All incomes earned in Australia may be subject to taxation by the Australian Taxation Office (or ATO for short). Depending on how you have set up your investment property and where you are in life, will depend on how much tax you will pay.
Always make sure you have received professional advice from your accountant or financial advisor on what taxes you may incur on your investment portfolio to get the whole understanding on what you will need to pay and make sure you budget for the end of the financial year. This is an area that plenty of landlords get in trouble with because they choose not to seek advice. Sometimes problems aren’t picked up for years by the ATO, this can lead to some pretty hefty tax bills to pay in single allotments.
Another thing to keep track of, are your tax deductable expenses. These expenses vary and you must keep all your receipts and invoices to claim them. Some deductibles may include advertising for a tenant, repairs and general maintenance costs, professional gardening services, insurances and phone charges. Make sure you keep all your paperwork from year to year and speak to your accountant about what you are able claim against your tax.
In the end, make sure you pay your tax and remain on the right side of the law. Avoid forgetting your payments, tax evasive activities or not seeking professional advice about your tax which may lead to serious implications in the future with the taxation office, that can become very pricey, very quickly.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.