Tax deductions for vacant land protected
A statement from the Assistant Treasurer’s office states “the measure does not apply to expenses associated with holding vacant land that is used by the owner or a related entity to carry on a business.
“For example, the measure will not apply to a business of primary production or to a property developer that is carrying on a business and is holding land for the purpose of that business.
“The measure also does not apply to corporate tax entities, managed investment trusts, public unit trusts and unit trusts.”
Draft legislation was made available today for public consultation. It is expected to be in force on 1 July 2019.
UDIA National Executive Director, Kirk Coningham, said “we welcome this reasonable decision by the Commonwealth Government.”
“The Government has recognised that tax is an important determining factor over the life and death of businesses. Businesses have a fair entitlement to claim deductions for their expenses and this right has been upheld.”
Click here for the Assistant Treasurer's announcement