The NSW government has halved land tax payments for build-to-rent housing project developers as part of incentives to give tenants greater certainty and boost housing construction amid the COVID-19 pandemic.
The land tax cut legislation, which will last for 20 years, is expected to be introduced into NSW parliament on Wednesday.
Construction on the build-to-rent premises must have commenced in July 2020 and must be a development of at least 50 units in metropolitan areas.
Projects must offer purpose-built rental units and include longer lease options.
“Build-to-rent is popular overseas, but still in its infancy in Australia and we want to remove barriers and allow this segment of the market to grow,” Treasurer Dominic Perrottet said in a statement on Wednesday.
“Renters benefit through greater choice and because the focus is placed on them, rather than just geared towards property owners, it has an added benefit of encouraging better quality rental properties and much longer-term leases.”
Perrottet said the changes would ensure build-to-rent developments in NSW were subject to similar state tax levels as build-to-sell developments.