Housing Tax Integrity – Disallowing Travel Deductions and Limiting Depreciation Deductions
Key documents
- Exposure Draft - PDF 404KB
- Exposure Draft - RTF 8MB
- Explanatory Material - PDF 739KB
- Explanatory Material - RTF 467KB
- Summary of consultation process - PDF 36KB
- Summary of consultation process - DOCX 131KB
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.
Submissions
- An, Andy - PDF 176KB
- Anonymous - PDF 287KB
- Anonymous - PDF 288KB
- Anonymous - PDF 127KB
- Anonymous - PDF 178KB
- Australian Institute of Quantity Surveyors - PDF 294KB
- Bajpe, Prem - PDF 195KB
- Beale, Shane M - PDF 305KB
- BMT Tax Depreciation - PDF 252KB
- Brown, Washington - PDF 285KB
- Burton, Russell - PDF 124KB
- Castorina, Alan - PDF 101KB
- Chartered Accountants Australia and New Zealand - PDF 421KB
- Connell, Trevor and Lawrey, Christine - PDF 293KB
- CPA Australia - PDF 304KB
- Deloitte - PDF 244KB
- Depreciator - PDF 223KB
- Destiny Financial Solutions - PDF 354KB
- Earney, Jan - PDF 267KB
- Findlay, Keith - PDF 186KB
- Frost, Nathan - PDF 164KB
- H&R Block - PDF 259KB
- Hayes Knight Group - PDF 405KB
- Hood, Christopher - PDF 296KB
- Houghton, Lisa - PDF 194KB
- King, Robin and Penny - PDF 196KB
- Lawrence, George - PDF 214KB
- Lien, Eric - PDF 250KB
- Lim, Marcus - PDF 437KB
- Ling, Calvin - PDF 205KB
- Lobb, Reg and Carol - PDF 156KB
- Lueng, Nuttakit - PDF 298KB
- Maitianos, Michael - PDF 178KB
- Mars, Malcolm - PDF 945KB
- Martin, Rick - PDF 236KB
- McDonnell, Greg - PDF 323KB
- Mutema, Munhu - PDF 314KB
- Philip Usher Constructions - PDF 165KB
- Pitcher Partners - PDF 512KB
- Porter, David - PDF 279KB
- Powell, Michael - PDF 231KB
- Powney, Reed - PDF 102KB
- Property Council of Australia - PDF 1MB
- Property Investment Professionals of Australia - PDF 345KB
- Real Estate Institute of Australia - PDF 279KB
- Reeves, Johnathon - PDF 430KB
- Robertson, Heath and Jackie - PDF 165KB
- Royal Institute of Chartered Surveyors - PDF 546KB
- Salerno, Paul - PDF 180KB
- Scott, Alastair A - PDF 319KB
- Sethi, Sonny - PDF 194KB
- Shah, Dhruvesh - PDF 99KB
- Shelford, Chris - PDF 181KB
- Smith, Cameron - PDF 243KB
- The Tax Institute - PDF 238KB
- Thornton, Grant - PDF 243KB
- Vale, Thomas - PDF 74KB
- Weiner, Marc - PDF 192KB
- Westcourt - PDF 930KB
- Williams, Ken - PDF 205KB
- WRC Quantity Surveying - PDF 48KB