The property industry has welcomed the Victorian Government's decision to remove, subject to further consultation, a proposed requirement for BTR operators to offer minimum lease lengths to access important tax benefits.
The Victorian Government's introduction of a BTR tax benefits package in 2020 has been instrumental in supporting the sector's ability to grow and deliver new, well designed professionally managed rental homes in established parts of Melbourne.
An initial proposal to impose leasing restrictions within the State Taxation Acts Amendment Bill 2025 would've restricted the BTR sector's ability to cater for the variety of renters actively seeking a BTR home.
Victorian Executive Director of the Property Council, Cath Evans, said the government's commitment to consult with the sector before making any further decisions was welcome.
"Build-to-rent caters to renters looking for flexibility, high-quality design, and professionally managed homes - often on shorter leases," Ms Evans said.
"Analysis supplied by BTR members indicates anywhere between 10 and 30 per cent of BTR developments are occupied by people who have specifically sought a shorter-term lease. This is due to a number of factors including relocating for work or lifestyle reasons or simply wanting to try the BTR lifestyle for a shorter period before making a longer-term commitment.
"There is a significant need to grow the BTR sector further as part of our broader need to deliver more homes for Victorians. The need to provide certainty for operators and investors, and considering the voice of the renter, is critical in informing future decision making.
"A more competitive property taxation regime is critical across all parts of the housing market to keep investment flowing and delivering the homes our communities urgently need."
