I got an email today from the ATO to say that they will soon be emailing taxpayers who reported a rental property for the first time in their 2025 income tax return.

“We wanted to let them know about our new record keeping for rental properties fact sheet that could help them keep track of their records and assist you with preparing their returns.”

Now this is usual practice for the ATO to make contact like this each year. It is a very smart marketing strategy to make taxpayers think “I am on the ATO radar so I better tone down my claims.” No you are not that lucky!

We are all about a fair tax system with everyone paying their fair share. And that includes a fair share of the refunds too. So fair play to the ATO providing this info as they have previously stated that rental properties is one of their high-risk areas that they like to focus on.

By all means claim the maximum amount that you are entitled to - don’t go over BUT don’t go under either!

The ATO website itself has an informative record-keeping checklist to remind you of what you can & can’t claim for your investment property. Don’t be stupid in claiming the full cost of depreciable items nor 100% of the costs of your holiday home or own home that you use mostly for personal purposes during the year & rarely AirBnB.

When you own a rental property, you’ll need to keep records:

  • right from the beginning (before you even sign the contract to buy)
  • every year that you own it (including records of your income and expenses)
  • when you sell it (keep them for at least 5 years after you sell).

Keep this checklist on hand as a reminder of the records you need to keep.

Before getting started, remember, if you:

  • have more than one rental property, keep separate records for each
  • co-own your rental property, the rental income and most expenses must be attributed to each co-owner according to the legal interest in the property
  • have a tax agent, ask how they want you to keep and share your records with them.

You can download a copy of the ATO’s Recording keeping for rental properties Fact Sheet here.