The new policy environment makes record keeping more important for Australian property investors than it has been in many years.
The proposed shift to cost base indexation and the 30% minimum tax on capital gains means the quality of your cost base records directly determines your tax position at sale. Missing records cannot be assumed away — they create gaps that the ATO may fill against the investor.
Purchase records to keep: purchase contract, settlement statement, stamp duty records, legal fees, buyer agent fees, loan documents, and any pre-purchase inspection reports.
Ownership records to keep: rental statements, property management records, depreciation schedules, annual tax returns, insurance replacement cost reports, body corporate records, and strata levy statements.
Improvement records to keep: renovation invoices, builder invoices, appliance receipts, architect or designer fees, council approval records, and any construction cost estimates.
Sale records to keep: sale contract, selling agent fees, advertising costs, legal fees on sale, settlement statement, and any costs related to the disposal.
Structure documents: ownership structure documents, SMSF property documents where relevant, trust deed, and any changes to ownership during the holding period.
In our experience preparing CGT cost base evidence reports for investors approaching sale, the records most commonly missing are renovation invoices from more than five years ago, the original construction cost estimate for Division 43, and any improvements made by previous owners that the current investor inherited.
What to do next: