Legislation updates - September 2018
Travel deductions for rental properties
Travel expenses relating to inspecting, maintaining or collecting rent for a residential rental property cannot be claimed as deductions by investors. This change is now law. The travel expenditure is also not recognised in the cost base of the property for CGT purposes.
Additional super contributions for older Australians downsizing main residence
Individuals aged 65 or over can now make a contribution to super of up to $300,000 from the proceeds of selling their home. These contributions will not count towards the concessional or non-concessional contribution caps and the individual making the contribution will not need to meet the existing maximum age, work or $1.6m balance tests for contributing to super.
The home sold must have been owned by the individual for the past ten or more years and have been the principal residence of the individual. Both members of a couple can contribute to super under this policy from the proceeds of the sale.
New first home owner super scheme
The first home super saver (FHSS) scheme was introduced by the Government in the 17/18 Federal Budget to reduce pressure on housing affordability. The FHSS scheme allows individuals to save money for a first home inside a superannuation fund. This helps first home buyers to save faster with the concessional tax treatment of super.
From 1 July 2018, you can now apply to release the voluntary contributions along with associated earnings to assist with the purchase of a first home. Eligibility and release conditions apply so be sure to speak to a financial adviser prior to commencing this scheme.
New GST withholding regime for property buyers
From 1 July 2018 purchasers of new residential premises and new subdivisions of potential residential land are now required to pay the GST directly to the ATO as part of the settlement process. The impact of this will mostly be felt by residential property developers and purchasers.
If you have concerns about any of these legislation changes and wish to understand how they may impact you please contact our team, we are happy to provide clarity. Phone 03 8850 3333 or email firstname.lastname@example.org.