November 2017 Newsletter |
New Legislation for Property Investors
Parliament has passed the Treasury Laws Amendment (Housing Integrity) Bill 2017. This legislation states the following:
Depreciation Changes
- Owners of second-hand residential properties purchased after 9th May 2017 will be ineligible to claim depreciation on existing plant and equipment such as air conditioning units, carpet etc. However, these amounts will be allowed to increase the cost base and reduce capital gains tax.
- If you renovate a second-hand residential property, you can claim depreciation on these renovations.
- Acquirers of brand new property will continue claiming depreciation as per before.
- The changes only relates to residential property. Commercial, industrial, retail and other non-residential properties are not affected.
- The building or capital works works deduction on the structure of the building e.g. doors, windows etc. has not changed and can still be claimed.
Travel Deductions
- Deductions for travel expenses relating to inspecting, maintaining or collecting rent for a residential property will be disallowed.
Please feel free to contact us if you would like to discuss this further.
Disclaimer - The material contained in this newsletter does not constitute advice. LCP is not responsible for any action taken in reliance on any information contained in this newsletter. Anyone reading the newsletter should not act upon material contained in this newsletter without appropriate consultation.
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MB BS FRACP, Consultant Physician in Nuclear Medicine, Concord and Nepean Hospitals, Clinical Lecturer, Discipline of Imaging, University of Sydney