Property Investor Action Plan (Australia 2025-26)

Pick your lifecycle stage (pre-purchase, holding, or selling), enter coarse inputs, and we'll rank the property-investor decisions that apply to you — ordered by dollar impact × deadline urgency. Each lever links to the dedicated calculator behind it.

Lifecycle stage

State

Properties owned

Taxable income

Loan balance

Annual rent

Main residence history

Next deadlines30 Jun (EOFY)·Prepay 12 Months Interest·281d 30 Jun (annual claim)·Depreciation (Div 40 + Div 43)·281d

Holding: this FY tax saving + cash flow (Up to):

$14,937

Levers don't fully stack — most people action 1-3 of these.

Urgent: 0·4 of 16 levers apply·NSW · 1 property · $120,000

Prepay 12 Months Interest

30 Jun (EOFY)

Up to $8,007

Why: Prepaying 12 months of interest on $500,000 brings forward ~$32,500 of deduction into this FY.

Do: Discuss interest-in-advance with your lender; deduction must be claimed in FY of payment (12-month rule).

Loan × 6.5% × 12mo × marginal 32.0% × prorata 0.77.

Read the prepay-interest 12-month rule →

Depreciation (Div 40 + Div 43)

30 Jun (annual claim)

Up to $3,250

Why: An estimated $10,156 of D43 capital works deductions on a ~$625k property saves ~$3,250 at your marginal rate.

Do: Engage a quantity surveyor for a depreciation schedule (~$700 fee, deductible). You can amend prior returns to claim missed deductions — generally up to 2 years from your notice of assessment for individuals.

~65% of value × 2.5% Div 43 × marginal 32.0%; Div 40 disallowed for second-hand residential post-2017.

Open the property depreciation calculator →General depreciation calculator →

Negative Gearing Cash-Flow Health

30 Jun (annual)

Up to $2,720

Why: Net loss after deductions ~$8,500; tax saving at 32.0% combined marginal = ~$2,720.

Do: Compare cash-flow before and after the March 2026 rate hike; consider rent review or PI/IO loan switch.

Rental $30,000 − interest $32,500 (6.5%) − 20% expense rule of thumb = net loss × marginal.

Open the negative gearing calculator →Negative gearing post-2026 rate hike →

Repairs vs Improvements Timing

30 Jun (timing-sensitive)

Up to $960

Why: Classifying $5,000 as a repair (deduct now) vs improvement (Div 43 over 25y) saves ~$960 in NPV terms.

Do: Document like-for-like maintenance separately from upgrades; bundle big-ticket items into discrete jobs.

Repair $1,600 now vs improvement NPV $640 (25y at 5%, factor 0.4).

Read the repairs vs improvements guide →

More property tools

Portfolio projection (multi-property)EOFY Action Plan (full optimisation)NSW stamp duty calculator NSW land tax calculator Negative gearing calculator Capital gains tax calculator

What tax decisions does a property investor in Australia need to make across the lifecycle of buying, holding, and selling?

Pre-purchase: compare stamp duty across 8 states (ACT/NT typically lowest, NSW/VIC highest), stack FHB concessions + FHOG + FHSS if eligible, choose ownership structure (sole / joint / trust / SMSF), and use offset (not redraw) loans. Holding: prepay 12 months interest before 30 June, claim Div 40 + Div 43 depreciation, classify spend as repair vs improvement, minimise land tax across states, monitor negative gearing cash flow post-rate-hike, and preserve the 6-year main-residence exemption clock. Selling: lock in the 50% CGT discount past 12 months hold on disposals before 1 July 2027 (from that date it is abolished for individuals and the indexed real gain carries a 30% minimum rate, though the main-residence exemption and new residential dwellings are carved out), harvest losses against gains in the same FY, claim main-residence fraction exemption, stack small-business CGT concessions if applicable, and defer the contract from Jun 30 to Jul 1 to push CGT to next FY, but never across 1 July 2027. The Action Plan above ranks these for your specific situation.

Formula lever_score = dollar_impact × urgency_multiplier (3.0 if ≤14d, 2.0 if ≤30d, 1.5 if ≤90d, 1.0 otherwise). Stage-conditional input reveals; cross-stage links preserve shared inputs.

FAQ

Which state has the lowest stamp duty for an investor at $750k?

On a $750,000 investor purchase (no FHB concession), the ranking varies by year but ACT and NT are typically lowest, while NSW and VIC are highest. The Property Investor Action Plan above computes the exact Δ across all 8 states for your target price. Open the NSW calculator to confirm with current rates.

Can I claim the FHB stamp duty concession AND the First Home Owner Grant?

Yes — they stack. The FHB stamp-duty concession reduces or eliminates duty (state-specific cap, e.g. NSW exempt under $800k); the FHOG is a separate cash payment ($10–25k depending on state, usually new-build only). Apply for both before settlement. Most states also allow stacking with FHSS super withdrawal.

What is the 6-year rule for CGT main-residence exemption?

If you move out of your main residence and rent it, you can keep the CGT main-residence exemption for up to 6 years per absence — provided you don't claim another property as your main residence in that period. Beyond 6 years, the exempt fraction is calculated proportionally to the time used as main residence.

Should I prepay 12 months of investment loan interest before 30 June?

Prepaying interest brings forward up to 12 months of deduction into the current FY, useful if your marginal rate is higher this year than next (e.g., expecting income drop or transitioning to retirement). Speak to your lender about interest-in-advance facilities. The deduction must be claimed in the FY of payment.

How much depreciation can I claim on a second-hand investment property bought after May 2017?

Post-2017 rules disallow Division 40 (plant & equipment) deductions on second-hand residential properties for non-corporate investors. Division 43 (capital works, 2.5% per year over 40 years) is still claimable on the building's construction cost. New-build properties retain full Div 40 access. A quantity surveyor's depreciation schedule (~$700, deductible) typically pays for itself many times over.

Should I delay the sale contract past the 12-month holding point for the CGT discount?

Yes if your hold is currently under 12 months. Holding for at least 12 months from contract signing (not settlement) qualifies for the 50% CGT discount, halving your taxable gain. Always confirm with the CGT calculator. Bonus: if you're already past 12 months but selling in Apr-Jun, consider deferring the contract to 1 July to push CGT to the next FY — but never across 1 July 2027. From that date the general 50% discount is abolished for individuals: the cost base is indexed for inflation and the real gain carries a 30% minimum rate, so deferring a disposal over that line costs you more than it defers. Two carve-outs matter for property. Your main residence is unaffected, because the main-residence exemption sits outside the reform. And new residential dwellings are the one asset class that keeps the 50% discount after the cutover, as an alternative to indexation.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.

ATO: Tax rates for Australian residents