Description

The 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.

The interest limitation rules apply to a broad range of residential property, but there are exceptions. The latest Tax Bill includes an additional exception for large-scale “build-to-rent” developments. There are also a number of exemptions to these rules, including for new build land, land owned by dealers, developers and builders, and for some subdivisions.

This webinar considers the application of the interest limitation rules, including who is affected by the new rules, what type of property the new rules apply to, when the exemptions apply, and what issues arise in applying the rules in practice. Consideration will also be given to restructuring borrowings to minimise the impact of the rules.

ORIGINAL BROADCAST

9 March 2023

LEARNING OUTCOMES

You will:

• Understand who the interest limitation rules apply to
• Know what property is subject to the interest limitation rules
• Be aware of the proposed exception for large-scale “build-to-rent” developments
• Learn about the various exemptions to the interest limitation rules, including for “new build land”, and how the exemptions interrelate
• Understand the practical issues arising in applying the rules, including when “rollover relief” will apply (and the proposed changes to the “rollover relief” provisions)
• Know when it will be possible to restructure clients’ borrowings to minimise the impact of the interest limitation rules

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.