Date: 9 April 2024 – 22 April 2024

In the 2023–24 Budget, the Australian Government announced that it would encourage investment and construction in the build‑to‑rent (BTR) sector. Following initial consultations with industry, Treasury is currently seeking views from interested parties on the draft legislation and explanatory materials. A policy fact sheet is also available to assist stakeholders and interested parties in the consultation phase.

In the Budget, the government announced that for eligible new BTR projects where construction commences after 7:30 pm AEST on 9 May 2023 it would:

  • increase the rate for the capital works tax deduction from 2.5 per cent to 4 per cent per year;
  • reduce the final withholding tax rate on eligible fund payments from managed investment trust investments from 30 per cent to 15 per cent.

The government also committed to consulting on implementation details, including:

  • whether a minimum proportion of dwellings should be offered as affordable tenancies
  • the length of time dwellings must be retained under single ownership before being able to be sold (the announcement indicated a 10‑year period).

Further information can be accessed here.

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