Why Tax Compliance Could Make or Break Your Property Portfolio

When Tech Meets Tax: Investing Smarter with Nicole Kelly

In this eye-opening episode of The Australian Property Investment Podcast, host Aaron Christie-David is joined by Nicole Kelly, tax accountant and founder of TaxTank—a powerful SaaS platform revolutionising the way property investors manage tax compliance and real-time portfolio performance.

Nicole doesn’t just build software. She’s been on the front lines of ATO audits, shifting legislation, and investor confusion. If you think tax is just an annual chore, this conversation will convince you otherwise. Watch the full episode here.

The Shocking Truth: 9 in 10 Investors Are Getting It Wrong

According to the ATO’s own “random sampling” data, nine out of ten property investors make errors on their tax returns—errors that can cost dearly.

“The ATO has data matching programs with banks, utilities, real estate platforms—even your mortgage applications,” Nicole warns. “They know more about you than you think.”

Nicole breaks down how the ATO is leveraging AI-powered audits and cross-referencing enormous data sets in near real-time. The kicker? If flagged, you have just 28 days to prove your position, or your return will be auto-adjusted—with penalties and interest to follow.

Playing Offense: How to Stay Ahead of the ATO

Here’s what property investors can do today to stay on the right side of compliance:

  • Avoid co-mingling funds: Equity releases used for personal purposes—even if paid back—can invalidate interest deductions.
  • Track everything: Every repair, capital improvement, loan split, and refinance matters. The ATO requires not just receipts, but justification of calculations.
  • Use offsets wisely: Drawing from offsets instead of loan redraws preserves the deductibility of interest.
  • Document with purpose: Especially for depreciation, capital gains tax (CGT), and substantiation of rental income.

TaxTank: Treat Your Investments Like a Business

Nicole introduces listeners to TaxTank, a next-generation tax and finance tool that:

  • Maps to the ATO’s structure using “tanks” for property, income, sales, and holdings
  • Offers live bank feeds and automated allocation
  • Tracks real-time tax position throughout the year
  • Handles depreciation schedules, borrowing expense rollovers, and CGT estimates
  • Allows multi-user access for brokers, accountants, and advisors to collaborate in one place

“This isn’t once-a-year admin anymore. With the ATO’s AI and scrutiny, tax management has to be year-round,” Nicole explains.

Pro Tip: Your Numbers Are Your Power

Aaron reinforces the business mindset behind high-performing investors:

“Organised clients make the best decisions. If you treat your investment portfolio like a business, the numbers can tell you everything—if they’re accurate and up to date.”

From forecasting loan serviceability to knowing when to sell a property based on tax vs cash performance, TaxTank empowers investors to act with confidence.

What’s Coming: Bigger Budgets, Tighter Compliance

The 2024–25 federal budget allocated $999 million to ATO compliance enforcement, with $75 million focused solely on individuals.

Nicole’s advice? “This isn’t slowing down. If you’re still using spreadsheets or handing your accountant a shoebox of receipts, you’re vulnerable.”

Final Takeaway: Tech Isn’t a Luxury, It’s a Necessity

The days of hoping your accountant ‘sorts it out’ are over. With digital audits, AI-powered red flags, and shrinking tolerance for errors, property investors need modern tools like TaxTank to stay compliant, optimise deductions, and sleep easy.

Next Steps

🎧 Listen to Episode 211 of the Australian Property Investment Podcast on Spotify or Apple Podcasts.

💻 Explore TaxTank to future-proof your investment admin and maximise your tax position..

Don’t Let Admin Hold You Back

Tax shouldn’t be a barrier to building wealth. Get your house in order, take control of your numbers, and invest with confidence—because clarity beats chaos every single time.

➡️ Connect with Aaron at Atelier Wealth or listen to the full episode now.