Tax-related bills received Royal Assent on 30th November 2017

Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 (Act No. 126) – Amends the tax law to:

  • ensure that travel expenditure incurred in gaining or producing assessable income from residential premises is:
    • not deductible, and
    • not recognised in the cost base of the property for capital gains tax purposes
  • deny income tax deductions for the decline in value of ‘previously used’ depreciating assets used in gaining or producing assessable income from the use of residential accommodation
  • implement an annual vacancy fee on foreign owners of residential real estates where residential property is not occupied or genuinely available on the rental market for at least 6 months in a 12 months period.

Foreign Acquisition and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017 (Act No. 127)

  • Imposes vacancy feed on foreign acquisitions of residential land.

(EDITION 45 | 04 DECEMBER 2017 – CHARTERED ACCOUNTANTS TAXATION NEWS)