Property Investment in Australia Tax Benefits, Deductions & Planning A practical guide for investors building wealth through Melbourne and Australia-wide property, from purchase to exit. simplywealthgroup.com.au 1300 074 675 Why Tax Planning Comes First Property investment starts with strategy, not an afterthought at tax time. Many investors think about finance and location first, and leave tax as an afterthought. Property Investment in Australia requires a broader approach, where understanding what you can claim, keeping accurate records, and knowing your obligations is part of the plan from day one. Simply Wealth Group helps investors consider these factors early, rather than treating tax as an afterthought. Investment properties generate rental income, and a portion of ongoing costs may be deductible against that income under current Australian Taxation Office rules. Every investor's situation is different, which is why clients are guided individually rather than with one-size-fits-all advice. The Simply Wealth Approach 1 See the full picture before you buy, not after 2 Sit down individually — no generic advice 3 Balance growth, financing and personal goals 4 Treat tax as part of the structure, not the headline 2 What You Can Claim Owning an investment property comes with real, ongoing costs — many can work in your favour at tax time. $ Loan Interest Usually the largest deductible expense on your investment loan. ⌂ Property Management Management fees, council rates, insurance and maintenance. ✎ Professional Fees Accounting fees and advertising costs for finding tenants. Repair vs. Improvement A repair restores something to its original condition. An improvement adds value or extends the property's life — the two are treated differently under tax law. Keep every invoice and receipt from day one. 3 Depreciation A deduction investors often miss Depreciation lets you claim the decline in value of eligible building elements and fixtures over time. You are not paying this out of pocket, yet it can still reduce what you owe. A depreciation schedule from a qualified quantity surveyor identifies exactly what you can claim — arranged for every Simply Wealth Group client so nothing is left on the table. For anyone building a genuine portfolio, depreciation should be considered alongside cash flow and capital growth, not treated as a separate afterthought. How it works 1 Engage a qualified quantity surveyor 2 Receive a full depreciation schedule 3 Claim decline in value on eligible items 4 Strengthen your return, year after year 4 Negative Gearing A tool, not a strategy Negative gearing simply means your property expenses are higher than your rental income for the year. Under current tax law, that loss may offset other taxable income. It is a useful mechanism, but it should never be the reason you buy a property. The property still needs to work as an asset in its own right — the right location, genuine rental demand, and a clear path to growth. Tax treatment is part of the overall structure, never the headline reason to buy. Fundamentals First ✓ Right location ✓ Genuine rental demand ✓ Clear path to growth ✓ Sound financing structure 5 What Changes from 2027 Federal 2026 budget reforms to negative gearing eligibility Budget Night Reforms announced 1 July 2027 Negative gearing limited to new builds After Cutoff Established homes lose the tax advantage You're Protected If... If you already own an established investment property, or you are under contract before the cutoff, your current arrangement is protected. The House & Land Advantage Simply Wealth Group specialises in house and land builds. A new build purchased today continues to qualify for negative gearing well beyond the 2027 deadline — positioning clients on the right side of this change. 6 Capital Gains Tax & Your Exit Tax planning doesn't stop the day you buy — it matters again when you sell. If your property has grown in value, Capital Gains Tax may apply, depending on your circumstances and current legislation. Keeping records organised from the start saves time and stress later, and gives your accountant everything needed to get your return right the first time. Tax laws also change — which is why client strategies are reviewed regularly rather than set once and left. Keep These Records 📄 Purchase contracts and settlement statements 🛠 Improvement costs and capital works records 💰 Selling expenses agent fees, legal costs 7 Building a Portfolio That Works Buying more properties is not the same as building a stronger portfolio. 🏡 Affordability Each property must earn its place in your finances. 👥 Rental Demand Genuine, sustainable tenant demand for the area. 💵 Ongoing Costs Realistic view of holding costs over time. 🎯 Long-Term Fit How it fits your broader financial goals. Working Together Simply Wealth Group works alongside your accountant and lender, so your tax position, your finance, and your long-term strategy all move together — not in isolation. Every client is different, and each plan is built around individual goals rather than a generic checklist. Simply Wealth Group | Property Investment Tax Guide 8 Build a Property Investment Plan That Actually Works for You Call for a free, no-obligation consultation. ☎ 1300 074 675 🌐 simplywealthgroup.com.au 💬 WhatsApp: 61468175628 ✉ marketing@simplywealthgroup.com.au Simply Wealth Group | Property Investment Tax Guide 10