Removing Capital Gains Tax For Granny Flats

Discussion in 'Accounting & Tax' started by Mike A, 5th Oct, 2020.

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  1. Mike A

    Mike A Well-Known Member

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    Federal Government has announced under the measure, CGT will not apply to the creation, variation or termination of a formal written granny flat arrangement providing accommodation for older Australians or people with disabilities,

    The measure will commence as early as 1 July 2021 subject to the passing of legislation.

    This change will only apply to agreements that are entered into because of family relationships or other personal ties and will not apply to commercial rental arrangements.
     
    Mike A, 5th Oct, 2020
    #1
    craigc and Terry_w like this.
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    These will likely need to comply with the existing Centrelink granny flat exceptions which grant the occupant a license to occupy and their interest in the GF is a excepted asset for the purposes of asset tests. For investors you can disregard this matter.
     
    Paul@PAS, 6th Oct, 2020
    #2