Tax Time Tips 2026: Get ready for year end

Tax Time Tips 2026: Get ready for year end

How outlook for life has changed over the last few months. 
Some of the features of this period of time include,

  • War in Middle East
    • Higher fuel costs → higher inflation
    • Increased costs of construction
      • Greater growth in value of existing property investments
  • Low unemployment – great for the country, tax collections higher, welfare expenses lower
    • lack of experienced labour available to work 
    • increased prices with energy shortages and other factors feeding into higher cost of living
  • Increasing demand for NDIS, aged care, health care sectors .. investors in NDIS properties enjoying better outcomes – watch out for changes from government while trying to control; spiralling NDIS costs
  • INTEREST RATES – rising .. slightly offset by rising rents
    • Lookout for state government controls favouring tenants including limits to timing of allowing increases and minimum rental terms 
  • RENTS – Higher rents helped investors with low loan balances.. Cash flow is usually king .. consider interest only loans where cash flow is an issue .. compared with slightly higher interest rates .. in a fast growing capital market
    • Additional regulation including
      • increasing rent only once a year
      • longer notice period for evicting tenants – even if lease expired and they are on weekly/monthly rental
  • IMMIGRATION – Slowing but continuing high immigration with some well funded pushing up prices 
  • Low housing supply, slow regulator approvals, rising constructions costs, short supply of qualified tradies.
  • Increased scams, identity theft and HACKING of confidential data including tax file numbers – Be VIGILANT with providing your personal details

Growth rate in property values, depending on location has slowed .. but still strong due to shortage of supply. In some areas it may track back over that rapid rise over the last couple of years. Likely to still be positive when viewed over 7-10 year cycle. Timing of entry, exit and taking advantage of opportunities has seen many exit or change their positions with great results. PTS has responded to an increase in enquiries to assist with the tax implications of the resulting capital gains. Generally, planning ahead before actioning is best .. PTS have been called upon to assist in situations where the clients were made ‘offers they could not refuse’ prompting immediate response .. while the opportunity exists.

Enquiries to PTS have increased with a lot regarding capital gains tax impacts of selling/transferring/gifting including 

  • how much CGT will I pay if I sell
  • how can we minimise the CGT liability
  • how does the Main Residence exemption work as we moved out and rented the place
  • selling previous Main Residence while a non-resident
  • buying a block of land, constructing a duplex, splitting ownership between partners

Also queries regarding ownership structuring as to whose name should be on title for the new properties, thus minimising impacts in the future.  

SUBDIVISIONS – With higher entry prices, limited supply many people are 

  • subdividing & constructing duplexes to
    • get a newly constructed modern residence
      • support children & their families in the second one
    • sell one while keeping another as their Main Residence
    • sell both as a developer making a profit 
    • many considerations with his move including
      • CGT
      • GST
      • Lender approvals

ATO is back on the warpath … with a vengeance … chasing up outstanding debts and lodgements. People are receiving, mostly friendly, reminder calls as well correspondence. Do not ignore these. Best to respond and request arrangement to accommodate your circumstances.


Tax tip – as ATO continues to communicate electronically instead of sending paper – check your myGov account

Notwithstanding all the excitement, the boring reality though, is that tax returns still have to be lodged for 2026 financial year … So we thought to help with some tips to keep you ahead .. at least for this year. 

If you need support, clarification, advice  or are uncertain about the tax treatment of income or Capital Gains, or just to prepare tax returns, please contact Shukri or Amir on 1800 800 829 (TAX) or email reception@propertytaxspecialists.com.au