Owning an investment property in Australia continues to be a popular wealth-building strategy. But with changing regulations and evolving tax rules in FY2026, staying informed is more important than ever. Whether you’re a high-income professional or a self-managed investor, here are some smart moves that could help you stay ahead.
Why Record Keeping Matters More Than Ever
If you’re a property investor earning over $100k, maintaining detailed records may help you maximise your deductions and avoid costly mistakes.
You could consider keeping track of:
- Buying: Contracts, settlement statements, conveyancing documents, loan paperwork, and purchase-related costs.
- Owning: Rental income, expenses, loan documents, capital improvements, and depreciation schedules.
- Selling: Sale contracts, conveyancing fees, agent commissions, and CGT calculations.
Good record keeping isn’t just about compliance — it may also make tax time smoother and more rewarding.
Reporting Rental Income the Right Way
Rental income reporting has become more nuanced in FY2026, especially with the rise of short-term rentals and shared spaces.
You might want to check whether you’re including:
- Income from traditional leases, Airbnb, or shared arrangements.
- Insurance payouts and rental bond money.
Any periods the property was not rented or used privately.
Expenses could be claimed only if they directly relate to earning income. Some
costs, like capital works or borrowing expenses, may need to be spread over several years. Accurate apportioning is key if the property wasn’t rented full-time.
Understanding Capital Gains When You Sell
Selling an investment property can trigger capital gains tax (CGT), and FY2026 rules continue to emphasise accurate reporting.
Here’s what you may need to consider:
- CGT is based on market value, even if the property is transferred below that.
- If your sale results in a loss, you could use it to offset future capital gains.
- Your cost base should exclude depreciation and improvements already claimed.
- If you lived in the property before renting it, a partial main residence exemption might apply.
- Holding the property for over 12 months may entitle you to a 50% CGT discount as an Australian resident.
These strategies are especially relevant for self-employed professionals managing their own portfolios.
How Financial Experts Can Help You Stay Ahead
Navigating property tax in FY2026 can be complex, but you don’t have to do it alone.
Working with financial experts could help you:
- Set up a reliable record-keeping system.
- Identify and claim all eligible deductions.
- Accurately report income and expenses.
- Strategise for CGT before selling your property.
Want to explore what this could mean for you?
⚖️ General information only. This is not financial or tax advice. The strategies discussed may not be suitable for everyone. You should consider your own objectives, financial situation, and needs before making decisions. Speak to a licensed professional for personalised advice.
