Loopholes in property investment rules will be more difficult to take advantage of from 1 April, as tax changes come into effect.
Loss Attributing Qualifying Companies were thought to be costing the Government $150 million per year in lost tax revenue.
They are now scrapped and replaced by "look-through" companies, which make it harder for property owners to use losses to minimise personal tax.
Property owners will no longer be able to claim back depreciation in most cases, in a move that some fear could stoke rising rents.
In another change, losses from rental properties will no longer be able to be deducted from income for the purposes of qualifying for Working for Families payments.
And the corporate tax rate drops from 30% to 28%.