Tax Return Checklist – Property Investors (2026)
Use this checklist to gather the usual income and rental property deduction information we need for your return. Tick items off as you go.
ATO update for 2025–26
Draft Taxation Ruling TR 2025/D1 – effective 12 November 2025
The ATO has replaced its longstanding rental property ruling IT 2167 with TR 2025/D1. The changes below may affect deduction entitlements for the 2025–26 year. If any of these situations apply to you, please raise them with us before lodgement.
Holiday homes & short-stay properties
Simply listing a property online is no longer sufficient to claim full deductions. Genuine availability at market rates must be demonstrated — restricted availability or below-market pricing during peak periods may reduce or deny ownership costs such as interest, rates and insurance.
Mixed-use properties
Properties used for both private and rental purposes must apportion all ownership costs (interest, rates, insurance) based on actual rental use versus private use. Keep records of dates and usage to support the apportionment.
Below-market rent
Renting to family or friends at less than market rate limits your deductions. Claims are restricted to the proportion that the actual rent received bears to a market rent for the same property.
Transitional period
The ATO has allowed a transitional period running to 30 June 2026 for taxpayers to adjust their record-keeping and arrangements. This ruling is still in draft — we will keep you updated if it is finalised with changes.
Income
Deductions
Immediate deductions (claimable in the year incurred) and items deductible over a number of
years.
Immediate deductions: these expenses are generally claimable straight away in your tax return.
Administration expenses
Insurances
Property agent management
Property management + maintenance
Rates + taxes
Repairs + maintenance
Repairs relating to wear and tear or damage because of renting out the property are generally
deductible.
Be aware of the difference between repairs and improvements (improvements are typically capital in
nature).
Example: fixing broken glass can be a repair; replacing a whole window frame is typically an improvement
(often depreciated at 2.5%).
Repairs made immediately after purchase to make the property suitable for rental may be capital
(“initial repair”).
Settlement items (from your lawyer’s settlement letter)
Interest and loan account fees
For interest to be deductible, the loan must have been applied to acquire an income-producing asset
(e.g., a rental property).
Where a loan is used for both investment and private purposes, interest generally needs to be
apportioned based on use.
Travel expenses
Travel expenses for rent collection, inspections, repairs and maintenance are not allowed by the ATO as
tax deductions.
Quantity surveyor
Seminars
Deductible over a number of years: these items are typically claimed over time rather than all at once.
Borrowing expenses
Generally deductible over the shorter of the loan term (if less than five years) or five years.
Depreciation (plant & equipment)
The ATO refers to this as “decline in value” of depreciating assets. Installation costs can also be
depreciated.
Depreciation (building construction)
The ATO refers to this as a “capital works” deduction.
Need help?
If you’re unsure whether an item is deductible or capital in nature, send it through and we’ll sort it.