The Property Depreciation Laws have changed.
For anyone buying an investment property after the 9th of May 2017, you need to read this. There have been major depreciation law changes for investment properties.
If you have purchased a second-hand property after this date – or your previously purchased property was not income producing during the 2016/2017 financial year – you can no longer claim depreciation deductions on the property plant and equipment.
The Australian Taxation Office now defines these second-hand assets as “Previously Used” assets.
The good news is, the change in property depreciation law has not changed the following:
- If you acquired the investment before the 9th of May – 2017, you are not affected. Why? Because the government decided to “grandfather” these changes. That means anyone that has purchased before this date will remain on the same regime. Note: the property must have been income-producing before 1 July, 2017.
- If you purchased the property in a company name, you would not be affected as these entities are excluded from the new laws. Note: this does not include self-managed super funds.
- If you have purchased a commercial, retail or industrial property, the legislation do not affect you. These new laws only relate to residential property.
The series of blogs below will outline some of the changes and how they affect you as a property investor.
Some key places to start are:
