As June draws to a close, Australian property investors are turning their attention to one of the most important times of the year: end of financial year (EOFY). Beyond closing the books, it’s a critical period to ensure you’ve made the most of available deductions, structured your investments smartly, and set yourself up for success in the year ahead.
At Sound Property, we’ve worked with thousands of investors nationwide, helping them build resilient portfolios while maximising their tax efficiency. Here’s our guide to making EOFY work for you.
Why EOFY matters for property investors
EOFY isn’t just about ticking boxes for the ATO. It’s your annual opportunity to:
- Claim deductions that reduce your taxable income.
- Review your investment performance.
- Strategically plan improvements or purchases.
- Ensure compliance and avoid ATO red flags.
Property, unlike many other asset classes, offers a suite of potential deductions — from loan interest to depreciation and maintenance costs. Missing out on these means leaving money on the table.
Tax time tips from Sound Property
Get your paperwork in order
It sounds obvious, but incomplete records are the #1 cause of missed deductions. Make sure you’ve gathered:
- Loan statements (to claim interest)
- Property management and leasing fees
- Council rates, water rates, strata fees
- Insurance premiums
- Repairs and maintenance invoices
- Depreciation schedule (if applicable)
💡 SP insight: If you’ve purchased a property this financial year, have you ordered a depreciation schedule from a quantity surveyor? Even older properties can have claimable items — many investors underestimate this.
Know the difference between repairs and improvements
The ATO draws a clear line:
- Repairs/maintenance (e.g. fixing a leaking tap) → immediate deduction
- Improvements (e.g. adding a new bathroom) → capital works deduction over time
💡 SP insight: We often see investors over-claiming in this area and getting tripped up at audit. When in doubt, seek advice — or risk being asked to repay claimed amounts with interest.
Prepay interest (where appropriate)
If you’re a high-income earner looking to reduce this year’s tax bill, prepaying 12 months of loan interest on an investment property can bring forward deductions.
💡 SP insight: This can be particularly effective if you expect a lower income next financial year (e.g. planned parental leave or career break).
Consider capital gains implications now
If you’ve sold an investment property this year, remember that capital gains tax (CGT) applies in the year you sign the contract, not settlement.
- Ensure you’ve held the asset for 12+ months to access the 50% CGT discount.
- Offset gains with any realised capital losses.
💡 SP insight: EOFY is a smart time to review your portfolio for underperforming assets that could be sold to crystallise a loss and offset gains.
Plan for the year ahead
EOFY isn’t just about looking back. Now’s the time to:
- Review your loan structures — are you paying too much?
- Check your insurance coverage aligns with rising replacement costs.
- Set a strategy for new acquisitions in FY26.
💡 SP insight: With property markets stabilising after recent rate hikes, we’re seeing strategic buyers re-enter, especially in growth corridors of SE Queensland and regional NSW. EOFY planning helps you move decisively when opportunity knocks.
The Sound Property advantage
At Sound Property, we believe tax time isn’t just about compliance — it’s a tool to build wealth smarter. Our clients benefit from:
- Access to trusted quantity surveyors, brokers, and tax professionals.
- Data-driven insights on market opportunities.
- Strategic planning to align tax efficiency with long-term portfolio goals.
Final word
As June 30 approaches, take the time to ensure your property investment strategy is as tax-effective as possible. Whether it’s maximising deductions, planning for CGT, or setting yourself up for the year ahead, EOFY is a golden opportunity to sharpen your financial edge.
👉 Need help with your EOFY property strategy? Contact Sound Property today for a personalised review.