No more granny flat related CGT for eligible Australians from 01.07.2022
Brought to you by PennyGranny™ – experts in prefabricated homes and cabins for sale and hire!
We have some exciting news for older Australians as well as those with disability and the related parties engaged into granny flat related arrangements. The government has just announces that from 1st of July 2022, the start of next financial year, the Capital Gains Tax (CGT) will no longer apply for the formal granny flat arrangements that provide granny flat accommodation to older Australians and those with disabilities.
In that past if you were thinking to provide a granny flat type of accommodation to older Australians or to someone with disability, you would be worried about a Capitals Gains Tax (CGT), which in the past could make you liable to pay some extra tax when you sell your property. Indeed this was the case as it could be argued that you used part of your property to derive extra income from the granny flat. However, in recognition of the crisis in well priced accommodation available to older Australians and those with disabilities, the government has finally decided to drop the CGT consequences for those providing such accommodation. We welcome this decision and believe that there’s never been a better time to hire a portable granny flat from PennyGranny™, or to generate some additional income by letting us host a granny flat on your property.
See the following links for the announcement and to read the relevant legislation:
Full Legislation (Granny Flat Arrangements and Capital Gains Tax):