There are many 2017/2018 Federal Budget changes that may impact you and your family.
The following three changes can affect all property investors and first home buyers.
- New restrictions on depreciation deductions
The proposed changes mean investors will now be limited when claiming “plant and equipment” depreciation deductions. Budget papers define “plant and equipment” as mechanical fixtures or those that can be “easily removed” from a property such as a dishwasher or ceiling fan.
Investors who buy established properties may no longer be able to claim deductions on plan and equipment purchased by previous owners.
If you’re not using a property manager, it may be the perfect time to consider the benefits of using one. You can chat to WhiteStar Property Management about our superior service for landlords.
- No deductions for rental property travel expenses
From July 1, 2017, property investors will no longer be able to claim travel expenses relating to inspecting, maintaining or collecting rent for a residential rental property.
However, expenses incurred by utilising third parties such as property management services are still deductible.
- First home buyers: build a deposit inside superannuation
First home buyers will be able to withdraw a maximum of $30,000 from their super from July 1, 2018, to contribute to a deposit.
This will also include any earnings generated from those savings. Contributions build a deposit inside super can be made from July 1.
To discuss these changes and how they may affect you, chat to the team at WhiteStar Accounting today. Call 1300 652 842.