Treasury has today released the much awaited legislation that will deny certain taxpayers tax deductions on vacant land held for investment purposes.  Individuals, SMSF's and Discretionary Trusts will need show that they or their related parties are using the land to operate a business, or deductions on the land will be denied.  Landholders will also need to apportion where the business only utilises a portion of the land and the balance is vacant. 

Taxpayers will need to watch they are not putting their access to future CGT discount at risk by stating they are in the business of developing, simply to claim deductions along the way.   Submissions are due on the draft legislation by the end of October.