The Victorian Government will provide new incentives for investors to build rental properties to help ensure more people have safe, secure housing.
Eligible build‑to‑rent developments completed and operational between 1 January 2021 and 31 December 2031 will receive both the 50 per cent land tax discount and full exemption from the Absentee Owner Surcharge (AOS) for up to 30 years from 1 January 2022.
Originally announced to end in 2040, this support will now provide the certainty of a full 30-year concession to projects starting before 2032.
In addition the State Government has announced a 50 per cent land tax discount from 1 January 2022 for eligible developments to encourage more investment in the sector.
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“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,” Victorian Treasurer Tim 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.”
Following consultation with industry and relevant stakeholders, the Victorian Government aims to provide more certainty for eligible developments due to be completed before the 1 January 2022 commencement date, so shovel‑ready projects can confidently begin as soon as possible.
The sector presents an opportunity to increase rental supply, improve the diversity of housing choice and mix, and provide more long‑term rental options.