While other political issues were holding centre stage in late November 2017, the Parliament very quietly passed a Bill to limit plant and equipment depreciation deductions for rental property owners and deny travel deductions on rental properties. It has received the Royal Assent on 30 November 2017. As detailed in the May 2017 Budget, these changes apply from 1 July 2017 onwards.
You might want to subdivide to make some profit, to generate regular rental income or to reduce your backyard maintenance. You will need to think about what happens when you sell….
Generally, your main residence is not subject to capital gains tax when you sell it, but subdividing your land will create two (or more) separate titles which are now separate assets. These subdivided properties will have tax implications when you sell them.
The Government has released a Fact Sheet on their plan to encourage older people to downsize from homes that no longer meet their needs and to free up housing stock for young families starting out.
From 1 July 2018, older Australians will be provided with greater flexibility to contribute the proceeds of the sale of their home into superannuation, reducing a current disincentive to downsizing.
Read the Fact Sheet Here.
It is with great pleasure that we announce that Emily Yip has joined us as a partner from 1 July 2017.
After many faithful years of service, our old website has retired to live off its super fund earnings.
We now have a fresh new website that is a lot simpler for you to use.
