The Minns Labor Government has today introduced a bill to Parliament extending tax cuts to boost new build-to-rent homes.
The legislation means that owners of an eligible new build-to-rent development will be able to access a land tax concession indefinitely, rather than the previous end date of 2039 which was set by the former government.
This ongoing program provides:
- A 50 per cent reduction in the assessable land value of eligible build-to-rent properties. There is no cap on the number of years owners can apply for the concession,
- Eligibility requirements including that construction have commenced on or after 1 July 2020 and the building has not been used for any other purpose, and
- A prohibition stopping build-to-rent properties from being subdivided, or otherwise having ownership divided, within the first 15 years of accessing the concession.
Removing the program's end date gives confidence to developers who are making long term investment decisions, now. The changes mean developers can offer longer-term lease options, better security for tenants and more housing choices for people at different life stages.
The Minns Labor Government is working to build more homes for more people across NSW, and that includes build-to-rent options approved or underway including:
- 60 new affordable build-to-rent homes under construction in Bombaderry and due for completion in 2026.
- Approved plans for 50 new build-to-rent apartments via Landcom in Lismore.
- Plans are being finalised for 220 new build-to-rent apartments for essential workers in Annandale.
This bill also provides for exemptions or refunds for rates of stamp duty and land tax applied to foreign developers who qualify for the program.
This is part of the Minns Government's plan to build a better NSW with more homes, parks and services, so young people, families and key local workers have somewhere to live and in the communities they choose.
Treasurer Daniel Mookhey said:
"Extending the tax cuts for build-to-rent developers gives industry the certainty to invest now.
"That confidence means we can unlock a steady pipeline of build-to-rent developments to build high-quality rental homes across NSW."
Minister for Planning and Public Spaces Paul Scully said:
"In addition to the nine build-to-rent projects in the planning system, Landcom is undertaking build-to-rent projects in Bombaderry, Lismore and Annandale - and this legislation will help unlock many more across the state.
"This change removes unnecessary red tape and gives developers the confidence to commit to projects that will deliver homes for decades to come."
