The Property Council of Australia has urged federal opposition parties and independents to support the delivery of 160,000 new rental homes that Australia desperately needs.
The government’s build-to-rent (BTR) housing legislation, currently before Parliament, aims to create a level investment playing field by lowering the managed investment trust withholding tax for BTR assets to the same level as other types of investments like offices, shopping centres, and hotels.
Property Council chief executive Mike Zorbas (pictured above) emphasised the critical role BTR housing can play in bridging Australia’s stark housing deficit.
“We desperately need more homes in Australia, across the full spectrum – from social and affordable housing, to market rental housing and to homes for people to purchase,” Zorbas said.
With rental vacancies at historic lows across the country, Zorbas warned against delaying legislation that could boost the number of rental properties.
“Delaying legislation that can boost the number of rental properties will work against our need for greater supply and affordability of housing across the country,” he said.
Zorbas also highlighted BTR as a pathway to more stable household savings and faster savings for future homeownership.
“The average first-home buyer today is in their mid to late 30s. BTR can provide stable, secure and quality housing for many Australians who are saving for their first home or choose to rent,” he said.
“If the draft of the legislation is amended, it could unlock 160,000 rental homes by 2023. That is the gold medal outcome that Australians need,” Zorbas said.
According to 2023 modelling from EY, implementing a 15% managed investment trust (MIT) withholding tax rate and an incentivized rate of 10% for projects with affordable housing could deliver 160,000 homes over 10 years.
The Property Council represents the largest global investors in BTR housing and the leading owners, operators, and investors in Australia’s nascent BTR sector.
For the past decade, the Property Council has advocated for an Australian investment regime that attracts institutions to BTR housing by ensuring investment parity with other types of property.
Zorbas concluded by emphasizing the urgency of the situation.
“The longer we delay, the longer it will take for Australians to live in secure, stable and high-quality rental housing that is purpose-built for them,” Zorbas said.
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