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 Interest Deductibility Rule Changes!

By Carmen O'Brien ~

Greetings, landlords!

Exciting news is on the horizon – the government has just rolled out some significant updates that could substantially impact you.

Previously, for the 2024 financial year, those who purchased property before the 27th of March, 2021, were entitled to claim 50% of their mortgage interest expenses. But now, starting April 1st, 2024, a new era begins. Landlords can now claim 80% of their interest expense.

For those that had purchase property after the 27th March 2021 and did not qualify for one of the exemptions so could not claim your interest expenses, as of April 1st, 2024, you’ll have the opportunity to claim 80% of your interest expense for the 2025 financial year.

And mark your calendars for April 1st, 2025, as the final phase of these changes comes into play. From this date onwards, you’ll have the full benefit of claiming 100% of your interest expense.

Here’s to your continued success in property investment

Filed Under: Taxes

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