Today the Australian parliament passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017.
These changes mean that those who purchased second-hand residential properties after 7:30pm on the 9th of May, 2017 will not be able to claim tax depreciation on the existing Plant and Equipment – for example blinds, carpets, and air conditioning. This is to prevent ‘double-dipping’ by successive owners of the property claiming depreciation on the same pieces of Plant and Equipment. The new owner will still be able to claim depreciation on any new pieces of plant and equipment that they purchase themselves.
Fortunately, investors are still able to claim depreciation on their capital works – the structure and fixed assets of a building. These deductions account for a significant proportion of the total amount able to be claimed by the investor.
This new legislation does not apply to investors who purchased a residential property before 7:30pm on the 9th of May 2017, and they will be able to claim depreciation on plant and equipment as before.
Owners of brand new residential properties and commercial investors will not be effected by this change in legislation.
Order a Tax Depreciation Schedule from Asset Reports, we will ensure that all available deductions are claimed correctly, maximising your potential deductions.
