Your EOFY Checklist for Property Tax Deductions

Essential Maintenance to Complete Before EOFY

To make the most of your deductions, ensure the following essential maintenance tasks are completed:

• General Repairs: Attend to leaking taps, broken tiles, and faulty electrical fittings without delay. These repairs help maintain the property's condition and ensure renter satisfaction.
• Garden and Exterior Upkeep: Address fence repairs, landscaping, and pressure wash pathways and walls. First impressions matter, and proper exterior maintenance ensures lasting curb appeal.
• Pest Control Treatments: Conduct regular pest control to protect your property from infestations, safeguarding your investment and ensuring renters remain comfortable.
• Servicing Heating and Cooling Systems: Regular maintenance of heating and cooling systems ensures efficiency, extends equipment lifespan, and contributes to a comfortable living environment.
• Smoke Alarm and Safety Compliance Checks: Ensure that smoke alarms and other safety compliance checks such as Gas, Electrical and Pools are compliant with current standards to protect renters and minimise liability risks.
• Gutter Cleaning and Roof Inspections: Regular cleaning of gutters and thorough roof inspections help prevent severe water damage and expensive repairs in the future.

Repairs vs Improvements – Know the Difference

Understanding the distinction between repairs and improvements is critical:

• Repairs and Maintenance: These are immediate fixes, such as replacing broken windows or repairing plumbing leaks. According to the ATO, these expenses can typically be fully deducted in the same financial year.
• Capital Improvements: Enhancements that significantly increase the value of your property, such as installing a new kitchen or adding a room, are considered capital improvements. These expenses must be depreciated over several years.

Correctly categorising these expenses can have considerable tax implications, so always consult with your property manager or accountant if you are unsure.

Timing is Key

Completing and paying for your maintenance tasks before June 30 is crucial for deductions in this financial year. Ensure all invoices are dated before EOFY, and maintain thorough records, including payment confirmations, as the ATO requires clear documentation for claims.

Reference the ATO Factsheet The Australian Taxation Office provides clear guidelines in their "Top 10 tips for rental property owners" factsheet. This valuable resource clarifies allowable deductions and highlights the importance of meticulous record-keeping, expense categorisation, and maintaining compliance.

Addressing these critical property management tasks before June 30 enhances renter satisfaction, maintains your property's value, and optimises your financial benefits. For tailored advice and efficient handling of your property maintenance needs, our experienced property management team at Marshall White is here to assist.

Ready to maximise your EOFY deductions?

Contact the Marshall White Property Management team today for expert guidance tailored to your investment property’s needs.