Major move to promote more build-to-rents
Land tax exemption continues the government's 'commitment to accelerating housing supply across Western Australia'.
LEGISLATION passed in the Western Australian parliament this week will significantly boost the number of build-to-rent projects in the state.
The parliament passed legislation to increase the land tax exemption for eligible build-to-rent developments from 50 per cent to 75 per cent.
The change delivers the most generous land tax exemption for build-to-rent developments in the nation, growing the supply of long-term rental housing in Western Australia.
This will support the build-to-rent industry by reducing barriers to investment, helping to accelerate new build-to-rent projects and increase the supply of long-term rental housing.
The increased exemption will apply to developments that become operational between 2025-26 and 2029-30, and will be available for a 10-year period following completion.
After this, the existing 50 per cent exemption will continue to apply for a further 10 years.
To be eligible, developments must meet existing criteria, including providing at least 40 self-contained dwellings available for a minimum of three-year residential leases.
Expansions of existing build-to-rent developments that become operational between 2025-26 and 2029-30 can also qualify for the increased exemption.
Consistent with the existing exemption, retrospective land tax will apply where a development ceases to meet the eligibility criteria within the first 15 years, encouraging investors to maintain long-term rental supply.
WA treasurer Rita Saffioti said the exemption continued the government’s “commitment to accelerating housing supply across Western Australia”.
“These changes will help get more build-to-rent projects off the ground, so we can deliver more affordable rentals and housing choice,” she said.
Finance minister David Michael said the passing of this legislation “is a major milestone in delivering more housing for Western Australians”.
“The government is doing everything it can to accelerate housing supply and build-to-rent developments will play a key role in supplying more rental options,” he said.
Housing and works minister John Carey said: “We are funding a record number of build-to-rent projects and these tax changes will support more of these developments to get off the ground.”
