Queensland Government Helps Affordable Housing With Tax Breaks

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The Queensland Government has stepped up to help the growing Build-to-Rent (BTR) sector by providing significant tax incentives to developers. The idea came from the recent Queensland Housing Summit and is expected to provide an additional boost to the industry, following the initiatives of other states.

According to Queensland Treasurer Cameron Dick, “The build-to-rent sector is growing in Queensland and with these new concessions, a larger number of projects will include affordable housing. The Palaszczuk Government will slash land tax by up to 50 per cent for build-to-rent developments that feature at least 10 per cent of rental homes as affordable housing, driving more investment to deliver new rental supply.”

Dick added that foreigners who are usually subject to a two per cent land tax surcharge would enjoy a total exemption for up to 20 years and complete exemption from the Additional Foreign Acquirer Duty for the future transfer of a BTR site.

Queensland Premier Annastacia Palaszczuk stated they want to provide fair opportunities for renters. She added, “We know build-to-rent programs create more affordable housing in the areas where it is needed most. Driving new investment into social and affordable housing is key to ensuring we get more Queenslanders into safe, secure homes.”

This move was praised by the Property Council of Australia as the Queensland government quickly took action to increase the supply of rental housing in Queensland. According to Property Council Queensland Executive Director Jen Williams, Dick’s announcement was precisely what the state needed. She added that the BTR sector could overcome the financial hurdles it traditionally faced by allowing a wave of new housing.

The commencement of tax break is scheduled to commence on 1 July, and the Queensland Treasury is now working on consulting with the property industry regarding land tax concessions, ensuring that the initiative will be successful.

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