Owning a rental property comes with more tax complexity than most investors expect — interest apportionment, depreciation schedules, repairs versus improvements, and capital gains when you eventually sell. Get any one of these wrong and you either lose deductions you were entitled to, or you attract ATO attention for claiming too much.
AMA Accountants has helped over 2,000 Adelaide residents and property investors across Australia lodge accurate, ATO-compliant investment property tax returns. Whether you own one rental property or a growing portfolio, our CPA-certified, ATO-registered tax agents make sure every legitimate deduction is claimed — and every figure can be defended if the ATO ever asks.
Self-lodgers must file by this date. Clients registered with a tax agent like AMA Accountants may qualify for an extended deadline — contact us before 31 October to secure yours.
An investment property tax return isn’t a separate return from your individual tax return — it’s your regular annual income tax return with a rental property schedule included. You declare the rental income you received during the financial year (1 July to 30 June) and offset it against the allowable expenses of owning and managing that property.
If your deductible expenses are higher than your rental income, you have a net rental loss. For most Australian investors, this loss can be offset against other income, such as salary and wages — a strategy commonly known as negative gearing. If your rental income is higher than your expenses, that net profit is added to your taxable income and taxed at your marginal rate.
Getting this schedule right matters for two reasons: it affects how much tax you pay this year, and it builds the record the ATO will look back at when you eventually sell the property and calculate capital gains tax.
If you own a property that is rented out, available for rent, or used to generate income in any way, you are required to declare that income in your tax return. This applies whether you:
Co-owned properties need particular care. Rental income and expenses are generally split according to legal ownership interest — not according to who actually paid the mortgage or did the work — and getting this split wrong is a common trigger for ATO correction letters.
This is where the real value of using a registered tax agent shows up. The ATO allows a wide range of deductions for rental properties, but the rules on timing, apportionment, and what counts as a deduction versus a capital cost are detailed — and the ATO uses data-matching and rental property benchmarks to flag claims that look out of line.
A repair restores something to its original condition — replacing a broken hot water system with an equivalent one, fixing a leaking roof, repainting after wear and tear. These are generally deductible in the year you pay for them.
A capital improvement makes the property better than it was, or replaces an entire asset with something different — renovating a bathroom, adding a deck, replacing a Laminate kitchen bench with stone. These aren’t claimed as an upfront deduction. Instead, they’re either depreciated over time or added to the property’s cost base for capital gains tax purposes when you sell.
Misclassifying a capital improvement as a repair is one of the most common — and most expensive — mistakes rental property owners make.
Two separate depreciation categories apply to rental properties, and the rules differ significantly:
the structural cost of the building itself (bricks, concrete, fixed fittings) is generally deductible at 2.5% per year over 40 years, for eligible properties where construction began after September 1987. This is often the single largest annual deduction for owners of newer properties, and it’s frequently missed by investors who don’t get a proper depreciation schedule prepared.
items like carpets, blinds, air conditioners, and appliances can also be depreciated. However, since 9 May 2017, investors can only claim depreciation on plant and equipment they purchased new — deductions for previously-used plant and equipment already in the property when you bought it were removed for most residential investors. This is a rule a lot of self-lodgers still get wrong, particularly on properties bought second-hand.
A professional quantity surveyor’s depreciation schedule is usually the best way to make sure both categories are captured accurately and defensibly.
Costs directly related to taking out the loan — including loan establishment fees, mortgage broker fees, and lenders’ mortgage insurance — are deductible, but not all at once. If the total borrowing costs are more than $100, they’re generally spread (amortised) evenly over five years, or the loan term if shorter.
Since 1 July 2017, individual investors can no longer claim travel expenses for the purpose of inspecting, maintaining, or collecting rent for a residential rental property. This applies even if the trip is genuinely for property-related purposes — it’s a blanket rule, not one based on your intent.
When you eventually sell an investment property, any gain is generally subject to capital gains tax (CGT) in the financial year the contract is signed — not the settlement date. A few points matter here:
Selling an investment property is exactly the kind of one-off, high-value transaction where a small error in the cost base calculation can cost thousands — it’s worth having it reviewed before you sign a contract, not after.
full preparation of your rental property schedule and income tax return, prepared and lodged by a qualified, ATO-registered tax agent.
a thorough review of your loan structure, expenses, and any improvements made during the year, to correctly classify repairs, capital works, and depreciable items.
if you don’t already have a quantity surveyor’s depreciation schedule, we can point you toward one and make sure it’s applied correctly to your return.
confirmation of how any net rental loss interacts with your other income and marginal tax rate.
every rental schedule is reviewed against current ATO benchmarks and guidelines before lodgement, to keep your audit risk low.
if you sold a property during the year, we calculate your cost base, apply the correct discount and exemptions, and help you navigate clearance certificate requirements.
