Investing in property can mean different things for different people. It can be big companies and professional builders, or just regular parents looking for a safe investment for their retirement. The new coalition government have made some changes and have reinstated some of the prior rules.

From July 1st, 2024, the bright-line test for property sales will only cover two years. This means if you sell a property within two years of buying it, this rule will apply.

Also, starting in 2024, you’ll be able to get some tax breaks on the interest you pay for loans on houses you invest in. If you bought the house before March 27th, 2021, you can get back half of the interest you pay as a tax deduction. In the next year, this will go up to 80%, and it will include all houses, no matter when you bought them. By the 2025-26 year, you can claim the interest paid on these loans as a deduction, which helps offset the rental income.

If you’re thinking about buying or selling property, feel free to get in touch. We can help you understand how these tax changes might affect you.

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