REIWA CEO Cath Hart has welcomed new legislation providing a 50 per cent land tax exemption over 20 years for eligible build-to-rent projects.

“Build-to-rent is seen as an innovative, contemporary solution to get more supply into the market and this incentive by the McGowan Government will reduce costs and encourage much-needed development in this space,” Ms Hart said.

“The market is in the midst of a rental crisis and any steps to make more homes, particularly more affordable homes, available are very welcome.

“It won’t solve the problem overnight but it is a move in the right direction and will address future demand.”

Ms Hart said the State legislation was supported by the tax concessions announced in the Federal Budget last week.

“The Federal Government will increase the tax rate for the annual capital works tax deduction (depreciation) to 4 per cent for build-to-rent development,” she said.

“It will also reduce the final withholding tax rate from 30 per cent to 15 per cent, on eligible fund payments from managed investment trust investments from 1 July 2024. 

"These measures should all help encourage these projects and increase housing supply over time. 

“These are positive steps and it’s also important to have a stable regulatory environment for the rental market to ensure investment remains attractive to investors large and small.”