Accounting & tax — Property investors
Rental Property Tax Accountant
Rental property tax for Australian investors — rental schedules, deductible expenses, repairs versus improvements versus capital works, plant and equipment depreciation, negative or positive gearing, and CGT cost-base tracking for the eventual sale, prepared by a Chartered Accountant and registered tax agent. The treatment of any item is general and depends on your circumstances.
- Rental schedules
- Negative gearing
- Depreciation
- Repairs vs capital
- CGT cost base
- Co-owned property
Eternity Group Accountants is a registered tax agent (TPB 25523469). Information on this page is general in nature and does not constitute personal tax advice. Before acting, consider whether the information is appropriate to your circumstances and seek advice from a qualified tax professional.
Scope of work
What's included in your rental property tax.
A clean, defensible rental position — income and expenses correctly classified, depreciation captured, the gearing outcome calculated and the CGT cost base maintained — prepared as a single piece of work rather than disconnected steps.
Rental income & expense schedule
Per property · per ownership share
A rental schedule built for each property and split to each owner's ownership share, drawing on your agent statements, loan records and receipts. Rent received, interest, rates, strata, insurance, management fees and repairs are brought into the return so the net position for each property is settled before anything else is considered.
Repairs vs improvements vs capital works
Classification · Div 43
Each spend is classified rather than lumped together. As a general matter, initial repairs and improvements are usually capital rather than an immediate deduction, and capital works are generally written off over time under Division 43. We assess each item against your circumstances and the relevant rules so the claim is supportable.
Plant & equipment depreciation
Div 40 · quantity-surveyor schedule
Depreciating assets — appliances, carpet, blinds, hot water systems and similar — are generally claimed over time under Division 40. Where a quantity surveyor has prepared a depreciation schedule, we bring it straight into the return; where one would add value, we can point you to one. The entitlement to claim depends on your circumstances and the relevant rules.
Gearing & CGT cost-base tracking
Net position · records for sale
The net rental position — negatively or positively geared — is calculated from your records rather than assumed. Alongside it, we maintain a running CGT cost base: acquisition costs, capital improvements and relevant holding costs. The records you keep now generally matter for the eventual sale, so we keep them in order each year.
Suited to
Rental investors we work with.
First-time landlords
You have bought your first investment property and want the first return done properly — income captured, the right expenses claimed, a depreciation schedule considered, and the cost base set up from day one so the foundations are right rather than rebuilt later.
Multi-property investors
A growing portfolio across several properties, often with different loans, agents and ownership arrangements. Each property gets its own schedule, the depreciation and gearing are tracked separately, and the overall position is brought together cleanly in one return.
Co-owners & couples
Where a property is co-owned, rental income and deductions are generally split by legal ownership share rather than however suits the year. We confirm the ownership percentages and prepare each owner's schedule so both individual returns line up and use the same figures.
Investors holding through a trust or company
Where the property is held in a discretionary trust, unit trust or company, the rental schedule feeds into that entity's return and any distribution or franking position. We prepare the schedule and the entity return together so the figures reconcile across the structure.
Trust tax returnProcess
From statements to a maintained cost base — one clear sequence.
A document-driven engagement where you always know what is next, what the fixed fee covers and when lodgement happens. We also coordinate with the rest of your accounting work — see all our accounting services on the main Accounting page.
Gather statements & schedule
We collect your agent rental statements, loan and interest records, rates and insurance notices, receipts for repairs and improvements, and any quantity-surveyor depreciation schedule, so every figure in the return traces back to a source document.
Classify income, expenses & gearing
Each item is classified — deductible now, capital works, or a depreciating asset — and the net rental position is confirmed as negatively or positively geared. This is general in nature and depends on your circumstances, so we document the reasoning rather than applying a fixed template.
Lodge & maintain the CGT record
The rental schedule is finalised, carried into the relevant return and lodged through the tax-agent portal. We then update the running CGT cost-base record so that the numbers are ready for a future sale rather than reconstructed years later.
Frequently asked questions
Rental property tax — common questions.
As a general guide, expenses incurred in earning rental income are usually deductible in the year they are incurred — examples often include loan interest, council rates, water and land tax, body corporate or strata fees, landlord insurance, property management fees, advertising for tenants, and routine repairs and maintenance. Some costs are claimed over time rather than immediately, such as capital works and depreciating assets. What is deductible, and whether it is claimed in full, apportioned, or spread over several years, depends on your circumstances and the relevant rules, so we review each item rather than assuming it is automatically claimable.
Related
Where this fits in the bigger picture
A rental property rarely sits in isolation. Your individual or entity return, any co-owners, forward tax planning and a possible purchase or refinance all connect to the rental position.
- Guide
Guide: depreciation schedules explained
What a depreciation schedule is, how Division 40 and 43 work, and the quantity surveyor role. General information.
- Guide
Guide: offset vs redraw and tax
How an offset and a redraw can differ for loan deductibility, and why loan purpose matters. General information.
- Tax & Accounting
Individual tax return
Where you hold the property in your own name, the rental schedule flows into your individual return alongside salary, investment income and any other deductions, with the net gearing position carried through.
- Tax & Accounting
Trust tax return
For property held in a discretionary or unit trust — the rental schedule, distribution position and beneficiary statements prepared together so the figures reconcile across the structure.
- Tax & Accounting
Tax planning & strategy
Forward-looking strategy around the property: timing of repairs and improvements, depreciation, ownership structure and the eventual sale, all considered as general guidance for your circumstances.
- Tax & Accounting
Capital gains tax
When the property is sold, the cost base you have tracked along the way feeds the CGT calculation — proceeds, cost base, the discount and any exemptions, handled as general guidance for your situation.
- Property Investors
Accountant for property investors
Our wider service for investors building a portfolio — structuring, holding decisions and the ongoing accounting that sits over each property year after year.
- Mortgage Broking
Investment property loans
For investors weighing a purchase or refinance alongside the tax position, both can be scoped together rather than in isolation. Lending is a separate, caveated service and any tax outcome remains general and circumstance-dependent.
- Guide
Guide: how negative gearing works
How a negatively geared rental property produces a net rental loss under current law, the risks, and the announced (not-yet-law) changes. General information.
- Guide
Guide: property investor deductions
A practical checklist of what investors can and cannot typically claim, and the repairs-versus-improvements-versus-capital distinction.