By Martin North, cross-posted from the Digital Finance Analytics Blog:
The Treasury has released its exposure draft for consultation on the plans announced in the budget to disallow travel expense deductions and limit depreciation for plant and equipment used in relation to residential investment property.
Closing date for submissions: Thursday, 10 August 2017.
As part of the 2017-18 Budget, the Government announced it would disallow travel expense deductions relating to residential investment properties and limit depreciation deductions for plant and equipment used in relation to residential investment properties.
Travel deductions
From 1 July 2017, all travel expenditure relating to residential investment properties, including inspecting and maintaining residential investment properties will no longer be deductible.
This change will not prevent investors from engaging third parties such as real estate agents to provide property management services for investment properties. These expenses will remain deductible.
Plant and equipment depreciation deductions
From 1 July 2017, the Government will limit plant and equipment depreciation deductions for investors in residential investment properties to assets not previously used. Plant and equipment items are usually mechanical fixtures or those which can be ‘easily’ removed from a property such as dishwashers and ceiling fans.
Plant and equipment used or installed in residential investment properties as of 9 May 2017 (or acquired under contracts already entered into at 7:30PM (AEST) on 9 May 2017) will continue to give rise to deductions for depreciation until either the investor no longer owns the asset, or the asset reaches the end of its effective life.
The Government has released exposure draft legislation and explanatory material for amendments to give effect to the Budget announcements outlined above.
Public consultation on the exposure draft legislation and explanatory material will run for four weeks, closing on Thursday, 10 August 2017. The purpose of public consultation is to seek stakeholder views on the exposure draft legislation and explanatory material.
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I always inspect my Melbourne IP during Cup week, and the Australian Tennis Open.
Australian Tennis Open… is that code for ATO?
There goes all my travel-free holidays to Broome, Margaret River, Port Douglas, Hobart Casino etc, etc, etc. It is nothing but a vicious attack on the Tourism industry.
Yeah! Those bastages!
Hobart Casino – LOL!
It’s funny how this rates as a tourist attraction. It’s a dilapidated pokies den on the ground floor of a B-grade motel upstairs, with a roulette wheel and blackjack table staffed by bored croupiers that nobody’s playing – but they need them to call it a “casino”.
Still, the same as Port Arthur is worth visiting for Tassie’s convict history, Hobart Casino could be worth visiting for a tour of Tassie’s corruption history – an episode still in full swing this present day.
Next I won’t be able to claim the meals I eat while i review my rental agents’ reports. Outrageous!
Look out for the increase in travel claims from thieving politicians who travel to areas for fact finding missions that also have rental properties or holidays homes they own.
http://www.perthnow.com.au/news/western-australia/greens-wa-senator-ineligible-to-hold-office/news-story/bdcc0f299d25b9b9c8e75ddd14468419
Someone else lost
That’s a massive loss to the country, right there.
Will he have to pay back to the commonwealth any monies in salary or entitlements? Maybe he’ll have to dip into his investments (investment property if he has one)?
+1. One of the very few that I don’t mind.
He’ll have to pay for his own whale watching now.
Easy to forget you changed countries when you were 9 years old. And this citizenship thing for politicians has never come up before.
I hold an Irish passport and Australian passport does that make me ineligible for politics?
Like anything related to foreign interests in Australia, who’s gonna check?
Thread on Poll Bludger about it.
https://blogs.crikey.com.au/pollbludger/2017/07/14/situations-vacant-2/
Would be good to see him resolve the dual citizenship issue by renouncing his NZ citizenship and just stepping back in.
my my. i wonder what rationale the ATO is using to propose this policy change.
They are broke. Also pillows have other ways to get deductions, so all good.
Pollies not pillows! Stupid autocorrect
I taught my auto-cucumber a few new word-associations…. Now it offers “pillocks” for pollies 😀
Government trying to prevent the hard working breeders (Mums&Dads) from drawing inspiration from hard working members like Su$$an.
It’s not the ATO, it’s the government changing the rules.
Communists at the Treasury trying to stop the free market!
Totes! Time to purge these commie bureaucracies and replace them with private enterprise and the profit motive!!
In years to come this will be known as “The reusachtige taxless profit motive certainty principle”
I see a Nobel prize in your future.
But Maate, the NSW government as got my back on this by getting rid of stamp duty on my regional assets, sorry houses, so I can up the price to the punter by the equivalent. Obviously the saw this coming and wanted to shield me against the Feds.
So how much impact will this have on house prices?
Anecdote :
I watch several areas around outer Melbourne Mt Macedon, Kyneton, Korrumburra and a few others. Mount Macedon region normally gets a new listing once every few weeks – I am seeing half a dozen a week go up for the last two weeks.
Something very strange is afoot.
.
Good to hear 🙂
Point of order (accuracy)
Being someone who lived in Gisborne for 23 years, and whose brother lives in Woodend and mum in Malmsbury, Imma gonna say those areas are not (yet) outer Melb.
Malmsbury is considered central Vic.
Does tbis mean I can no longer claim travel to inspect my lovely little vineyard in Tuscany?
As Doctor Smith used to cry, “Oh the pain, oh the pain”.
Given the litany of fuck ups this, and previous, Goverments have thrust upon us in the name of efficiency, free market etc, I am 100% certain this will end the same way.
My favourite is NSW Govt. selling the Titles Registary Office.
That particular piece of madness was a new low. At some point you have to wonder whether, by allowing this to happen, Australians deserve everything they get.
Who’s gonna check?
if one were to register a business, buy an IP in business name, I assume travel costs associated with maintaining said asset would be deductable against the business revenue…. ? Not only that but the capital cost of the vehicle used (up to $20,000) would be instantly deductable!!? Can any accountant out there verify these suspicions?