In the rollercoaster ride of property investment, the coalition government’s recent backtracking on promised interest deductions for investors has left many feeling disillusioned. We recognise the disappointment among affected investors but urge a shift in focus towards the positive trajectory we’re now on.
Let’s address the elephant in the room: the coalition agreement pledged a 60% interest deduction for investors in the 2023/2024 financial year, a promise that has now been shelved. Understandably, this news comes as a blow, particularly to those who had banked on this relief in the face of rising interest rates and living costs.
That said, why be dictated by frustration over making a theoretical loss when you can focus your energy on making actual gains? Associate Finance Minister David Seymour’s announcement of phasing in deductions starting from the 2024/2025 fiscal year at 80%, escalating to 100% by 2025/2026, signifies a definitive step towards the desired goal. While the journey may have hit a bump, we’re still headed in the right direction.
Sarina Gibbon, APIA’s general manager, says, “If dropping deduction for 23/24 is what it takes to secure deductions for 24/25 and beyond, then I will take that deal any day.” This is a pragmatic stance, acknowledging the short-term setback for the long-term benefit.
In a climate where every cent counts, the reinstatement of interest deductions is a beacon of hope for investors. It’s a lifeline amidst the storm of escalating costs. We urge investors to seize this opportunity and leverage it to its fullest extent. Use it as a catalyst for dialogue with financial advisors, exploring avenues for enhanced cash efficiency.
Rent alone can’t shoulder the burden of mounting costs indefinitely. Now is the time for investors to innovate, strategise and adapt. “There is only so much rent can do to absorb increased cost,” says Gibbon, “Now is the moment for investors to dig deep and find ways to generate enough cashflow so they can hold their properties in the long term.”
To help you along the way, we are hosting Cashflow Catalyst on Saturday 23rd of March. This one-day cashflow accelerator seminar will equip investors with 10 actionable strategies to bolster your cash position in this challenging market. From leveraging technology to optimising property management practices, you will gain invaluable insights into confidently navigating the financial landscape. Tickets are on sale here.
Yes, the road ahead may be fraught with uncertainties, and the recent turn of events may not align with our initial expectations. But let’s not lose sight of the ultimate goal: a robust, sustainable future for property investors. Embrace the imperfections of today as stepping stones towards the prosperity of tomorrow. Join us at the Cashflow Catalyst seminar, and let’s navigate this journey together.
Add Comment