Vacant land deductions, the Eichmann Case and more…

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With recent legislative changes made and ATO guidance released, deductions associated with vacant land is a hot topic right now. There have also been a number of recent cases and ATO statements made about the small business CGT concessions available when vacant land is sold.

If your clients are owners of vacant land or are looking to buy, these recent developments are vital to understand and be in a position to advise on.

Recently, we caught up with Tom Aitkenhead, Director at Hoffman Kelly Chartered Accountants to find out what to expect when we tune into his session in the upcoming 2021 Property Intensive. Tom is presenting with Jacquii Reeves from BusinessDEPOT, in a session titled Vacant Land – Deductions and Concessions.

“The topic is about vacant land deductions and concessions, and we will be splitting the session into two parts, one on the ATO’s Draft Taxation Ruling on vacant land deductions which was released on 4 August 2021 and the other part on small business concessions with the Eichmann Case,” Tom explained.

“It’s really topical because the draft ruling just came out and there are a lot of examples in it, which helps understand some of the works and tricky situations that might arise. The ATO’s Decision Impact Statement on Eichmann also just came out.”

“Whenever there is a change to the rules, you want to know all about it - how it’s going to affect your clients - and you need to tell them what is going to happen.”

The session delves into topics including Section 26-102 and the limits of deductions associated with vacant land, Draft Taxation Ruling TR 2021/D5 which explains the Commissioner’s view of Section 26-1, the Eichmann Case and the final decision allowing the small business CGT concessions to be claimed, the Commissioner’s Decision Impact Statement regarding Eichmann and what the crucial facts will be in future cases to obtain concessions.

This is a session that will interest a wide range of practitioners, because it applies to many Australian property investors, big and small.

“It is a very common case where your client might buy a block of land; you know they're intending to build a property which they're going to rent. Therefore, you will need to help them work out which deductions can become claims, as well as the timing of when they can start with the claims,” Tom said.

“Everyone is going to have to do it, so everyone should really understand exactly what these rules are.”

Anticipating pertinent insight at the 2021 Property Intensive

We asked Tom what other sessions he’s looking forward to at the 2021 Property Intensive. He said hearing from Danni Hunter from Property Council of Australia on canvassing the political and policy landscape as it relates to the property industry would be a highlight for him, as well as the session Windfall Gains Tax – impact for landowners, purchasers, and developers, with Irina Tan and Craig Whatman, CTA, both from Pitcher Partners.

“Even though the Windfall Gains Tax is limited to Victoria at the moment, it could be so far-reaching. You would be wise to learn about it so you’re ahead of the game.”

Catch Tom and the whole line-up of insightful speakers at the 2021 Property Intensive, online on Thursday, 4 November and 11 November 2021.


About Tom Aitkenhead

headshot-thomas-aitkenheadTom Aitkenhead is a Chartered Accountant and Director at Hoffman Kelly. Tom has degrees in Commerce and Law and has over 17 years’ experience in public practice providing structuring and taxation solutions for SME businesses. Tom has a special interest in the property industry and its ever-changing and complex nature. He enjoys finding practical solutions for his clients.



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