This has resulted in changes to the Income Tax Assessment Act 1997, the most significant of which denies property investors from claiming income tax deductions for the decline in value
of ‘previously used’ depreciating assets (plant and equipment) within residential investment properties.

The government’s intention in making this legislation amendment was to deliver an integrity measure which addressed concerns that some plant and equipment assets were
being depreciated by successive property investors in excess of their actual value. These changes affect investors who purchase second-hand residential properties after 7:30pm on the 9th of May 2017 by limiting the depreciation they can claim on existing plant and equipment assets.

The good news is that there are still thousands of dollars to be claimed by property investors. It is more important now than ever to talk to your accountant and engage a specialist Quantity Surveyor to ensure that property depreciation and capital gains tax deductions are maximised.


You may also like to review a comprehensive guide of the new legislation Essential facts: 2017 Budget changes and property depreciation

And of course, don’t forget to reach out to us if you still have questions!

Lloyd Priddle
Lloyd has had a very successful career as an accountant, director and author for almost 40 years. Holding post-graduate qualifications in Business, Lloyd has specialised in Business Development, and worked with the Queensland Government and local councils on numerous occasions through association with AusIndustry and the SBAS Natural Disaster Assistance Program. He is also board member of a number of commercial and not-for-profit entities.