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Director / Co-Founder / Mortgage Broker
Investing in property remains one of Australia’s most popular wealth-building strategies. Whether you’re purchasing your first investment property or expanding your portfolio, understanding the ongoing costs—and more importantly, which expenses are tax deductible—can make a significant difference to your long-term returns.
Many investors focus on rental income and capital growth but overlook the tax opportunities available throughout the financial year. Knowing what you can claim, when you can claim it, and how different expenses are treated can help improve your cash flow while ensuring you remain compliant with Australian Taxation Office (ATO) requirements.
Here’s what every Australian property investor should know.
Owning an investment property comes with a range of ongoing expenses. While many of these costs may be tax deductible, not every expense receives the same tax treatment.
Understanding the difference between immediately deductible expenses and those that must be claimed over time can help you:
A proactive approach to tax planning can help investors make smarter financial decisions throughout the year—not just at tax time.
The ATO allows landlords to immediately claim many day-to-day expenses associated with managing a rental property.
Common immediately deductible expenses include:
These expenses are generally deductible in the same financial year they are incurred, helping reduce your taxable income sooner.
One of the most common areas of confusion for property investors is understanding the difference between repairs and capital improvements.
Repairs restore something that has become damaged or worn through normal use.
Examples include:
These expenses are usually immediately tax deductible.
Improvements increase the property’s value, extend its life, or improve its functionality.
Examples include:
These costs generally cannot be claimed immediately and instead are claimed over several years through capital works deductions or depreciation.
Understanding this distinction can have a significant impact on your annual tax outcome.
Some investment property costs provide long-term value and therefore must be claimed progressively.
These may include:
Structural improvements are generally claimed at 2.5% per year over 40 years, depending on eligibility.
Costs associated with obtaining your investment loan may include:
These are generally claimed over the life of the loan or five years, depending on the expense.
Assets with a limited effective life may be depreciated over time, including:
Understanding depreciation can unlock valuable tax savings over the life of your investment.
Not every expense associated with owning an investment property is tax deductible.
Generally, you cannot claim:
Knowing what cannot be claimed is just as important as knowing what can.
Timing can make a difference.
If you’ve been delaying necessary repairs or maintenance, completing the work before 30 June may allow you to claim those deductions sooner, potentially reducing your taxable income for the current financial year.
Similarly, if you’re planning major capital improvements, completing the work before year-end allows depreciation or capital works deductions to begin earlier.
Planning ahead rather than rushing at tax time often leads to better financial outcomes.
Investment property taxation can become increasingly complex as your portfolio grows.
Working with an experienced accountant helps ensure you:
Pairing professional tax advice with an experienced property manager can also help reduce the day-to-day workload while protecting your investment.
Property investing is about more than purchasing the right property—it also requires careful financial management.
Understanding how investment property tax deductions work allows Australian investors to improve cash flow, maximise returns, and make more informed financial decisions throughout the year.
Whether you’re buying your first investment property or managing multiple rental properties, seeking professional advice can help ensure you’re making the most of every available opportunity.
At 360 Financial Strategists, we help Australians navigate interest rate changes with confidence. Whether you’re reviewing your mortgage, building wealth, or planning for retirement, our advisers can help you develop a clear financial strategy.
Director / Co-Founder / Mortgage Broker
As the end of the financial year approaches, many Australians focus on lodging their tax return. However, some of the biggest tax-saving opportunities occur before 30 June, not after.
Whether you’re a young professional, growing family, business owner or pre-retiree, taking action before the financial year ends may help reduce your tax liability, boost your superannuation and improve your overall financial position.
The key message this year is simple: plan ahead rather than waiting until tax time.
If you have available cash flow, prepaying certain deductible expenses before 30 June may allow you to bring forward a tax deduction into the current financial year.
Common examples may include:
By paying before 30 June, you may receive the tax benefit sooner rather than waiting until the following financial year. However, not all expenses qualify, so professional advice is important.
The Australian Taxation Office has indicated ongoing focus on:
Maintaining accurate records remains essential when preparing your tax return.
Income Protection Insurance Deductions
Many Australians are unaware that premiums paid for income protection insurance may be tax deductible.
However, only the portion covering loss of income is generally deductible. Other forms of personal insurance such as life insurance, trauma insurance or critical illness cover are generally not deductible.
While tax deductions often receive the most attention, superannuation contributions can be equally valuable from a long-term wealth-building perspective.
The annual concessional contribution cap is currently $30,000 and includes:
Reviewing your contributions before 30 June can help determine whether there is remaining capacity available within your cap.
Australians under age 75 may be eligible to contribute up to:
Before making additional contributions, it’s important to consider your total super balance and contribution limits.
One of the most commonly overlooked EOFY issues is timing.
Super contributions count when the money is received by the super fund—not when the payment is sent. Leaving contributions until the final days of June can potentially create issues if processing delays occur.
EOFY can be an excellent opportunity to:
Families may benefit from:
Business owners should consider:
For Australians approaching retirement, EOFY may provide an opportunity to:
Before 30 June, consider:
✔ Reviewing deductible expenses
✔ Checking income protection insurance deductions
✔ Reviewing concessional contribution limits
✔ Assessing non-concessional contribution opportunities
✔ Confirming super contributions are received before EOFY
✔ Ensuring records are accurate and up to date
The earlier these steps are completed, the greater flexibility you may have before financial year-end.
With 30 June fast approaching, now is the ideal time to review your tax position, super contributions and financial strategy.
Whether you’re looking to reduce your tax liability, grow your superannuation or prepare for the year ahead, taking action before EOFY could make a meaningful difference.
Book a conversation with our team today and discover the opportunities available before the financial year ends.
Depending on your circumstances, you may be able to claim work-related expenses, income protection insurance premiums, investment-related expenses and other eligible deductions. Keeping accurate records is essential.
In some cases, yes. Certain eligible expenses can be prepaid before 30 June, allowing you to claim the deduction in the current financial year. Always seek advice to confirm eligibility.
The concessional contribution cap is $30,000 per year and includes employer super contributions, salary sacrifice contributions and personal deductible contributions.
Eligible Australians may be able to contribute up to $120,000 per year as non-concessional contributions, or up to $360,000 under the bring-forward rule, subject to eligibility requirements.
As early as possible. Super contributions count when they are received by your super fund, not when you transfer the money. Processing delays near 30 June can result in missed opportunities.
Generally, yes. Premiums that cover loss of income may be tax deductible. However, life insurance, trauma insurance and total permanent disability cover are generally not deductible when held personally.
Exceeding contribution caps can result in additional tax and reporting requirements. It’s important to review your contributions before making additional payments.
EOFY is one of the best times to review your tax position, superannuation strategy and broader financial goals. Professional advice can help ensure you don’t miss valuable opportunities.
The 2026 Australian Federal Budget introduces tax reforms, housing policy changes and cost-of-living measures. Key changes include limiting negative gearing to new property builds, replacing the 50% capital gains tax discount with inflation indexation and a minimum 30% tax, introducing a $250 Working Australians Tax Offset, and simplifying work expense claims with a $1,000 standard deduction.
These reforms aim to improve housing affordability, support workers and strengthen the economy.
The 2026 Australian Federal Budget introduced several major reforms aimed at improving housing affordability, supporting workers, and strengthening the economy during a period of global uncertainty and elevated inflation.
The centerpiece of the Budget focuses on tax reform, property investment changes and cost-of-living relief, alongside funding changes across healthcare, aged care and disability support.
From 1 July 2027, the current 50% CGT discount for assets held longer than 12 months will be removed and replaced with inflation indexation and a minimum 30% tax on capital gains.
This change applies to:
However, transitional arrangements mean only gains from July 2027 onwards will be affected.
To improve housing supply, negative gearing will only apply to newly built residential properties from 1 July 2027.
Important details:
Negative gearing occurs when the costs of owning an investment asset, such as interest on loans, maintenance, and rates exceed the income it generates (e.g., rent). This creates a net loss, which investors can deduct from their other income, such as salary, to reduce their overall tax bill.
