As of the 1st July 2017, travel expenses to and from your Investment Property to collect rent, inspect, or for maintenance, will no longer be tax deductible.
Also depreciation deductions on removable type assets like plant and equipment will be limited.
Deductions will only be allowed for newly acquired assets (acquired after the 9 May 2017), where the property owner directly incurs the cost. The entire purchase price will be allocated to the property’s cost base for CGT, instead of being apportioned between the property and removable assets. This new proposal doesn’t affect investors who held residential properties before 7.30pm AEST 9 May 2017.
Investors that purchase plant and equipment after the 9 May 2017 will be able to claim the depreciation over the effective life of the asset. Subsequent owners will not be allowed to claim deductions for plant and equipment purchased by the previous owner. The plant and equipment costs will be reflected in the cost base for CGT Purposes.
Note: As of the 1st July this year, the ATO has been disclosing Tax debt information of businesses to credit reporting agencies, if they haven’t engaged the ATO to arrange a payment arrangement.
This new measure is applied to businesses that operate under an ABN and have a tax debt of more than $10,000 that is over 90 days overdue.
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