Selling an investment property in Melbourne involves navigating capital gains tax (CGT) and potentially other tax implications, making professional accounting advice highly beneficial. As of December 2025, most investment property owners engage an accountant to optimise their tax position during the sale process.
In Melbourne, particularly within the Eastern Suburbs where we operate, the complexity arises from factors like differing ownership structures, acquisition dates, and any improvements made to the property. Calculating CGT requires accurate records of the original purchase price, acquisition costs (stamp duty, legal fees), and capital improvements – things like renovations or extensions. Currently in Melbourne, typical renovation costs can range from $20,000 to $100,000+ depending on the scope, and these are crucial for CGT calculations. An accountant can advise on strategies to minimise CGT, such as offsetting capital losses or utilising the 50% CGT discount for assets held for over 12 months. Furthermore, they can assist with preparing the necessary documentation for your tax return and liaising with the ATO. Fletchers’ clients often find coordinating with their accountant during our 4-6 week sales campaign period streamlines the process. In 2026, with continued moderate property value growth, accurate record-keeping will be even more important.
Engaging an accountant ensures you understand and fulfil your tax obligations when selling your investment property, potentially realising significant financial benefits.