From 1 July 2028, the Government will introduce a minimum tax on discretionary trusts, requiring trustees to pay
tax at a minimum rate of 30% on the taxable income of the trust. Beneficiaries, other than corporate beneficiaries,
will receive non-refundable credits for the tax payable by the trustee.
The following trusts will be exempt from the new minimum tax:
The following types of income are also proposed to be excluded from the new minimum tax:
A permanent $250 Working Australians Tax Offset (WATO) will be introduced to help reduce the tax burden on workers.
Combined with previously legislated tax cuts, this increases the effective tax-free threshold to around $19,985.
From 1 July 2026, taxpayers can claim a standard $1,000 deduction for work-related expenses without needing receipts.
If actual work expenses exceed $1,000, individuals can still claim their full deductions under existing rules.
The Budget includes measures to ease household costs including:
PBS medicine refers to prescription medication subsidized by the Australian Government through the Pharmaceutical Benefits Scheme (PBS).
The Government will implement changes to the National Disability Insurance Scheme to deliver more than $36 billion in savings over four years, aiming to return the scheme to its original intent while ensuring long-term sustainability.
Small businesses receive continued support including:
These changes aim to stimulate investment and support business growth.
For many Australians, the Federal Budget delivers moderate cost-of-living relief rather than major cash payments.
Key benefits include:
However, inflation remains a major economic concern.
Inflation is forecast to reach around 5%, meaning many households may still face pressure from higher costs for essentials like housing, groceries and energy.
Australia’s economy is currently navigating:
The Budget attempts to balance economic stability with long-term structural reforms, particularly in housing and tax policy.
While savings from programs like the NDIS help improve the Budget position, economic conditions will continue to influence interest rates and financial markets in the years ahead.
The Budget introduces some of the most significant investment tax reforms in decades, particularly around property and capital gains.
Property market implications
Limiting negative gearing to new builds could shift investor demand toward off-the-plan and newly constructed properties.
However, because existing investments are grandfathered, many current investors will see no immediate change.
Changes to CGT could also affect investors holding shares and managed funds.
Key considerations include:
Importantly, the changes only apply to gains from July 2027 onwards, giving investors time to plan.
Several other Budget changes may influence financial strategies, including:
These changes could affect tax planning, business structures and retirement planning.
At 360 Financial Strategists, we help Australians navigate the financial landscape with confidence.
Book a consultation with our team today
When did the 2026 Federal Budget occur?
The Australian Federal Budget for 2026–27 was released on 12 May 2026. It outlines government spending, taxation changes and economic priorities for the coming financial year.
Will the Federal Budget affect mortgage rates?
The Federal Budget does not directly set mortgage rates. However, government spending and tax policies can influence inflation and economic growth, which may affect decisions by the Reserve Bank of Australia on interest rates.
Will the 2026 budget affect property prices?
Housing reforms introduced in the budget may influence investor demand and housing supply. Over time, increased housing construction and tax changes could help improve affordability and stabilise property prices.
Do tax cuts start immediately?
Some tax cuts begin in 2026, while additional reductions will be introduced in 2027, gradually increasing take-home pay for many Australian workers.
Budget 2026-27 – BUDGET STRATEGY AND OUTLOOK Budget Paper No. 1
Guardian – Budget capital gains tax changes and negative gearing reform explained
The Australian – New $2bn fund to turbocharge construction
The Australian – Labor’s risky reset: how the budget rewires housing market
If you’re running a business, chances are you’ve heard about the instant asset write-off — and probably wondered if it’s still worth using, how it works now, and whether you’re missing out.
The short answer? It can be a powerful tool for managing cash flow and reducing your tax bill — but only if you understand how and when to use it properly.
This article breaks it down in plain English so you can make informed decisions, not rushed ones at the end of financial year.
The instant asset write-off allows eligible Australian businesses to claim an immediate tax deduction for the business portion of the cost of an asset in the year it is first used or installed ready for use.
