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  • Disallow the deduction of travel expenses for residential rental property

    From 1 July 2017, travel expenses relating to inspecting, maintaining, or collecting rent for a residential rental property cannot be claimed as deductions by investors. The changes are now law. The travel expenditure is also not recognised in the cost base of the property for CGT purposes.

    You can 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 is:

    • 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, members of which are entities of a type listed above.

    Legislation and supporting material

    The Treasury Laws Amendment (Housing Tax Integrity) Act 2017External Link received royal assent on 30 November 2017.

    See also:

      Last modified: 05 Dec 2017QC 51988