Changes by Federal Government in 2017 will impact on certain property investors. The important date is 9th May 2017, and the impact will be on investors, who are regarded as subsequent owners (purchasers of second hand properties). The main change will be on properties, where contracts were exchanged after the 9th May 2017, as investors will only be able to claim depreciation on existing plant and equipment assets, when the property is a new property or a substantially renovated property. Changes will also impact on purchase of properties prior to 9th May 2017, if these are subsequently rented after 1 July 2017, where the property had been used as the owner's primary residence.
Call UTAX Accountants for further information on this change.