Instead of depreciating the asset over several years, you claim the full amount upfront (subject to thresholds).
Think of it as bringing forward your tax deductions, which can improve short-term cash flow.
The rules around the instant asset write-off have changed multiple times over the past few years — which is where most of the confusion comes from.
As at the current settings (subject to legislation updates):
This follows changes from previous years, including 2023,2024 and 2025. These frequent updates are why it’s important not to rely on last year’s rules when making decisions.
At its core, it’s simple — but the detail matters.
You Purchase an Eligible Asset
This could include:
It’s not enough to order or pay for the asset — it must be ready for use in your business before the deadline.
If the asset cost is under the threshold, you can claim the full business-use portion as a deduction in your tax return.
If you use the asset partly for personal use, you can only claim the business portion.
Generally, the scheme applies to:
If you’re unsure whether you qualify, this is where a conversation matters, eligibility isn’t always as straightforward as it seems.
Most tangible depreciating assets used in your business can qualify, including:
What doesn’t qualify:
This is where strategy comes in.
By claiming deductions upfront, you may reduce your taxable income — meaning less tax payable in the short term.
It can support decisions to upgrade equipment, improve efficiency, or expand operations.
If you were already planning to invest in assets, timing the purchase correctly can make a real difference.
Up-to-date equipment and systems can improve productivity and customer experience.
The instant asset write-off sounds simple — but there are a few common traps.
It’s Not “Free Money” – You’re not getting a discount, you’re bringing forward a deduction. The cash still leaves your business.
Timing Is Everything – If the asset isn’t ready for use before 30 June, you miss the deduction for that year.
It Shouldn’t Drive Bad Decisions – Buying something just to “save tax” often doesn’t stack up financially.
Cash Flow Still Matters – Even if you reduce tax, you still need to fund the purchase upfront.
If you’re considering using the instant asset write-off in 2026 but want to make sure it actually makes sense for your business, a quick conversation can help.
A Free Business Advice Clarity Call with the team at 360 Financial Strategists gives you a chance to talk through your options, understand the impact, and decide what’s right for you — without pressure. Sometimes it’s just about having the right conversation to make the next move clearer.
It allows eligible businesses to immediately deduct the cost of eligible assets used in their business, rather than depreciating them over time.
Currently set at $20,000 per asset for eligible small businesses, but always check for updates as thresholds change.
Yes — the threshold applies per asset, not per year.
No — financed assets may still qualify, depending on structure and use.
You’ll need to depreciate the asset over time instead of claiming it upfront.
Working from home (WFH) is no longer a temporary shift—it’s a normal part of how many Australians work. With that shift, the way you claim home office expenses on your tax return has evolved. The home office rate, set by the Australian Taxation Office, is the method many people use to calculate deductions for the costs of working from home.
In simple terms, the home office rate is part of the fixed rate method, which allows you to claim a set amount per hour worked from home to cover running expenses. These expenses typically include electricity, internet, mobile or phone usage, and basic office consumables like stationery. It’s designed to simplify the process so you don’t need to calculate every individual cost separately.
However, the system hasn’t stayed the same. Prior to recent changes, many Australians used the well-known 80 cents per hour shortcut method, which bundled nearly all home office expenses into one simple rate with minimal record-keeping. While convenient, it didn’t always accurately reflect actual costs—especially for people working from home long-term.
From 2023 onwards, the ATO removed the shortcut method and refined the fixed rate method. This means:
These changes aim to strike a balance between simplicity and accuracy. While the process is still relatively straightforward, it does require a bit more diligence than in previous years.
For many households, this has meant rethinking how they track their work patterns and expenses. It’s no longer enough to estimate—documentation matters. That said, the fixed rate method remains a practical option for most employees and small business owners who work from home regularly.
Claiming a work-from-home tax deduction comes down to choosing the right method and maintaining the right records. The two main options are the fixed rate method and the actual cost method.
The fixed rate method is the most commonly used because it simplifies the process. You multiply the number of hours worked from home by the ATO’s set hourly rate. This rate is intended to cover common running expenses, which means you don’t need to calculate each one individually.
