The Western Australian Parliament has enacted the Land Tax Assessment Amendment (Build-to-Rent) Bill 2023.
This legislation grants a 50% land tax exemption for 20 years to qualifying build-to-rent (BTR) developments, housing projects specifically designed to provide multiple residential units for lease under residential tenancy agreements.
To qualify for the exemption, the following criteria must be met:
- A minimum of 40 self-contained dwellings must be available for residential leases lasting at least three years.
- The properties must be owned by the same owner or group of owners and managed by a single management entity.
- The completion date must fall between 12 May, 2022, and 30 June, 2032.
A retroactive land tax is imposed on eligible build-to-rent (BTR) development if it ceases to meet the criteria within 15 years of being granted the tax exemption.
This exemption is effective from the 2023-2024 assessment year.
