Do you need a tax planner or financial planner?

For property investors, the temptation is often to jump straight into long-term financial strategies. But when a major decision is on the table — buying, selling, refinancing, or even restructuring — the most immediate and impactful advice usually comes from tax planning.

Poor structuring, incorrect timing, or overlooking deductible elements can quietly erode an investor’s returns.

These are not theoretical issues — they’re real cash flow consequences that often go unnoticed until it's too late and the financial year ticks over.

Understanding the role of tax planning

At its core, tax planning is about navigating Australia’s complex tax laws to ensure you retain as much of your investment income and capital growth as legally possible. For property investors, this typically includes:

• determining the right ownership structure (individual, trust, company)
• understanding the impact of negative vs positive gearing
• timing asset sales to manage capital gains tax (CGT) exposure
• claiming legitimate deductions on interest, expenses, and depreciation
• minimising land tax across multiple property holdings
• managing tax residency and foreign income rules for expats
• identifying superannuation contribution strategies aligned with individual tax positions.

The goal is clarity. Tax planning is highly practical — it answers immediate questions and delivers specific recommendations relevant to real-world decisions.

Where financial planning complements the equation

While tax planning defends your financial position, financial planning builds on it. The two services often intersect — but their core focus differs.

Financial planning is typically more appropriate when you’re looking to:

• set long-term retirement and passive income goals
• diversify investments beyond property (shares, ETFs, managed funds)
• review superannuation strategies, including SMSFs
• establish life insurance and income protection
• plan for estate distribution and intergenerational wealth transfer.

Financial planning is especially valuable for more passive investors or those wanting guidance across all asset classes, not just real estate. It ensures your tax-efficient property holdings align with broader wealth and lifestyle goals.

Choosing the right starting point

Whether you engage a tax planner, a financial planner, or both depends largely on your stage of life, tax residency and investment experience.

For Australian tax residents

Start with tax planning if you’re transacting on property or earning high income. Consider financial planning if you want a passive investment path, need insurance, or are preparing for retirement.

For Australians working abroad

Tax planning becomes essential to preserve non-residency status, manage CGT, and navigate cross-border rules as they pertain to your Australian tax obligations.

Australian financial planning is generally only applicable if you intend to return to Australia in the immediate future, as Australian licensing restrictions limit the advice Australian financial planners can be provided to non-residents.

For migrants moving to Australia

Engage a tax planner before arrival to potentially restructure foreign-held assets and avoid unnecessary CGT. Ideally engage one to two years before arrival.

Australian financial planning can then help establish super contributions, insurance needs, and longer-term wealth frameworks post-arrival.

A strategic combination

There’s often significant overlap between the two services, especially for more complex portfolios.

Experienced, active investors may only need targeted tax guidance, provided in tax planning, to stay ahead and refine their current strategies.

Passive investors, on the other hand, may benefit more from the structured, goals-based approach of a financial planner.

Ultimately, the most effective approach isn’t choosing one over the other — it’s knowing when to use each and how they can work together to support you and your financial situation.