Property owners will be able to reclaim tax paid on their property to help pay for repairs, upgrades and improvements.
The Government has announced changes to the tax system that will save Australian taxpayers $400m over four years.
Key points:The changes are expected to cost Australian taxpayers around $400 million over four to six yearsIt will give tax payers up to a year to reclaim a portion of their property tax billThe changes will allow property owners to reclaim taxes paid on the value of their homesThe changes were announced in the Budget, which has already seen a big lift in property tax revenue.
Taxpayers can reclaim a tax bill of $40 or more by reclaiming a portion, up to one year, of the value they paid.
“A property owner can reclaim up to $40 in property taxes,” Mr Turnbull said.
“The property tax deduction for the tax year can be up to 50 per cent of the property tax paid.
This will be available to a person or family with a tax liability of less than $100,000.”
In a two-income household with two adults, the property taxpayer can reclaim 50 per percent of the tax paid by the person or person’s spouse or common-law partner.
“If the tax liability exceeds $100 million, the person may have a claim for an additional claim of $50,000.”
The changes apply to property owners and their dependants, including:The Treasurer said the changes were aimed at boosting property investment.
“We have a growing rental market in our country and this is another important step in supporting property investment in our state and territory,” Mr Abbott said.
The changes came just weeks after the Government announced a raft of tax reliefs that were expected to save Australian tax payer around $40 million over the next four to 6 years.
“There is no better time to make our tax system fairer than right now,” Treasurer Joe Hockey said in a statement.
“As the world’s wealthiest nation, Australia needs to be able, with no strings attached, to pay its fair share of tax.”
The Government announced $40m tax relief for owners and renters in 2017.
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