Effective Date: Starting from July 1, 2019, even if you owned the land before this date, any costs you incur for holding vacant land may no longer be deductible. This applies to lessees too, not just landowners.
What's Changing: Expenses like interest, rates, insurance, and maintenance costs for vacant land may no longer be deductible.
Entities Excluded: Certain entities like companies, public trusts, and managed investment trusts can still claim deductions for these holding costs, as long as they meet the usual requirements.
Who Might Be Affected: For land bought before August 20, 1991, denied deductions won't be factored into capital gains tax calculations, potentially resulting in lower profits when selling the land.
If you need help, contact Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment on our live calendar.
- The New ‘Vacant Land’ Rule (2) – ‘Substantial and Permanent Structure’
- The New ‘Vacant Land’ Rule (3) – ‘In Use or Available for Use’
- The ‘Vacant Land’ Exclusions (1) – The ‘Carrying on A Business’ Exception (1)
- The ‘Vacant Land’ Exclusions (2) – The ‘Carrying on (any) Business’ Exception (2)
- The ‘Vacant Land’ Exclusions (3) – ‘Primary Producer’ and ‘Exceptional Circumstances’ Exceptions
