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Australia: Senate Economics Committee report on build-to-rent tax incentive bills

The Senate Economics Legislation Committee released its report on build-to-rent tax incentive bills.

September 5, 2024

The Senate Economics Legislation Committee released its report on the Treasury Laws Amendment (Build to Rent) Bill 2024 and the Capital Works (Build to Rent Misuse Tax) Bill 2024—a draft bill and draft imposition bill that aim to introduce tax incentives to encourage investment and construction in the build‑to‑rent (BTR) sector.

In its report, the Committee recommends that the bills be passed, finding that the proposal to bring BTR development concessions in line with other investments, such as commercial offices, shopping centres, and affordable housing (which have a withholding tax rate of 15%) make BTR housing an equally attractive investment option.

The Committee also believes that the BTR bill's increased capital work deductions rate of 4% per year for eligible new BTR development will provide incentives to domestic investors.

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