A wave of lucrative deductions are coming!

The new rules do not affect capital works deductions at all.

Date:

26-Mar-2018

Category:

Lifestyle

Author:

Michael Choi

A wave of lucrative deductions are coming!

The new rules do not affect capital works deductions at all.

Changes announced as part of the 9th of May 2017 federal budget have no been legislated after being passed by the Senate on the 15th of November 2017.

For many property investors the new rules, outlined in Treasury Laws Amendment (Housing Tax Integrity) Bill 2017, have made what was already a complex topic a little more difficult to understand.

The new rules do not affect capital works deductions at all. The amended legislation only restricts property investors from claiming depreciation deductions for the decline in value of ‘previously used’ depreciating assets (plant and equipment) within second-hand residential investment properties.