Changes announced in this year's Budget, cracking down on tax benefits for people who rent their holiday homes a few times a year, will not affect beachside property prices, says Real Estate Institute chief executive Helen O'Sullivan.
Until now, owners had been able to claim large tax deductions on losses made on the properties, even if they were most often used as private holiday homes.
But the changes mean owners can only claim on the rented portion. Those who rent their holiday home for 30 days a year and use it themselves for 30 days a year will now only be able to claim a deduction for 50 per cent of their costs, not the 90 per cent they had before.
But O'Sullivan said the removal of that perk would not be much of a blow. Most owners just saw the tax benefits as a bonus.
People would not buy a bach purely to cut their tax bills, she said. "I don't see that it will have a big impact. I think people saw it as a bit of an upside but not a big driver [in purchasing]."
