Investment Properties

Key potential updates regarding Investment property deductions from budget night (9 May 2017), whether current or prospective owners.



Generally investment property owners could claim travel to their residential investment properties for inspections or maintenance reasons. However mentioned in the 2017/2018 budget the government is planning to disallow being able to write off these expenses against their investment income. This is a move by the government to keep the integrity of amounts claimed by investors.


Depreciation of assets within an investment property

Investments Properties purchased prior to Budget night (9 May 2017).These properties contain assets for example carpets, dishwashers, ovens or air conditioner units when purchased.

Sometimes property owners can obtain a depreciation schedule to claim the depreciation for the assets within the property when purchased. Claiming depreciation for these assets already within the property when purchased is fine to claim for if the property is purchased prior to budget night.

Where as an Investment property purchased after budget night (9 May 2017) containing these assets being plant and equipment will no longer be able to claim depreciation on these assets. The only way to claim depreciation on plant and equipment assets within an investment property is if the current investor is the original purchaser of the asset.

Depreciation regarding capital works, being renovations, structural work and repairs or replacements can still able to be depreciated whether works are completed by current or past owners.