Property Glossary

42-day notice (New Zealand)

A written notice under the New Zealand Residential Tenancies Act 1986 by which a landlord can end a periodic tenancy on one of the short-notice statutory grounds, giving the tenant at least 42 days to vacate.

90-day notice (New Zealand)

A written notice under the New Zealand Residential Tenancies Act 1986 by which a landlord can end a periodic tenancy on one of the specified statutory grounds, giving the tenant at least 90 days to vacate.

Bond lodgement (New Zealand)

The process of paying a residential tenancy bond to Tenancy Services within 23 working days of receiving it from the tenant, as required by the Residential Tenancies Act 1986.

Bright-line test

New Zealand tax rule that treats profit from selling residential property within a set holding period as taxable income. The period is 2 years for properties acquired on or after 1 July 2024.

Chattel list

An itemised schedule of moveable items and appliances included with a residential rental property, attached to a New Zealand tenancy agreement to record what the landlord is providing at the start of the tenancy.

Fixed-term tenancy (New Zealand)

A New Zealand residential tenancy granted for a specific period with a defined start and end date, governed by the Residential Tenancies Act 1986.

Healthy Homes Standards

New Zealand minimum standards for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping in residential rental properties, enforced under the Residential Tenancies Act 1986.

Interest deductibility (New Zealand residential rentals)

New Zealand tax rules governing whether interest on loans for residential rental property is deductible against rental income. Restrictions introduced in 2021 have since been progressively reversed.

Main home exclusion

A New Zealand exemption that prevents profits on the sale of a person's main home from being taxed under the bright-line test, subject to use and timing conditions.

Meth contamination (New Zealand)

Residue from the use or manufacture of methamphetamine in a New Zealand residential rental property. Standards for testing and remediation are set out in NZS 8510 and landlords have disclosure obligations under the Residential Tenancies Act 1986.

Periodic tenancy (New Zealand)

A New Zealand residential tenancy that continues indefinitely until either party ends it with the notice period required by the Residential Tenancies Act 1986.

Rent increase (New Zealand)

An increase in the rent charged under a New Zealand residential tenancy. Under the Residential Tenancies Act 1986, rent can only be increased once every 12 months and requires at least 60 days' written notice to the tenant.

Rental loss ring-fencing

New Zealand rule that prevents residential rental losses from being offset against other income such as salary or wages. Losses are quarantined and carried forward to offset future rental profits.

Residential Tenancies Act 1986

The principal New Zealand statute governing residential tenancies. It sets out the rights and obligations of landlords and tenants, bond rules, notice periods, and the jurisdiction of the Tenancy Tribunal.

Retaliatory notice (New Zealand)

A termination notice given by a New Zealand landlord principally to retaliate against a tenant for exercising a right under the Residential Tenancies Act 1986. Retaliatory notices are prohibited and can be set aside by the Tenancy Tribunal.

Tenancy Tribunal

The New Zealand dispute-resolution body with jurisdiction over residential tenancy matters under the Residential Tenancies Act 1986. It hears claims about bond, rent, repairs, notices, and breaches by either party.

Capital gains tax discount (Australia)

A 50% reduction in the assessable capital gain on a CGT asset held by an Australian resident individual or trust for at least 12 months before the CGT event.

Depreciation schedule

A report, typically prepared by a qualified quantity surveyor, that lists the deductible capital works and plant-and-equipment components of an Australian rental property so the owner can claim them on their tax return.

Division 40 plant and equipment depreciation

An Australian tax deduction for the decline in value of removable plant and equipment in an income-producing property, claimable over the effective life of each asset.

Division 43 capital works deduction

An Australian tax deduction for the construction cost of the structural elements of a building used to produce assessable income, claimable over 25 or 40 years depending on construction date and use.

Foreign Investment Review Board (FIRB) approval

An Australian federal approval required before a foreign person acquires certain interests in Australian residential real estate, administered under the Foreign Acquisitions and Takeovers Act 1975.

Land tax (New South Wales)

New South Wales

An annual tax imposed by Revenue NSW on the unimproved value of land owned in New South Wales above a threshold, with the principal place of residence generally exempt.

Land tax (Victoria)

Victoria

An annual tax imposed by the State Revenue Office Victoria on the site value of land owned in Victoria above a threshold, plus a temporary COVID debt levy surcharge in effect from 2024.

Main residence exemption

An Australian capital gains tax exemption that disregards any capital gain or loss on the sale of a dwelling that has been the taxpayer's main residence for the whole ownership period.

Negative gearing

An Australian tax treatment that allows a net loss from a rental property — where deductible expenses exceed rental income — to be offset against the investor's other assessable income in the same year.

Six-year rule

An Australian CGT concession that allows a dwelling which was a taxpayer's main residence to continue to be treated as their main residence for up to six years while it is used to produce income.

SMSF property investment

The purchase of real property by a self-managed superannuation fund in Australia, subject to the sole purpose test, the in-house asset rules, and the limited recourse borrowing arrangement (LRBA) rules where borrowing is involved.

Transfer duty (New South Wales)

New South Wales

The New South Wales state tax payable on the transfer of dutiable property, most commonly the purchase of real estate, calculated on the dutiable value at rates published by Revenue NSW.

Landlord insurance

A specialised insurance policy that covers risks specific to renting out residential property, including loss of rent, tenant-caused damage, and liability, in addition to standard building and contents cover.

Rental yield

The annual rental return of an investment property expressed as a percentage of its value. Gross yield uses rent before expenses; net yield uses rent after operating costs but before tax and financing.