The Queensland Government has announced it will halve land tax obligations and scrap the Foreign Land Tax Surcharge for Build to Rent projects developments that include at least 10% affordable rental homes up to 20 years, which The Property of Council of Australia has supported.
Among the incentives includes a full exemption from the 2% foreign investor land tax surcharge for up to 20 years, and a full exemption from the Additional Foreign Acquirer Duty for the transfer of a Build to Rent site in the future.
The Property Council of Australia have made it clear that this is the support the sector needs to help rapidly increase the supply of Build to Rent accommodation in Queensland.
“Unlike in countries like the United States where rental housing is typically owned by institutional investors, tenants in Australia are heavily reliant on ‘mum and dad’ landlords renting out their investment properties on the open market. This model has served the country well in the past, however with fewer rental properties available and ongoing demand pressures, there is a growing need for purpose built rental accommodation that can be delivered at scale. Despite this huge tenant demand, there are many barriers to investment that make it difficult for institutional landlords to provide rental accommodation in Australia.
“Today’s announcement will help Queensland’s emerging Build to Rent sector overcome many of the financial hurdles it traditionally faces and will spur on a wave of new housing, providing better outcomes for tenants. Initiatives like this one embody the Government leadership and focus on increasing supply that is required to respond to the housing crisis.
“The Property Council has championed Build to Rent for the better part of the last decade and today’s announcement will encourage investors from around the world to look to Queensland to deliver well-located, fit for purpose rental housing.”
Jen Williams, Executive Director, Property Council Queensland
Queensland Premier Annastacia Palaszczuk said her government was committed to delivering a fair go for renters.
“We know Build to Rent programs create more affordable housing in the areas where it is needed most. Driving new investment into social and affordable housing is key to ensuring we get more Queenslanders into the safe, secure homes.”
Queensland Premier Annastacia Palaszczuk
Queensland Treasury will consult with the property industry on the land tax concessions ahead of a proposed 1 July commencement.
Cameron Dick, the Treasurer and Minister for Trade and Investment said the government is working with the industry to identify innovative ideas that create new pipelines of housing supply.
“The Build to Rent projects that we’ve already brought to Queensland are already boosting rental supply.”
Cameron Dick, Treasurer and Minister for Trade and Investment
