Housing affordability Bills passed by Senate

The Senate has passed the Bills outlined below, part of the government’s housing affordability package announced in the 2017 Budget, without amendment.

 

Treasury Laws Amendment (Housing Tax Integrity) Bill 2017

This Bill implements an annual vacancy charge on foreign owners of residential real estate where property is not occupied or genuinely available on the rental market for at least six months in a 12-month period. The vacancy charge, to be administered by the ATO, applies to foreign persons who make a foreign investment application for residential property from 7.30 pm (AEST) on 9 May 2017.

 

From 1 July 2017, travel costs for individual investors inspecting and maintaining residential investment properties will no longer be deductible and the expenditure is not recognised in the cost base of the property for capital gains tax (CGT) purposes.

 

The Bill also denies deductions for depreciation of previously used depreciating assets used in gaining or producing assessable income from the use of residential premises for residential accommodation.

 

Foreign Acquisitions and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017

 

This Bill which is complementary to the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017, amends the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 to impose vacancy fees on foreign acquisitions of residential land.

 

The source of this content is CCH‘s professional information services. Thompsons Australia has a professional subscription with CCH providing access to in-depth quality technical information and commentary used by Thompsons Australia in keeping staff and clients currently in formed.

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