The Property Council of Australia is calling on federal opposition parties and independents to back legislation that could potentially deliver 160,000 new rental homes across the country.
The build-to-rent (BTR) housing legislation, currently under parliamentary consideration, aims to create a level of investment playing field by reducing the managed investment trust withholding tax for BTR assets to match rates applied to other property investments such as offices, shopping centres, and hotels.
Property Council Chief Executive Mike Zorbas emphasised the critical role BTR housing can play in addressing Australia’s housing deficit, drawing parallels to its success in the UK, Canada, and the US.
“We desperately need more homes in Australia, across the full spectrum — from social and affordable housing to market rental housing and to homes for people to purchase,” Zorbas stated.
With rental vacancies at historic lows nationwide, Zorbas warned that delaying the legislation could exacerbate the supply and affordability crisis in the housing market.
He urged all parties to recognise BTR’s potential as a pathway to more stable household savings and faster accumulation of funds for future home ownership.
The Property Council highlighted that the average first-time homebuyer in Australia is now in their mid to late 30s.
BTR housing could provide a stable, secure, and high-quality living option for many Australians who are either saving for their first home or choosing to rent long-term.
Zorbas stressed the urgency of passing the legislation, stating: “The longer we delay, the longer it will take for Australians to live in secure, stable and high-quality rental housing that is purpose-built for them.”
According to 2023 modelling by EY, commissioned by the Property Council, implementing a 15 per cent managed investment trust (MIT) withholding tax rate, along with an incentivised rate of 10 per cent for projects with affordable housing components, could result in the delivery of 160,000 homes over a decade.
The Property Council, representing major global investors in BTR housing and leading stakeholders in Australia’s emerging BTR sector, has been advocating for an Australian investment regime that attracts institutions to BTR housing by ensuring investment parity with other property types.
As the debate continues, the potential impact of this legislation on Australia’s housing market remains a key focus for policymakers and industry stakeholders alike.
