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<p>Today the Government announced a range of measures addressing the supply and demand for residential properties. For the tax system, the Government announced:</p>
<ul>
<li>an extension of the bright-line test for residential properties from five to ten years, and</li>
<li>a ‘change-of-use’ rule which will apply where the property was not used as the main home for more than 12 months at a time.</li>
</ul>
<p>These two proposed changes will be included in a Supplementary Order Paper to the <a href="/bills/52-273">Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Bill</a> that will be released today.</p>
<p>The Government also announced that it intends to remove interest deductions on residential properties (except for new builds), and will consult on the details of this measure.</p>
<p>For more information see the Government's <a href="/news/2021/2021-03-23-government-property-announcements#statement">media statement</a> and fact sheets on the <a href="/publications/2021/2021-other-fact-sheet-bright-line-test">bright-line test</a> and <a href="/publications/2021/2021-other-fact-sheet-interest-deductions">interest deductions</a>.</p>
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