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Build-to-rent tax relief on the table for WA investors
The Western Australian (WA) government will introduce legislation to parliament to increase the land tax exemption for eligible build-to-rent developments from 50 per cent to 75 per cent.
The tax relief would not only ensure more housing in the state but also reduce barriers to investment, helping to increase the future supply of rental properties.
If passed, WA would have the most generous land tax exemption for build-to-rent developments nationwide.
The state government said the qualifying period for the increased exemption will be expanded to five years, including developments completed between 2025–26 and 2029–30.
The new exemption will also 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,” the WA government said.
It said that for land with an unimproved value of $10 million, the new exemption would yield total savings of more than $1.5 million over ten years compared with the tax that would apply without an exemption.
It added that the increased exemption complemented the government’s other build-to-rent development, including the $75 million Build to Rent Kickstart Fund.
Housing and Works Minister John Carey said the exemptions were built on the government’s 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,” he concluded.