We have had a few enquiries recently about investors building rental properties and finding the interest costs quite onerous, both due to high interest rates and the time taken to complete the build.  Whilst there are interest deductions available to those in the business of property development, there are unfortunately none for investors i.e. those planning to rent out and earn passive income. 

This principle was tested in Steele's case (99 ATC 4242 at 4251; (1999) 41 ATR 139 at 151) right here in our back garden - i.e. at Tibradden on Great Eastern Highway in WA.

Read more about Steele's case here on the ATO legal database concerning this - TR 2004/4 and holding costs for vacant land.

Disclaimer: This information is general in nature and is not an opinion expressed by us. So, before acting on this or any other information, it is important to seek professional advice related directly to you and your circumstances.  Should you require our assistance, contact your Primarius Team leader, or email us at info@primarius.net.au

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