Investment income sits in its own corner of the tax return, and it is the area the ATO watches most closely. The reporting itself is not hard, but it rewards good records and trips up people who guess. Here is what investors with property, shares or crypto genuinely need to report, and the paperwork that makes it painless.
Rental property: income and the deductions you're entitled to
Start with your annual statement from the managing agent, which summarises rent received and the costs they paid on your behalf. On top of that, gather your own records for everything else you spent.
- Loan interest on the investment loan (interest only, not principal repayments)
- Council rates, water and land tax
- Landlord insurance and body corporate or strata fees
- Property management and letting fees
- Repairs and maintenance during the year
One distinction matters more than any other: a repair (fixing something back to its original state) is generally deductible straight away, while an improvement (replacing or upgrading) is usually claimed over time through depreciation. Getting this right protects your return if the ATO ever asks.
Don't overlook your depreciation schedule
A depreciation schedule prepared by a qualified quantity surveyor often uncovers deductions owners did not know they could claim, for the building structure and for assets like carpets, blinds and appliances. If you have one, bring it; the deductions usually flow for years from a single report. If you bought or built recently and don't have one yet, it is worth asking us whether one is likely to pay for itself.
Shares and managed funds: income and the paperwork
For shares and managed funds, two things need reporting. First, the income you received during the year: dividends, and distributions from managed funds or ETFs. Second, any parcels you sold, which feed into your capital gains calculation.
The records that make this smooth:
- Dividend statements showing the cash amount and any franking credits attached
- Annual tax statements from managed funds and ETFs (these often arrive late, sometimes after 30 June)
- Your full buy and sell history: purchase date and cost, sale date and proceeds, plus brokerage on each side
Franking credits are easy to miss and worth declaring properly. They represent tax the company has already paid, and they generally reduce your own tax bill or add to your refund. Wait for the managed fund tax statements before lodging, because their components are not simply the cash you received.
Crypto is treated as an asset, not currency
The ATO treats most crypto as a capital gains tax asset, which surprises people. A taxing point can arise not just when you sell to dollars, but also when you swap one coin for another, or use crypto to buy goods. Each of those is generally a disposal.
So you need a record of every transaction: the date, what you acquired or disposed of, the value in Australian dollars at the time, and any fees. Most exchanges export this history, and crypto tax tools can help reconcile wallets that move between platforms. Reconstructing it years later is the painful part, so save the records as you go.
How capital gains actually work
When you dispose of an investment, you compare your proceeds to your cost base. Your cost base is more than the purchase price: it generally includes brokerage, and for property, costs like stamp duty and legal fees, plus capital improvements. A larger cost base means a smaller gain, so keep those purchase records.
The 50% CGT discount can apply to assets held for more than twelve months, which is why the dates matter so much. Hold an asset for eleven months and you may miss it; hold for thirteen and individuals may be entitled to it. Capital losses are useful too: they offset capital gains, and any unused loss can generally be carried forward to future years, so report losing parcels as well as winners.
One change worth noting for 2025-26
From 1 July 2025, ATO interest charges (the general interest charge and shortfall interest charge) are no longer deductible. If you have carried a tax debt in the past and claimed that interest, that deduction is gone for amounts incurred from that date. It is a small thing for many investors, but worth knowing before you lodge.
Ready to sort out your investments at tax time? Book a chat at nebulaaccounting.au or call 0433 822 227.
This article is general information only and does not take account of your personal circumstances — it is not personal tax, financial or legal advice. Tax laws change and apply differently to different people. Nebula Accounting Pty Ltd is a registered tax agent (No. 26259377); please speak with us or check with the ATO before acting.