Property Tax Accountants.

Depreciation on building costs and plant and equipment can deliver deductions worth $5,000-$15,000+ annually on typical investment properties. However, you need a depreciation schedule prepared by a quantity surveyor to claim correctly. Many investors either don’t get schedules or claim depreciation incorrectly based on guesses, leaving money on the table or claiming amounts they can’t substantiate.

Walker Hill coordinates with quantity surveyors to obtain depreciation schedules when you acquire property, ensures depreciation claims are lodged correctly in your tax return, tracks low-value pool depreciation for plant and equipment, and manages scrapping deductions if you renovate and dispose of depreciable assets. You’ll claim every dollar of depreciation you’re entitled to without ATO issues.

Repairs and maintenance are immediately deductible. Capital improvements must be depreciated over decades. The distinction isn’t intuitive. Repainting is usually deductible. Painting a newly renovated property might be capital. Replacing a damaged hot water system is repair. Upgrading to a better system is partly capital. Misclassifying costs means either paying too much tax or claiming incorrectly.

Walker Hill reviews your property expenses, advises what’s immediately deductible versus capital, ensures your tax return reflects correct treatment, and explains the rules so you can make informed decisions about timing work. When expenses straddle capital and repair, we advise how to maximise immediate deductions within the rules.

Interest on loans used to purchase investment property is deductible. But complications arise with offset accounts, redraws for personal use, refinancing, cash-out refinances to fund non-property purchases, and mixed-use loans. The ATO’s rules around interest deductibility are strict. Contaminate an investment loan with personal use and you lose deductibility on that portion permanently.

Walker Hill advises on loan structuring before you borrow, reviews existing loans for deductibility issues, helps you understand how redraws and offsets affect claims, and recommends restructuring if current loans have deductibility problems. Getting loans structured correctly from the start prevents problems that can’t be fixed later.

Selling investment property triggers CGT on the gain between purchase price (plus costs) and sale price (less costs). Timing the sale, considering whether to hold 12 months for the discount, deciding which property to sell first if you own multiple, and understanding your tax bracket in the sale year all affect how much CGT you pay.

Walker Hill models CGT outcomes before you list properties, advises on timing sales to minimise tax, identifies opportunities to use capital losses to offset gains, and structures sales across financial years if selling multiple properties to manage tax brackets. Careful planning can save tens of thousands on large gains.

Buying property in personal names is simple but offers no asset protection, limited tax planning flexibility, and complicates estate planning. Trusts provide flexibility and protection but affect borrowing capacity and have compliance costs. Companies limit liability but face 30% tax on rental income with no CGT discount. Super funds offer concessional tax but have restrictions on use and access.

Walker Hill advises on ownership structures before you purchase, explains trade-offs between structures, models tax outcomes in different structures, and coordinates with financial advisors and lawyers to implement appropriate structures. We also review existing holdings and advise when restructuring makes sense despite stamp duty and CGT costs.

Properties used partly for investment and partly personally, or holiday homes rented some of the year and used personally otherwise, have complex tax treatment. You can’t claim the full interest, rates, and expenses. Depreciation gets apportioned. CGT main residence exemption might apply partially. Documentation of personal versus rental use matters if the ATO reviews your claims.

Walker Hill advises on mixed-use property tax treatment, helps you track rental versus personal use accurately, calculates correct apportionments for deductions and CGT, and ensures your tax returns reflect appropriate treatment. We also advise whether mixed use is tax-effective given the complexity and limited deductions.

Land tax applies when your total landholdings exceed state thresholds, calculated differently in each state. Rates accelerate quickly once you cross thresholds. Stamp duty on purchases is significant upfront cost that reduces returns. Both affect whether acquisitions make financial sense and whether structuring can reduce obligations.

Walker Hill advises on land tax implications before purchases, models how acquisitions affect your total land tax position, identifies structuring opportunities that might reduce obligations, and ensures land tax is factored into your investment analysis. We also track your land tax position if you hold property across multiple states with different rules and thresholds.

Develop a property and you might be taxed as a property developer (business income, full tax rates, GST applicable) or investor (capital gain, 50% discount, no GST). The ATO’s classification depends on your intention, the property’s nature, frequency of transactions, your other activities, and how you conduct yourself. Being treated as a developer when you intended investment creates unexpected tax bills.

Walker Hill advises on development versus investment classification before you start projects, helps structure activities to support investment treatment where appropriate, prepares documentation supporting your intended tax treatment, and lodges returns consistent with correct classification. If you are developing as a business, we ensure GST compliance and proper treatment of development costs.