The NSW Government introduced a land tax discount for new build-to-rent housing projects until 2040 and a new Housing Diversity SEPP to provide more housing options, greater surety for renters, boost construction and support jobs during the COVID-19 recovery.

What this means

Eligible Build-to-Rent (BTR) properties will receive a 50 per cent reduction in land value for land tax purposes. The effect of this is that land tax will be reduced. BTR developments will also receive an exemption from foreign investor duty and land tax surcharges (or a refund of surcharges paid).

Key Facts

• The eligibility requirements are set out in the Treasurer’s Guidelines and Revenue Ruling G 014.
• The concession from foreign investor surcharges extends upon the existing exemption for build-to-sell developments.
• These concessions apply to Build To Rent developments that commence construction after 1 July 2020.
• The concession is available from the 2021 land tax year until 2040.
• The buildings on a parcel of land must contain at least 50 self-contained dwellings used specifically for the purpose of build-to-rent.
• At least 10 per cent of the construction labour force hours must involve work by certain classes of workers: apprentices, trainees, graduates, long term unemployed workers, workers requiring upskilling, workers with barriers to employment or Aboriginal job seekers.
• Developers that subdivide within 15 years of receiving the concessions will be required to repay the benefit.
• Build to rent concession will apply once an occupation certificate has been issued.

Watch our video on Build to Rent

How to apply

Log into our online services using your Client and Correspondence ID. These numbers are located on your most recent land tax assessment notice, or correspondence from Revenue NSW.

• Select ‘Lodge a Return’

Supply the following evidence:

• Development Application containing:
  • Compliance with relevant affordable housing policies that may be imposed under the Environmental Planning and Assessment Act 1979
  • Building on a parcel of land contains 50 self-contained dwellings used specifically for the purpose of build to rent
• Occupation Certificate
• Documents that show the build-to-rent properties are managed by a single management entity
• Construction labour force hours involved no less than 10 per cent of certain classes of workers as stated in Revenue Ruling G014.