Land Tax Exemptions for Eligible Build-to-Rent Projects in Western Australia

By Mary-Kate Ledger, Solicitor

The West Australian Government has introduced legislation to encourage housing development in Western Australia. The Land Tax Assessment Amendment (Built-to-Rent) Bill 2023 amends the Land Tax Assessment Act 2002 to provide a 50% land tax exemption for up to 20 years for eligible build-to rent developments in Western Australia.

Build-to-rent developments are large scale residential developments (40 or more dwellings) where all properties are rented out over mid to long term periods.

Eligibility Criteria

To qualify for the land tax exemption, the build-to-rent development must be:

  1. constructed or substantially renovated to provide at least 40 self-contained dwellings available for residential leases;
  2. owned by the same owner or group of owners;
  3. managed by the same management entity; and
  4. completed (to allow for lawful occupation) between 12 May 2022 and 1 July 2032.

Importantly, the dwelling cannot be restricted to certain classes of people unless it is necessary to ensure public health or safety, if the dwellings are social housing, or in prescribed circumstances.

Application of Exemption

The exemption for eligible build-to-rent developments will commence in the 2023/2024 assessment year and applies for 20 consecutive assessment years. If an eligible build-to-rent development stops meeting the above criteria within the first 15 years of being granted the exemption, retrospective land tax will be payable.

An eligible built-to-rent development may be expanded and contain less than 40 self-contained dwellings if certain criteria are met.

Please contact Paul McWilliams or Mary-Kate Ledger if you would like advice regarding eligibility for the proposed land tax exemption.

Disclaimer: This document contains a summary of relevant information or an opinion which is current at the date of publication. This document is not intended to constitute legal advice and does not take into account individual facts and circumstances. The reader must not rely on this document as advice.

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