- Land tax exemption for build-to-rent developments lifted from 50 per cent to 75 per cent - the most generous support in the nation
- Supporting the build-to-rent industry to drive rental supply by reducing barriers to investment
- Complements other government initiatives to support build-to-rent developments, including the $75 million Build to Rent Kickstart Fund
- Part of Cook Government's priority to ensure every Western Australian has a home
The Cook Government will increase land tax exemption for build-to-rent developments as part of its efforts to ensure every Western Australian has a home.
Legislation will be introduced to Parliament today to increase the land tax exemption for eligible build-to-rent developments from 50 per cent to 75 per cent, fulfilling the government's election commitment.
It will deliver the most generous land tax exemption for build-to-rent developments in the nation.
The tax relief aims to further support the build-to-rent industry in Western Australia by reducing barriers to investment, helping to increase the future supply of rental properties.
Large scale build-to-rent developments are an emerging model of housing in Western Australia where apartments are developed for the purposes of renting rather than being on-sold, including longer term tenancies.
The qualifying period for the 75 per cent will be expanded to five years, with developments completed between 2025-26 and 2029-30 able to qualify for the increased exemption.
The increased exemption will apply to eligible new build-to-rent developments for a 10-year period after being completed.
After the initial 10 years, the existing 50 per cent exemption will apply for the next ten assessment years.
Indicatively, for land with an unimproved value of $10 million, the new exemption represents total savings of more than $1.5 million over ten years when compared with the tax that would apply if no exemption was available.
Developments must meet the eligibility criteria for the existing exemption, including that they must provide at least 40 self-contained dwellings available for three-year residential leases.
Existing build-to-rent developments which are expanded prior to 2029-30 can also qualify for the increased exemption.
These exemptions complement other government initiatives to support build-to-rent developments, including its $75 million Build to Rent Kickstart Fund, which will help attract private sector investment into build-to-rent developments by providing concessional projects through Keystart.
The expression of interest process has now closed with a strong response received.
To find out more, head to: https://www.wa.gov.au/government/announcements/build-rent-land-tax-exemption
As stated by Treasurer Rita Saffioti:
"Our government is doing everything it can to accelerate housing supply, with build-to-rent developments key to delivering more affordable rentals across the State.
"These exemptions and our $75 million Build to Rent Kickstart Fund will support more developments to get off the ground sooner and help more Western Australians into a home.
"It's all part of our record $6.3 billion investment in housing and homelessness measures since 2021."
Comments attributed to Finance Minister David Michael:
"Our government is committed to ensuring every Western Australian has a home, which is why we are expanding land tax exemptions for build-to-rent developments.
"This is a sensible change that will boost investment in the build-to-rent sector ensuring more supply comes to market, quicker."
As stated by Housing and Works Minister John Carey:
"These exemptions build on our government's strong commitment to working with industry to deliver more supply to the housing and rental markets.
"We're already backing build-to-rent projects with major government-led developments underway, with this change to help drive private investment in the sector to accelerate rental supply."
