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November 2019 Tax Round Up - Vacant land deductions target 'Mum & Dad' developers

by Knowledge Shop Editor, on 04/11/2019, 12:35

Another big month for the profession with the passage of legislation that denies deductions for vacant land (or land with insubstantial buildings) for a range of taxpayers from 1 July 2019 – these measures are predominantly targeted to ‘Mum & Dad’ investors.

And, the re-emergence of the controversial 2017-18 Budget measure to prevent non-residents from accessing the main residence exemption.

Members, download the full November 2019 Tax Round Up (login first) from the member-only website. To see what Knowledge Shop membership offers, call the team on 1800 800 232 or take an online tour.


Join Michael Carruthers (Tax Director, Knowledge Shop) and Lisa Armstrong (MD, Knowledge Shop), for just the juicy bits of change for accountants and advisers:

  • Vacant land deductions limited – applying from 1 July 2019, these new complex laws will predominantly impact on ‘Mum & Dad’ property developers, preventing taxpayers from claiming a deduction for expenses incurred for holding vacant land. The laws do not just impact on ‘vacant land’ but land with insubstantial buildings. See Knowledge Shop's webinar to manage this issue on 9 December Vacant Land Deductions: The New Rules
  • Laws preventing non-residents accessing the main residence exemption regurgitated - the rules before Parliament prevent someone from applying a full or partial exemption under the main residence rules if they are a non-resident for tax purposes at the time of the CGT event, regardless of whether they have been a resident of Australia for some or most of the ownership period. Some concessions apply in this redraft.
  • High court overturns Full Federal Court decision on revenue or capital account case – a walk through of the case that provides greater certainty for practitioners determining whether amounts are on revenue or capital account. Commissioner of Taxation v Sharpcan Pty Ltd [2019] HCA 36 examines payments made to acquire gaming machine entitlements.  

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Topics:Tax Round Up

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