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Are there any tax benefits to investing in property before the end of the financial year?

Are there any tax benefits to investing in property before the end of the financial year?

Yes, absolutely, you can time the purchase to maximise your taxation outcomes.

By investing before June 30, you can bring forward a host of taxation benefits and achieve a short-term cash flow boost to help out with the up-front costs.

Our tips are:

  • Know your deductions and claim immediately on a host of property management costs potentially worth thousands of dollars of tax deductible expenses
  • Pre-pay interest on your investment loan to bring forward deductions that you would otherwise have to wait for until next year
  • For the ultimate in efficient property investing at tax time, focus on new properties (either house and land, or a completed spec / display homes) which receive full depreciation allowance on buildings and fixtures and fittings costs
  • If it’s tax effectiveness you want, then buying with a self-managed super fund may be for you. They are easy to set up and can bring considerable tax-related advantages, not to mention more direct control over your super compared to a traditional retail fund.

Peter Gianoli

General Manager, Investor Assist
Peter is widely recognised as one of Australia’s foremost property marketing experts and joined ABN Group in 2011 to establish Investor Assist. Peter has more than 15 years of experience in the property industry working across some of the country’s premier development projects and throughout his career has overseen the sale and settlement of properties worth in excess of $1bn.  Peter is also a highly sought after public speaker and has educated audiences throughout Australia and around the world on topics including property marketing and investment.