The Trusts Bill has been making it’s way through parliament for over the last couple of years. It has just passed it’s third reading and is now ready to be presented to the Governor-General to receive Royal Assent. After receiving Royal Assent the bill will take 18 months to come into force.
From the 2019/20 year (year ended 31 March 2020), most losses made on residential rental properties will no longer be offset against an investors’ other income (e.g. salary, wages, business income). This is known as “ring fencing”.
There are limited circumstances were the losses will be able to be offset against other income.