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13 December 2024
The housing affordability crisis in Australia is at an all time-high and has spurred a range of recent tax measures targeting the build-to-rent (BTR) sector. These measures include reductions in income tax, stamp duty and land tax imposts for BTR investors, which are welcome changes that are clearly aimed at bringing investor returns on BTR projects in line with traditional commercial property asset classes such as office, retail, and industrial.
BTR can provide large-scale housing developments and build well-connected communities in locations which are close to transport and strategic centres, providing excellent opportunities for individuals and families to thrive. Whilst BTR may not be a complete solution to fixing housing affordability, it can allow Australians to live in locations they would not otherwise be able to afford. With rising cost of living pressures in Australia and the Australian dream of owning property becoming increasingly difficult to attain, we continue to encourage Federal and State Government investment and incentives to support growth in this area.
As the BTR investment landscape continues to strengthen and evolve, the benefits to the Australian economy from the growth of BTR are clear. The housing crisis and increased costs of living have made it impossible to deny that the growth of the BTR sector is key to providing homes for current and future generations.
This report discusses the impact of the various income tax, land tax and foreign surcharge duty changes and encourages Australian Governments and investors to continue the conversation on BTR, as it is an important part of the solution to addressing housing affordability and easing the cost of living pressures in Australia.
We hope that the speed of reform in the past 12 months at the State and Federal Government levels continues to resolve the remaining commercial barriers to investing in the BTR sector and adjacent asset classes (such as co-living). Watch this space!
If you would like to further discuss this alert, reach out to our team or your PwC adviser.
Manuel Makas
Kirsten Arblaster
Glenn O'Connell
Partner, Infrastructure and Deals Tax Lead Partner, Brisbane, PwC Australia
+61 409 000 370
Chris Colley
Partner, Sydney, PwC Australia
Chris Aboud
Partner, Global Tax, Sydney, PwC Australia
Angeline Young
Nick Rogaris
Partner, Corporate Tax, Real Estate and Infrastructure, Sydney, PwC Australia
+61 2 8266 1155
Sue Ann Khoo
Andrew White
Partner, Corporate Tax, Sydney, PwC Australia
Rachael Cullen
Barry Diamond
Ari Esmerian
Cherie Mulyono
Matthew Sealey
Nathan Greenfield
Aidan Douglas
Partner, Legal, Sydney, PwC Australia
