Property tax and Investment Advice in Malvern East
Property Is One of Australia’s Most Popular Investment Vehicles — Are You Making the Most of It?
For generations of Australians, property has been a cornerstone of wealth building. It’s tangible, relatively familiar, and in most markets has rewarded patient, well-structured investors over the long term. But the difference between a property investment that genuinely builds wealth and one that simply ties up capital often comes down to two things: how the investment is structured, and how the tax position is managed.
At Ruth Watson & Associates, we’ve been providing property tax and investment advice in Malvern East since 2003, helping property investors across Malvern East and Melbourne’s south-eastern suburbs get both of those things right. Whether you’re purchasing your first investment property, managing a growing portfolio, or reviewing an existing structure that’s no longer serving you well, our team brings the tax accounting expertise to help you invest more efficiently and protect more of what you earn.
Why Property Tax Strategy Matters
Many property investors focus heavily on the asset itself — the location, the rental yield, the potential for capital growth — and give relatively little thought to the tax and structural dimension until something goes wrong or an opportunity is missed.
The reality is that how your investment property is held, how expenses are managed, and how your borrowings are structured can make a meaningful difference to both your annual cash flow and your long-term return. Property tax is not something to address retrospectively — the decisions made at the point of purchase often determine the tax and structural outcomes for the life of the investment.
This is where an experienced property tax accountant adds genuine value. Our team helps investors think through these questions before they commit, and helps existing investors review and improve their position where changes can still be made.
Our Property Tax and Investment Services
Investment Portfolio Structuring
The structure in which you hold investment property — whether in your own name, jointly with a partner, through a company, a trust, or another vehicle — has significant implications for how income and capital gains are taxed, how assets are protected, and how the investment interacts with the rest of your financial position.
There is no one-size-fits-all answer. The right structure depends on your income level, your family situation, your long-term goals, and the number and type of properties you hold or plan to hold. Our team works through these considerations with you to identify the structure that best serves your circumstances — both now and as your situation evolves.
Tax Deductions and Expense Claims
Investment property owners are entitled to claim a range of expenses as tax deductions, and ensuring these are correctly identified and claimed is one of the most practical ways to reduce the cost of holding an investment property.
Deductible expenses can include interest on investment borrowings, property management fees, rates, insurance, repairs and maintenance, and depreciation on the building and its fixtures and fittings. Depreciation in particular is an area where investors often leave money on the table — it is a non-cash deduction that can improve cash flow without any additional outlay. Our team ensures your deductions are correctly categorised, maximised within what the law permits, and documented appropriately in the event of ATO scrutiny.
For current ATO guidance on what can and cannot be claimed on investment properties, we recommend visiting the ATO’s rental property guide — the specific rules around repairs versus improvements, and initial repairs on newly acquired properties, are areas where errors are common.
Negative Gearing Advice
Negative gearing occurs when the costs of holding an investment property — including interest, management fees, and other deductible expenses — exceed the rental income the property generates. The resulting loss can generally be offset against other income, such as a salary, reducing the investor’s overall taxable income.
Negative gearing has long been a widely used strategy among Australian property investors, but the rules changed significantly with the 2026-27 Federal Budget announcement in May 2026. For established residential properties purchased after 7:30pm on 12 May 2026, the ability to offset rental losses against other income such as salary is proposed to be removed from 1 July 2027 — with losses instead able to be carried forward against future rental income or capital gains from the property. Existing property owners and investors in eligible new builds are not affected by these changes under the announced grandfathering arrangements.
The legislation has not yet been enacted at the time this page was written, and the detail may evolve. What this means for property investors is that professional tax advice before purchasing — not after — has never been more important. Our team stays current with these changes as they develop, and can help you understand how the rules apply to your specific situation, your existing portfolio, and any properties you’re considering acquiring. For the most current ATO guidance, visit the ATO’s rental property guide.
Asset Protection Strategies
Australia has a relatively high rate of civil litigation, and property investors — particularly those who also run businesses — can be exposed to creditor claims if their assets are not structured with protection in mind. Holding significant assets in your own name, without appropriate structuring, can leave them vulnerable in ways that proper advice at the right time could have prevented.
Our team helps investors understand what asset protection options are available and how to implement them in a way that is both legally sound and practically workable. This is not about avoiding legitimate obligations — it is about ensuring your investment in building wealth is not undermined by unnecessary exposure.
