Travel expenses on IP- clarity

Travel expenses incurred in visiting your IP is said to be un-claimable after 2017. However, I read this in the October issue of the Money Magazine.
Quote
‘ the federal budget propopsed the following changes that will effect any property investors who exchanged after 7.30pm on 9 May 2017”
Unquote

The word “exchanged” is what I don’t understand clearly. Does it mean that contracts before this time are not affected by this travel expenses claim?

 

Hi @darrelj. Here's a thread about the same topic from only a little while ago - it may (or may not) help clarify things.....
Travel Deductions

 

Oh yes, you have posted the same. But the replies do not still clarify, isn’t it?

 

Nope - still have no definitive answer. Will wait until next year's tax time, and see what the accountant has to say at that time.

 

'Exchanged' means exchanged signed contract prior to settlement, that's all! So you bought the property even though you have not settled but since you signed the contract before the government budget announcement (as to not penalise and grandfather purchasers before the budget announcement - I presume).

 

The travel changes have nothing to do with the date of exchange of contracts that is with regards to depreciating assets.

From 1 july 2017 travel incurred in producing assessable income from residential properties is not deductible and not added to the cost base.

There are some limited exceptions but if held in your own name then the travel wont be deductible regardless of when you purchased the asset.

 

Or a cgt cost.