The recently drafted legislation for build-to-rent housing stock released by the Federal Government has been endorsed by the Property Council of Australia, who say that the changes to tax settings will assist in reaching the desired housing targets set by the Albanese-led cabinet.
The changes to tax settings, which includes the implementation of a 15 percent managed investment trust (MIT) withholding rate without an affordable housing mandate could lead to an additional 150,000 apartments between now and 2033. If an affordable housing component was added to a 10 percent MIT withholding rate, it could see 10,000 affordable homes created by developers for essential workers.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars believes that the finer details of the final legislative documents will define the success of the National Housing Accord.
“The enormous potential of a 150,000-apartment pipeline hangs in the balance and there's only one chance to get this legislation right,” he says.
“Affordable housing is a crucial part of a broader housing mix, which is why we proposed an additional model that would protect the pipeline of 150,000 BTR apartments and deliver a further 10,000 affordable rental apartments at no extra cost to the taxpayer.
“The purpose of reducing the managed investment trust withholding rate from 30 to 15 per cent – which we welcomed – was to ensure that build-to-rent projects were put on a level playing field with other asset classes.
“Even with the best of intentions, drafting missteps could risk the delivery of high-amenity, securely tenured homes backed by the institutional capital that's critical to deliver the homes our nation desperately needs.
The Property Council says it hopes to work alongside the government to ensure the potential 160,000 additional homes will be realised.
Image: The Briscoe, designed by Rothelowman.
