As of 10 March, the coalition government has confirmed the return of interest deductibility for property investors, with the phased-in changes taking effect from the next financial year.
As a result, legislation is expected to be passed allowing you to deduct 80% of your interest expenses on property investments in the year to 31 March 2025 (ie from 1 April 2024). Note that the previously proposed 60% allowance for the current year has been removed, and the existing 50% allowance will remain for the current 2023-24 year.
Deductibility will return to 100% deductibility in the 2025-2026 financial year (that is, from 1 April 2025).
Have a chat with us to ensure you’ve accounted for (and budgeted for) the upcoming changes to interest deductibility on your property investments.
Disclaimer: This blog has been carefully prepared, but it has been written in general terms only. The blog should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.
