The Western Australian Parliament has passed legislation increasing land tax exemptions for eligible build-to-rent projects from 50 per cent to 75 per cent, a move that will further encourage such projects and boost the state’s long-term rental housing supply.
The passage of the Land Tax Assessment Amendment (Build-to-Rent) Bill 2026 establishes the most generous land tax concession for build-to-rent developments anywhere in Australia.
The enhanced 75 per cent exemption will apply to projects that become operational between the 2025–26 and 2029–30 financial years, remaining locked in for 10 years post-completion.
Following this initial decade, the exemption will revert to the standard 50 per cent rate for an additional 10 years.
To qualify for the nation-leading tax relief, developments must meet strict criteria, including offering at least 40 self-contained dwellings available for residential leases of at least three years.
Extensions of existing eligible developments can also qualify. To ensure investors maintain long-term commitments to the rental market, retrospective land tax clawbacks will apply if a development fails to meet eligibility rules within its first 15 years.
The financial incentive for developers is substantial. On a parcel of land with an unimproved value of AU$10 million, the 75 per cent exemption is projected to save a developer more than AU$1.5 million over a decade compared to paying full tax.
Treasurer Rita Saffioti said the changes would help get more projects off the ground to deliver affordable options and housing choice for WA families.
“These changes will help get more build-to-rent projects off the ground, so we can deliver more affordable rentals and housing choice for Western Australian families,” Saffioti said.
The tax reform complements the government’s broader housing strategy, which includes the AU$75 million Build-to-Rent Kickstart Fund designed to attract private sector investment into affordable infill housing.
Finance Minister David Michael and Housing Minister John Carey both welcomed the legislation, labelling it a major milestone that will empower the construction industry to deliver much-needed stock sooner.
