Developers thrown huge tax incentives to fix housing crisis. Property developers who build affordable homes will receive a slew of tax concessions
The tax concessions are attractive so developers may grab them. The fact that only one out of 10 homes has to be "affordable" is a rort. The developer will provide minimal facilities in one propery and build the rest to an attractive standard. So the poor will still get only the most basic accommodation
Property developers who build affordable homes will received a slew of tax concessions including land tax slashed in half Treasurer Cameron Dick has revealed.
Owners of build-to-rent projects will have their land tax bill slashed in half for 20 years if they make one in every 10 units an “affordable home”.
Other available tax concessions include a full exemption on the 2 per cent foreign investor land tax surcharge also for 20 years.
A full exemption from the additional foreign acquirer duty for the future transfer of a build-to-rent site will also be available.
The concessions will come in on July 1, 2023.
Mr Dick said the private construction sector was “at capacity” across Australia, and the government was “working with industry to identify innovative ideas that create new pipelines of housing”.
It comes as Premier Annastacia Palaszczuk announced hundreds more emergency hotel rooms across Queensland will be funded under a $28m boost to the state government’s housing response package for another year.
The announcement comes as the state government prepares to focus the parliamentary sitting week on housing, including the push to limit rent increases in Queensland to once a year.
The government will unveil the rent shake up as housing stakeholders gather on Tuesday to look at progress from last year’s housing summit, which the Premier called following The Courier-Mail’s Hitting Home series.
Under the changes, it is understood property owners and landlords will only be allowed to lift the rent on their property once every 12 months.
The move would bring Queensland in line with other states, such as Victoria and South Australia – where the rental price on a property can generally only be changed once a year.
Ms Palaszczuk on Tuesday morning also confirmed the state government would fund its immediate housing response package for an extra year to the tune of $28m.
The support would help “our most vulnerable Queenslanders facing homelessness and housing stress” and including funding more than 600 emergency hotel room spots, and help pay bond payments.
“Through our immediate housing response for families package we've supported more than 4000 families with over 44,000 nights of accommodation,” Ms Palaszczuk said.