Deductions for holding costs on vacant land will have some slight adjustments from 1 July 2019, subject to the passing of legislation.
Currently, entities may claim a deduction during the construction phase of a development when no income is being derived. In order to make the claim, the intention of the entity is for the completed property to be an income-producing asset as soon as practicable.
However, as announced in the 2018 federal budget, some of these deductions will be denied. In particular, a “build-to-rent” investment may not have deductible holding costs until the property is available for rent.
Source: CCH iQ 22 Oct 2018