Budget 2018: Changes to Vacant Land Tax, how will it affect you?

As outlined in yesterday’s post “How the 2018 Budget Impacts Your Property Planning” on face value, this year’s budget has been kind to investors. Last year, changes were made to negative gearing allowances that curtailed deductions on claiming plant and equipment depreciation and deductions for travel expenses to visit your investment property.

This year, one of the changes to gearing is related to vacant land tax – if you purchase a block of land with the intent of building an investment property or multiple properties, you will not be able to claim deductions while the block remains vacant.

This will increase the holding costs for those planning on building an investment or undertaking a multi-property development.

Our partner in Property Planning and Education for over a decade and the Chairman of the peak industry body Property Investment Professionals of Australia (PIPA), Peter ‘The Property Professor’ Koulizos has been an avid small time developer and he has contributed his views on the federal budget to Smart Property Investment.

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By |2018-05-17T14:38:34+10:00May 17th, 2018|

About the Author:

David Johnston
David is the Founder and Managing Director of Property Planning Australia, author of ‘How to Succeed with Property to Create your Ideal Lifestyle’, co-author of ‘Property for Life – Using Property to Plan Your Financial Future’ and a widely-published media commentator. With more than 20 years of experience, David is passionate about educating others to make informed, and ultimately, more lucrative property investment decisions. David established Property Planning Australia in 2004 – with the vision to educate and empower Australians to make successful property, mortgage strategy and money management decisions.  Property Planning Australia’s operations have earned acclaim and national industry awards for its unique fusion of property planning, education, money management, mortgage strategy and risk management. All supported by multi award winning customer service.
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