Renting out your property or holiday home

If you rent out property, you need to:

• keep records right from the start
• work out what expenses you can claim as deductions
• work out if you need to pay tax instalments throughout the year
• declare all rental-related income in your tax return
• consider the capital gains tax implications if you sell.

If you have an investment property that isn’t rented or available for rent, such as a holiday home, then you generally can’t claim deductions because it doesn’t generate rental income.

If you invest in (buy) a rental property or holiday home, you will need the date of purchase and costs of buying the property as part of your records. The date you enter into the contract is the purchase date (not the settlement date) for capital gains tax purposes.

Co-owning rental property

If you co-own the property you will need to know your ownership interest, to make sure you:

• keep the right records
• report the correct share of the rental income
• claim the correct amount for expenses you incur.

Buying a home

If you buy a home (your main residence), you should also keep records. You will need these records to make sure you don’t pay more tax than you need to, if you later decide to:

• make your residential property available for rent
• rent out all or part of your home through the sharing economy
• use all or part of your home to produce income.

Investment or business

Most rental activities are in the form of an investment. See, Rental property as investment or business, to work out if your activities amount to:

• carrying on a business
• a domestic arrangement
• sharing part of your home
• normal commercial practices.

If you are investing in property you intend to rent out as affordable housing, there are registration requirements and criteria you need to meet.

Foreign resident investors

If you are a foreign resident or a temporary resident and you plan to invest in residential rental property, you will first need to:

• apply for approval, pay the application fee and wait to be approved before you make a purchase
• keep the right records
• report the correct share of the rental income.

Talk to us if you have any questions.

Source: ato.gov.au June 2024
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/investments-and-assets/property-and-land/residential-rental-properties/owning-and-renting-a-property-or-holiday-home
Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

For Australians approaching retirement, recent market volatility may feel like more than just a bump in the road.

Unlike younger investors, who have time on their side, retirees don’t have the luxury of waiting out downturns. A sharp dip just before, or as you begin drawing down your superannuation, can leave lasting damage.

It’s not just about watching your super balance dip.

The real danger comes if you need to start withdrawing funds during a slump. Doing so can lock in losses and make it harder for your remaining savings to recover. The timing of poor market returns is known in finance circles as “sequencing risk”. And it can shorten the life of your retirement savings.

What’s going on in markets?

So far in 2025, global shares as measured by the MSCI World Index have fallen 4.6%. Concerns over stubborn inflation and trade tensions that will hurt growth are keeping investors on edge.

If your superannuation is in a “balanced” option, with diversified investments in stocks, bonds, private markets and cash, your balance will have fallen by less than this amount.

Zoom out and the story looks better. Over the past year, total returns for the MSCI index remain strong, up 6.5%.

It’s a reminder that downturns are often followed by rebounds. We saw this during the COVID crash in 2020, when markets plummeted, only to recover more than 50% over the following year.

Still, for those nearing retirement, the timing of these dips matters more than the averages. Uncertainty makes planning all the more crucial.

Is your super still in high gear?

Many Australians don’t know exactly how their super is invested. Most people are in default “balanced” or “lifecycle” options, which automatically shift from high-growth assets like shares to safer investments like bonds and cash as retirement approaches.

This design helps cushion your balance from big market hits as you near retirement. But if you’ve chosen a high-growth option or haven’t reviewed your investment settings in years, you could still be heavily exposed to volatility.

In that case, now’s the time to consider your options:

• delay retirement by a year or two to give your portfolio time to recover
• move to part-time work instead of retiring fully, reducing how much super you need to draw down
• review your budget. You can’t control the markets, but you can control your spending plans.

Don’t panic – reacting emotionally can cost you

When markets fall, it’s natural to feel the urge to switch your portfolio mix from stocks into cash. But this can turn temporary losses into permanent ones.

Instead, consider more measured steps. Transition-to-retirement strategies let you draw a partial income while keeping most of your super invested.

Annuities – which offer guaranteed income for life or a fixed term – are another option. Newer products also address longevity risk, which is the risk of outliving your savings.

What does a 5% drop really mean?

Let’s say you’re 65 and have a super balance of A$200,000 (for men, that’s roughly the median; for women, it’s lower due to factors like lower lifetime earnings and career breaks).

A 5% fall translates to a $10,000 loss. That might not seem huge, but if you were planning to draw down 5% of your balance annually – about $10,000 a year – that loss could effectively wipe out an entire year’s retirement income.

It doesn’t stop there. If left invested, that $10,000 could have continued to grow. Over a 20-year retirement, and assuming a 5% annual return, that $10,000 could have grown to over $26,000.

For retirees with smaller super balances or higher withdrawal rates, the impact of a market dip can be even more significant.

Many experts now expect long-term returns to be more modest than in recent decades. Ageing populations, climate change and shifting global dynamics are likely to weigh on growth.

This makes it even more important to avoid switching entirely into cash, which can erode your savings through inflation over what could be a 20- or 30-year retirement.

