In Australia, investing in real estate isn’t the preserve of a wealthy elite.
The nation’s 2.24 million property investors, owning a collective 3.25 million homes1, are everyday Australians – skilled tradies, small business owners and professionals.
If you’re a property investor, being tax-smart can be just as important as buying the right place – regardless of whether you lodge your tax return yourself or with an agent.
So it’s important you keep records right from the start, you’re across what you need to declare and you know what you can claim at tax time – particularly in the current climate of high interest rates, when every dollar counts.
What you need to declare
When you lodge your tax return, you need to let the Australian Taxation Office (ATO) know how much rental income you received over the financial year.
You may also need to declare:
More information about what rental income must be declared is available at the ATO website.
What you may be able to claim
You can’t claim for conveyancing fees or stamp duty but if you sell your property, you can use these costs to help work out if you need to pay capital gains tax.
You can find out more about rental expenses you can claim at the ATO website.
1 How many Australians own an investment property Property update.com.au
Source: AMP