28/11/2017
Did you know that Landlords will lose thousands in tax savings in new legislative change.
On 15 November 2017, the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 was passed.
This means that owners of second-hand residential properties (where contracts are exchanged after 7.30pm on May 9, 2017) will be ineligible to claim depreciation on certain assets.
The amendment to depreciation rules as detailed in the bill mean that investors can no longer claim depreciation for plant and equipment assets, such as air conditioning units, blinds, curtains, ovens, cooktops, dishwashers, hot-water systems, security systems, solar panels or carpet in second-hand residential properties.
The good news is if you bought your property before 7.30pm on May 9, 2017 you can continue to claim depreciation. Previously existing legislation will be grandfathered, which means investors who already made a purchase before this date can continue to claim depreciation deductions as before.
It's also good news for investors who bought a brand new residential property or a new or second-hand commercial property. In both instances, you can continue to claim depreciation and will be unaffected by the changes.