- Land Tax Assessment Amendment (Build-to-Rent) Bill 2026 passes Parliament
- Increases land tax exemption for build-to-rent developments from 50 per cent to
75 per cent
- Changes will support the build-to-rent industry to increase rental housing supply
- Complements the Cook Labor Government’s $75 million Build-to-Rent Kickstart Fund
The Cook Labor Government has delivered on a 2025 election commitment to further encourage build-to-rent projects in Western Australia to boost the supply of housing in the State.
The Western Australian Parliament this week passed legislation to increase the land tax exemption for eligible build-to-rent developments from 50 per cent to 75 per cent.
The change delivers the most generous land tax exemption for build-to-rent developments in the nation, growing the supply of long-term rental housing in Western Australia.
This will support the build-to-rent industry in Western Australia by reducing barriers to investment, helping to accelerate new build-to-rent projects and increase the supply of
long-term rental housing in the State.
The initiative aims to improve housing supply, affordability and choice for all Western Australians.
The increased exemption will apply to developments that become operational between
2025-26 and 2029-30, and will be available for a 10-year period following completion.
After this, the existing 50 per cent exemption will continue to apply for a further 10 years.
To be eligible, developments must meet existing criteria, including providing at least
40 self-contained dwellings available for a minimum of three-year residential leases.
Expansions of existing build-to-rent developments that become operational between 2025-26 and 2029-30 can also qualify for the increased exemption.
Consistent with the existing exemption, retrospective land tax will apply where a development ceases to meet the eligibility criteria within the first 15 years, encouraging investors to maintain long-term rental supply.
The increased exemption will deliver significant land tax savings.
Indicatively, for land with an unimproved value of $10 million, the increased exemption is expected to deliver savings of more than $1.5 million over 10 years compared to the tax payable with no exemption.
The reforms build on a broader suite of Cook Labor Government measures to boost housing affordability and availability, including the $75 million Build-to-Rent Kickstart Fund designed to attract private sector investment into new rental developments.
As stated by Treasurer Rita Saffioti:
“We’re delivering the most generous land tax exemption for build-to-rent developments in the nation as part of our commitment to accelerating housing supply across Western Australia.
“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.
“It complements our $75 million Build-to-Rent Kickstart Fund which is helping to drive more of these projects in WA and is supporting industry to get more homes built sooner.”
As stated by Finance Minister David Michael:
“The passing of this legislation is a major milestone in delivering more housing for Western Australians.
“Our Government is doing everything it can to accelerate housing supply, and build-to-rent developments will play a key role in supplying more rental options.”
As stated by Housing and Works Minister John Carey:
“We are funding a record number of build-to-rent projects and these tax changes will support more of these developments to get off the ground.
“The changes deliver on our election promise and will help industry to construct much-needed affordable infill product.”
