The end of the financial year has a way of sneaking up on property investors. One minute it’s March, the next it’s late June and you’re hunting through inboxes and bank statements trying to reconstruct twelve months of rental income and expenses. It doesn’t have to be that way.
This tax checklist for landlords is designed for landlords who want to head into EOFY prepared — with the right records, the right deductions claimed, and no last-minute scramble.
Key Takeaways:
- Rental income and all allowable expenses must be reconciled before you meet your accountant — incomplete records are the most common reason investors leave money on the table at tax time.
- Depreciation is one of the most valuable deductions available to property investors, and it’s chronically underclaimed — if you don’t have a current depreciation schedule, you could be missing out.
- Your property manager should be making EOFY easier, not harder — if you’re chasing documents, something is wrong.
Table Of Contents:
Reconcile Your Rental Income
Before anything else, confirm exactly what rental income you received between 1 July and 30 June. This sounds straightforward, but it catches investors out every year — especially those with mid-lease rent increases, vacancy periods, bond income, or insurance payouts.
Your property manager should provide a full annual statement showing all rent received, all disbursements made to you, and all fees charged. If you’re managing the property yourself, pull your bank statements and reconcile them against your lease agreement.
Things to account for:
- Total rent received
- Any rental arrears recovered
- Insurance claim proceeds that relate to lost rental income
- Government assistance or rent relief payments
- Bond money retained for damages
If there were any vacancy periods, document the dates. Expenses incurred during vacancies can still generally be claimed, provided the property was genuinely available for rent. Of course, you must check with your accountant to ensure you’re doing the right thing.
Gather and Categorise Your Expenses
This is where most of the deduction opportunity lives — and where the most disorganisation happens. The ATO allows landlords to claim a wide range of expenses, but only if they’re properly substantiated.
Immediately deductible expenses (claimed in full in the year incurred) typically include:
- Property management fees
- Council rates and water charges
- Insurance premiums (landlord insurance, building insurance)
- Repairs and maintenance (genuine repairs, not improvements)
- Advertising costs for new tenants
- Pest control
- Stationery and postage related to the property
- Accounting and legal fees directly related to the rental income
Capital expenses — such as structural improvements or appliance upgrades — are treated differently and depreciated over time rather than claimed immediately. Make sure you cover all of this in your discussions with your accountant.
Keep all receipts. The ATO doesn’t require paper copies, but electronic records need to be legible and clearly linked to the property.
Review Your Depreciation Schedule
Depreciation is the most consistently underclaimed deduction in residential property investment. It allows you to claim a non-cash deduction for the wear and tear of the building structure and its fixtures and fittings — without spending a cent.
If you bought your property after 7 May 2017, note that the rules around plant and equipment depreciation changed for second-hand residential properties. For new builds and commercial properties, the full benefit still applies.
If you don’t have a depreciation schedule in place, speak to a quantity surveyor before 30 June. A good schedule typically costs $500–$800 and can generate thousands in annual deductions. The surveyor’s fee is also tax-deductible.
If you have a schedule but haven’t updated it after renovations or significant repairs, now is the time to do so.
Check Your Loan and Finance Records
Interest on money borrowed to purchase or improve an investment property is one of the largest deductions available to most landlords — and it needs to be handled carefully.
Confirm with your lender or mortgage broker:
- Total interest paid for the financial year (not repayments — interest only)
- Any loan fees or establishment costs (these may be deductible over the loan term)
- Whether any portion of the loan was used for non-investment purposes (this limits the deductible amount on a proportional basis)
If you refinanced during the year, you may have additional deductible costs, including break fees on fixed-rate loans in some circumstances. Ask your accountant.
Prepare for Your Accountant Meeting
One of the most important parts of any tax checklist for landlords is ensuring your accountant receives complete and organised records before your appointment.
Going into your accountant meeting organised saves money — their time is billable. Arriving with a clear summary of income, expenses, and supporting documents means less back-and-forth, faster lodgement, and fewer errors.
Bring or send in advance:
- Annual rental statement from your property manager
- All expense receipts, categorised by type
- Current depreciation schedule
- Loan interest statement from your lender
- Details of any capital works or improvements completed during the year
- Insurance policy documents and any claim records
- Prior year tax return (if you’re seeing a new accountant)
If your property was sold during the financial year, you’ll also need records for capital gains tax calculation — including the original purchase price (or if you lived in the property before renting it out, the valuation at the time you moved out), all purchase costs, and all capital improvements made over the ownership period.
What to Expect from Your Property Manager at EOFY
A good property manager makes EOFY easy for their landlords. If your manager is worth their fee, you should be receiving, without having to ask:
- A full annual income and expenditure statement covering 1 July to 30 June
- Itemised receipts or records for any maintenance or repairs coordinated on your behalf
- A clear breakdown of all management fees charged throughout the year
- Prompt responses to any queries before 30 June
If you’re chasing your property manager for basic EOFY documents, that’s a service problem. The administrative side of property management matters — it’s not just about finding tenants.
At Preferental, end of financial year statements are prepared and sent to landlords after the end of June each year, giving you a clear summary of your property’s income and expenses for tax time.
EOFY Checklist at a Glance
| Task | Status | Notes |
| Obtain annual rental statement | ☐ | From property manager or own records |
| Reconcile all rental income | ☐ | Including vacancy periods and bond |
| Gather and categorise all expenses | ☐ | Separate capital vs. revenue items |
| Review depreciation schedule | ☐ | Update if renovations completed |
| Obtain loan interest statement | ☐ | Interest only, not repayments |
| Document any capital works | ☐ | Dates, costs, contractor invoices |
| Compile insurance documents | ☐ | Include any claims made |
| Book accountant appointment | ☐ | Ideally before mid-June |
| Send documents to accountant | ☐ | At least one week before meeting |
The Bigger Picture
EOFY isn’t just about minimising this year’s tax bill. It’s also a useful prompt to review your overall property position — rental yield, vacancy rate, whether the management arrangement is working, and whether your insurance coverage is still appropriate. Keeping a reliable tax checklist for landlords can make that process easier, helping you stay organised, identify missed deductions and make better investment decisions throughout the year.
Property investment rewards the organised. The investors who get the best outcomes over time aren’t necessarily the ones with the most properties — they’re the ones who pay attention to the details, keep clean records, and work with professionals who make the administrative side of ownership straightforward.
If your current property management setup is making EOFY harder than it needs to be, that’s worth addressing before the next financial year begins.
Preferental provides professional property management for Sydney investors who want less stress and better outcomes. If you’d like to know how we handle EOFY reporting, get in touch.