- New laws to increase supply of rental properties by reducing costs of build-to-rent developments
- Provides 50 per cent land tax exemption for eligible build-to-rent developments
The Cook Labor Government has taken another step to boost Western Australia's housing supply with the recent passage of new legislation in State Parliament.
The Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 aims to increase the number of rental properties available across the State.
The new law provides a 50 per cent land tax exemption for up to 20 years for eligible build-to-rent developments.
A build-to-rent development is a housing project constructed for the purpose of providing multiple residential dwellings for lease under residential tenancy agreements.
Key elements to qualify for the exemption include the development:
- Containing at least 40 self-contained dwellings available for residential leases of at least three years;
- Being owned by the same owner or group of owners and managed by the same management entity, and;
- Being completed between 12May2022 and 30 June 2032.
Retrospective land tax will apply if an eligible build-to-rent development stops meeting the criteria within the first 15 years after the exemption is granted. The exemption is available from the 2023-24 assessment year.
Owners of eligible build-to-rent developments who have already paid land tax for 2023-24 can apply for the exemption. If approved, they will receive a refund of the land tax paid.
As stated by Treasurer Rita Saffioti:
"Our Government is focused on doing what we can to help build the capacity of WA's rental market and increase housing supply.
"We're doing everything we can to boost housing supply, and this legislation is another great incentive to get this happening."
As stated by Finance Minister Sue Ellery:
"This legislation is a win for the local rental market and our Government remains committed to ensuring we boost the supply of rentals now and into the future.
"I encourage those in the build-to-rent development industry to take advantage of this tax relief."
As stated by Planning Minister John Carey:
"This is an important piece of legislation as the Cook Government continues to do everything we can to accelerate the delivery of housing throughout WA.
"We're investing a record $3.2 billion in housing and homelessness measures and these land tax reforms complement our investments to increase housing supply."