Cash Flow Improvement Through Depreciation
Depreciation is one of the most consistently underutilised tools available to property investors. As a property ages, the building structure and its fixtures and fittings can be depreciated against your taxable income — a deduction that costs you nothing in cash terms but reduces your tax liability each year.
The deduction available depends on the age and type of the property, and a formal depreciation schedule prepared by a qualified quantity surveyor is typically required to substantiate claims. Our team can guide you through the process of obtaining a depreciation schedule where relevant and incorporating it correctly into your tax return.
Property Investment and End of Financial Year Planning
The end of the financial year is a valuable moment for property investors to review their position. Ensuring all deductible expenses for the year have been captured, reviewing the performance of your portfolio structure, and considering any changes in circumstances that might warrant a structural review are all worthwhile EOFY tasks.
For investors who are also building a broader retirement strategy — perhaps holding property alongside superannuation or other investments — the EOFY period is also a natural time to consider how the different components of your wealth are working together. Our Retirement Planning services and Wealth Creation services address exactly this kind of integrated thinking.
Property and SMSFs
One investment avenue available to SMSF trustees is direct property — including commercial property — held within the fund structure. There are specific rules governing how property can be acquired and held inside an SMSF, and not all property types or purchase arrangements are permitted. For investors who are considering this path, or who already hold property inside their SMSF, our Self-Managed Super Funds services work alongside our property tax expertise to ensure the arrangement is structured and managed correctly.
Why Malvern East Property Investors Choose Ruth Watson & Associates
Our team has been working with property investors in Malvern East and across Melbourne’s south-eastern suburbs for over two decades. The inner south-east is one of Melbourne’s most active property markets — characterised by a mix of long-term owner-occupiers, established investors, and a growing cohort of younger buyers entering the investment market for the first time. We understand the local context and the specific considerations that come with investing in this area.
We’re a family-owned and operated practice, registered with the Tax Practitioners Board (Tax Agent 71071007) and members of the Institute of Public Accountants (IPA) and the National Tax & Accountants’ Association (NTAA). Our clients trust us with their property tax work because we combine genuine accounting expertise with a personal, relationship-focused approach — and because we’ve been doing this long enough to have seen most situations before.
We also offer the convenience of virtual meetings and an online client portal, making it easy to work with us whether you’re based in Malvern East, Caulfield, Glen Iris, Carnegie, Camberwell, or anywhere across Melbourne’s south-eastern suburbs.
Frequently Asked Questions About Property Tax and Investment
What can I claim as a tax deduction on my investment property?
The range of claimable expenses includes interest on investment loans, property management fees, council rates, water charges, landlord insurance, repairs and maintenance (subject to specific rules), and depreciation on the building and its fittings. The rules around what qualifies as a repair versus a capital improvement are specific and worth understanding — our team can work through your individual expenses with you to ensure everything is claimed correctly.
What is negative gearing and is it right for me?
Negative gearing is the practice of holding an investment property where costs exceed rental income, with the resulting loss deductible against other income. Whether it’s beneficial depends on your personal tax situation, cash flow position, and investment goals. It is not universally advantageous — get specific advice before relying on it as a strategy.
Does the structure I hold my property in really matter?
Yes — significantly. The structure affects how income and capital gains are taxed, how the asset is treated if you face creditor claims, and how it can be transferred or dealt with in the future. Getting the structure right at the outset is far easier and less costly than changing it later.
Can I hold property inside my SMSF?
Yes, under certain conditions. There are specific rules around what types of property can be held, how they must be acquired, and what transactions are permitted between the fund and related parties. Our team can help you understand whether this is appropriate for your situation and ensure any arrangement is structured compliantly.
How do I get started?
Contact our team at (03) 9530 4944 or email [email protected] to arrange a conversation about your property investment situation. We’re happy to start with a review of your current position and identify where improvements can be made.
Ready to Make Your Property Portfolio Work Harder?
Property investment done well is one of the most effective paths to long-term wealth. Done without proper tax and structural advice, it’s an opportunity that’s only partially realised.
Ruth Watson & Associates are here to make sure you’re getting everything you’re entitled to — and that your portfolio is built on foundations that will serve you well for years to come. Contact us today on (03) 9530 4944 or email [email protected] to arrange a conversation with our team. For a broader view of how property fits into your overall wealth picture, visit our Tax Accounting Services page.