The Highlights from the Federal Budget – Property Investors
It’s ok to not care about the federal budget. For a lot of people it’s the least exciting thing to talk about.
I just recommend that someone in your team (i.e. the people around you) does, particularly those people who you are talking finances with.
For the property people, the budget highlights are:
Negative gearing tax break will remain untouched
Travel property expenses can no longer be incurred (this applies to all travel expenses).
If plant and equipment was purchased by a previous owner, you as the current owner, cannot depreciate this expense.
First homebuyers can use voluntarily superannuation contributions to build a home deposit fund.
Capital gains tax reduction in affordable housing. Note specifics around time-frames.
I recommend you follow up on the impact they may or may not have on your portfolio.
For those looking to make their first property investment (those close to my heart), it is important to be aware of the changes in claiming travel expenses. It shouldn’t impact you too much. Most of my clients have not needed to make frequent visits if any at all to their local or interstate properties. In respect to depreciation, you cannot have the mindset that depreciation claims can be an offset.
But don’t let this deter you from getting into the market.
The best time to invest in the property market, was yesterday. The second best time is, today.