To make a valid claim under the fixed rate method, you’ll need:
It’s important to understand what the fixed rate method does and does not include.
| Includes | Doesn’t include |
Electricity and gas for heating, cooling, and lighting Internet and phone usage Stationery and small consumables | Office furniture (such as desks and chairs) Computers, monitors, and other equipment Repairs or depreciation of assets These items can often still be claimed, but they must be calculated separately using different tax rules |
The alternative is the actual cost method, which requires you to calculate the exact work-related portion of each expense. This method can potentially result in a larger deduction, but it is more complex and requires detailed records. For most people, the fixed rate method strikes a good balance between ease and accuracy.
While claiming WFH expenses can reduce your taxable income, it’s important to approach it carefully. The ATO has increased its focus on compliance in this area, and incorrect claims can lead to adjustments or penalties.
Here are some key considerations:
One of the most common misconceptions is that you can claim a standard amount without any documentation. Under current rules, this is not the case. Even when using the fixed rate method, you still need to show how many hours you worked and that you incurred the relevant expenses.
Another important factor is consistency. If your working from home arrangement changes throughout the year—such as hybrid work or varying hours—you’ll need to reflect that accurately in your records.
For business owners and self-employed individuals, the rules can be slightly different, particularly when it comes to occupancy expenses like rent or mortgage interest. These claims can have broader implications, including potential capital gains tax impacts, so it’s worth seeking professional advice before proceeding.
The removal of the 80 cents per hour shortcut method marked a significant change in how Australians approach WFH deductions. While it was easy to use, it often oversimplified real costs and didn’t encourage accurate record-keeping.
The updated fixed rate method introduces more accountability. Instead of relying on a blanket rate with minimal evidence, taxpayers now need to demonstrate both their work-from-home hours and the expenses they’re claiming.
This shift reflects a broader trend in tax administration—moving towards greater transparency and accuracy. While it may feel like more work initially, it also creates a fairer system where deductions more closely reflect actual costs. In 2024-2025 the ATO updated its policy and went to a 70 cent per work hour fixed rate.
Staying on top of your WFH claims doesn’t need to be complicated. A few simple habits can make the process much easier at tax time:
The key is consistency. Small, regular updates are far easier than trying to reconstruct an entire year’s worth of information at the last minute.
While WFH deductions can provide some tax relief, they are just one part of your overall financial picture. Understanding how they fit into your broader strategy—such as cash flow, tax planning, and wealth creation—can help you make more informed decisions.
For example, choosing between the fixed rate and actual cost methods isn’t just about convenience. It can affect your taxable income, your record-keeping obligations, and even your long-term financial planning.
This is where having a clear strategy matters, even if you are a smaller size business or a consultant. Rather than treating tax deductions as a once-a-year exercise, integrating them into your overall financial plan can lead to better outcomes over time.
If you’re unsure how to approach this, it may be worth speaking with a professional. The ASIC provides general guidance on financial decision-making, but personalised advice can help you apply these rules to your specific situation.
Not sure if you’re claiming your working from home expenses the right way?
A quick conversation can help you understand what applies to your situation and where you might be missing opportunities.
Book a Clarity Call with the team at 360 Financial Strategists and get a clearer picture of your tax position and overall financial strategy.
The fixed rate is set by the ATO and is applied per hour worked from home. It is designed to cover common running expenses such as electricity, internet, and phone usage. The exact rate does change over time, so it’s important to check the latest ATO guidance.
Yes, you can claim WFH expenses if you meet the eligibility criteria and have the appropriate records. The claim must relate directly to your work and not be reimbursed by your employer.
The shortcut method has been removed. Taxpayers now need to use either the fixed rate method or the actual cost method, both of which require more detailed record-keeping. The current fixed rate is now 70 cents in 2026 with record keeping required.
You generally cannot claim WFH expenses without records. Even under the fixed-rate method, you need to show your work-from-home hours and provide evidence of the relevant expenses.
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