This article is from the Australian Property Journal archive
WESTERN Australia’s Cook government has passed legislation in state parliament, giving a 50% land tax exemption for build-to-rent developments, in the latest policy to boost housing supply and spur the nascent BTR sector.
The Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 provides a 50% land tax exemption for up to 20 years for eligible build-to-rent developments.
Key elements to qualify for the exemption include the development:
- Containing at least 40 self-contained dwellings available for residential leases of at least three years;
- Being owned by the same owner or group of owners and managed by the same management entity, and;
- Being completed between 12 May 2022 and 30 June 2032.
Owners of eligible build-to-rent developments who have already paid land tax for 2023-24 can apply for the exemption. If approved, they will receive a refund of the land tax paid.
To ensure that this policy boosts rental supply in the state, owners who stopped meeting the criteria within the first 15 years after the exemption is granted, a retrospective land tax will apply.
Treasurer Rita Saffioti said the government is focused on helping build the capacity of WA’s rental market and increase housing supply.
“We’re doing everything we can to boost housing supply, and this legislation is another great incentive to get this happening,” the treasurer said.
Planning Minister John Carey said this is an important piece of legislation as the Cook government continues to do everything we can to accelerate the delivery of housing throughout WA.
“We’re investing a record $3.2 billion in housing and homelessness measures and these land tax reforms complement our investments to increase housing supply,” concluded Carey.
