WA Govt offers tax breaks for build-to-rent

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The Western Australian Government is looking to promote build-to-rent (BTR) developments as part of a $408 million housing push.

Build-to-rent projects are becoming more common in the eastern states, and several are under development in WA including Frame Court in Leederville (above); however, according to property and economics research firm Urbis, only 1,238 BTR dwellings have been built or are in the pipeline for the state, compared to 3,000 in Sydney and 10,000 in Melbourne.

In its State Budget for the year, the McGowan Labor Government has announced tax breaks for new BTR properties, which are designed to be rented direct from the operator rather than sold to private owners, and are a new form of competition for traditional retirement villages.

WA’s Housing and Homelessness Minister John Carey (pictured) said the incentive would help with availability and affordability of long-term rental accommodation in the state.

“We’re continuing our significant reforms to housing delivery in Western Australia, with a 50 per cent cut to land tax to promote build-to-rent developments, a housing option that is well-established in other parts of Australia but less used in WA,” he said.