Landlords have been advised to install heat pumps to take advantage of tax relief ahead of the Healthy Homes standards which begin to take effect this year.
Landlords were given an extra five months to meet this year’s Healthy Homes standards, which set minimum requirements for heating, insulation, ventilation, moisture, drainage and draught-stopping.
They now have until December 1 to include detailed information in their new or renewed tenancy agreements about how their property meets the standards, before compliance is required from July 1, 2021.
The statement has to include the R-value of insulation and the reasons why any spaces are not insulated, among other things.
Property Investors Federation executive committee member Andrew King said insulation and heating should be compulsory in rental properties, but the calculations were too conservative.
“It’s the level of it which we disagree with, and that’s because tenants will ultimately pay for any new regulations - we’re not against new regulations, but we are very mindful it needs to be cost-effective regulations,” King said.
Many landlords would benefit after the Government increased the depreciation limit from $500 to $5000, until March, he said.
“What that means is that previously a heat pump is never usually tax-deductible, but most of them are going to be under that $5000 limit now.