- Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 introduced to State Parliament
- Bill provides 50 per cent land tax exemption for eligible build-to-rent developments
- Exemption to be available from the 2023-24 assessment year
- Aims to increase the supply of rental properties by reducing the costs of build-to-rent developments
The McGowan Government has today introduced legislation to State Parliament to bolster the supply of rental properties in Western Australia.
The Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 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 development constructed for the purpose of providing multiple residential dwellings for lease under residential tenancy agreements.
To qualify for the exemption, available from the 2023-24 assessment year, a development must:
- contain at least 40 self-contained dwellings available for residential leases;
- be owned by the same owner or group of owners, and be managed by the same management entity; and
- be completed between 12 May 2022 and 1 July 2032.
Retrospective land tax would apply if an eligible build-to-rent development stops meeting the criteria within the first 15 years after the exemption is granted.
The proposed changes are part of the McGowan Government's ongoing work to build the capacity of WA's rental market and increase housing supply, with further incentives to boost housing at the affordable end of the market funded in the 2023-24 State Budget.
As stated by Premier Mark McGowan:
"Western Australia's rental market is under pressure at the moment and my Government is committed to doing what it can to help build its capacity.
"We need more rental properties to meet future demand, and the legislation introduced into State Parliament today will help to provide this.
"It aims to develop the build-to-rent industry by offering tax relief, increasing the future supply of local rental properties."
As stated by Commerce Minister Sue Ellery:
"It's no secret that rental vacancy rates have tightened across the country since the pandemic.
"I am pleased to see the introduction of the Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 into Parliament today.
"It will help to boost supply of rentals in the future and was a significant commitment we made in last year's Budget as we continue to address the challenges faced by renters in Western Australia.
"The introduction of this legislation brings us in line with New South Wales and Victoria where similar tax relief for build-to-rent developments is available."
