Rental Property changes

Rental Property depreciation deductions

From July 2017, plant and equipment depreciation deductions will be limited to the original purchasers.

Investors who already own or make purchases of plant and equipment after budget night can continue to claim deductions as in the past,

however, subsequent owners will not be able to claim deductions for items purchased from the previous rental property owner.

These purchase costs will be included in the CGT cost base of the rental property for the subsequent owner.

This change applies to items that can be easily removed from the rental property such as dishwashers.

There is no change in the deductibility of capital expenditure improvements to rental properties.

Rental Property travel deductions

From July 2017, travel expenses relating to the inspecting, maintaining or collection of rent for a residential rental property will no longer be deductible.

Newly constructed residential properties – GST

From July 2018, purchasers of newly built residential properties will be required to remit the GST directly to the ATO as part of the settlement – previously it was the developer who paid the GST to the ATO.

CGT exemption for Non-Residents

From Budget night, foreign and temporary tax residents will not be apply to apply the CGT main residence exemption (PPR) and existing properties will only be grandfathered until June 2019.

If you have question, please feel free to contact us.

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