Tax Concessions for Build to Rent – Draft Legislation Released On April 9, 2024, the Treasury published preliminary laws regarding tax benefits for investors involved in build-to-rent (BTR) projects. These concessions, initially announced in the 2023/24 Federal Budget, aim to stimulate BTR construction by providing faster capital deductions and advantages for managed investments trusts (MIT). The goal is to bolster investments in accommodation and alleviate Australia’s housing shortage. Below are the key aspects of the proposed measures. BTR Concession Exposure Drafts The Treasury has published for review the Treasure Laws Amendment Bill 2024: Build to Rent developments (BTR Bill), along with the Explanatory Material (EM) and a Policy Fact Sheet outlining proposed incentives for eligible BTR projects, which include: · A decrease in the MIT withholding tax rate on the fund payment (such as rental income from an operational BTR development) from 30% to 25%. · An enhancement in the rate for capital works deduction from 2.5% to 4% annually. Qualifying Requirements The proposed criteria outlined in the BTR Bill for accessing the new BTR tax concessions include: · Commencement of BTR development construction after May 9, 2023. · The BTR development must comprise 50 or more dwellings available for public rental. · All dwellings in the BTR development (and associated common areas) must remain under the direct ownership of a single entity for a minimum of 15 years. · Dwellings in the BTR development must be leased for a period of at least 3 years within the 15-year timeframe. · At least 10% of the dwellings in the BTR development must be designated as affordable tenancies throughout the entire 15-years. #propertylaw https://lnkd.in/dwhzT_-u
Henry William Lawyers’ Post
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Intensification pays - underused lots like this one might bring in 20K in annual property taxes. The new 931 unit building will bring in about 2M in annual property taxes. It is a win win - we get much needed housing and much need tax revenues which could help reduce the need for large tax increases. Programs such as the Downtown CIPA 40 per cent development charge exemption help ensure projects are financially viable. At this time when the market is experiencing significant challenges with projects moving forward, we hope that the city will consider keeping incentives in place that will ultimately help both the housing crisis and increase the tax revenue without increasing tax rates. City Of Hamilton #DowntownCIPA40 #Intensification #HamiltonPropertyTax #DowntownHamilton
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Insightful piece by Lucy Eastoe of Arnold Bloch Leibler - reflecting on the implications of tax changes for property developers in Victoria. Read here - https://lnkd.in/g4mGwRhn Gia Cari | Nathan Briner | Kevin Frawley | Dorian Henneron #propertydevelopment #realestateinvestment #realestatedevelopment #ausbiz #businessnews #propertynews #victoria
Lucy Eastoe: Windfall Gains Tax takes effect from 1 July 2023
developmentready.com.au
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Land tax is an annual tax levied on the value of land owned in New South Wales (NSW), excluding the value of any buildings or other structures on the land. It’s a crucial consideration for property investors and landowners, as it can significantly impact the cost of holding land in NSW. This concise guide will delve into what land tax is, how it’s calculated, and its applicability, with an emphasis on official sources and guidelines. Understanding Land Tax In New South Wales (https://lnkd.in/gKjD8jSh)
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Dealing with your annual land tax assessment? Despite effective planning, land tax remains a hefty burden for families and businesses with sizable land holdings. Revenue WA is not infallible, and there's a formal process in place to address discrepancies. Read the full blog to know more ~ https://lnkd.in/gmZXMVnx #westcourtaccountants #perth #perthisok #perthaccountant #melbourneaccountant #melbourne #perthvibes #perthbusiness #perthsmallbusiness #perthnetworking #familybusiness #landtax
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Cities should welcome real estate development and make it as painless as possible. The reason is: the city receives a massive long-term income stream from every new project built. Example: A developer bought 2.4 acres in Uptown Minneapolis to build the 328 unit Daymark Uptown Apartments. The assemblage included an older office building and 2 large surface parking lots. 2019 Tax Assessment (Office building + parking lots) Assessed value: $8.1M Property taxes paid: $301K 2023 Tax Assessment (Apartment Complex) Assessed value: $93M Property taxes paid: $1.63M $1,330,000 in additional tax revenue each year from one development.
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In a major upheaval to Victoria’s land tax regime, the Windfall Gains Tax became effective from 1 July 2023 – leaving property owners facing losses of up to half of rezoning value uplifts overnight. Read our analysis of the WGT and what it may mean for you or your clients. #property #tax #landtax #propertylaw #propertylawyers
Windfall Gains Tax: Times are Changing - Madison Branson Lawyers
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When i read about the #windfallgainstax , i have to ask. How does this incentivise #propertydevelopers in #melbourne to take on #landbank risk and development risk, to help with urgently needed supply of stock? Secondly, how do land owners that are cash flow poor in rezoned areas, afford to pay the tax? The tax is paid for by the owners of the land at the time of rezone. This just means developers will simply wait for land owners to sell land, rather than landbanking themselves and bringing in more supply sooner.
In a major upheaval to Victoria’s land tax regime, the Windfall Gains Tax became effective from 1 July 2023 – leaving property owners facing losses of up to half of rezoning value uplifts overnight. Read our analysis of the WGT and what it may mean for you or your clients. #property #tax #landtax #propertylaw #propertylawyers
Windfall Gains Tax: Times are Changing - Madison Branson Lawyers
https://www.madisonbranson.com
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Claim tens of thousands back in R&D tax relief - https://lnkd.in/ex9_Hhde - Construction firms could claim tens of thousands back in R&D tax relief – Just 8% of R&D claims in 2022 came from the construction industry The construction industry is one of the largest sectors of the UK economy, employing around 3 million people and building the foundations of the future with
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New York's newly announced housing tax incentive program, 485-x, offers developers property tax exemptions and extended project deadlines, replacing and enhancing the previous, expired 421-a program. Developers must adhere to wage, compliance, and reporting requirements to benefit from these incentives. In this #AnchinAlert, Principal Brian Sanvidge outlines the intricacies of this new New York program, emphasizing the benefits and compliance requirements (and penalties) for developers. https://lnkd.in/emi7ZzTn #NYCHousing #TaxIncentive #RealEstateDevelopment #HousingPolicy
485-x: What Developers Need to Know About New York’s New Housing Tax Incentive - Anchin, Block & Anchin LLP
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Did you know that in the last 18 months alone, UK construction companies received tax relief of over £1.3 billion? These funds come from different incentives like Research and Development (R&D) tax credits, Capital Allowances, Land Remediation Relief (LRR), and Stamp Duty Tax Relief. Most Construction companies don't realise that what they are doing qualifies for various tax reliefs - so, it's our job here at Harrington Berkley to inspire, educate, and assist our clients about the complex world of what's available to them within the tax market. Want to know if your Construction business qualifies for tax relief? Get in touch with us today for a free consultation.
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