News and media releases

Land Tax Build to Rent

17 December 2020

The NSW Government is introducing 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 concession from foreign investor surcharges extends upon the existing exemption for build-to-sell developments.
  • These concessions apply to BTR developments that commence construction after 1 July 2020.
  • The concession is available from the 2021 land tax year.
  • A significant proportion 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.
  • Guidelines are being finalised by NSW Treasury setting out the eligibility criteria, including what constitutes a build-to-rent development. The criteria may include reference to planning or development standards; minimum lease conditions offered to tenants; development scale; and ownership and management structure.
  • The concessions are provided until 2040.
  • Developers that subdivide within 15 years of receiving the concessions will be required to repay the benefit.

How to apply

We are currently streamlining the application process to make it easy to apply for this concession. We will notify you as soon as the application process becomes available.

If you would like to lodge an expression of interest in the concession you can do so by:

  • Logging into our online services using your Client and Correspondence ID numbers. These numbers are located on your most recent land tax assessment notice, or correspondence from Revenue NSW
  • Select the “Upload document” option from the menu
  • Upload a document with the following information -
    • Name the application will be made under (if different to name on file)
    • Contact details (name, email address etc)
    • Details (lot and plan) of the property that the concession will be claimed for
    • Proposed number of dwellings for the land concession will be claimed for

Once further information is available, one of our officers will contact you.

Note – the expression of interest is not an application for the concession. Once the application process is finalised you may be advised to formally submit your application

At this time, we are unable to provide specific information regarding documents that you may need to provide if you wish to apply for the concession.

Further information

BTR guidelines and the eligibility criteria are still being finalised by NSW Treasury, as soon as these guidelines are available, we will provide further information.