Rental property owners will no longer be able to tack a holiday onto a visit to “inspect” their investment property under new draft legislation.
The new bill will abolish travel-related expense claims that have seen holidays to places like the Gold Coast masquerading as property inspections.
Investors who legitimately spend funds looking after their rental property, such as regular maintenance and gardening, will be impacted. Real estate agents engaged to provide property management services for investment properties are excluded.
The new measures restricting travel to inspect properties will apply only to residential premises and not commercial holdings.
BDO senior tax partner Tony Sloan said “the real targets of this measure are the mum-and-dad property investors who want to take a holiday on the taxman.”
By Terry Ryder – Australia’s Leading Independent Property Researcher