In this Tax Edition of Wealth Coffee Chats, Kim Wolfenden breaks down one of the most confusing areas for property investors: what you can claim as tax deductions when buying house-and-land for investment.
The ATO’s rules have shifted several times in recent years, leaving many investors unsure about deductions for vacant land, construction loans, tiny homes, and holding costs. Kim simplifies the legislation, outlines the key definitions you must understand, and explains what’s deductible — and what’s not — based on real ATO guidance.
Whether you're mid-construction, planning to build, or already holding land for an investment property, this episode gives you the clarity you need to stay compliant and maximise your tax outcomes.
 
Episode Highlights

Why the ATO changed the rules in 2019 on claiming holding costs for vacant land.
What “holding costs” really mean: loan interest, council rates, land tax, and basic maintenance.
The narrow exceptions: businesses, primary producers, companies, and managed investment trusts.
What counts as vacant land — and why tiny homes on wheels don’t qualify as permanent structures.
When a structure becomes “substantial and permanent” (and therefore changes deductibility).
How deductions work once the property becomes rent-ready, including apportioning expenses.
The key difference between land loan interest (non-deductible while vacant) and construction loan interest (deductible).

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