The Government has released a Supplementary Order Paper (SOP) which proposes changes to the ability of residential property investors to deduct the cost of their loan interest when it comes time to file a tax return.
The Government wants to stimulate the supply of housing, so the proposals also exempt property development and new builds from the interest limitation rules.
The proposals will be considered by Parliament and may change.
These information sheets have more details about the proposed rule changes:
The Finance and Expenditure Committee will consider the proposals contained in the SOP and will call for submissions on the proposals.