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Encouraging more build‑to‑rent housing
The Australian Government introduced tax incentives to encourage more investment in new build-to-rent developments to help boost supply in the private rental market by:
- reducing the withholding tax rate for eligible fund payments from managed investment trusts attributed to newly constructed build-to-rent developments from 30 per cent to 15 per cent and
- increasing the capital works tax deduction (depreciation) rate from 2.5 to 4 per cent per year, increasing the after tax returns for newly constructed build-to-rent developments.
Consultations
See Build‑to‑rent tax concessions
The government will also allow foreign investors to purchase established build-to-rent developments and apply lower application fees to these investments.
This builds on the government’s 2023–24 Mid‑Year Economic and Fiscal Outlook (MYEFO) commitment to apply lower fees to foreign investment applications for new build-to-rent developments.
Visit Australian Tax Office's Fees for foreign residential investors
These incentives aim to encourage more institutional investment and construction in the build-to-rent sector, helping expand Australia’s supply of rental housing.
Increasing Commonwealth Rent Assistance
Commonwealth Rent Assistance helps people who rent privately or live in community housing. This payment is not taxed.
You may be able to get Rent Assistance if you get:
- a pension
- an allowance
- more than the base rate of Family Tax Benefit Part A.
The maximum rate of Rent Assistance went up by 15 per cent in September 2023. It increased again by 10 per cent in September 2024.
These increases were on top of regular indexation. Indexation happens twice a year.
Visit Services Australia’s website to view Rent Assistance
Strengthening renters’ rights
In August 2023, National Cabinet agreed to A Better Deal for Renters to harmonise and strengthen renters’ rights across Australia. This includes:
- Developing a nationally consistent policy to implement a requirement for genuine reasonable grounds for eviction.
- Moving towards limiting rent increases to once a year.
- Phasing in minimum rental standards.
Visit Prime Minister of Australia's Meeting of National Cabinet – A Better Deal for Renters