Renters will have more choice and the property industry will be transformed by a raft of planning and tax reforms that will make build-to-rent housing a reality in NSW.
Treasurer Dominic Perrottet and Minister for Planning and Public Spaces Rob Stokes today finalised changes to planning and tax policies that will boost the economy and create greater choice for renters.
“We’ve levelled the playing field so build-to-rent developments will see similar overall amounts of State tax as comparable build-to-sell developments,” Mr Perrottet said.
“To encourage more build-to-rent housing there will be a discount equivalent to at least a 50 per cent reduction on land tax and an exemption from foreign investor surcharges for eligible build-to-rent developments until 2040.
“We’re leading the way in Australia when it comes to build-to-rent housing, making it easier for more people to have access to housing that suits their needs. We would welcome support from the Federal Government to supplement these vital reforms through their own policies.”
As part of the guidelines, eligible build-to-rent properties must offer tenants a range of lease term choices, including a genuine option to enter into a fixed term lease of at least three years.
Minister Stokes said it was crucial to remove barriers and allow the build-to-rent market to grow, supporting jobs and ensuring more people had access to a variety of housing options.
“As our housing system evolves to better meet the needs of NSW households and families, it’s critical our planning system is responsive and flexible to new development models,” Mr Stokes said.
“For too long our housing market has ridden the boom and bust cycle, and build-to-rent housing can offer longer term certainty for renters and investors alike.
“These changes are a critical step in our plan to simplify the planning system to support investment and growth in the wake of the pandemic.”
The planning policy sets out new provisions for build-to-rent housing, and to be eligible for the tax concessions, a build-to-rent property must meet criteria set out in legislation and in the Treasurer’s Guidelines.
Eligibility criteria for the tax concessions include that a property has at least 50 dwellings used specifically for the purposes of build-to-rent, is held under unified ownership and is not subdivided in the first 15 years of receiving the concessions.
The guidelines will support the Chief Commissioner of State Revenue in determining eligible build-to-rent developments.
The build-to-rent planning changes are effective immediately and will be included in the new consolidated Housing State Environmental Planning Policy (SEPP), which will be finalised in the coming months.
For more information download the Treasurer’s Guidelines.
For more information on the planning policy visit our Build-to-rent housing webpage.