UDIA National applauds the Albanese Government for taking decisive action to create more housing at scale by committing another $2bn towards affordable and social housing, and by halving Managed Investment Trust (MIT) withholding tax for Build to Rent to 15%.
“This is a landmark decision by government that will be critical to unlocking the at-scale housing supply Australia needs to combat our affordability crisis and gives build to rent a chance to be a viable solution for our housing supply crisis,” said Maxwell Shifman, UDIA National President.
UDIA National has long advocated for Government to halve MIT Withholding Tax to ensure we eliminate a fundamental problem holding back build to rent.
Prior to this decision, MIT on Build to Rent was a major obstacle to trying to attracting institutional funds needed to develop projects. Put simply, Residential housing investment by international institutions was taxed at 30% when other property investment classes are taxed at 15%. Equalisation of withholding tax outcomes for all MIT property investments gives Build to Rent the opportunity for funding critical, larger scale projects.
The decision today to reduce the tax from 30% to 15% after 1 July 2024 aligns with our call to have this rate lowered to attract at-scale international investors who are familiar with funding large investments in affordable housing.
UDIA also applauds the Government for increasing investment into affordable and social housing with a further $2bn to combat the chronic lack of affordable housing across the nation.
“There is more hard work needed to ensure Build to Rent contributes meaningfully toward housing affordability but it is a great start, and the Government should be congratulated for listening to industry and taking this bold and much needed step,” said Mr Shifman.
UDIA National is keen to continue working with Government to ensure the build to rent opportunity is fully realised.”
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Media Enquiries:
Deanna Lane | National Media & Communications Manager | 0416 295 898 | media@udia.com.au