Retirement living operators will be hard hit after the QLD Premier Annastacia Palaszczuk announced Build to Rent developments that include affordable homes will have land tax cut in half for 20 years.
The BTR developments only have to feature at least 10% of rental homes as affordable housing. The developer’s land tax will be cut by 50% payable for up to 20 years in an effort to drive more investment into delivering new rental supply.
The Property Council’s Retirement Living Council has been lobbying for funding to build affordable housing in retirement villages and Property Council Chief Mike Zorbas has been calling for a level playing field for retirement living operators.
Under the QLD Government’s additional investment-attracting tax concessions for BTR developments include a full exemption for the 2% foreign investor land tax surcharge for up to 20 years along with a full exemption from the additional foreign acquirer duty for the future transfer of a Build to Rent site.
The state’s Treasury is to consult with the property industry on the land tax cuts ahead of its proposed 1 July 2023 commencement in order to guarantee they can support the delivery of more homes.
“We know Build to Rent programs create more affordable housing in the areas where it is needed most,” Premier Palaszczuk stated.
New NSW Govt pilot plan to boost housing supply
Prior to the NSW state election, the NSW Labor Party announced on 11 January that it would boost housing supply and “deliver more affordable rental housing for regional NSW” if they won.
This would start with $30 million for a pilot ‘Build to Rent’ program on the South Coast.
The now State Government said at the time that under its plan, Landcom will be tasked with delivering the “extra rental stock” over two years.
