This interpretation statement considers situations where a person’s use of their residential property has changed so the property moves from being under one set of income tax deduction rules to another. It explains how a person determines which income tax deduction rules apply and the consequences of moving between the standard tax rules and the mixed-use asset rules. Two fact sheets have been included.

Accompanying the draft interpretation statement are two draft fact sheets.  The first fact sheet covers situations where there is a change from the mixed-use asset rules to the standard tax rules. The second fact sheet considers when there is a change from the standard tax rules to the mixed-use asset rules.

CA ANZ commends the statement as well-written and easy to understand. Overall, CA ANZ supports its publication once finalised, as it will help taxpayers and their advisers better understand their obligations and correctly apply tax rules when residential property use changes. However, CA ANZ recommends that certain aspects of the statement be reviewed and clarified, with additional references included for further guidance.