ATO is targeting taxpayers who are passively holding vacant land for the development of future rental properties. 

To be entitled to deductions on vacant land, you must demonstrate that active and genuine steps have and are being undertaken to build a dwelling and make it available for rent as soon as it's completed.  It is expected that efforts are made to have the property completed within normal industry timeframes.  Exceptions will be allowed with events out of the taxpayers control for finalisation of building.

If you decide to sell the vacant land or your intention to build on the land changes, you can no longer claim any deductions.