April 2024 property related tax changes
April 22, 2024
Updates
Accountant
Business Advisor
CPA - ASA
Certified Xero Advisor
Government’s long-awaited property tax changes was passed into law on 28th March 2024. Most of the changes were expected.
1. Removing commercial building depreciation
2. Restoring interest deductibility
a. 80% of interest will be deductible from 2024-25 Income year.
b. 100% of interest will be deductible from 2025-26 income year.
3. For the 2023-24 Income year, the interest deductibility’s for residential properties remains 50% of interest deductible if property was acquired before 27th March 2021, no interest deductible if property acquired after 27th March 2021 & 100% of interest deductible if property is new build.
4. Bright-line period is reduced to 2 years on or after 1st July 2024*, main home exemption reverts to predominate use.
The above changes have gone some way simple to the existing bright-line rules, the rules are still complex and recommend you discuss your property transactions with us.