The NSW Government is introducing a land tax discount for new build-to-rent housing projects until 2040 and a new Housing Diversity SEPP to provide more housing options, greater surety for renters, boost construction and support jobs during the COVID-19 recovery.
The Treasurer has now released the guidelines for the land tax reduction for build-to-rent properties, announced last year.
What this means
Eligible Build-to-Rent (BTR) properties will receive a 50 per cent reduction in land value for land tax purposes. The effect of this is that land tax will be reduced. BTR developments will also receive an exemption from foreign investor duty and land tax surcharges (or a refund of surcharges paid).
- The Treasurer’s guidelines contain the eligibility requirements
- The concession from foreign investor surcharges extends upon the existing exemption for build-to-sell developments.
- These concessions apply to BTR developments that commence construction after 1 July 2020.
- The concession is available from the 2021 land tax year.
- A significant proportion of the construction labour force hours must involve work by certain classes of workers: apprentices, trainees, graduates, long term unemployed workers, workers requiring upskilling, workers with barriers to employment or Aboriginal job seekers.
- The concessions are provided until 2040.
- Developers that subdivide within 15 years of receiving the concessions will be required to repay the benefit.
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