What the ATO require at EOFY for rental properties

The ATO (and therefore your accountant) need to complete a Rental Schedule per rental property.

The main things you need to have for your accountant are:

All income per property for the FY
All expenses per property for the FY
Evidence of each transaction (Invoices or receipts)

The ATO doesn't require receipts/invoices when lodging the tax return but you need to have them ready if they ever request them. You will find most accountants require invoices to feel comfortable with the numbers they are reporting to the ATO.

Cubbi provides this information in our Tax Return Package for owners.

Useful links

ATO Guide - Rental properties 2023

Request a tax depreciation schedule quote (helping Australian taxpayers just like you, save thousands of dollars every year). BMT are well known and trusted however there are other cheaper alternatives.

FAQs

Do you need to break the income and expenses up per month?

No.

Do you need to report on GST?

No. If you rent out residential premises for residential accommodation, your rent is input-taxed and you don't include GST in the rental charge. More info

Are the expense categories in the Rental Schedule the only ones you can have?

Yes, they are the only categories the ATO consider however you are free to add any expense category you like, your accountant can re-allocate your expenses to the right categories when doing your return so don't worry about getting it spot on. The ATO does provide a guide each year if you want to read up however it's 48 pages long.

If the property is owned under a company will the accountant use the same Rental Schedule?

It depends on the tax software being used. Most have a separate schedule identical to the individual one (the sample above). A few others just have one line for total rental income and another line for total rental expenses. Cubbi's EOFY financial report is the identical regardless if the owner is a company or individual as a standard report will cater to both types reporting needs anyway.

When reporting income what is the difference between Company and Individual owners?

The major difference is the date a payment is recorded. For individuals, the record date should be the date the money reached the landlords bank account.

For all other entities (Trusts/Companies/Super Funds), the record date should be the date the payment was due (i.e. account for the income when they are entitled to it).

This is the standard approach regardless of industry.

Cubbi's financial reports do not distinguish between Companies and Individuals.

Cubbi's reports in the Tax Return Package only show information relevant to using Cubbi as we have no oversight if the property was available/earned income before it was listed in Cubbi. Our reports show 'via Cubbi' so your accountant can see and ask you further questions if need be. Note, in our Tax Package summary report we do not show the date when the property first became available for rent (advertised).