02 Aug 2021

EOFY Landlord Checklist

The end of the financial year has come and gone so now it’s time to organise everything you need for tax.

As a landlord, it’s important that you plan out your tax strategy now so you can maximise your deductions and reduce your EOFY stresses. Here’s what you need to focus on.

Touch base with your accountant

You don’t need to have everything prepared as soon as the clock ticks over into July 1st. In fact, it may take a few weeks or even months before you are ready to submit your tax return. That’s why EOFY is a good time to touch base with your accountant and work out everything that needs to be done.

As a landlord, one of your best business advisors is your accountant or tax agent. They are across your entire financial situation, they know what your investments are doing, and they can provide advice on any tax implications of your investment property’s income and expenses – particularly if your property is negatively geared.

Get your repair and maintenance paperwork in order

Now is the time to scour through your records from the past 12 months and compile all the instances where you performed – or outsourced – repairs and maintenance. If your investment property was occupied when the fixes were carried out and they occurred before the end of the financial year, you will be able to claim them on your tax.

One thing to bear in mind is that the ATO differentiates ‘repairs’ from ‘improvements’ (i.e. capital expenses). That means if you carried out renovations or added extensions to the property, they can only be claimed over time rather than all at once – capital expenses can typically be deducted under the general depreciation provisions or capital works provisions.

Get a depreciation schedule

Aside from being able to grow your wealth with property, one of the best reasons to invest in real estate are the tax breaks. Depending on the properties you own, you could see thousands of dollars in tax deductions because the ATO allows property investors to reduce their overall income through the cost of depreciation.

It might sound complicated, but it’s made easy by finding a registered quantity surveyor to organise a depreciation schedule. Appliances, carpets, furnishings, blinds, floors and even renovations may all be liable for depreciation benefits. And you can usually claim the cost of the schedule itself.

The good news is we have a comprehensive guide to tax depreciation schedules to help you save more money on your investment properties.

Know exactly what you can claim

It might surprise you just how many property investors don’t know what they can claim at tax time. Missing out on these deductions can mean you pay the ATO thousands of dollars in unnecessary expenses.

You are probably aware that you can claim things like insurance, repair costs and property management fees, but did you know you might also be able to claim:

  • Land tax
  • Water fees
  • Council rates
  • Accountancy costs
  • Cleaning, gardening and pest control
  • Strata fees
  • Advertising expenses (e.g. rental ads looking for tenants)
  • Small appliances that are under $300

Your accountant will be able to talk you through all the tax breaks you may be eligible for, so make sure you speak with them before you start preparing the EOFY paperwork.

Prepare for next year

This past EOFY may have passed, but you can prepare yourself for the upcoming year by setting yourself reminders to take care of tax-related jobs. These can include pre-paying expenses wherever possible, which can bring you down from a higher tax bracket to free up cash next EOFY.

You might also want to evaluate your insurance. You will be able to claim your premiums and fees when the next tax time rolls around, so it’s worth getting fully covered with the right types of insurance.

Remember your obligations

The beginning of the new year, or a new financial year, can be a good time to revise your obligations as a landlord – particularly any upgrades or safety checks you may need to take care of. Read our article here to find out more.

Let the professionals manage your investment properties

If tax time means weeks and months of stress, why not give yourself some peace of mind by letting the experts manage your investment properties? The experts at Aurora Realty will provide high-quality management services so you can focus on other things – find out more by contacting the Aurora Realty team today.

Share this article:


Have a Property you would like us to manage?

Switch To Us