23 May 2017 Budget Changes for DIY Property Managers
The 2017-18 Federal Budget has proposed changes to tax deductions authorised for DIY Property Managers.
These changes are proposed but not yet legislated.
The information which we provide in this blog is current as at 22nd May 2017.
What types of properties are affected?
All residential properties are affected by the change.
This change will not be grandfathered therefore your existing investment property will be subject to any changes legislated.
What is the change & When does it start?
It is expected that the legislation will commence 1 July 2017 (subject to being passed by parliament).
The changes specifically discuss travel expense deductions related to self managing your investment property.
From 1 July 2017, investors will no longer be able to claim tax deductions for travel expenses related to inspecting, maintaining or collecting rent on a residential rental property. This measure will affect all taxpayers who receive assessable rental property income. Property management fees paid to third parties such as a registered and qualified Property Manager will remain tax deductible.Generally investors choose to manage their own property because of the costs associated with a professional Property Manager.
Now that the government is reducing the ability to deduct travel costs from your personal income tax, the net costs of having a Property Manager are reduced (along with the headache of having to do it all yourself!)
Why don’t you contact us today to find out about the FULL service that we provide along with our competitive pricing for Multiple Properties.
Option 1: Call 08 8338 7206
Option 2: Fill in our online form
Option 3: Email email@example.com