As you may have heard, there have been some recent changes to legislation for investment property depreciation.

The Treasury Laws Amendment (Housing Tax Integrity Bill 2017) was passed on Wednesday the 16th of November 2017 as a means of reducing pressure on housing affordability.

So you might be wondering, “How does this affect me?”

Whether you already own an investment property, are in the process of acquiring one or are interested in investing, we want to lay it all out for you.

The great news is; there are still substantial deductions available!

All Capital Works depreciation claims are still allowed and typically generate 85 -90% of total depreciation, so investors are not losing out on the majority of their deductions.

Any plant and equipment assets purchased after the exchange date, that did not come with the property will be depreciated as normal.

Okay, so who isn’t affected by these changes?

The following investments will still be eligible to claim full depreciation on all plant and equipment and will not be affected by the new legislation:

✔   Property that was exchanged prior to 7:30pm,
       9th May, 2017

✔   Brand new or substantially renovated property
       purchased after this date

✔   Commercial property

Depreciation amounts no longer allowable for plant and equipment may be used in some cases for reduction of the property’s cost base for capital gains tax purposes.

If have any further queries regarding the above information or if you are unsure of how this may affect you personally, please do not hesitate to contact the PLH Team direct at the office.

PLH Accountants Pty Ltd
For any questions regarding this matter please contact Simone at our office.
Ph: (02) 4934 4260   or    E:


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