Good news, only applies to properties purchased after 9th of May 2017!
Thanks to our good friends at BMT Tax Depreciation for providing the following insights:
The Federal Government has proposed adjustments to depreciation legislation in the 2017 Budget.
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 normal. The new legislation will be in force from 1st of July 2017.
If your fall under this category, you can still claim depreciation on plant and equipment assets for both new and second-hand properties.
BMT Tax Depreciation is currently speaking with government to further understand the intricacies relating to the budget notes and the proposed changes to depreciation and equipment assets.
Louise Griffin Property Management will keep our investors updated as specifics are clarified.
Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation. Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.