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Build-to-Rent developments that include affordable housing will have land tax cut in half, the Palaszczuk government says.
Developments under the program that feature at least 10 per cent of rental homes as affordable housing will have land tax slashed by 50 per cent payable for up to 20 years in an effort to drive more investment into delivering new rental supply.
Additional investment-attracting tax concessions for Build-to-Rent developments include a full exemption for the 2 per cent foreign investor land tax surcharge for up to 20 years along with a full exemption from the additional foreign acquirer duty for the future transfer of a Build-to-Rent site.
The state’s Treasury is set to consult with the property industry on the land tax cuts ahead of the proposed 1 July 2023 commencement in order to guarantee they can support the delivery of more homes.
Premier Annastacia Palaszczuk said the Queensland government is committed to “delivering a fair go for renters”.
“We know Build-to-Rent programs create more affordable housing in the areas where it is needed most,” Ms Palaszczuk stated.
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“Driving new investment into social and affordable housing is key to ensuring we get more Queenslanders into the safe, secure homes.”
Queensland State Treasurer and Minister for Trade and Investment, Cameron Dick, added that the private construction sector is “at capacity” across the country.
“Our government is working with industry to identify innovative ideas that create new pipelines of housing supply,” Mr Dick said.
“The Build-to-Rent projects that we’ve already brought to Queensland are already boosting rental supply.”
The Property Council of Australia has welcomed this move to increase the supply of rental housing in the state.
Property Council Queensland executive director Jen Williams said this announcement was “exactly the support needed” to quickly increase the supply of purpose-built rental housing in Queensland.
“Unlike in countries like the United States where rental housing is typically owned by institutional investors, tenants in Australia are heavily reliant on ‘mum and dad’ landlords renting out their investment properties on the open market,” Ms Williams said.
“This model has served the country well in the past, however with fewer rental properties available and ongoing demand pressures, there is a growing need for purpose-built rental accommodation that can be delivered at scale.”
NSW pilot plan to boost housing supply
Prior to the NSW state election, the NSW Labor Party announced on 11 January that it would boost housing supply and “deliver more affordable rental housing for regional NSW” if they won.
This would begin with $30 million for a pilot ‘Build to Rent’ program on the South Coast.
The now state government said at the time that under its plan, Landcom will be tasked with delivering the “extra rental stock” over two years.
[RELATED: How state governments moved on property in 2022]
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