Vacant Land Non-Deductible Holding Costs from 1 July 2019

The Treasury Laws Amendment (2019 Tax Integrity and Other Measures No.1) Bill 2019 (Cth) (“Vacant Land Legislation”) was introduced into Federal Parliament on 24 July 2019. The Vacant Land Legislation will deny deductions for holding costs (e.g. interest, rates, land tax, repairs and similar items) incurred in relation to vacant land from 1 July 2019 under new s 26-102 ITAA 1997 unless a specified vacant land exception provision applies. On 15 October 2019 final amendments were introduced by the Federal Government, including three additional non-deductibility exceptions. The Vacant Land legislation received Royal Assent on 28 October 2019 and is now law.

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