Source: Property Observer
Investors will no longer be able to claim tax deductions for travel expenses “related to inspecting, maintaining or collecting rent for a residential rental property” from July 1 2017.
Of the nation’s 2 million landlords, about 1.3 million are negatively geared.
The measure is intended to “address concerns that many taxpayers have been claiming travel deductions without correctly apportioning costs”.
Australia’s 1.3 million-strong contingent of negatively geared landlords will no longer be able to claim travel expenses for inspecting their residential properties.
It also applies for travel to collect rent on a property.
At present, travel-related expense claims related to inspections but in reality ‘holidays’ is costing the government more than $160 million a year.
It does not apply to commercial property.
Property management fees for third parties such as real estate agents will remain tax deductible.