Tax & Deductions
Claim everything you are entitled to. Guides to deductions, depreciation, capital gains, and record keeping for Australian rental properties.
NSW Budget gives landlords a 0.5% land tax discount as the $1.075m threshold stays frozen for a third year
Treasurer Daniel Mookhey handed down the 2026-27 NSW Budget on Tuesday 23 June 2026 with three property-tax levers for landlords: a 0.5% land tax early-payment discount, a permanent build-to-rent land tax concession, and a waiver of the 9% foreign purchaser surcharge duty for BTR and retirement villages above 50 dwellings from 1 July 2026. The general land tax threshold stays frozen at $1,075,000 for a third straight year. Here is what the package actually saves a Sydney investor and what the frozen threshold quietly costs.
Selling before 30 June? Without an ATO clearance certificate the buyer must withhold 15% of the sale price
From 1 January 2025, the Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act removed the $750,000 threshold on Foreign Resident Capital Gains Withholding and lifted the rate from 12.5% to 15%. Every Australian property sale now needs an ATO clearance certificate at settlement or the buyer is legally required to withhold 15% of the sale price and remit it to the ATO. With EOFY one week away and most settlements stacked into June, here is what the certificate trap costs a landlord who leaves it late.
Investor share of new home loans hit a record 41%. APRA's 6x DTI cap is now the binding constraint, not the 4.35% cash rate
The investor share of new housing lending hit a record 41% in the March quarter 2026 on the latest ABS read, while APRA's 6x debt-to-income cap quietly activated on 1 February. The RBA held at 4.35% on 16 June. For a Sydney landlord planning a purchase before 30 June, the binding constraint is no longer the cash rate. It is the bank's portfolio share of high-DTI loans. Here is what the new ceiling does to a $1 million investor borrow.
ATO ruling TR 2025/D1 puts holiday-home interest, rates and land tax deductions at risk from 1 July
From 1 July 2026, the ATO's draft ruling TR 2025/D1 presumes a holiday home is a 'leisure facility' unless the owner proves sustained commercial use. The ruling replaces IT 2167 from 1985 and bites the largest deduction categories: interest, council rates, land tax and insurance. With EOFY 12 days away and nine in ten rental returns failing the ATO's random enquiry program, here is what the cut-off means for an Australian landlord's 2025-26 return and the year ahead.
Sydney fell 0.9% and Melbourne 0.8% in May. Perth is still up 20% on the year
Cotality's May 2026 Home Value Index has the national market flat at 0.0%, with Sydney down 0.9% and Melbourne down 0.8% as both cities log around six months of consecutive declines. Perth still sits up around 20% on the year and the capital city growth spread is now 24 percentage points. Here is what the cycle turn means for a leveraged landlord's equity, yields and refinance window into 1 July 2026.
Australia's build-to-rent pipeline hit $40 billion. Knight Frank tips just 4,000 completions this year
Australia's build-to-rent pipeline has expanded to 51,000 apartments worth $40.1 billion, up from $30.1 billion a year ago. Knight Frank's 2026 outlook tips deliveries to taper to about 4,000 units this year before stepping up again from 2028. The 1 July 2026 MIT withholding cliff is the lever that keeps the foreign capital coming or sends it home. Here is what it means for residential landlord rents, yields and the next eight years of supply.
Insurers paid out $4.8 billion on 294,000 weather claims in 2025. Landlord renewals at 1 July are pricing it in
The Insurance Council put 2025 extreme weather losses at $4.8 billion across 294,000 claims, with the average claim up 39% to $16,471. ARPC's 11 May tally put the 2025-26 cyclone pool season at $267 million across nine declared events. Home premiums are up 51% in five years to a national average of $2,938. Here is what 1 July 2026 landlord insurance renewals are likely to cost, how the cyclone pool changes the picture, and how the premium hits an investor's cash flow, yield and tax position.
Q1 GDP came in at 0.3%, per capita slipped -0.1%. The June 16 RBA call just got more dovish
The ABS June 3 National Accounts release put March quarter GDP growth at 0.3%, with per capita going backwards again at -0.1% and the household saving ratio dropping to 6.2%. Business investment in data centres was the single largest contributor to growth. April building approvals fell 3.4% on the same day Treasury was modelling a new-build supply lift. Here is what a softer Q1 print and a 6.2% saving ratio mean for an Australian property investor's mortgage, refinancing window and June 16 RBA call.
Sydney values fell 0.9% in May, Melbourne 0.8%. Perth is still running at 26% over the year
Cotality's June 1 release put the national Home Value Index at flat for May 2026, the weakest monthly print in a year. Sydney and Melbourne are now five months into decline. Perth is up 26% over the year, Brisbane 19.7%, Darwin 19.6%. The 24 percentage point gap between the fastest and slowest capital is the widest of the cycle. Here is what the divergence means for an Australian property investor's equity, refinancing window and post-Budget purchase decision.
30 June sets the 2026-27 land tax bill in QLD, SA and WA. NSW's $1.075m threshold is frozen for a third year
Three states draw the 2026-27 land tax line at midnight on 30 June 2026: Queensland, South Australia and Western Australia. NSW and Victoria assessed at 31 December 2025 are already cutting bills. With NSW's general threshold frozen at $1,075,000, Victoria's $50,000 floor still carrying the COVID Debt Levy, and the ATO requiring deductions in the year the liability arises, here is the 30-day checklist for an Australian property investor.
Residential building fell 0.6% in Q1 as build costs rose 1.1% for a third straight quarter
The ABS Q1 2026 Construction Work Done release on 27 May lifted total construction 3.4% on the quarter, but residential building work went backwards by 0.6% and new-dwelling pipeline growth slowed to 5.0% over the year, down from 8.7% in Q4. House construction prices rose 1.1% for a third straight quarter. The new-build exemption Treasury is betting on to absorb investor demand is narrowing before it has even started.
Nine in 10 rental returns have an error. The ATO is matching 2.3 million records this tax time
With 30 June five weeks away, the ATO says nine in 10 rental property owners get their return wrong, and around 80% of the mistakes sit in the interest deduction. Its property management data-matching program now pulls roughly 2.3 million records a year, on top of 2.2 million rental bond records. Here is exactly where landlords slip up and how to lodge a clean return.