Draft legislation looks to increase availability of rental housing
The Australian government is looking to boost the availability of rental housing across the country through draft legislation aimed at introducing tax incentives to stimulate investment and construction in the build-to-rent sector.
According to a joint release from Treasurer Jim Chalmers (pictured left) and Housing Minister Julie Collins (pictured right), this push towards build-to-rent investments is a key component of a national strategy to construct 1.2 million new homes within the next five years, starting from 1 July 2024.
Chalmers and Collins pointed to industry estimates which state that build-to-rent investments could “make an important contribution to achieving this national target” by providing an additional 150,000 rental homes over the next decade.
“This is all about more homes for home buyers, more homes for renters and more homes for Australians who are doing it tough,” they said in the release.
“For a long time, we haven’t been building the homes that Australia needs and the former government wasted nearly a decade in office while these problems only got worse.”
Tax incentives for the build-to-rent sector
The proposed tax incentives will apply specifically to build-to-rent projects that consist of at least 50 apartments or dwellings, which must be made available for rent to the general public. These projects are required to maintain a single ownership for a minimum of 15 years, with at least 10% of the units designated as affordable housing options.
Incentives apply to eligible new projects that began construction after the policy was announced in last year’s budget, according to the joint release.
Additionally, the legislative proposal is set to function independently of any state or territory-specific measures aimed at supporting the build-to-rent sector.
“The Albanese Government has committed more than $25 billion in new housing investments over the next decade and will continue to work closely with all levels of government to ensure more Australians have a safe, secure and affordable place to call home,” Chalmers and Collins said in their statement.
“We have a plan to kickstart the construction of more homes, to attract more institutional investment, to cut red tape and planning hurdles, to help more Australians into home ownership, to support renters, and to help those who need a safe home the most.”
