The budget yesterday didn’t contain any major surprises in relation to Residential Investment Property than what was indicated prior to it’s release.
Depreciation on the building will no longer be allowed but is still available on carpets,stoves, fridges, curtains, blinds, water heaters, hot water cylinders plus stand alone cupboards and wardrobes.
Accurate chattel valuations at the time of purchase will be very important.
Offset of losses against other taxable income is still allowable but the use of these losses to inflate working for families eligibility and payments will be prevented.
Residential Property Investment will remain an attractive long term option.