Following an economic review, the Queensland Government has recently announced the Build-to-Rent (BTR) Pilot Project, approving two projects to deliver up to 240 affordable rental apartments to the market. These affordable apartments will be offered to tenants at 25% discount to market rent, subject to eligibility.
Developers in Queensland are yet to receive further encouragement to enter into the BTR market with the absence of tax concessions, reduction in land holding costs that are being offered in other States. In the absence of a national approach, the New South Wales and Victorian governments have taken the following proactive measures in an effort to entice large-scale institutional investments in the BTR market to their States:
New South Wales
50% reduction in land tax;
The following exemptions until 2040:
Surcharge Purchaser Duty;
Land Tax Surcharge (post construction).
Victoria
Establishment of Industry Working Group and an Advisor Committee to promote better understanding of BTR;
Provision of the following exemptions:
Foreign Purchaser Additional Duty;
Absentee Owner Surcharge (ie Land Tax) (during construction only).
Although Queensland is yet to roll out any additional incentives for BTR developments in the lead up to the State election there has been some announcements around potential incentives to stimulate the BTR market in Queensland. It will be interesting to see whether any further incentives are offered to the BTR market following the election.
Shand Taylor Lawyers have extensive experience in acting for developers in a wide range of projects and are able to assist with the planning and delivery of build to rent developments. Please feel free to contact Patrick Sherlock or Matthew Shannon of our commercial team to discuss your options further.
Matthew Shannon, Partner
(07) 3307 4506
Patrick Sherlock, Senior Associate
(07) 3307 4542