Build-to-rent tax slashed to spur investment

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Tax changes will spur more investment in the build-to-rent sector.

The managed investment trust withholding tax rate for residential build-to-rent developments will be halved from 30 per cent to 15 per cent,The capital works tax deduction, or depreciation rate, applied to build-to-rent projects will also be increased to 4 per cent a year.

Build-to-rent apartment projects are designed and built by a developer who retains ownership of the building when it is complete.Under the budget changes, projects consisting of 50 or more apartments that are made available for rent to the general public will be eligible. The reduced managed investment trust withholding tax rate for residential build-to-rent will apply from July 1, 2024.

 

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