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Rental housing developers will keep tax breaks and be allowed to build their own infrastructure.
A single property on a large piece of land amid a densely developed area with many homes in Sydney on Nov. 26, 2024. Brook Mitchell/AFP via Getty Images
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With the current rate of construction falling short by around 30,000 rental properties every year, the New South Wales (NSW) government is turning to a mix of new and old incentives to encourage developers to fill the gap.
Expected to be announced as part of the coming budget on June 24, the package of measures will allow private developers to build public infrastructure on their land, while also extending the 50 percent land tax discount on build-to-rent developments beyond its planned end date of 2039.
To be eligible, a building must be owned and managed by a single entity, include at least 50 rental units, have been developed after 2020, and offer tenants a range of lease options, including fixed terms of at least three years.
Another tax cut—for owners of multi-unit properties primarily used as rental accommodations—will also be extended.
NSW Faces Approval and Land Hurdles
Federal Treasurer Jim Chalmers set out the Commonwealth’s “ambitious target” of building 1.2 million additional homes by June 2029 when he spoke at the National Press Club on June 18.
