A rental property is the part of a tax return the ATO looks at hardest, and the part where the money is made or lost years later, at sale. We prepare rental schedules that reconcile to the agent's statement and the loan, keep the cost base from the day you buy, and — with the negative gearing and CGT changes starting 1 July 2027 — model what your property actually costs and returns after tax. Registered tax agents in Shepparton, serving investors across Australia online.
What we do for investors
Rental schedules
Every property reconciled to the agent statement, loan interest and rates — the right items claimed now, over time, or added to the cost base.
Depreciation
Capital works and plant claimed from a quantity surveyor's schedule, with the second-hand plant rules applied correctly, and the cost base adjusted.
Co-owners
Income and expenses split by legal ownership — joint tenants, tenants in common, spouses on different incomes — set up once and carried through.
Airbnb & short-stay
Apportioned deductions, Victoria's levy, GST where it applies, and the main residence consequences of renting part of your home.
CGT on sale
A running cost base from purchase, the discount or the 2027 rules applied, main residence and 6-year rule considered, the sale timed with your income.
2027 planning
Your category confirmed, the 30 June 2027 value anchored, purchase and sale decisions modelled under the new rules.
What you can claim now
Interest on the investment loan, council and water rates, land tax, insurance, property management and letting fees, advertising, body corporate administration levies, repairs and maintenance, pest control, gardening, and the cost of a depreciation schedule or tax advice — in the year you pay them, for the period the property was available for rent. Borrowing costs over $100 are spread over five years. Travel to inspect a residential rental is not deductible. The rental property deductions guide goes through each item, including the ones the ATO disallows most often.
What goes to the cost base instead
Stamp duty, conveyancing, building and pest inspections, agent's commission on sale, and capital improvements — a new kitchen, a deck, a replacement of a whole structure rather than a repair of part of it. These are not deductible but they reduce the capital gain when you sell, which is why we record them from the first year rather than reconstructing them a decade later. Capital works deductions you have claimed are deducted from the cost base; that is a surprise for many sellers.
Negative gearing: what it does and doesn't do
When deductions exceed rent, the loss offsets your other income and saves tax at your marginal rate — about 32 cents in the dollar for someone in the 30% bracket. The rest of the loss is real money. From 1 July 2027 that offset against wages continues only for properties held at 12 May 2026 and for new builds; other established properties have their losses quarantined to residential property income and carried forward. The negative gearing calculator shows your property's after-tax cost per week under both sets of rules.
When you sell
CGT is calculated on the contract date, not settlement, so a contract signed in late June lands in the earlier year's return. The gain is sale price less selling costs less the cost base; a 50% discount applies for assets held over 12 months until 1 July 2027, after which gains accruing from that date are taxed under indexation with a 30% minimum rate. A former home may be partly or fully exempt under the main residence and 6-year rules. The CGT on property guide and CGT calculator cover the current rules; we model the pre/post-2027 split for anyone holding through the change.
How it works with us
- Onboard once. Secure online onboarding, identity verified, your agent nomination done if a company or trust owns the property.
- Send the pack. Agent statement, loan statements, rates, insurance, receipts, depreciation schedule — the rental property checklist tells you what to gather.
- We prepare and reconcile. Each property's schedule, the co-owner split, the cost base register updated, questions back to you on anything unusual.
- You review and declare, we lodge. With the agent program's later due dates where you're eligible.
- Before you buy or sell, talk to us first. Ownership, timing and the 2027 category are decided before the contract, not after.
Fees
Individual tax returns start from $198 including GST; a rental schedule is quoted on top and confirmed before we start. Company and trust returns that hold property start from $550. CGT calculations for a sale year and 2027 modelling are quoted separately. See how our fees work.
Frequently asked
How much does a tax return with a rental property cost?
Our individual tax return starts from $198 including GST, and a rental property schedule is quoted on top, with the price confirmed before we start. A straightforward single property with an agent statement and a depreciation schedule sits at the lower end; multiple properties, co-owners, mixed-use or a sale year take more work. See our fees page for the starting points.
Do I need a depreciation schedule?
If the building was constructed after 15 September 1987, or has been renovated, a quantity surveyor's schedule usually pays for itself in the first year through capital works deductions. For second-hand residential property bought after 9 May 2017 you generally cannot claim depreciation on existing plant and equipment, only on items you buy new — the schedule still captures the building. The fee for the schedule is itself deductible.
We own the property jointly — how is the income split?
By legal ownership. Joint tenants split 50/50; tenants in common split by their registered shares. Who paid the deposit or the costs does not change it, unless the property is genuinely held in a partnership carrying on a rental business, which is rare. We set the split up correctly once and it carries through every return.
Can you handle Airbnb or short-stay income?
Yes. Short-stay income is assessable, deductions are apportioned for the nights available and any private use, GST can apply in some arrangements, Victoria's short stay levy applies at 7.5%, and renting part of your home affects the main residence exemption. Our Airbnb guide covers the detail; we prepare the schedule and the CGT record.
Will you tell me whether to buy, sell or hold?
We give you the tax side in numbers: what a property costs you after tax, what a sale would cost in CGT and when, how the 2027 changes affect your category, and which ownership options change the result. Whether an investment is right for you is a financial decision we are not licensed to make; we can refer you to an independent licensed adviser.
What do you need from me each year?
The property manager's annual statement, loan statements for the year, rates and insurance notices, receipts for repairs and any improvements, the depreciation schedule, and a note of any period the property was vacant, used privately or re-financed. Our rental property checklist lists everything.
Sources
- ATO — Residential rental properties
- ATO — Tax reform: reforming negative gearing and capital gains tax
- ATO — Property and capital gains tax
General information current at 30-10-2026, not advice. SMT Accounting does not hold an Australian financial services licence or an Australian credit licence and does not recommend investments or loans.