Changes to depreciation expenses in the 2017 Federal Budget
Proposed changes to depreciation expenses in the 2017 Federal Budget will restrict deductions to new plant and equipment assets fitted to new homes only. Subsequent owners who purchase a property after 9th May 2017, will not be able to claim depreciation on existing plant and equipment assets.
Capital works deductions will not be affected by these proposed legislative changes.
If you already have a rental property, you will be grandfathered under the old rules, so depreciation deductions will be allowed on properties purchased before May 9th 2017.
The proposed changes take effect on July 1st 2017.