Queensland build to rent state tax incentives

Queensland Government – Build to Rent tax incentives announced to increase the supply of rental housing in Queensland

ON 28 MARCH 2023, THE QUEENSLAND TREASURER ANNOUNCED LAND TAX AND TRANSFER DUTY INCENTIVES FOR THE BUILD-TO-RENT SECTOR IN QUEENSLAND.

Built upon outcomes of the Queensland Government’s October 2020 Housing Summit, this announcement follows the implementation of similar incentives by Queensland’s two biggest economic competitors, New South Wales and Victoria.

The focus of the Queensland Government is to increase the supply of affordable rental accommodation across Queensland that is required to respond to the housing crisis via Build to Rent residential developments[1].

QUEENSLAND STATE TAX CONCESSIONS

From 1 July 2023, for Build to Rent developments that feature at least 10 percent of rental homes as affordable housing, the Queensland Government will provide support by way of tax incentives as follows

1. 50% land tax discount on land tax payable in Queensland for up to 20 years on eligible Build to Rent developments;

2. Full exemption from foreign investor land tax surcharge in Queensland for up to 20 years; and

3. Full exemption from additional foreign acquirer duty for the future transfer of a Build to Rent site.

THE AIM OF THE TAX CONCESSIONS

The overall objective of the concessions is to increase the stock of affordable housing and support the initial development of the Build to Rent asset class. This will be achieved by:

•    Lowering the barriers to entry for this asset class.
•    Incentivising property developers to construct more Build to Rent affordable housing projects in Queensland and Australia.  
•    Developing new pipelines of housing supply.
•    Increasing business investment in Queensland to deliver and boost new rental supply.  
•    Encouraging investors nationally and internationally to Queensland to deliver purpose-built rental housing accommodation.

Applications for tax incentives with Queensland Revenue Office

Your local RSM Australia office can assist with obtaining the relevant tax incentives – land tax discount, surcharge land tax and additional foreign acquirer duty exemptions from the Queensland Revenue Office from 1 July 2023.