The Property Council of Australia has announced that it has urged federal opposition parties and independents to help support the delivery of 160,000 new rental homes that Australia desperately needs.
The Government’s Build to Rent housing legislation, currently before the Parliament, aims to create a level investment playing field by lowering the managed investment trust withholding tax for Build to Rent assets to the same level as other types of investments – like offices, shopping centres and hotels.
Property Council Chief Executive Mike Zorbas stated that Build to Rent housing can help bridge Australia’s stark housing deficit, as it does in the UK, Canada and the US.
2023 modelling from EY, commissioned by the Property Council, showed that implementing a 15% managed investment trust (MIT) withholding tax rate and an incentivised rate of 10% for projects with affordable housing could deliver of 160,000 homes over ten years.
“We desperately need more homes in Australia, across the full spectrum – from social and affordable housing, to market rental housing and to homes for people to purchase.
“With rental vacancies at historic lows across the country, delaying legislation that can boost the number of rental properties will work against our need for greater supply and affordability of housing across the country.
“We need all parties to recognise the essential role Build to Rent can play as a pathway to more stable household savings and faster savings for future home ownership. The average first home buyer today is in their mid to late 30s. Build to Rent can provide stable, secure and quality housing for many Australians who are saving for their first home or choose to rent.
“The longer we delay, the longer it will take for Australians to live in secure, stable and high-quality rental housing that is purpose-built for them. If the draft of the legislation is amended, it could unlock 160,000 rental homes by 2023. That is the gold medal outcome that Australian’s need.”
Mike Zorbas, Chief Executive, Property Council of Australia
The Property Council represents the largest global investors in Build to Rent housing and the leading owners, operators, and investors in Australia’s own nascent Build to Rent sector.
For the past decade, the Property Council has advocated for an Australian investment regime that attracts institutions to Build to Rent housing by ensuring investment parity with other types of property.
