• Disallow the deduction of travel expenses for residential rental property

    In the 2017-18 Budget, the Government announced that it intended to deny all travel deductions relating to inspecting, maintaining, or collecting rent for a residential investment property from 1 July 2017.

    It is intended that travel expenditure incurred in gaining or producing assessable income from residential premises used as residential accommodation will not be deductable. The travel expenditure will also not be recognised in the cost base of the property for CGT purposes.

    You will be able to continue to deduct travel expenditure if:

    • the losses or outgoings are necessarily incurred in carrying on a business for the purposes of gaining or producing assessable income; or
    • you are an excluded class of entity.

    An excluded class of entity will be:

    • a corporate tax entity;
    • a superannuation plan that is not a self-managed superannuation fund;
    • a public unit trust;
    • a managed investment trust; or
    • a unit trust or a partnership, all of the members of which are entities of a type listed above.

    Legislation and supporting material

    The Treasury Laws Amendment (Housing Tax Integrity) Bill 2017External Link was introduced into Parliament on 7 September 2017.

    More information

      Last modified: 13 Sep 2017QC 51988