2017 changes to depreciation

Tax Depreciation Changes for Residential Property Investors – 2017 Budget

The Federal Government has proposed adjustments to depreciation legislation in the 2017 Budget.  The good news to all current investment property owners is that the changes will only apply to properties purchased after 9th May 2017.

Under the new rules, which are yet to be legislated by Parliament, investors will be able to depreciate new plant and equipment assets within a new property and items they add to their property.  However, subsequent owners who acquire a property after 9th of May 2017 will not be able to claim depreciation on existing plant and equipment assets.

Investors will still be able to claim qualifying capital works deductions, including any additional capital works carried out by themselves or a previous owner.

The budget notes were clear that existing investments will be grandfathered. This means that anyone who has purchased a property up until the 9th of May 2017 will be able to claim depreciation as per existing allowance as at 8th May 2017. The new legislation will be in force from 1st of July 2017.

If you have any more questions feel free to call us and we can have a tax depreciation expert contact you.


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