The Healthy Homes Standards and Temporary Increase in Low Value Asset Tax Write-off
The year is flashing by with 31 March and 30 June signalling the end of the financial year and tax time for many, while 1 July brings another Healthy Homes milestone for residential landlords.
The healthy homes standards for rental properties (which became law on 1 July 2019) are about improving health, and lowering medical costs and hospitalisations through creating warmer, drier, and healthier homes.
“Government’s timetable for landlords to reach minimum (and sometimes specific) standards for heating, insulation, ventilation, moisture, drainage, and draught stopping in their rental properties, requires all standards be met incrementally by 1 July 2024,” says Hatch Senior Property Manager, Deborah Kay.
“It is landlords who are responsible for maintaining and improving the quality of their rental properties. The standards are there to ensure landlords have healthier, safer properties with lower maintenance costs for their investments, and to help tenants keep their homes warm and dry.”
By 1 July last year ceiling and underfloor insulation (where practicable to install) became compulsory, along with landlords’ intent to comply with healthy homes standards.
The next milestone requires landlords to have a statement of their property’s current level of compliance by 1 July 2020 in relation to any new, varied, or renewed tenancy agreement.
“There’s only a month before that deadline but give us a call. Hatch has certified assessors to help landlords get their statements on time,” says Deborah.
“With tax time also on the horizon, now is a good time for landlords to think about installing a heat pump at their rental property via the Government’s temporary increase in low value asset tax write-off.”
The temporary increase, which is a one-off and comes with criteria, is part of the Govt’s 19 March $12.1b COVID-19 business continuity package – see details at: https://www.ird.govt.nz/covid-19/business-and-organisations/specific-income-tax-issues/depreciation-and-low-value-assets
If you would like more information about Healthy Homes obligations or getting your 1 July 2020 Compliance Statement, call us.