On Wednesday 15th November 2017, Parliament passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 and as such has become legislation.
This new legislation affects the preparation of tax depreciation schedules and how investors claim depreciation on their investment property. Investors of pre-owned residential properties are no longer able to claim depreciation on second-hand (existing) Division 40 assets such as the kitchen appliances, heating and cooling systems, carpet, blinds etc.
There’s no need to worry as there are still thousands of dollars worth of deductions available for property investors. There have been no changes to Division 43 meaning assets such as the structure, kitchen cabinets, windows, fencing and the driveway etc will continue to be claimed as normal. This is good news as Division 43 typically makes up around 85 - 90 per cent of the total depreciation claim.
Commercial property owners, commercial tenants and investors who purchase or construct brand new residential properties are unaffected by the changes.
These new changes mean that it is now more important than ever to work with specialist Quantity Surveyors, like the Mintax team, to help navigate through the new legislation and to ensure you are maximising the depreciation on your investment.
Would you like more information? Call Mintax on 1300 826 296
Mintax – A fresh approach to depreciation