Shadow Treasurer Chris Bowen announced that the Labor Party, if elected, would revamp the build-to-rent scheme.
The proposed change will include cutting the managed investment trust withholding rate from 30% to 15% for tax distributions attributable to investments in build-to-rent housing.
“Build-to-rent provides more stable, long-term tenancies and more housing in desired locations close to public transport and close to employment opportunities. This is good for families who want to spend more time with each other, and less time traveling to and from work,” Bowen said.
The Property Council of Australia welcomed the Labor Party’s commitment to support the establishment of build-to-rent housing in Australia.
“Labor’s pledge to tackle the taxation disincentive for institutional investors by creating a level playing field for managed investment trust tax rates will help to attract investment into the build-to-rent sector. This will help deliver better choice and more certainty for the 2.7 million Australians who rent their homes,” said Property Council of Australia Chief Executive Ken Morrison.
The property council has been rallying for more consistent taxation treatment for build-to-rent housing to aid the growth of the sector at scale in the country.
“Getting institutional investors behind this new property type is critical to delivering the new housing units and bringing the management expertise to enable the sector to flourish in Australia,” Morrison said.
The build-to-rent sector is now starting to gain attraction in Australia, but it has been thriving in overseas markets such as the United Kingdom and the United States.
“Build-to-rent will deliver Australians who rent more choice and more certainty while stimulating new construction and supporting jobs at a challenging time for the property industry which supports 1.4 million jobs across Australia,” Morrison said.
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