Property owners need to know these new tax changes
by sgtaxcom | Feb 9, 2018 | Property |
- From 1 July 2017, travel expenses related to inspecting, maintaining or collecting rent for a residential rental property will be disallowed.
- From 1 July 2017, travel expenses related to inspecting, maintaining or collecting rent for a residential rental property are not deductible.
- Eligibility for deductions for second-hand depreciating plant and equipment in a residential rental property will be limited for certain types of taxpayers. Generally, only the entity that actually incurred the outlay to purchase the plant and equipment can claim the deduction and not successive investors in the property, from 1 July 2017.
- Foreign owners of residential real estate are liable to pay a vacancy fee where a residential property is not occupied or genuinely available on the rental market for at least six months in a 12-month period. The fee applies to applications to acquire a residential dwelling or land from 7.30 pm (AEST) on 9 May 2017.
- From 1 January 2018, residential properties in metropolitan Melbourne that are left vacant for six months in the calendar year will be subject to a Vacant Residential Property Tax at a rate of 1% of the property’s capital improved value.
- For 2017/18 a new Queensland absentee surcharge applies at the rate of 1.5% of the taxable value of land in excess of $349,999.
- The CGT foreign resident withholding rate is 12.5% from 1 July 2017 (previously 10%) and the threshold at which the CGT withholding obligation applies to Australian real property has been reduced to $750,000 (previously $2m).
- A 60% discount is “proposed” to be available from 1 January 2018 for a resident individual from investments, either directly or indirectly through certain trusts in qualifying affordable housing
- The principal asset test will be applied on an associate inclusive basis for foreign tax residents with indirect interests in Australian real property from 7.30 pm (AEST) 9 May 2017
- The CGT main residence exemption will no longer be available to foreign and temporary tax residents from 7.30 pm (AEST) on 9 May 2017
- Managed investment trusts will be allowed to invest in affordable housing from 1 July 2017
