In the 2017-18 Federal Budget the Government announced a series of measures that are intended to improve housing affordability in Australia. Treasury has now released exposure draft legislation relating to the proposed increase in the CGT discount percentage for people who invest in affordable housing.
There are two aspects to these changes. Firstly, individuals who make a capital gain on residential dwellings that have been used to provide affordable housing can potentially qualify for an additional CGT discount of up to 10%, this could take the total discount percentage from the existing maximum level of 50% to 60%.
The increased discount will only be available if the dwelling has been used to provide affordable housing for at least 3 years after 1 January 2018. The 3 year period does need to have been continuous.
The additional discount needs to be apportioned to take into account periods when the individual was a non-resident or temporary resident as well as periods when the property was not used to provide affordable housing over its ownership period.
The current draft legislation sets out a number of conditions that need to be met in order to demonstrate that the dwelling has actually been used for affordable housing, should this criteria concerns you, or you are not sure if you can be safely classified as being under the new ruling, come and talk to us Tax Ideas Accountants & Advisers…https://taxideas.com.au/booking/ Tel: (02) 8318 1545