The Property Couch TPC Gold | How to Maximise Your Tax Returns in 2025
May 13, 2025
Discover essential tax strategies for property investors as the financial year wraps up. Key discussions include changes to HECS/HELP debt, the benefits of prepaying interest, and managing land tax deductions. Learn how to navigate complex rental income reporting to safeguard against tax liabilities. Expert tips reveal how timing payments can maximize your deductions and avoid pitfalls, particularly for commercial properties. It's a treasure trove of insights to boost your tax return savvy.
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Maximize HECS/HELP Discount
- Do not pay off your HECS/HELP debt before June 1st to maximize the 20% government discount on the amount owed at that date.
- Employer deductions do not reduce the balance for this discount; only voluntary payments matter before June 1st.
Interest Prepayment Strategy
- Arrange with your lender to prepay interest if you intend to claim it, and plan your income around this deduction.
- Prepay interest mainly to offset high-income years or years when income drops, like during leave or retirement transition.
Limit Prepayment Deductions
- You can only claim deductions on rates, insurances, and body corporate fees paid up to 12 months in advance.
- Ensure you have documentation like council statements to prove payments, and do not attempt to prepay beyond 12 months for extra deductions.