accountants daily logo

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Board of Tax to review granny flat tax treatment


The Board of Taxation will undertake a review of the tax treatment of granny flat arrangements as the government seeks to respond to the threat of elder abuse.

By Jotham Lian3 minute read
magnifying glass

The government has requested the Board of Taxation undertake the review in response to the 2017 Australian Law Reform Commission’s Report: Elder Abuse – a National Legal Response, which identified the development of formal and legally enforceable family agreements as a measure to prevent elder abuse.


“Under current tax laws, a homeowner may have to pay capital gains tax where there is a formal agreement for a family member to reside in their home – for example, when an older parent lives with their child either in the same dwelling or a separately constructed dwelling,” said assistant treasurer Stuart Robert.

“In some cases, the tax consequences have been a deterrent to families establishing a formal and legally enforceable family agreement, which leaves no protection of the rights of the older person if there is a breakdown in the agreement.”

The review will consider and make recommendations on the appropriate tax treatment of these arrangements, while considering the interactions between the current tax laws and treatment of ‘granny flat interests’ under the social security rules.

According to Mr Robert, the review will consider how any changes could raise awareness and provide incentives for older people and their families to enter formal and legally enforceable family arrangements.

The board is expected to commence the review in early 2019, including broad consultation with stakeholders, with a final report due to the government in the second half of 2019.

This email address is being protected from spambots. You need JavaScript enabled to view it. 

Board of Tax to review granny flat tax treatment
image intro
accountantsdaily logo
Jotham Lian

Jotham Lian


Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

accountants daily logo Newsletter

Receive breaking news directly to your inbox each day.