- Reforms to tax deductions for owning vacant land have passed Parliament
- The Bill contained various Budget measures
- Amendments addressed concerns raised by CA ANZ members
Reforms to tax deductions received for owning vacant land have passed Parliament, including amendments to address all of the issued raised by CA ANZ on behalf of members. The Bill contains various 2018-19 Budget measures including the legislation limiting deductions for costs relating to holding vacant land except for land which is used or held available for use in carrying on a business.
When the Bill was originally introduced into Parliament, our members raised concerns with this legislation as it would increase the costs for holding farm land. The CA ANZ Tax Team initially raised these concerns in its submission at the end of 2018 when Treasury was consulting on the exposure draft legislation for limiting deductions for vacant land. We raised them again in our submission to the Senate Committee for its inquiry into the Bill. It was therefore pleasing to note that the government has listened to stakeholders and have made amendments to address these concerns. The government amendments introduce three exceptions which cover, broadly:
- structures affected by natural disasters or other exceptional circumstances
- land held by primary producers (and the land does not have residential premises - existing or under construction)
- land in use or available for use in carrying on a business (and the land does not have residential premises (and the land does not have residential premises - existing or under construction)