Govt curbs property tax deductions
THE federal parliament has passed legislation to limit tax and depreciation deductions claimed by residential property investors along with a vacancy tax for foreign owners who leave homes unoccupied.
Treasurer Scott Morrison and Assistant Minister Michael Sukkar said the reforms will help address housing affordability and assist private renters.
The Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 will disallow certain deductions relating to residential investment properties.
Morrison said the changes disallow claims for travel expense deductions and limit plant and equipment depreciation deductions to assets not previously used.
Depreciation will only apply where the depreciating asset was acquired new – this reform is expected to raise $260 million over forward estimates.
The Treasurer said limiting plant and equipment depreciation deductions will remove the existing opportunities for items to be depreciated by multiple owners in excess of their actual value.
For second hand residential properties purchased after May 9, investor will only be able to claim depreciation for plant and equipment assets where the depreciating asset was acquired new for that purpose. Continue reading
Chris Freeman, National Head of Capital Strategy of Savills spoke on recent trends in the capital markets space, offering a unique perspective; benefiting from his experience across all sectors, both domestic and international.
Then a panel with industry leaders, provided ‘an investor’s perspective’ on the opportunities and challenges facing the real estate capital markets, including:
All who attended agreed it was one of the most informative talks yet.