Budget 2017 Depreciation Deductions
In the Federal Budget on 9th May, depreciation allowances forming part of an investors income tax deductions for second hand residential investment properties were effectively killed off.
This will apply to the purchase of any second hand properties where the contract to buy is entered into after 7.30pm on 9th May 2017.
Contracts entered into prior to this date will be grandfathered and deductions will still be able to be claimed.
What this means is not entirely clear yet.
Will this mean, for example, that items previously considered to be plant and equipment and therefore deductible under Division 40 of the ITAA could now simply form part of the building and therefore become deductible as part of the building and included under Division 43 Capital Works deductions? Continue reading
Major change to the Commercial Building Disclosure Program is fast approaching on 1st July 2017
Following the announcement made by the Australian Government last year, the mandatory disclosure threshold on commercial office buildings will reduce from 2000 square metres to 1000 square metres starting the 1st July 2017.
From 1st July 2017, this expansion of the CBD program will require most sellers and lessors of office space of 1000 square metres or more to obtain a Building Energy Efficiency Certificate (BEEC) before the building goes on the market for sale, lease or sublease.
BEECs include a Part 1 – the building’s National Australian Built Environment Rating System (NABERS) Energy for offices star rating which is valid for 1 year, and a Part 2 – Tenancy Lighting Assessment (TLA) of the relevant area of the building which is now valid for 5 years (since September 2016).
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