Interest deductibility on property investments is now being phased in with 80% allowable from 1 April 2024
As of 10 March, the coalition government has confirmed the return of interest deductibility for property investors, with the phased-in changes taking effect from the next financial year.
As a result, legislation is expected to be passed allowing you to deduct 80% of your interest expenses on property investments in the year to 31 March 2025 (ie from 1 April 2024). Note that the previously proposed 60% allowance for the current year has been removed, the existing 50% allowance will remain for the current 2023-24 year.
Deductibility will return to 100% deductibility in the 2025-2026 financial year (that is, from 1 April 2025).
Have a chat with us to ensure you’ve accounted for (and budgeted for) the upcoming changes to interest deductibility on your property investments.