Tax Return Season for Property Investors: What to Have Ready 

The 2025-26 financial year has closed and tax return season is officially underway. For property investors, the quality of a tax return is largely decided before it is prepared. Complete, well-organised records mean every legitimate claim is supported, nothing is overlooked, and your accountant’s time goes into strategy rather than chasing missing paperwork. 

Here is what to have ready before your FY2025-26 return is prepared. 

Rental income records 

Start with the income side. You will need: 

• Annual statements from your property manager for each property, summarising rent received, fees and expenses paid on your behalf. 

• Records of any rent received directly, outside an agent arrangement. 

• Details of any bond money retained, insurance payouts for lost rent, or booking income from short stay platforms. 

Income from all sources must be declared, and the ATO’s data matching across rental bond boards, property managers and short stay platforms is increasingly thorough. Complete records protect you. 

Expense records 

Expenses are where preparation pays off most. Gather loan interest statements for each investment loan, council and water rates notices, insurance policies, strata levies, land tax assessments, property management fees and records of repairs and maintenance. Our guide to investment property tax deductions covers the full range of what can and cannot be claimed. 

Two areas deserve particular care: 

• Repairs versus improvements. Fixing damage is generally deductible in the year it occurs, whilst improvements are capital in nature and claimed differently over time. Keep invoices that describe the work clearly. 

• Interest apportionment. If a loan has been redrawn or partly used for private purposes, the interest must be apportioned. Have the loan statements ready so the split can be calculated properly. 

Your depreciation schedule 

A depreciation schedule prepared by a qualified quantity surveyor remains one of the most commonly missing documents at tax time. It sets out the capital works and plant and equipment deductions available for your property, and without one, those claims are often understated or missed entirely. 

If you have a schedule, have it on hand. If you do not, it is worth asking whether one would benefit your property, particularly for newer builds or recently renovated properties. The fee for preparing a schedule is itself generally deductible. 

If you sold a property this year 

A sale during FY2025-26 brings capital gains tax into your return, and the record requirements go back much further than the year of sale. You will need: 

• Purchase and sale contracts, settlement statements and the relevant dates. 

• Records of purchase costs such as stamp duty and legal fees, which form part of your cost base. 

• Records of capital improvements made during ownership. 

• The property’s usage history, since periods of living in the property can change the CGT outcome. Our article on what happens when a rental property becomes your main residence explains why these dates matter. 

Situations that need extra attention 

Some circumstances add a layer of complexity worth flagging with your accountant early: properties rented for only part of the year, holiday homes with private use, jointly owned properties where income and expenses are split according to legal ownership, and investors living overseas, whose residency status affects how income and gains are taxed. 

A note on the Budget changes 

Your FY2025-26 return is prepared under the existing rules. The measures announced in the May 2026 Federal Budget, including the proposed changes to negative gearing and the CGT discount, remain subject to legislation and are directed at future years, not this return. 

That said, this year’s return is worth treating as more than a compliance exercise. It is a clear snapshot of how your portfolio performs under the current settings, and a useful baseline for the planning conversations that the proposed changes will require. 

Have your return prepared by property tax specialists 

Property Tax Specialists prepare returns for investors across Australia as part of our property tax accounting and reporting services, backed by specialist property investor tax advice when your circumstances call for it. To get your FY2025-26 return underway, call us on 1800 800 829 or book a consultation today.