The Hon Dr Jim Chalmers MP
Treasurer

The Hon Clare O'Neil MP
Minister for Housing and Homelessness

Today we've passed legislation to deliver new tax breaks to support the construction of around 80,000 new homes to rent.

We’re working across Government and with states and territories to help build more homes, making it easier for Australians to rent and buy.

This will encourage investment and construction in the build‑to‑rent sector.

Our tax incentives apply to build‑to‑rent projects, consisting of 50 or more apartments or dwellings, made available for rent to the general public.

The homes must be retained under single ownership for at least 15 years and a minimum 10 per cent of dwellings in a development need to be made available as affordable tenancies.

The Government has made some refinements to secure more affordable tenancies and more protections for renters.

All tenancies must be offered for a minimum of five years, instead of three years.

Rules will be made to:

• Require affordable tenancies to be managed by community housing organisations;
• Prevent BTR operators from using no fault evictions; and
• Ensure that rents on affordable tenancies are no more than 74.9 per cent of market value and a proportion of affordable dwellings are reserved for lower and moderate income earners based on their household income.

Industry estimates show this legislation will support the construction of around 80,000 new rental homes that will offer longer tenancies and affordable options, giving renters more security and stability.

BTR developments constructed or under construction before last year’s Budget can access the incentive provided they meet all eligibility criteria which industry estimates could immediately unlock up to 1200 affordable homes.

This legislation will operate in addition to state and territory initiatives designed to support the build‑to‑rent sector.

It’s a model that has been used successfully overseas to increase housing supply.

This will support our ambitious national effort to build 1.2 million new, well‑located homes over five years from 1 July 2024.

Through our $32 billion Homes for Australia plan, we’re kick‑starting the construction of 55,000 new social and affordable rental homes.

Labor’s new laws will complement other measures put in place by the Albanese Labor Government to support renters, including the first back‑to‑back increase to Commonwealth Rent Assistance in more than 30 years which are helping nearly one million Australian households with the cost of rent.

Our big investment in housing is all about building more homes for more Australians in more parts of the country and build to rent is an important part of that.

As at 28 November 2024.