Get the knowledge you need to make well-informed financial decisions at our upcoming events. Register now.


Federal Budget 2018: Tax (Investors)


Federal Budget 2018: Tax (investors)

This article is published by Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215

Federal Budget Tax Investors

Federal Budget 2018 Initatives: Tax (investors)


Removing the capital gains discount for managed investment trusts

Effective 1 July 2019

Managed Investment Trusts (MITs) and Attribution MITs (AMITs) will be prevented from claiming the 50% capital gains discount at a trust level from 1 July 2019. MITs and AMITs will continue to be able to distribute realised capital gains to beneficiaries. Who are still able to apply the 50% capital gains tax discount for proceeds from assets that are held longer than 12 months.

Deductions denied for vacant land

Effective 1 July 2019

As an integrity measure to address concerns that dedications are being improperly claimed for expenses associated with vacant land, the Government will deny deductions such as borrowing expenses and council rates, where the vacant land is not genuinely held for the purpose of earning an assessable income.

Denied expenses that would ordinarily be included in an asset’s costs base, may continue to be included for capital gains tax (CGT) purposes when sold. Expenses that would not ordinarily be included in the costs base of the asset for CGT purposes and will now also be denied a deduction will continue to be excluded in the cost base calculation.

This initiative will not apply to expenses associated with holding land that are incurred after:

  • A property has been constructed on the land, it has received approval to be occupied and is available for rent; or
  • The land is being used by the owner to carry on a business, including a business of primary production.

This initiative will apply to expenses associated with holding land that is:

  • Held for residential or commercial purposes.

Please note:the ‘carrying on a business’ test will generally exclude land held for commercial development.

This article is published by Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.


“There are things I must do in the next five years to make that happen, but I know what they are and am working towards them. This is a much happier prospect than what I believed would be my lot when I reached retirement age.”


“I will remain with them as they have been great to me for many many years.”


“I’ve been a customer for several decades(scary how time flies). The service has always been impeccable, consistent, friendly.”


“Very happy with the ease of experience. And extremely happy with my return…much more than I anticipated.”


“The process suits me perfectly, the details and everything you need from me is provided. You then review and I come in to sign where appropriate. In a busy schedule, it suits me perfectly.”


“Our business with Modoras is always very professional and friendly making it a pleasure to attend.”

Peter & Merle

“I have recommended Modoras to friends and family. My sister in law is now a client.”


“Professional service with the personal care factor.”


“We are very happy with the service that Modoras have provided and find all staff very friendly and helpful.”


“Super friendly staff . Would recommend and have recommended.”


“We really enjoy the hospitality every time we visit the office, to meet and talk directly with the ‘Modoras family’ has a huge impact in entrusting our financial future.”


“We have built an excellent business rapport with our Accountant over many, many years. He has managed both personal and business tax and accounting matters for us. It is a pleasure to attend the lovely office in Mt Gravatt. The Reception staff are friendly and efficient. AND they make a great coffee!”


Financial Planning and Credit services are offered through Modoras Pty Ltd ABN 86 068 034 908. Australian Financial Services and Credit Licence No. 233209.
Accounting services are offered through Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215, Modoras Accounting (VIC) Pty Ltd ACN 145 368 850 and Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521

Copyright Modoras 2018. All Rights Reserved.