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As of 30 September 2024, major Queensland rental law changes have come into effect, reshaping the responsibilities of landlords and tenants alike. With eight months now behind us, Cairns property investors are beginning to see the real impact of these reforms. Understanding these changes is essential for any landlord looking to stay compliant and maintain a profitable investment. Key Rental Law Changes Since September 2024 The Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024 introduced several changes in rental laws that landlords must adhere to. These are being rolled out in stages, with the most recent changes implemented on 30 September 2024, and additional reforms scheduled for 1 May 2025. Here’s a breakdown of the major legislative updates already in effect: 1. Rent and Other Payments One of the biggest concerns for property investors has been rental increases and payment regulations. The new laws have placed stricter guidelines on how and when landlords can raise rent. Investors should review their lease agreements to ensure that they are compliant and avoid potential disputes. 2. Rental Bond Processes Adjustments to rental bond procedures mean that landlords need to follow stricter guidelines when managing bond lodgments and disputes. Clearer rules have been introduced to protect both landlords and tenants in cases where bond claims are contested. 3. Privacy and Access Rules To balance tenant privacy with the needs of property owners, new laws set out stricter notice periods for property inspections and access requests. Landlords must provide appropriate notice before entering a rental property, ensuring tenants’ rights are respected. 4. Regulations and Enforcement The new legislation has also increased enforcement measures to ensure compliance with rental laws. Landlords found in breach of these regulations may face heavier penalties, reinforcing the importance of staying up to date with obligations under the Act. How Are These Laws Impacting Cairns Investors? Eight months since the September 2024 changes, Cairns property investors have reported mixed outcomes. Some landlords have adjusted well, particularly those already working with professional property managers who ensure compliance with the latest legislation. However, challenges have arisen in a few key areas: Slower rental increases : The stricter rent regulation rules have limited the ability of landlords to adjust rental prices as freely as before. More structured property inspections : With new privacy regulations, landlords must be diligent in providing the correct notice periods. Longer bond dispute resolution processes : While the system aims to be fairer, investors have found that bond disputes can now take longer to resolve, requiring better documentation on their end. What’s Coming in May 2025? While the September 2024 changes have already altered Queensland’s rental landscape, another wave of reforms is set to take effect on 1 May 2025. These upcoming changes will further refine rent regulations, privacy laws, and enforcement mechanisms. Additionally, the Queensland Government has announced plans to introduce a new portable bond scheme, a rental sector code of conduct, and revised rules around tenant modifications for safety, security, and accessibility. As the Residential Tenancies Authority (RTA) explains: “ New regulations commence – three new Heads of Power (regulations) commence for the new portable bond scheme, a rental sector code of conduct, and applications to make modifications for safety, security or accessibility. ” How Cairns Investors Can Stay Compliant With further Queensland rental law changes incoming, being proactive is essential for landlords in Cairns. Here’s how investors can ensure they remain adherent to the rules: Review lease agreements regularly to ensure they reflect the latest legal requirements. Work with a property manager who is well-versed in Queensland’s changing rental laws. Keep detailed records of rent payments, bond lodgments, and property inspections. Monitor legislative updates to stay informed about upcoming changes. By taking a proactive approach, property investors will know how to adapt to these changes while maintaining strong and steady flow of income. The Queensland rental law changes introduced in September 2024 have already made some significant impact on the rental market in Cairns, and more updates are on the way in May 2025. For landlords, being constantly informed and compliant isn’t just a legal requirement. It’s also key to protecting and growing your property investment. If you’re unsure how these changes affect your property or need expert property management, reach out to us for a professional guidance. Disclaimer: This article provides general information only and should not be considered legal advice. Always seek professional guidance tailored to your specific situation.

Investing in property in Cairns offers lucrative opportunities, but to truly maximise returns, investors must leverage tax benefits effectively. Understanding how to optimise investment property tax returns can help reduce tax liabilities and improve overall profitability. Here is what Cairns property investors should know for 2025. Understanding Depreciation Schedules One of the most powerful tools available to property investors is a depreciation schedule. This allows you to claim deductions on the wear and tear of your investment property over time. What is Depreciation? Depreciation refers to the gradual loss of value in a property’s structure and assets. The Australian Taxation Office (ATO) allows investors to claim depreciation deductions under two categories: Capital Works Deductions (Division 43) – This covers the structural elements of the property, including walls, floors, roofs, and built-in items such as kitchen cabinetry. Properties built after 16 September 1987 are eligible for deductions at 2.5% per year for up to 40 years. Plant and Equipment Depreciation (Division 40) – This includes removable assets such as carpets, blinds, air conditioning units, and appliances. These assets decline in value at different rates based on ATO schedules. Why Investors Should Get a Professional Depreciation Schedule A qualified quantity surveyor can prepare a tax depreciation report, ensuring you claim the maximum allowable deductions. Even older properties may have eligible capital works or assets that qualify for depreciation, so it is worth investigating. Rental Property Deductions You Should Be Claiming When lodging your investment property tax returns, it is crucial to ensure you are claiming all eligible deductions. The ATO outlines key deductions for rental properties, including: Loan Interest – Interest on a mortgage for your investment property is fully tax-deductible. Property Management Fees – Costs associated with professional management are deductible. Council Rates & Land Tax – These ongoing costs can be included in your tax return. Repairs & Maintenance – Immediate deductions apply for necessary repairs, such as fixing a leaking roof or replacing a broken appliance. However, improvements (e.g., installing a new kitchen) must be depreciated over time. Insurance Premiums – Landlord insurance and building insurance are fully deductible. Advertising Costs – Expenses incurred in finding new tenants are deductible. Travel Expenses (Limited) – While restrictions apply, property owners can still claim some travel-related costs for property management under specific circumstances. Tax Strategies for Cairns Property Investors To make the most of your investment property tax returns, consider these key tax strategies: 1. Negative Gearing vs. Positive Gearing Negative Gearing – When the rental income is less than expenses (including loan interest and maintenance), the loss can be deducted from your other taxable income, reducing your overall tax bill. Positive Gearing – If rental income exceeds expenses, you will need to pay tax on the profit. However, this strategy provides extra cash flow and can still be tax-efficient with the right deductions in place. 2. Prepaying Expenses If you expect a higher income in the current financial year, prepaying interest, insurance, or property expenses before 30 June can help reduce taxable income for that year. 3. Capital Gains Tax (CGT) Exemptions & Discounts If you sell your investment property, Capital Gains Tax (CGT) applies to any profit made. However, investors who hold the property for more than 12 months may be eligible for a 50% CGT discount. Keeping detailed records of purchase costs, improvements, and selling expenses can help reduce CGT liabilities. 4. Using a Trust or SMSF for Property Investment Some investors structure property ownership under a trust or self-managed super fund (SMSF) to optimise tax benefits. This approach requires professional advice to ensure compliance with ATO regulations. Keeping Accurate Records The ATO emphasises the importance of record-keeping for investment properties. As highlighted in their guidelines: “ Keeping proof of all your income, expenses, and effort to rent out your property means you can claim everything you are entitled to. ” Key Records to Maintain: Purchase and sale contracts Loan and finance documents Rental income statements Receipts for expenses and repairs Depreciation reports Property management agreements Maximising tax benefits is important for Cairns property investors looking to enhance their returns in 2025. A well-structured investment property tax return can lead to significant tax savings when approached strategically. To make sure that you get optimal returns, seek guidance from a qualified accountant or tax professional with expertise in both the Cairns property market and Australian tax regulations.  Disclaimer: This blog provides general information only and should not be considered financial or tax advice. Always seek professional guidance tailored to your specific situation before making investment decisions.

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