The Cook Government will increase land tax exemption for Build to Rent developments as part of its efforts to ensure every Western Australian has a home. Legislation was introduced to Parliament on the 18 February to increase the land tax exemption for eligible Build to Rent developments from 50% to 75%, fulfilling the government’s election commitment.
The tax relief aims to further support the Build to Rent industry in Western Australia by reducing barriers to investment, helping to increase the future supply of rental properties.
Large scale Build to Rent developments are an emerging model of housing in Western Australia where apartments are developed for the purposes of renting rather than being on-sold, including longer term tenancies.
“Our government is doing everything it can to accelerate housing supply, with Build to Rent developments key to delivering more affordable rentals across the State. These exemptions and our $75m Build to Rent Kickstart Fund will support more developments to get off the ground sooner and help more Western Australians into a home. It’s all part of our record $6.3bn investment in housing and homelessness measures since 2021.”
Rita Saffioti, Treasurer
The qualifying period for the 75% will be expanded to five years, with developments completed between 2025/2026 and 2029/2030 able to qualify for the increased exemption. The increased exemption will apply to eligible new Build to Rent developments for a ten-year period after being completed.
After the initial ten years, the existing 50% exemption will apply for the next ten assessment years. Indicatively, for land with an unimproved value of $10m, the new exemption represents total savings of over $1.5m over ten years when compared with the tax that would apply if no exemption was available.
“Our government is committed to ensuring every Western Australian has a home, which is why we are expanding land tax exemptions for Build to Rent developments. This is a sensible change that will boost investment in the Build to Rent sector ensuring more supply comes to market, quicker.”
David Michael, Finance Minister
Developments must meet the eligibility criteria for the existing exemption, including that they must provide at least 40 self-contained dwellings available for three-year residential leases. Existing Build to Rent developments which are expanded prior to 2029/2030 can also qualify for the increased exemption.
“These exemptions build on our government’s strong 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.”
John Carey, Housing and Works Minister
These exemptions complement other government initiatives to support Build to Rent developments, including its $75m Build to Rent Kickstart Fund, which will help attract private sector investment into Build to Rent developments by providing concessional projects through Keystart.
The expression of interest process has now closed with a strong response received.
