Housing Tax Integrity – Disallowing Travel Deductions and Limiting Depreciation Deductions

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Consultation Type
Exposure Draft

Key Documents

As part of the 2017-18 Budget, the Government announced it would disallow travel expense deductions relating to residential investment properties and limit depreciation deductions for plant and equipment used in relation to residential investment properties.

Travel deductions

From 1 July 2017, all travel expenditure relating to residential investment properties, including inspecting and maintaining residential investment properties will no longer be deductible.

This change will not prevent investors from engaging third parties such as real estate agents to provide property management services for investment properties. These expenses will remain deductible.

Plant and equipment depreciation deductions

From 1 July 2017, the Government will limit plant and equipment depreciation deductions for investors in residential investment properties to assets not previously used. Plant and equipment items are usually mechanical fixtures or those which can be ‘easily’ removed from a property such as dishwashers and ceiling fans.

Plant and equipment used or installed in residential investment properties as of 9 May 2017 (or acquired under contracts already entered into at 7:30PM (AEST) on 9 May 2017) will continue to give rise to deductions for depreciation until either the investor no longer owns the asset, or the asset reaches the end of its effective life.

The Government has released exposure draft legislation and explanatory material for amendments to give effect to the Budget announcements outlined above.

Public consultation on the exposure draft legislation and explanatory material will run for four weeks, closing on Thursday, 10 August 2017. The purpose of public consultation is to seek stakeholder views on the exposure draft legislation and explanatory material.


61 submissions were received for this consultation.

An, Andy - pdf 176.18 KB
Anonymous - pdf 126.97 KB
Anonymous - pdf 178.12 KB
Anonymous - pdf 287.76 KB
Anonymous - pdf 287.39 KB
Bajpe, Prem - pdf 195.39 KB
Beale, Shane M - pdf 304.61 KB
BMT Tax Depreciation - pdf 251.84 KB
Brown, Washington - pdf 285.09 KB
Burton, Russell - pdf 124.36 KB
Castorina, Alan - pdf 100.9 KB
CPA Australia - pdf 303.63 KB
Deloitte - pdf 243.68 KB
Depreciator - pdf 223.07 KB
Earney, Jan - pdf 267.33 KB
Findlay, Keith - pdf 185.71 KB
Frost, Nathan - pdf 164.14 KB
H&R Block - pdf 259.26 KB
Hayes Knight Group - pdf 405.09 KB
Hood, Christopher - pdf 295.87 KB
Houghton, Lisa - pdf 193.71 KB
King, Robin and Penny - pdf 196.08 KB
Lawrence, George - pdf 213.62 KB
Lien, Eric - pdf 249.8 KB
Lim, Marcus - pdf 437.15 KB
Ling, Calvin - pdf 205.32 KB
Lobb, Reg and Carol - pdf 155.84 KB
Lueng, Nuttakit - pdf 298.21 KB
Maitianos, Michael - pdf 178.03 KB
Mars, Malcolm - pdf 945.4 KB
Martin, Rick - pdf 236.13 KB
McDonnell, Greg - pdf 323.32 KB
Mutema, Munhu - pdf 313.79 KB
Pitcher Partners - pdf 511.91 KB
Porter, David - pdf 278.54 KB
Powell, Michael - pdf 231.3 KB
Powney, Reed - pdf 102.34 KB
Reeves, Johnathon - pdf 429.71 KB
Salerno, Paul - pdf 180.24 KB
Scott, Alastair A - pdf 318.7 KB
Sethi, Sonny - pdf 194.37 KB
Shah, Dhruvesh - pdf 99.03 KB
Shelford, Chris - pdf 181.18 KB
Smith, Cameron - pdf 242.84 KB
The Tax Institute - pdf 238.39 KB
Thornton, Grant - pdf 243.49 KB
Vale, Thomas - pdf 73.52 KB
Weiner, Marc - pdf 191.92 KB
Westcourt - pdf 929.59 KB
Williams, Ken - pdf 205.5 KB
WRC Quantity Surveying - pdf 48.19 KB