ATO-compliant · Negative gearing · Annual tax report · Multi-property
| Date | Type | Description | Amount |
|---|
This free Property Tracker records rental income and deductible expenses across multiple investment properties using ATO Schedule E categories. Generate an annual tax-year P&L report with negative gearing calculation — ready to hand to your accountant or use as a reference when completing your tax return.
| ATO Category | Examples | Immediately Deductible? |
|---|---|---|
| Interest on loan | Interest portion of mortgage repayments on investment property | ✅ Yes |
| Property agent fees | Management fees (typically 7-12% of rent), letting fees | ✅ Yes |
| Repairs & maintenance | Fixing broken items — excludes initial repairs or improvements | ✅ Yes (if genuine repair) |
| Council rates | Local government rates, water rates | ✅ Yes |
| Insurance | Landlord insurance, building insurance | ✅ Yes |
| Advertising | Listing fees, property photography | ✅ Yes |
| Land tax | Annual land tax (state-specific) | ✅ Yes |
| Depreciation | Building (2.5%/year) and plant/fittings (diminishing value) | ✅ Yes (via tax report) |
| Capital improvements | Adding a room, new kitchen, major renovation | ❌ No — added to cost base |
Negative gearing occurs when a rental property's deductible expenses exceed its rental income — producing a net loss. In Australia, this net loss can be offset against other income (such as your salary or wages), reducing your total taxable income and therefore your tax liability. Negative gearing is one of the key tax advantages of Australian property investment.
| City | Typical Gross Rental Yield (2025-26) | Trend |
|---|---|---|
| Perth | 4.0–5.5% | High yield market |
| Brisbane | 3.5–4.5% | Strong growth with yield improvement |
| Adelaide | 3.5–4.5% | Increasing demand, rising rents |
| Sydney | 2.5–3.5% | Low yield, high capital growth historically |
| Melbourne | 2.8–3.8% | Yield improving with rental increases |
What rental property expenses are tax deductible in Australia?
Most rental property operating expenses are immediately deductible: loan interest, property management fees (7-12% of rent), council and water rates, insurance, repairs and maintenance, pest control, cleaning, garden maintenance, advertising for tenants, and land tax. Capital improvements (adding rooms, major renovations) are not immediately deductible — they are added to the property's cost base and claimed as depreciation or on eventual sale.
What is the difference between repairs and capital improvements?
A repair restores a damaged or deteriorated item to its original working condition (e.g. fixing a broken tap, replacing a section of damaged fence). A repair is immediately deductible. A capital improvement enhances the property beyond its original condition (e.g. adding a new bathroom, replacing a timber deck with a concrete one). Capital improvements are not immediately deductible — they are added to the cost base.
How do I calculate gross rental yield?
Gross rental yield = (Annual rent ÷ Property value) × 100. Example: property worth $600,000 renting for $520/week = $27,040/year: yield = ($27,040 ÷ $600,000) × 100 = 4.51%. Net rental yield subtracts running costs: (Annual rent − Annual expenses) ÷ Property value × 100.
How long do I need to keep rental property records?
The ATO requires rental property records to be kept for 5 years from the date you lodge the tax return claiming the deduction. For depreciation and cost base records, keep documents for the life of the property plus 5 years after sale, as these affect your capital gains tax calculation on eventual disposal.
Income & expense tracking · P&L reports · GST summaries · Sole trader friendly
| Date | Type | Category | Description | Ref # | Amount | GST |
|---|
Simple, free bookkeeping for Australian ABN holders and sole traders. Record income and expenses with GST categories, view your monthly profit and loss, and generate BAS-ready GST totals for quarterly BAS lodgement. Everything runs in your browser — no subscription, no cloud storage required.
| Code | Category | Examples |
|---|---|---|
| G1 | Total sales (include GST) | All revenue from GST-registered business sales |
| G10 | Capital purchases (include GST) | Equipment, vehicles, computers over $1,000 |
| G11 | Other purchases (include GST) | General business operating expenses with GST |
| G20 | GST-free purchases | Basic food, exported goods, health services |
| Obligation | Frequency | Due Date |
|---|---|---|
| Tax Return (individual + business schedule) | Annual | 31 October or with registered tax agent |
| BAS (if GST registered) | Quarterly (or monthly) | 28 days after quarter end (Oct, Feb, Apr, Jul) |
| PAYG Instalments (if required) | Quarterly | Same as BAS lodgement dates |
| Superannuation (if employing staff) | Quarterly | 28 days after each quarter end |
What is a BAS and who needs to lodge one?
A BAS (Business Activity Statement) is how you report and pay your GST to the ATO. If you are registered for GST, you must lodge a BAS — typically quarterly (January, April, July, October for quarters ending 31 Dec, 31 Mar, 30 Jun, 30 Sep respectively). The BAS reports your total sales, GST collected, GST paid on purchases, and the net amount owing or refundable.
Do sole traders pay company tax?
No. Sole traders are not a separate legal entity from their business — all business profit is included in the sole trader's personal tax return and taxed at personal marginal rates (0% to 45%). This differs from companies (which pay 25-30% company tax). Sole traders can reduce taxable income through business expense deductions and superannuation contributions.
What business expenses are tax deductible for sole traders?
Business expenses directly related to earning income are deductible: tools and equipment, vehicle expenses (logbook or cents-per-km), home office expenses, professional development, accounting and tax agent fees, insurance, advertising, business phone and internet (business portion), software subscriptions, and subcontractor payments. Personal expenses are not deductible even if you pay for them from business funds.
Monthly budget planner · Savings goals · Debt payoff calculator · Bill reminders
Track your monthly income and expenses against your budgeted amounts, set savings goals with progress tracking, compare debt avalanche vs snowball payoff strategies, and manage bill reminders — all in one free browser-based tool. Built with Australian cost of living benchmarks and household expense categories in mind.
| Category | Target % | On $5,500/month take-home | Includes |
|---|---|---|---|
| Needs | 50% | $2,750/month | Rent/mortgage, groceries, utilities, transport, insurance, min debt payments |
| Wants | 30% | $1,650/month | Dining out, entertainment, clothing, streaming, hobbies |
| Savings & goals | 20% | $1,100/month | Emergency fund, super top-up, investments, extra debt payment |
| Strategy | Method | Best For | Total Interest |
|---|---|---|---|
| Debt Avalanche | Pay minimums everywhere, attack highest-rate debt first | Mathematical optimisers, saving the most money | Lowest total interest |
| Debt Snowball | Pay minimums everywhere, attack smallest balance first | People needing motivation and quick wins | Slightly higher than avalanche |
Financial advisers typically recommend holding 3-6 months of essential living expenses in a readily accessible high-interest savings account (HISA). In Australia, competitive HISA rates in June 2026 range from 4.5-5.25% p.a. — providing meaningful real interest above the current inflation rate of approximately 3.2%.
How does the 50/30/20 budget rule work?
Allocate 50% of after-tax income to needs (rent/mortgage, groceries, utilities, insurance, minimum debt payments); 30% to wants (dining, entertainment, subscriptions, clothing); 20% to savings and financial goals (emergency fund, superannuation top-up, investments, extra debt repayments). In high-cost cities like Sydney and Melbourne, the 50% needs allocation is often exceeded — adjust by reducing wants below 30%.
What is the debt avalanche method?
The debt avalanche strategy targets your debts by interest rate — highest rate first. Pay the minimum on all debts while directing every extra dollar to the debt charging the highest interest rate. Once that debt is cleared, roll the freed payment to the next-highest-rate debt. This method minimises total interest paid across all debts.
How much should I have in an emergency fund?
Financial advisers recommend 3-6 months of essential living expenses. Calculate your monthly essentials (rent/mortgage, groceries, utilities, minimum debt payments, insurance) and multiply by 3-6. For a Melbourne couple with $4,000/month in essentials: emergency fund target = $12,000-$24,000. Keep this in a high-interest savings account (currently 4.5-5.25% p.a. in Australia, June 2026).
What is the average household budget in Australia?
According to the ABS 2022-23 Household Expenditure Survey, Australian households spend approximately $2,200 per week ($114,400/year) on average across all expenses. Housing is the largest category at $427/week, followed by food ($239), transport ($216), recreation ($103), and health ($75). These are national averages — Sydney and Melbourne households typically spend 15-25% more than regional averages.