Property investors come in all shapes and sizes, from large scale professional operations and developers to so-called ‘Mum and Dad’ investors who wanted to save for their retirement with something they could feel was literally safe as houses. There have been a lot of changes over the last few years, some of which are now being reversed.

In 2024 the bright-line test will be reduced to 2 years, with effect from 1 July 2024, that is, properties sold on or after 1 July 2024 will be subject to a 2-year bright-line test.

Tax deductions for interest on borrowings on residential investment property will be re-introduced progressively. For the 2024 income year, a 50% deduction will be allowable for interest on borrowings for residential investment properties acquired before 27 March 2021, however in the 2024-2025 income year an 80% deduction will be available for all borrowing on residential property (including amounts borrowed for residential properties acquired after 27 March 2021), and then 100% for all interest on borrowings on residential investment properties in the 2025-26 year.

If you’re planning to buy or sell property, please contact us so we can look at the tax implications with you.