Tax Time Toolkit for Investors: Maximise Returns and Minimise Headaches

As tax time approaches, it’s essential for investors—whether in shares, property, managed funds, or crypto—to get their financial affairs in order. The Australian Taxation Office (ATO) has sharpened its focus on investment-related income and deductions, so careful planning and record-keeping are crucial. This Tax Time Toolkit outlines the key areas investors need to consider ensuring compliance, reduce their tax burden, and take advantage of all available deductions.

Get Your Records in Order

Good record-keeping is the foundation of a smooth tax return process. Investors should retain documentation for:

• Purchase and sale contracts (for CGT purposes)
• Dividend and distribution statements
• Rental income and expenses (if investing in property)
• Managed fund annual tax statements
• Crypto transaction history
• Interest income from savings or term deposits

Digital tools like portfolio trackers and apps that sync with your bank or broker can help automate and organise these records.

Capital Gains and Losses

Capital gains tax (CGT) applies when you sell an investment for more than you paid. Key things to keep in mind:

• Capital losses can offset capital gains—but not other types of income.
• If you’ve held an asset for over 12 months, you may be eligible for a 50% CGT discount.
• Even switching crypto-to-crypto is considered a CGT event.
• Reinvested distributions, often from managed funds, are still taxable and can also affect your cost base.

Tip: Avoid selling winners before June 30 if you don’t have sufficient losses to offset the gains—unless strategic.

Rental Property Investors

The ATO often scrutinises rental deductions, so ensure claims are accurate and substantiated:

• Repairs vs improvements: Repairs are deductible immediately; improvements must be depreciated over time.
• Loan interest: Only the portion related to the investment property is deductible.
• Depreciation and capital works: If eligible, claim deductions on buildings and fittings.
• If the property was vacant or part-used for personal reasons, adjust claims accordingly.

Tip: A depreciation schedule prepared by a quantity surveyor can help you maximise deductions.

Dividends and Managed Funds

• Declare franked and unfranked dividends as per your statements.
• Franking credits can boost your refund or offset other taxes—ensure they’re reported correctly.
• Managed funds and ETFs often distribute complex income components (e.g., capital gains, foreign income, tax-deferred amounts)—refer to your annual tax statement.

Tip: These statements often arrive late—so wait until all documentation is received before lodging your return.

Cryptocurrency Investors

Crypto remains a key focus for the ATO. Investors must report:

• Capital gains and losses
• Staking and airdrop income
• Crypto-to-crypto transactions

Tip: Many exchanges offer downloadable transaction history or tax reports—these are essential for accurate reporting.

Claiming Deductions

You may be able to claim:

• Ongoing investment advice fees
• Interest on investment loans
• Management fees for platforms or brokers
• Subscriptions to financial journals or investment tools
• Capital works or depreciation on investment properties

Tip: Upfront advice fees to establish an investment portfolio are not deductible—only ongoing advice may be.

Key Dates and Deadlines

• 30 June – End of financial year
• 31 October – Deadline to lodge your return if self-preparing
• Later if using a registered tax agent (provided you’re on their lodgement list)

Final Checklist

• Gather all investment income statements
• Reconcile capital gains and losses
• Confirm deductible expenses
• Review rental income and outgoings
• Include crypto transactions, if applicable
• Seek professional advice if your affairs are complex

Consider Professional Advice

Tax rules for investors can be complex and change frequently. A qualified accountant or financial adviser can help you:

• Structure your portfolio tax-effectively
• Avoid costly mistakes
• Plan ahead for future tax years

Investing smartly means not only growing your wealth—but also managing your tax wisely. A well-prepared return ensures you keep more of your returns, stay compliant, and sleep better at night.

For further assistance book an initial complimentary consultation with one of our accountants.

Source: ato.gov.au