Last week we hosted an event to discuss the proposed Negative Gearing changes and how they will affect the Perth property market if Labor win next month.
We heard directly from Madeleine King MP on the reasons why Labor is pushing for the changes, while David Cresp (Property Economist from Urbis) provided an update on the current Perth market and an assessment of the effects these changes may have here.
Housing industry lobby groups are increasing the pressure on Bill Shorten to shelve Labor’s plans to restrict negative gearing to new homes and halve capital gains tax incentives, saying the moves will reduce investment in housing and decrease the number of homes being built.
Master Builders Association, the nation’s peak residential construction lobby group, launched a media campaign in Perth last week as the nation prepares to head to the polls, identifying 10 key issues for the sector, while highlighting that Labor’s proposals around negative gearing and capital gains taxes would hurt, rather than help, the industry.
On Friday 12th October we were delighted to attend the Success and Leadership Breakfast with Julie Bishop. This was such an invaluable experience, gaining insight from an experienced and reputable leader.
We would like to thank our friends at Realmark who attended the breakfast with Andrea Williams, director of Asset Reports.
It’s a common misconception that Accountants provide Tax Depreciation Schedules for Investment Property owners. Unfortunately this is not true, they may help arrange for a Schedule to be done, but they cannot do it themselves.
Tax Depreciation firms (Quantity Surveyors) work very closely with Accountants and other financial professionals to help investors make the most of the tax benefits associated with owning investment properties. However, Accountants cannot legally produce the Schedule required by the Australian Taxation Office, in particular the construction costs (otherwise known as Div.43 Capital Works).
Today the Australian parliament passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017.
These changes mean that those who purchased second-hand residential properties after 7:30pm on the 9th of May, 2017 will not be able to claim tax depreciation on the existing Plant and Equipment – for example blinds, carpets, and air conditioning. This is to prevent ‘double-dipping’ by successive owners of the property claiming depreciation on the same pieces of Plant and Equipment. The new owner will still be able to claim depreciation on any new pieces of plant and equipment that they purchase themselves.