Knowledge Shop Blog

August 2017 Tax Round Up - deduction limits for residential property, housing super measures

New super initiatives for housing, limitations on deductions for residential rental property, the removal of the main residence exemption for non-residents, and so much more. 


Treasury and the ATO have been busy this month with a raft of exposure drafts enabling key budget measures for housing.  And, new guidance from the ATO for expiring sub trust arrangements put in place to manage Div 7A complications for UPEs, and professional sportspeople and personal services income.

Members can download the full August 2017 Tax Round Up from the member-only website. To see what Knowledge Shop membership offers, call Julie on 1800 800 232 or take a tour online.

Join Michael Carruthers (Tax Director, Knowledge Shop) Matt Pack (Director, Hayes Knight), and Lisa Armstrong (MD, Knowledge Shop) for just the juicy bits of change for accountants and advisers.

There is a raft of exposure drafts enabling Budget measures this month. We explore:

  • Limits on deductions for residential rental properties – the rules preventing deductions for travel expenses, and limitations on depreciation deductions claimed for second hand assets, including the implications for ‘off the plan’ properties
  • The superannuation concessions for housing:
    • How the First Home Super Saver Scheme works
    • Concessions for over 65s contributing the proceeds of the sale of their home to super
  • No more main residence exemption for non-residents – the black and white rules excluding non-residents from accessing the main residence exemption – including the implications for deceased estates and the grandfathering provisions
  • And, from the ATO:
    • Income splitting and professional sportspeople – the safe harbour provisions and how they work
    • Expiring sub-trust arrangements and Division 7A – Back in 2009 the ATO changed its approach and indicated that unpaid present entitlements (UPEs) owed by a trust to a related company could be treated as loans for Division 7A purposes. One way of preventing a UPE from being treated as a Division 7A loan is to put in place a complying sub-trust arrangement. Where this option has been used for arrangements entered into on or before 30 June 2011 the 7 year period would be expected to end in the 2017 or 2018 income years. This new guidance explores what can be done if the principal of the loan has not been repaid.



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