Additionally, these rules can change annually, and what applies to one landlord may not apply to another.
An accountant or registered tax professional can help confirm eligible deductions, allocate expenses where required and check any capital gains tax considerations if a property is sold.
Common tax mistakes landlords make
Some common mistakes include:
- missing eligible deductions
- leaving expenses until after EOFY
- not seeking professional advice
- treating initial repairs as immediate deductions
- claiming purchase costs incorrectly
- not apportioning expenses for private use, and
- failing to keep records needed for CGT purposes.
To help reduce these risks, landlords can consider:
- keep clear records
- review your expenses a few months before EOFY, and
- ask a tax professional to confirm what you can and can’t claim.
Consider landlord insurance as part of your EOFY review
Landlord insurance can help protect rental property owners from risks that may not be covered by standard home and contents insurance. Terri Scheer Landlord Insurance is designed for rental properties and includes cover for tenant-related risks such as loss of rent, tenant damage and legal liability, subject to limits, exclusions and policy conditions.