A smarter path to retirement

The best approach is to gradually shift your investments in the years leading up to retirement – not all at once in response to a market dip. Lifecycle options do this automatically, but if you’re managing your super yourself, it’s worth getting advice.

Your super fund’s website likely offers tools and calculators to help. ASIC’s MoneySmart retirement planner is another great resource. And don’t underestimate the value of calling your fund to ask:

• How is my super invested?
• Does this match my age and risk tolerance?
• What are my options if I want to make changes?

The bottom line

Retiring in a volatile market isn’t easy, but panic isn’t a plan. By understanding your investment mix, taking advantage of flexible retirement strategies, and seeking advice when needed, you can navigate uncertainty more confidently.

Planning for retirement isn’t about avoiding all risk – it’s about managing it. With the right tools and mindset, you can stay on course, even when markets wobble.

Source: https://theconversation.com/markets-are-choppy-what-should-you-do-with-your-super-if-you-are-near-retirement-255017

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Wars in Europe and the Middle East, volatile oil prices and shifting US policies are making headlines – but failing to dampen market optimism.

The ASX closed the financial year with a near 10% return – its strongest since the COVID-19 crisis and despite US tariff threats.

Despite tariff risks for the US economy, the S&P 500 index surged to a four-month high on hopes of future rate cuts and smooth trade negotiations.

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

A broad-based rise in housing values over the quarter

Housing values gained momentum across almost all markets over the three months to end of May, largely due to rate cuts. Buyer confidence is increasing thanks to the cash rate reductions in February and May, coupled with optimism that more rate cuts might be on the horizon.

Australian dwelling values increased by 1.3% over the quarter, with broad based gains meaning that every capital city recorded a rise of at least 0.5%.

Despite the momentum demonstrated by the quarterly figures, the pace of annual gains nationally slowed to 3.3%. This represents the slowest annual change since the year ending August 2023.

A rebound where values were the weakest

The rise in property values over the quarter continues to be led by the lower ends of the market, with Darwin recording the highest quarterly increase of the capitals with a 4.3% rise.

However, it should be noted that some more expensive market segments are starting to accelerate in response to rate cuts.

Regional markets are also demonstrating a positive trend, recording a rise in values of 1.6% over the past three months.

Tarif announcements and a lead up to the election knocked confidence

Household confidence slipped in April, with the US’s ‘Liberation Day’ tariff announcements and the lead up to the Australian federal election also causing uncertainty.

Positive factors supporting growth

The main factor boosting buyer confidence and the volume of property sales is the widespread expectation that interest rates are set to reduce further as the RBA appears to be becoming more comfortable with the path of inflation. Confidence that inflation will remain within the target range is crucial for interest rates to continue to reduce.

Some renewed confidence in household decision making after the federal election is also likely to support further price growth, with enhanced policies to support first home buyers announced.

The housing undersupply is also playing a role in supporting demand. Recent figures show commencements moving in the wrong direction, over the December 2024 quarter, holding below the decade average. Additionally, the barriers for building more homes remain substantial, with construction costs rising through the March quarter.

Downside factors

There are also factors at play that will keep housing values in check to some extent. Affordability pressures are anticipated to constrain housing demand and lower population growth should also help to quell the accrual of housing demand in the absence of an increase in supply.

It is anticipated that the factors supporting growth will outweigh these and housing values will continue to post modest rises.

Dwelling values over the quarter

Melbourne

The Victorian capital posted a 1.2% quarterly move according to Cotality (previously Corelogic) figures, taking the city’s median dwelling price to $791,303. Investors should take note that the gross rental yield figure for Melbourne is 3.7%.

Sydney

In the three months to May’s end, Sydney experienced a dwelling value change of 1.1% resulting in a median of $1.203 million. The gross rental yield for the Harbour City remains the lowest of the capitals at 3.1%.

Brisbane

The Queensland capital has again recorded the second most expensive spot for dwelling values at $917,992 and a quarterly rise of 1.6%. Brisbane has recorded a gross rental yield of 3.7%.

Canberra

The national capital recorded a rise of 0.5% during the quarter with the median now sitting at $855,663. For Canberra, the gross rental yield is 4.1%.

Perth

Perth prices increased 1.6% over the quarter, taking its medium to $813,810. Perth recorded 4.3% gross rental yield.

For more information about how you might be able to purchase a property in the current market, get in touch with us today.

Note: all figures in the city snapshots are sourced from: Cotality national Home Value Index (May 2025)

If you have any questions or need any information please give us a call on 039723 0522.

Stay up to date with what’s happened in the Australian economy and markets over the past month.

There was a sigh of relief all round when the Reserve Bank lowered interest rates in May by 25 basis points to 3.85%.

Markets largely recovered from April’s losses during the month as US President Trump’s stance on trade softened.

However, the legal and economic uncertainty of US tariffs remain a key concern for global and local markets.

Click here to view our update.

Please get in touch on 03 9723 0522 if you’d like assistance with your personal financial situation.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Telephone : 03 9723 0522

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.