We’re coming up to the end of the financial year, which doesn’t mean much for most wage and salary earners these days, but it will mean something to many property investors, who will see the next step down in the phase-out of interest cost deductibility.  

Those who aren’t exempt (only those who bought a new build after the end of March 2021 are exempt) will see deductibility drop from 75% to 50% - which means they may end up paying tax on a profit they’re not making.  

While I know few have sympathy for property investors, many of them are just average people who have bought a property to help fund their retirement and the rules have changed.  

If you layer in higher interest costs, it should prompt a re-think about whether they should continue to own that property, and if not that property, how else should they fund their retirement gap. 

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