Build-to-rent concessions for land tax and AFAD
The following concessions may be available for eligible build-to-rent (BTR) developments:
- 50% reduction in the taxable value of land for land tax, for land used solely or primarily for an eligible BTR development
- 100% reduction in the taxable value of land for land tax foreign surcharge, for land used solely or primarily for an eligible BTR development
- 100% discount on any additional foreign acquirer duty (AFAD) for land for development of—or land containing—an eligible BTR development.
An eligible BTR development is one where, for a financial year, it met the following conditions during the previous financial year:
- was comprised of at least 50 dwellings that met certain requirements
- met the discounted rent housing requirements
- was used solely or primarily for residential purposes.
See s.58E of the Land Tax Act 2010 for more information.
The land tax concessions will be available for the first time for the 2024–25 land tax assessment year (with liability assessed on 30 June 2024).
The AFAD concession will be available for relevant transactions entered into on or after 1 July 2023.
Where the relevant eligibility requirements have been met, the concessions will be available for a maximum of 20 years or until 30 June 2050 (whichever comes sooner). To receive the concessions for the full 20 years, the eligibility requirements must be met continuously throughout this period.
Land tax concessions
As a landowner, you may be eligible for the BTR land tax concessions where land is used solely or primarily for an eligible BTR development for the relevant year.
The concessions will be available once a development is operational (i.e. once the certificate of occupancy has been issued for the building, or first building in a staged development) and the eligibility requirements have been met.
The concessions are not available during construction. You may be eligible for relief under the existing foreign surcharge ex gratia guidelines for this period.
- A development will need to become operational between 1 July 2023 and 30 June 2030.
- This includes developments that are newly constructed or substantially renovated from a non-residential purpose (e.g. office building, commercial premises) to provide BTR dwellings.
- Developments that are already operational on 1 July 2023 (e.g. existing BTR or build-to-sell developments) and renovations of existing residential facilities (e.g. hotels) will not be eligible.
- A development will need to meet the relevant eligibility requirements. This includes providing at least 10% of the number of dwellings in the development at discounted rent to eligible tenants.
See Part 6A of the Land Tax Act for all relevant eligibility requirements.
Generally, to qualify for the concessions for a particular year, you will need to have met the eligibility requirements for the 12 months leading up to the relevant 30 June. There is a limited exception to this for the first year that you are applying for the concessions, where you may demonstrate at least 6 months of eligibility instead.
Eligibility for the concessions for the 2025–26 land tax year would be tested on 30 June 2025.
Generally, to be eligible, you must demonstrate the eligibility requirements were met for the period from 1 July 2024 to 30 June 2025.
If you are applying for the concessions for the first time though, you may be eligible for the concessions if you can demonstrate the eligibility requirements were met from at least 1 January 2025 to 30 June 2025.
How to apply
An application form will be available in 2024, when the land tax concessions first become available.
You will need to:
- apply by the 30 June ending the second land tax year after the eligibility requirements have been satisfied for the first time
- declare each year that the land continues to satisfy the eligibility requirements to retain the concessions going forward.
As a foreign acquirer, you may be eligible for the BTR concession for additional foreign acquirer duty (AFAD) for transfers, or agreements to transfer, entered into from 1 July 2023 for:
- land on which you will construct an eligible BTR development
- land that is used for an eligible BTR development that is already receiving the BTR land tax concessions.
To qualify for the concession, you will need to satisfy the relevant eligibility requirements, including:
- maintaining eligibility for the BTR land tax concessions each year for at least 5 consecutive years
- not transferring or subdividing the land before the BTR land tax concessions have been obtained for the required period of time.
See Chapter 4, Part 4AA of the Duties Act 2001 for all relevant eligibility requirements.
How to apply
You can apply for the concession when lodging the transaction documents or at the same time as applying for the BTR land tax concessions.
Complete the build-to-rent AFAD concession application (Form D4.8).
The AFAD concession is an alternative to the existing ex gratia relief from AFAD. You can choose to apply for this concession or for relief under the existing ex gratia guidelines but cannot receive relief under both for the same transaction.
- Find out about ex gratia relief from the land tax foreign surcharge.
- Read about ex gratia relief from AFAD.
- See the build-to-rent concession provisions in Part 6A of the Land Tax Act 2010.
- Read the build-to-rent concession provisions in Chapter 4, Part 4AA of the Duties Act 2001.
- Read the public rulings: