𝗚𝗼𝘃𝘁 𝗨𝗻𝘃𝗲𝗶𝗹𝘀 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗦𝘂𝗽𝗽𝗹𝘆 𝗣𝗹𝗮𝗻
The federal government has released draft legislation to introduce tax incentives in the build‑to‑rent sector, which are designed to stimulate investment and construction.
The tax incentives apply to build‑to‑rent projects, consisting of 50 or more apartments or dwellings, made available for rent to the general public. To qualify, developers must retain the dwellings under single ownership for at least 15 years and ensure at least 10% of dwellings in a project are made available as affordable tenancies.
“Attracting more investment into housing will support our ambitious national effort to build 1.2 million new, well‑located homes over five years from 1 July 2024,” Treasurer Jim Chalmers said.
"Industry estimates that changes to promote build‑to‑rent investment will make an important contribution to achieving this national target and could see an extra 150,000 rental homes built over the next decade."
Unfortunately, housing construction is actually trending in the opposite direction, according to new data from the Australian Bureau of Statistics. Construction started on 163,836 homes in 2023, compared to 182,807 the year before – a reduction of 10.4% (see graph).
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Interest rate rises are here, but you don’t have to fear with the right broker on your side.
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