This week we continue looking at the most affordable suburbs 10 km from mainland capital cities.
And in our tax tip of the week, we look at capital works deductions, what you can claim and what you need to know to work out your claim.
News
Industry bodies have come out in support of the Coalition’s Housing Policy, which promises to attack the problems that reduce housing affordability.The Coalition says it plans to establish affordable accommodation targets for each state and territory over five years, address planning delays, and the introduction of an affordable housing voucher scheme for eligible people, to access housing support services.HIA CEO of Association,Graham Wolfe, says the policy provides a good foundation towards meeting the nation’s housing supply challenges.The Residential Development Council also welcomed the Coalition’s proposal on housing, saying its plan to focus on outcomes is crucial to a successful housing policy.
Suburb in Focus In our suburb in focus, we conclude our series looking at the most affordable suburbs, located 10kms from mainland capitals, this week finishing in Brisbane. The most affordable suburb 10kms from the Brisbane CBD is Rocklea. Located 10 kilometres south of the city Rocklea is a mostly industrial suburb, being home to many large firms from a range industries particularly transport. It is also at one end of the Ipswich Motorway and has a train station on the Beenleigh line.Rocklea is also the host to the Brisbane Markets, which is known for its flowers, fresh fruit and fresh vegetables. The suburb’s population in the last census was 9,688. Turning to the figures, the median house price in Rocklea in the year to July 2010 was $387,500, 17.5 % lower than Brisbane median of $470,000 and is one of 11 suburbs 10km from the CBD where prices were below the median.
Tax TipAnd now to the Tax Tip of the week from Depreciator - the Tax Depreciation Schedule specialists.We focus on capital works deductions, what you can claim and what you need to know to work out your claim.If you own a rental property, you may be able to claim a deduction (usually at the rate of 2.5% per year in the 40 years following construction) for the construction cost of:· buildings· extensions, such as a garage or patio· alterations, such as adding an internal wall, kitchen renovations or bathroom makeovers· structural improvements - such as a gazebo, carport, sealed driveway, retaining wall or fence.
As a general rule, you can claim a deduction for the cost of constructing a residential rental property over 40 years from the date the construction was completed. However, to be sure you get your claim right, you must have all of the following:· the date construction commenced· details of the type of construction· the date construction was completed· details of who carried out the construction work· the construction cost (not the purchase price)· details of the period during the year that the property was used for income producing purposes.
So in summary capital works expenses you incur form part of the cost base of your property for capital gains tax purposes. If you claim a capital works deduction, you will need to take this into account when you work out your capital gain or loss.
As always this is general advice only and you should consult your accountant or tax professional.
