No end to tax concession for rental unit investors
Developers will get improved guidelines for building their own roads to support more homes as concessions for build-to-rent developments are extended.
UNITS built to rent in Australia’s most expensive property market will have tax concessions extended indefinitely as developers are encouraged to provide infrastructure to boost housing.
Supporting infrastructure has been touted as a handbrake on the development of new homes as NSW tries to build hundreds of thousands of dwellings before the end of the decade.
Plans are in motion to boost density in Sydney, where the median dwelling value is the highest of the nation’s capital cities.
Concessions for build-to-rent properties, introduced by the previous coalition government, halve the assessed land value of the property for tax purposes.
The NSW budget due on Tuesday will continue the concessions “indefinitely” rather than ending in 2039.
It’s hoped the change will provide long-term certainty for investors and boost supply of high-quality rentals.
“These measures will give developers the certainty they need to build more homes, faster,” Treasurer Daniel Mookhey said.
“We are making sure we build the homes we need, along with the essential infrastructure we need to go with them.”
New guidelines for “works-in-kind” developments will aim to speed up housing-associated infrastructure delivery.
The agreements allow developers to build roads or provide land for schools and hospitals rather than paying for the state to do it.
“You can’t build new homes without roads, parks, and schools to match, and the community shouldn’t have to wait for them,” Premier Chris Minns said.
Industry will be invited to provide feedback on the proposed guidelines for evaluating and managing proposed infrastructure development.
The tweaks follow other plans to boost housing through rezoning and higher-density in areas with established infrastructure, as well as plans to build 30,000 new homes on surplus government land, including 8400 social housing units.
The government’s Housing Delivery Authority has also declared 53,000 proposed new homes as state-significant developments since being established in December.
The authority overrides local councils in a bid to speed up planning assessments for major housing projects.
A national plan to deliver 1.2 million new homes across Australia by mid-2029 requires NSW to build 377,000 new homes, but the state is not on track to meet that target.
