Residential Property Depreciation Changes

Residential rental property changes to travel costs and depreciation.

With the Government coming under pressure by the public to make residential property more affordable, it has introduced some measures that intends to make investment in property less attractive.

Travel expenses

In the past travel costs relating to a residential rental property for the purpose of inspecting the property for example, were tax deductible. From 1 July 2017 this expenses are no longer tax deductible.


The changes for depreciation starting on 1 July 2017 and apply to assets acquired after 7:30pm on 9 May 2017. The changes affect ‘used depreciable assets’ that are part of the purchase of residential premises for investment. The changes are quite complex, but basically it means, if the assets  have been used previously for a non-income producing purpose, such as part of a main residence, no depreciation can be claimed for the assets.

To find out how these changes may affect your rental property deductions – get in touch with one of our experts.


You might also be interested in...

How good is your marketing? – Your accountant can help you to find out!

How successful the marketing of your product or service is, has a great deal to do with how your business operates and what it stands for, and your numbers can tell you a lot about it.

How good is your marketing?

Why you need a business budget!

A good business budget allows you to plan for business events that will affect your business’s performance over the forecast period.

Why you need a business budget

Which business structure is right for my business?

When setting up or buying a business there are a number of business structures you can use to operate the business in. Here are some of the most common structures used in Australia.

Why discounting is a dirty word!

Planning your next Sale – discounting might not be your best strategy to boost revenue! – here is why

Why discounting is a dirty word