Miscellaneous 2019

Are all dwellings substantial and permanent structures?

Source: Taxation In Australia Journal Article

Published Date: 1 Oct 2019


Some interesting changes are about to apply to a broad range of individual, family trust and self-managed superannuation fund taxpayers when dealing with holding costs for residential property investments. New measures have been introduced which effectively deem land to be vacant until the land contains a substantial and permanent structure which is available for use. When these measures apply, holding costs will generally form part of the cost base of the property and cease to be deductible expenditure. There are exemptions for property used in business and for listed and corporate taxpayers. As the measures are slated to apply from 1 July 2019, taxpayers would be well served in familiarising themselves with these proposals.This article provides several examples to explain how the measures will apply. There are also minor twists to the examples to highlight some interesting issues for consideration.

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Miscellaneous 2019

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