Description

The recently-enacted interest limitation rules apply from 1 October 2021. For some property investors, interest deductions are being phased out from 1 October 2021 to 31 March 2025. For other property investors, interest has ceased to be deductible from 1 October 2021. There are a number of exemptions to these rules, including for “new build land”.

The 10-year bright-line test applies to residential property acquired from 27 March 2021. However, the 5-year bright-line test continues to apply to “new build land”. The main home exclusion has been completely rewritten, and applies differently from the old main home exclusion.

This webinar considers the application of the new interest limitation rules, including who is affected by the new rules, what type of property the new rules apply to, and when the exemptions apply. The recently-enacted changes to the bright-line test will also be considered, including rollover relief for certain related party transfers and changes to the new main home exclusion.

ORIGINAL BROADCAST DATE

6 May 2022

LEARNING OUTCOMES

You will:

• Understand who the interest limitation rules apply to
• Know what property is subject to the interest limitation rules
• Learn what interest expenses the interest limitation rules apply to
• Know that constitutes “new build land” for the purpose of the interest limitation rules and the bright-line test
• Understand when “rollover relief” will apply under the interest limitation rules and to the transfer of residential property under the bright-line test
• Learn about recent changes to the new main home exclusion to the bright-line test

SUITED TO

Accountants of all levels, property lawyers, real estate agents, mortgage brokers, financiers and others who advise on residential property transactions.

PRESENTERS

Stephen Tomlinson, Principal, Tomlinson Law

Duncan Terris, Director, Terris Legal Limited