Treasury Laws Amendment (Housing Tax Integrity) Act 2017 (126 of 2017)

Schedule 2   Limiting depreciation deductions for assets in residential premises

Income Tax Assessment Act 1997

7   At the end of section 40-435

Add:

(2) For the purposes of subsection (1), disregard a *taxable purpose that is the *purpose of producing assessable income:

(a) from the use of *residential premises to provide residential accommodation; but

(b) not in the course of carrying on a *business;

if, apart from subsections 40-25(5) and 40-27(6), section 40-27 would reduce your deductions under subsection 40-25(1) for the asset.