Housing affordability measures
- Individuals will be able to make voluntary contributions of up to $15,000 per year from 1 July 2017 and $30,000 in total, to be withdrawn subsequently for a first home deposit. Withdrawals can begin from 1 July 2018. Couples will be able to both access the scheme and combine savings for a single deposit.
- A person aged 65 or over can contribute up to $300,000 from the proceeds of the sale of their home as a nonconcessional contribution into superannuation, from 1 July 2018.
- Deductions for travel expenses related to inspecting, maintaining or collecting rent for a residential rental property will be disallowed from 1 July 2017.
- Plant and equipment depreciation deductions will be limited to outlays actually incurred by investors in residential real estate properties from 1 July 2017.
- Managed investment trusts will be able to invest in affordable housing, allowing investors to receive concessional tax treatment, provided certain conditions are met, including that the properties are let as affordable housing for at least 10 years.
- The CGT discount for Australian resident individuals investing in qualifying affordable housing will be increased from 50 per cent to 60 per cent from 1 January 2018.
- Foreign and temporary tax residents will be denied access to the CGT main residence exemption.
- The foreign resident CGT withholding rate will be increased to 12.5 per cent and will apply to Australian real property and related interests valued at $750,000 or more.
- An annual levy of at least $5000 will be imposed on foreign owners of under-utilised residential property.
- A 50 per cent cap on foreign ownership in new developments will be introduced through a condition on new dwelling exemption certificates.
- The principal asset test in Div 855 of the Income Tax Assessment Act 1997 will be applied on an associate inclusive basis for foreign tax residents with indirect interests in Australian real property