With the 2025/26 financial year now complete and the 2026/27 year underway, property owners, investors, sellers and purchasers in Tasmania should review their records and consider the key tax matters that may affect both the year just ended and the year ahead.
While tax obligations will vary depending on individual circumstances, being organised can help make the process clearer and ensure you are well prepared when speaking with your accountant or tax adviser.
For real estate investors
Property investors should review the expenses associated with their investment property and ensure records are complete. This may include loan interest, property management fees, council rates, insurance, maintenance, repairs and other eligible holding costs.
A current tax depreciation schedule can also be valuable at tax time. Prepared by a qualified quantity surveyor, a depreciation schedule helps identify eligible deductions for the decline in value of the building structure, fixtures and fittings. This can be particularly important for investment property owners, as it may assist in improving after-tax cash flow and ensuring depreciation claims are properly documented. See article: What is a tax depreciation schedule and why do you need one?
It is also important to understand the difference between repairs, improvements and capital works, as these may be treated differently for tax purposes. Depreciation may also apply to some assets or capital works, depending on the property and when the expense was incurred.
If you have sold an investment property during the financial year, Capital Gains Tax may also be relevant. In some cases, assets held for more than 12 months may qualify for a CGT discount, subject to eligibility.
For homeowners
Your main residence is generally exempt from Capital Gains Tax, however this may become more complex if part of the property has been used to produce income, such as being rented out or used for business purposes.
If you work from home, you may also be able to claim eligible working-from-home expenses, depending on your circumstances and the records you have kept. Homeowners who have made energy-efficient upgrades should also check whether any government rebates or incentives are available, noting these are separate from general income tax deductions.
For sellers
For investment properties or properties that have been used to generate income, these records may help your accountant assess any Capital Gains Tax implications and determine which costs can be included in the property’s cost base.
If you have sold a property during the financial year, it is worth gathering all relevant documentation early. This may include the original purchase contract, sale contract, legal costs, agent fees, marketing costs and records of improvements made during ownership.
For purchasers
Purchasers should keep detailed records from the start, particularly if the property is intended to be used as an investment. Some costs may be deductible over time, while others may form part of the property’s cost base.
First home buyers in Tasmania should also be aware of current grant and duty relief settings. The established home duty exemption for eligible first home buyers is due to close on 30 June 2026, while the First Home Owner Grant for new homes is also expected to change from 1 July 2026.
Conclusion
Tax time is a good opportunity to review your property position, organise your records and seek advice before lodging your return. Whether you own an investment property, have sold during the financial year or are preparing to purchase, understanding your obligations early can help avoid unnecessary stress.
This information is general in nature and should not be relied on as tax advice. We recommend speaking with a qualified accountant or tax adviser about your personal circumstances.
If you are considering your next property move and would like guidance on appraisals, market conditions or local property information, our team is here to help.