Encrypted document transfer and electronic lodgement through our registered tax agent portal.
once the ATO processes your return, we walk you through the outcome and confirm your expected refund or payable timeline.
Tell us about your property or properties — purchase date, whether it's rented full-time or short-term, and whether anything was bought, sold, or renovated during the year. We'll send a personalised document checklist within 24 hours.
Gather your rental income statements or agent summaries, loan interest statements, insurance and rates notices, any depreciation schedule, and receipts for repairs or improvements. Upload securely online, email, or bring them into our Adelaide office.
Your dedicated Adelaide tax accountant prepares the full rental schedule, correctly classifies repairs versus capital improvements, applies depreciation, and checks the return against current ATO rental property benchmarks.
We send a full summary before lodgement. Once you approve, we lodge electronically with the ATO. Most clients receive their Notice of Assessment within two weeks, with refunds typically arriving 10–14 business days after that.
AMA Accountants is based in Adelaide, South Australia, serving investment property clients across all Adelaide suburbs — from the CBD and inner ring through to the northern growth corridor and coastal communities.
We also provide fully online investment property tax return services to property investors across Australia, including Sydney, Melbourne, Brisbane, Perth, Canberra, Darwin, and Hobart — the same CPA-certified, ATO-registered expertise, wherever your property (or you) happens to be.
Missed Depreciation Deductions Many self-lodgers, and even some other tax agents, don’t claim the full capital works and plant and equipment depreciation an investor is entitled to. If you’ve never had a depreciation schedule reviewed, this is often the single largest opportunity we find.
Incorrectly Classified Repairs If a capital improvement has been claimed as an upfront repair deduction in a previous year, this can be corrected — but it needs to be identified and, if necessary, amended before the ATO does.
Late or Overdue Rental Schedules If you’ve fallen behind on lodging returns for a rental property, we can prepare and lodge outstanding years and communicate with the ATO on your behalf.
Second Look Assessments Not sure your previous accountant claimed everything correctly? We review prior investment property returns and, where a correction is warranted, lodge an amendment to recover any difference.
Capital Gains Tax on Sale If you’ve sold, or are planning to sell, an investment property, we calculate the CGT position in advance so there are no surprises, and help you organise a clearance certificate to avoid unnecessary withholding at settlement.
Yes. Any income earned from the property during the year must be declared, and expenses are generally apportioned to match the period it was rented or genuinely available for rent.
No. Since 1 July 2017, individual investors can no longer claim travel expenses for inspecting, maintaining, or collecting rent from a residential rental property.
A repair restores something to its original condition and is generally deductible immediately. An improvement makes the property better than before, or replaces an entire asset, and is depreciated over time or added to your cost base instead.
It’s not compulsory, but for most investors it significantly increases the deductions claimed, particularly capital works deductions on newer properties. We can point you toward a quantity surveyor if you don’t already have one.
The capital gain or loss is calculated based on the contract date, not settlement, and needs to be included in your tax return for that financial year. From 1 January 2025, you’ll also need a clearance certificate from the ATO before settlement to avoid 15% being withheld automatically.
We prepare rental schedules for investors with single properties through to larger portfolios, including co-owned properties and properties held in different structures.
Join property investors across Australia who trust AMA Accountants to manage their rental property tax returns, identify legitimate deductions, and keep their returns accurate and ATO-compliant.
Whether you own one investment property or a growing portfolio, our experienced tax professionals make the process straightforward, from preparing your rental property schedule through to final lodgement.
With CPA-certified professionals, ATO-registered tax agents, and transparent pricing with no hidden fees, you can have confidence that your investment property tax return is being handled carefully.
Office Address: 477 Torrens Road Woodville SA 5011
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Fill out the form and Speak With Our Team.
🔒 Your information is 100% secure & confidential
Fill out the form and our registered tax experts will handle everything for you.
💰 Average refund: $2,500+
🔒 Your information is 100% secure & confidential
