An overview by Corrs Chambers Westgarth
The Australian Federal Budget of May 2023 has introduced reforms targeting the build-to-rent sector and ‘clean building’ taxes. These reforms are intended to support the government’s objective of increasing the housing supply in the country.
The main focus of the changes is on the build-to-rent (BTR) sector, with measures aimed at attracting foreign investment and encouraging the construction of new BTR properties. One significant change is the reduction of the withholding tax rate for foreign investors in managed investment trusts (MITs) for eligible fund payments associated with newly constructed residential BTR properties.
Another measure involves an increase in the tax depreciation rate for eligible new BTR projects from 2.5% to 4% per year. Furthermore, the article mentions modifications to the clean building MIT regime, including an extension of the withholding tax concession to encompass data centres and warehouses, as well as the raising of the minimum energy standards for clean buildings to a 6-star rating.
Rhys Jewell, Paul Carrick, Simon Mifsud and Hugh Riisfeldt of our Australian firm, Corrs Chambers Westgarth, provide a more detailed overview of these reforms.
Read the full article here.
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