The Victorian Government has announced the build-to-rent scheme has been expanded in a bid to encourage investors to build rental properties.
In Victoria, eligible build‑to‑rent developments receive both a 50 per cent land tax discount and full exemption from the Absentee Owner Surcharge (AOS).
The scheme which was originally announced to end in 2040, will now provide the certainty of a full 30-year concession to projects starting before 2032.
Traditionally, developers look to sell off the property when they are built, however, a new trend of build-to-rent is being encouraged to help assist with housing shortages and affordability constraints.
Build‑to‑rent presents an opportunity to increase rental supply, improve the diversity of housing choice and mix, and provide more long‑term rental options.
Improving access for renters has been part of the Victorian Government’s ongoing work and investment to ensure everyone has housing security.
The previously announced, $5.3 billion Big Housing Build will deliver 12,000 social and affordable homes over four years, creating more than 10,000 jobs in the process.
Victorian Treasurer, Tim Pallas believes the expansion of the build-to-rent initiative will continue to assist Victorians to recover from the longest period of lockdown of any location in the world.
“This will not only ensure Victorians have access to more rental homes and a greater range of housing options – it will create thousands of jobs as we rebuild from the coronavirus pandemic,” Mr Pallas said.
“Home has never felt as important as in the past 20 months and this initiative will ensure Victorians have access to safe and secure rental properties for a long time in the future.”