Supporting Landlords Through Tax Changes

Property managers are not tax advisers and should not recommend whether a landlord should buy, retain or sell an investment property.

The federal negative-gearing and capital gains tax reforms are scheduled to apply from 1 July 2027.

Properties held at 7.30 pm AEST on 12 May 2026 are exempt from the negative-gearing changes.

The capital gains tax reforms will apply to gains accruing from 1 July 2027 when those gains are realised.

The effect will depend on the property’s acquisition date, ownership structure and the owner’s individual tax position.

What we can do is make sure the landlord and their accountant have accurate, well-organised information.

This includes:

• monthly and annual income and expenditure statements
• copies of leases and rent records
• management and leasing invoices
• rates, water and body corporate records
• maintenance invoices and detailed descriptions of completed work
• before-and-after photographs for substantial works
• records of improvements, replacements and renovations
• clear separation of records for each investment property.

Separate records should be maintained for each property.

The accountant can then determine whether the expenditure should be treated as a repair, a depreciating asset, capital works or part of the property’s cost base.