Build-to-rent concessions for land tax and AFAD
Learn what concessions exist and what criteria a development must meet to qualify.
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 used—or to be used—for 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.
For more information, see:
- s.58E of the Land Tax Act 2010
- the public rulings on eligible BTR developments (LTA000.5 and DA000.17).
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). 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.
The AFAD concession is available for relevant transactions entered into on or after 1 July 2023.
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. For more information, see the public ruling on ex gratia relief (LTA000.4).
Eligibility requirements
- A development first becomes suitable for occupation 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.
For all relevant eligibility requirements, see:
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 for a ruling
You may apply to the Commissioner of State Revenue for a ruling on whether a proposed development will be eligible for the BTR land tax concessions.
The application must be in the approved form and be supported by enough information to enable the Commissioner to make a ruling.
To apply for a ruling, complete the application for a ruling for the land tax concession for eligible BTR developments (Form LT26) and send it to tadrulings@treasury.qld.gov.au.
If you receive a ruling that the concession applies, the Commissioner must assess liability for land tax on that basis. However, despite receiving a ruling, the Commissioner will not apply the concession if any of the circumstances in s.58U(3) of the Land Tax Act apply (e.g. the information given with the application for the concession differs substantially from the information given for the ruling).
How to claim the concessions
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
- provide evidence to substantiate your eligibility
- declare each year that the land continues to satisfy the eligibility requirements to retain the concessions going forward.
AFAD concession
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 on or before 30 June 2030
- land that is used for an eligible BTR development that is already receiving the land tax concessions.
Eligibility requirements
To qualify for the concession, you 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.
For all relevant eligibility requirements, see:
- Chapter 4, Part 4AA of the Duties Act 2001
- the public ruling on the AFAD concession for BTR developments (DA000.17).
How to apply for a ruling
You may apply to the Commissioner of State Revenue for a ruling on whether a proposed transaction will be eligible for the BTR AFAD concession.
To apply for a ruling, complete the relevant sections of the claim for AFAD concession for eligible developments (Form D4.8) and send to duties@treasury.qld.gov.au with your application for a BTR land tax ruling (Form LT26).
If you receive a ruling that the concession applies, the Commissioner must assess liability for duty on that basis. However, despite receiving a ruling, the Commissioner will not apply the concession if any of the circumstances in s.245J(3) of the Duties Act apply (e.g. the information given with the application for the concession differs substantially from the information given for the ruling).
How to claim the concession
You can apply for the concession when lodging the transaction documents or at the same time as applying for the BTR land tax concessions.
The application must be in the approved form and be supported by enough evidence to satisfy your eligibility for the concession. The form has examples of supporting evidence.
To claim the concession, complete the relevant sections of the claim for AFAD concession for eligible developments (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.
Changes after receiving the AFAD concession
You must notify us if you receive the concession and a change of circumstances applies to the land or you change the decision on the use of the land.
If you received the AFAD concession for land used—or to be used—for an eligible BTR development and circumstances listed in ss.245M or 245N of the Duties Act occur, you must complete a notice of particular circumstances applying to land (Form D4.9).
You must notify us by lodging Form D4.9 within 1 month of the circumstances occurring. You must also lodge the documents that were required for the original assessment of duty.
The guide on how to complete Form D4.9 has a list of the applicable circumstances.
If you received the AFAD concession for land used—or to be used—for an eligible BTR development and you decide not to use the land for the purpose—or in the way—proposed when the concession was applied, you must complete a notice of particular decisions about future use of land (Form D4.10).
You must notify us by lodging Form D4.10 within 1 month of the decision. You must also lodge the documents that were required for the original assessment of duty and evidence relating to the decisions made about the future use of land.
A decision about the future use of land may include:
- a decision not to construct a BTR development on the land
- a decision to construct a BTR development on land of a smaller scale than what was originally proposed
- where the land used for an eligible BTR development is a staged development and at least 1 stage of the development is not a completed stage
- a decision not to proceed with the stage
- a decision to change the nature of the stage
- a decision to transfer or subdivide the land.
Also consider…
- 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.
- Read the build-to-rent concession provisions in Chapter 4, Part 4AA of the Duties Act.
- Read the public rulings: