Vacant Land Laws close to being passed

Treasury Laws Amendment (2019 Tax Integrity and Other Measures No. 1) Bill 2019 – Parliament of Australia

The above bill includes the law change proposed prior to the election to stop deductions from being claimed after 1 July 2019 (maybe with a deferred start date after assent ??) for ALL vacant land or construction phase activities unless the property in question is (broadly and simply) held by a relevant entity OR held as part of a business activity.

It has sailed through the lower house and is to the second sitting in the senate. No amendments proposed. It seems likely to become law.

This bill will largely affect many people:
- Anyone buying a IP and wanting to claim interest etc before its available to rent. This may affect almost all buyers !!
- Those who build with intention to rent
- Those who build with intention to sell only some
- Those who build and it is a isolated profit making transaction (albeit they may defer the interest and other costs)
Dont be fooled by the "vacant land "part. It affects construction and development activities in whole OR IN PART in some cases. One apparent carveout appears to permit a granny flat to retain deductions provided the main dwelling on the land is presently rented.

Interest and other tax deductions will only commence once the property has a occupancy certiifcate and/or is available for lease and income production.