EOFY 2026 Tax Deductions Every Perth Property Investor Should Review Before 30 June

As the end of the financial year approaches, Perth property investors have a valuable opportunity to review their investment expenses and ensure they are claiming every deduction they are entitled to.

During this time, a proactive EOFY review can help maximise your tax return, improve cash flow, and support your long-term investment strategy. 

However, understanding what can be claimed, and what can't, is critical, as the Australian Taxation Office (ATO) continues to monitor rental property deductions closely.

Here are some key tax-time tips every Perth property investor should review before 30 June 2026.

Start with your documentation

One of the most effective ways to simplify tax season is maintaining accurate records throughout the year.

From the day you purchase an investment property, it's important to keep copies of invoices, receipts, loan documents, insurance policies, and maintenance records. 

Having a clear paper trail not only makes tax preparation easier but also helps support any claims if required.

Most property managers provide annual financial summaries that outline rental income and expenses for the financial year. These reports can be a valuable resource when preparing your return.

As a general rule, property-related records should be retained for at least 5 years, and in some circumstances longer, particularly if they relate to the eventual sale of the property.

Understanding what counts as rental income

When lodging your tax return, it's important to report all income generated from your investment property, not just the weekly rent received from tenants.

Rental income may include:

• Regular rental payments
• Insurance payouts that replace lost rental income (such as rent default claims under your landlord insurance) 
• Reimbursements from tenants for certain expenses

Ensuring all income sources are accurately declared helps avoid issues later and keeps your tax affairs compliant.

Note that insurance payouts for physical damage to the property are treated differently and may not simply be included as rental income — your accountant can advise on the correct treatment.

Review your eligible deductions

Many of the costs associated with owning and managing an investment property may be tax deductible. However, not all deductions are treated the same way.

Some expenses can generally be claimed in the financial year they occur, while others are claimed over several years.

Expenses often claimed immediately

These may include:

• Property management fees
• Advertising for tenants
• Council and water rates
• Landlord insurance premiums
• Repairs and maintenance
• Gardening and cleaning costs

Expenses typically claimed over time

Certain costs are usually spread across multiple years, including:

• Loan establishment and borrowing costs (generally written off over the loan term, up to a maximum of five years, rather than claimed immediately)
• Building depreciation (capital works)
• Depreciation on eligible fixtures and assets
• Major property improvements and renovations

Understanding the difference between repairs, maintenance, and capital improvements is particularly important, as each may be treated differently for tax purposes. As a general rule, a repair restores something to its original condition, while an improvement adds something new or upgrades what was there — improvements are generally claimed over time rather than immediately.

There are also specific rules around repairs carried out shortly after purchasing a property to fix defects that existed at the time of purchase, which may not be immediately deductible. Your accountant can advise on the correct treatment for your situation.

Ensure your property was genuinely available for rent

A common area of confusion for investors relates to claiming expenses during vacant periods.

Deductions can generally only be claimed when the property is rented or genuinely available for rent. This means it should be actively advertised at a market-appropriate rent and accessible to prospective tenants.

If a property is vacant but you are actively seeking tenants, deductions may still apply — but if it is kept vacant for personal reasons or listed at an unrealistic rent, the ATO may disallow some or all of the claims for that period.

EOFY checklist for property investors

Before lodging your tax return, consider reviewing the following:

✓ Annual property management statement

✓ Loan interest summaries

✓ Council and water rate notices

✓ Insurance premium invoices

✓ Repair and maintenance receipts

✓ Depreciation schedules

✓ Records of any renovations or capital improvements

✓ Documentation relating to co-owned properties (including confirmation of the legal ownership split) 

For co-owned properties, it’s worth noting that income and deductions are generally required to be split according to each owner’s legal ownership percentage — not by private agreement between the owners. This is a common area where investors can get it wrong, so it’s worth confirming the position with your accountant.

Having these documents ready can help streamline discussions with your accountant and reduce delays during tax preparation.

A well-prepared tax return starts with good record keeping and a clear understanding of your property's financial position. By staying organised throughout the year and reviewing your eligible deductions carefully, property investors can approach tax season with greater confidence.

This article is general information only and is not tax advice. We are a licensed real estate agent and are not a registered tax agent or accountant. Nothing in this article should be relied upon as advice for your individual circumstances. Tax rules can be complex and change over time — we always recommend speaking with a registered tax professional before making decisions about your investment property.

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Additional sources:

Groves, H. Tax time: What property investors need to know. Tax time What property investors need to know (reiwa.com.au)

Williams, S. (2024, June 21). What property investors need to do now to prepare for tax time. What property investors need to do now to prepare for tax time (domain.com.au)

2024 Tax Time toolkit for investors (ato.gov.au)