Tax Time Reset: Positioning for the 2025/26 Financial Year

Meridian Australia
Aug 20
2 min read

With the 2024/25 books now closed, property investors turn their attention to the year ahead. The start of a new financial year is more than a clean slate — it’s the perfect moment to set strategies, leverage policy changes, and align your portfolio with market conditions.

This year brings a unique backdrop. The Reserve Bank has already cut interest rates three times, pushing the cash rate down to 3.60%, the lowest in more than two years. For investors, cheaper debt is only half the story. The other half lies in how you structure your finances, capture deductions, and plan for growth in the year ahead.

2025/26 Focus Areas for Property Investors

The Australian Taxation Office (ATO) has increased scrutiny on investment property claims. Digital tools and cloud-based records should be set up now, not rushed at year’s end.

Review Loan Structures Early - Lower rates create opportunities to refinance or restructure, but these choices have tax implications. Aligning with your accountant and broker now ensures you benefit from both reduced repayments and maximised deductions.
Revisit Depreciation Schedules - If you purchased or renovated in the last 12 months, organising a depreciation report now could add thousands in claims over the coming years. Don’t wait until June to uncover missed opportunities.
Strategic Use of Negative Gearing - With lower interest expenses, the size of deductible losses may shrink, but negative gearing remains a powerful tool. Combined with a long-term growth outlook, it can accelerate returns while softening your taxable income.
Capital Gains Planning- Thinking of selling an asset this year? Planning ahead means you can time sales to qualify for the 12-month CGT discount, or offset gains with strategic expenses.

Expert Insight

As Brad Wearne, Head of Research at Meridian Australia, explains:

“The new financial year isn’t about chasing last-minute deductions. It’s about setting the tone. Smart investors use July and August to get ahead, because what you do now compounds throughout the year.”

Adam Duffy, Partner at Meridian Australia, adds:

“EOFY is a reset button. By aligning tax planning with your broader investment strategy, you’re not just saving this year — you’re creating momentum for the next decade.”

Connecting to the Bigger Picture

EOFY is just one piece of the strategy puzzle. As we’ve explored in our recent blogs — Understanding Yield, Long-Term with Meridian, and 2025 Trends — it’s the combination of smart financial management and disciplined investment that builds true financial freedom.

The Meridian Perspective

For many, tax time is about compliance. For strategic investors, it’s about opportunity. With interest rates shifting, markets responding, and new financial year rules in play, there’s no better time to take control.

Ready to position yourself for 2025/26? Speak to our team today to align your portfolio and tax strategy, and make the most of the year ahead.