Sukumar Sivadanam

Accountant

Business Advisor

CPA - ASA

Certified Xero Advisor

Sukumar Sivadanam

Accountant

Business Advisor

CPA - ASA

Certified Xero Advisor

Updates

April 2024 property related tax changes

April 22, 2024 Updates
April 2024 property related tax changes

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.