To encourage the creation of new rental housing, the Queensland Government has announced a reduction in land tax of up to 50 per cent for build-to-rent developments that include at least 10 per cent affordable rental homes up to 20 years.
Among the suite of incentives includes a full exemption from the two per cent 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.
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.”
The Property Council of Australia applauded the state government’s move to quickly increase the supply of rental housing in Queensland, through throwing its support behind Queensland’s burgeoning build-to-rent sector.
Property Council Queensland Executive Director Jen Williams said the announcement was exactly the support needed to help rapidly increase the supply of purpose-built rental 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.
“The 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,” Ms Williams said.
Queensland Treasury will consult with the property industry on the land tax concessions ahead of a proposed 1 July commencement.
Treasurer and Minister for Trade and Investment Cameron Dick said the government is working with 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,” he said.