Housing (Build-To-Rent Developments) - accelerating tax deductions and reducing managed investment trust withholding tax rate

For eligible new build-to-rent projects where construction commences after 7:30 PM (AEST) on 9 May 2023 (Budget night), the Government will: * increase the rate for the capital works tax deduction (depreciation) to 4 per cent per year * reduce the final withholding tax rate on eligible fund payments from managed investment trust (MIT) investments from 30 per cent to 15 per cent. This measure will encourage investment and construction in the build-to-rent sector, expanding Australia's housing supply. This measure will apply to build-to-rent projects consisting of 50 or more apartments or dwellings made available for rent to the general public. The dwellings must be retained under single ownership for at least 10 years before being able to be sold and landlords must offer a lease term of at least 3 years for each dwelling. The reduced managed investment trust withholding tax rate for residential build-to-rent will apply from 1 July 2024. Consultation will be undertaken on implementation details, including any minimum proportion of dwellings being offered as affordable tenancies and the length of time dwellings must be retained under single ownership. This measure is estimated to decrease receipts by $30.0 million and increase payments by $4.3 million over the 5 years from 2022-23.