- Includes a minimum 50 per cent discount on land tax
- 19-year exemption for foreign investor surcharges for eligible developments also included
- Changes are effectively immediately
The New South Wales Government has introduced a raft of measures which it says will increase the choice of properties for renters.
To facilitate build-to-rent housing developments, the State Government will be offering a discount equivalent to a minimum of 50 per cent reduction on land tax.
The reforms are set to be long-term with one measure including a surcharge exemption for foreign investors until 2040 for certain build-to-rent developments.
“We’re leading the way in Australia when it comes to build-to-rent housing, making it easier for more people to have access to housing that suits their needs,” said State Treasurer Dominic Perrottet
“We would welcome support from the Federal Government to supplement these vital reforms through their own policies.”
Guidelines included in the reforms include tenants being offered a range of lease term choices for eligible properties – including a genuine option of entering a minimum three-year fixed-term lease.
Reform guidelines include unified ownership, no subdivisions during the first 15 years of receiving concessions and that a property must have a minimum of 50 dwellings to be used exclusively as build-to-rent properties in order to be eligible.
Rob Stokes, the Minister for Planning and Public Spaces, believes the reforms will remove barriers that will subsequently support the growth of the build-to-rent market.
Ultimately he believes alongside creating more jobs, future tenants will have access to a greater of housing options.
“As our housing system evolves to better meet the needs of NSW households and families, it’s critical our planning system is responsive and flexible to new development models,” Mr Stokes said.
“For too long our housing market has ridden the boom and bust cycle, and build-to-rent housing can offer longer-term certainty for renters and investors alike.
“These changes are a critical step in our plan to simplify the planning system to support investment and growth in the wake of the pandemic.”
The planning changes are immediately effective and will be featured in the upcoming Housing States and Environmental Planning Policy (SEPP) which is due to be released in the next few months.