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.
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.