This prompted a number of property investors to contact BMT Tax Depreciation to discuss how they might be affected. Understandably so, as the last major changes to depreciation legislation were made by the government in the mid 1980’s.
The main concerns investors had were about the impact the changes would have on their existing arrangements, future purchases and more widely on the property market.
The good news for investors is that properties purchased prior to 7:30pm on the 9th of May 2017 are unaffected, as the policy will be grandfathered. This means that any investor who exchanged contracts prior to this date can continue to claim depreciation deductions as normal.
The proposed changes outlined in draft legislation section two of Treasury Laws Amendment (Housing Tax Integrity) Bill 2017, remove a subsequent owner’s ability to claim a depreciation deduction for previously used plant and equipment assets (the easily removable or mechanical fixtures and fittings) in properties which exchanged contracts after the 9th of May 2017.
To read more visit https://www.bmtqs.com.au/maverick/mav-42-proposed-changes-could-impact-investors?utm_source=maverick-42&utm_medium=email&utm_campaign=property-professionals
Arcticle written by BMT Tax Depreciation Quantity Surveyors