If you haven't already caught up with yesterday's bombshell Housing Package announcement or you're still trying to absorb the implications for you or your Trust, there's a great summary here. We don't want you to do anything immediately.
Unless you are planning on settling on a property from this weekend onwards.
We have some good advice to assist you in this situation.
If you are in the process of buying or selling an investment property or thinking about it, we suggest you book an urgent meeting with your OneTeam advisor to look at the full picture to help you make an informed decision.
A few hundred dollars spent now could save tens of thousands down the line.
There are options that you can take to minimise some of the negative effects of this legislation.
The main impacts on property investors with existing properties are:
From 27 March this year, the Brightline Test (relating to the length of time you can own a property without paying tax on the profits from sale) will be extended from 5 to 10 years
Claiming interest expense as tax deductions will be phased in over four years - from a claim of 100% in the March 2021 year to 0% after March 2025.
The Brightline period extension is not intended to apply to "new builds". It's not clear yet about interest deductions with "new builds".
You will probably have questions for your OneTeam advisor, and we suggest you make a time to meet to discuss these.
In the meantime, our advice is:
Do not retire any debt
Book an individual consultation with your accountant, who knows you, your business structures and situation.