From 1 July 2017, the following measures have been introduced:
- Disallowance of travel expenses for residential rental properties to inspect, maintain or collect rent. Therefore, if you fly interstate to inspect your property or driving to your rental property to mow the lawn, then the costs incurred for the trip are no longer tax deductible.
- Limitation of plant and equipment depreciation – you are only entitled to plant and equipment such as air conditioners, stoves, etc, that you actually paid for. If you purchased the property from a previous owner, then plant and equipment costs will form part of the cost base for CGT purposes.
Tax tip: The deductions apply to residential properties only. Also you can still claim building allowances. For this reason, we still recommend that you obtain a tax depreciation report for your property, provided it was built after 1985.