The federal government proposal is stranded in the Senate after the Coalition and the Greens both declared it would 'do nothing' about housing affordability.
Labor's tax concession is targeted at investors in "build-to-rent" complexes, designed for long-term renters rather than private sale.The federal government 's proposal for tax concessions for build-to-rent apartment complexes is stalled in the Senate after the Coalition and the Greens used a Senate committee report to voice their opposition.
It leaves the bill with no clear pathway to become law, the second Labor housing policy to suffer that fate after the Help To Buy scheme, which has been stuck since February. To be eligible, developments would need to remain BTR for 15 years and would need to ensure one in every 10 apartments is "affordable", defined as a 25 per cent discount on the other nine apartments .But the Senate committee heard concerns both from property developers, who warned the tax benefit was too minor and too complicated to obtain to be worthwhile, and from housing experts who disputed the suggestion that apartments would be "affordable.
Affordable housing advocate Karl Fitzgerald told the committee that international evidence suggested the designated affordable units would either be "dog boxes" with "second entrances for the poor people", or else not genuinely affordable. Senator Bragg has campaigned against the prospect of superannuation funds investing in BTR, although Treasury officials told the committee the policy was mostly targeted at foreign investors and was less attractive to domestic investors, who could already access similar tax concessions.
The Greens warned the scheme risked an affordability "cliff" after the 15-year period for the policy expired, similar to what has been seen this year with the unwinding of a Rudd government affordable rental subsidy scheme, which has seen nearly 7,000 affordable properties come off the market.
Federal Government Housing Affordable Housing Rent Caps Built-To-Rent
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