Tax settings and government policy are at the centre of the emerging build-to-rent sector’s adoption in Australia.
In this TUD+ Briefing, managing partner at Minter Ellison in Sydney, Nathan Deveson explains how this complex and technical environment is affecting the industry’s appetite for built-to-rent.
Deveson unpacks the need-to-know tax settings that impact the asset class: managed investment trusts, GST laws, state-level incentives to include affordable or social housing, and the current policies—or legislation in the making—of the states so far.
Devenson said that the growth of the sector had been remarkable.
“Eighteen months ago, I could have listed all the proposals on one page,” he said.
“Now, there are so many, the apartments number in the thousands.
“It is fantastic it us happening, but there still aren’t as many shovels in the ground as we’d like to see.”
Deveson said some of the sluggish pace of projects progressing was down to governments’ slowness to reveal policy details.
“There would be developers waiting to see what’s going to be available in the way of incentives or concessions before starting,” he said.
“They don’t want to begin work too soon and miss out.”