Topics on holding costs for ‘vacant land’: S.26-102 ‘new’ residential premises

Understanding the Extension of S.26-102 to 'New' Residential Premises

In Section 26-102 of the GST Act, there's a special rule regarding residential premises. This rule applies if you build or substantially renovate residential property while owning the land, even before July 1, 2019. Until certain conditions are met, like getting an occupancy certificate and renting out the property, it's not considered a permanent structure. This means you can't deduct costs for holding the land until these conditions are fulfilled.

Examples of Eligible and Non-Eligible Structures:

1. Eligible Structures (Vacant Land):
   • Fences, retaining walls, pipes, and power lines
   • Letterbox
   • Residential garage or shed
   • Residential landscaping
   • Residential premises under construction or substantial renovations without occupancy certificate or rental
2. Non-Eligible Structures (Not Vacant Land):
   • Pre-existing residential premises not constructed or renovated by the taxpayer
   • Commercial premises
   • Commercial parking garage
   • Woolshed for shearing and baling wool
   • Grain silo
   • Homestead on farmland

Should you have any questions or need assistance, feel free to reach out to                            Tax Ideas Accountants & Advisers at +61 2 83181545 or book an appointment through our live calendar.

• TOPICS ON HOLDING COSTS FOR ‘VACANT LAND’: S.26-102 DENIED DEDUCTION
• WHEN WILL LAND BE CONSIDERED ‘VACANT LAND’? (1)
• WHEN WILL LAND BE CONSIDERED 'VACANT LAND'? (2)