The New South Wales Government has passed landmark legislation to strengthen housing investment and rental supply through new build-to-rent (BTR) tax concessions.
The Land Tax (Build-to-Rent Concessions) Amendment Bill 2025 (NSW) amends the Land Tax Management Act 1956 (NSW) to create a new ongoing land tax concession scheme for eligible build-to-rent developments, while preserving existing time-limited concessions.
This change reflects the State’s commitment to supporting long-term rental housing and easing pressure in Sydney’s property market.
What the New Build-to-Rent Concession Covers
Under the new framework, qualifying build-to-rent property owners can receive a 50% reduction on the land value of eligible properties for land tax purposes.
The concession applies to land owned by a taxpayer as of midnight on 31 December in any year after 2024, provided the following key conditions are met:
- Construction must have commenced on or after 1 July 2020
- The building must be used and occupied exclusively as a build-to-rent property
- The property must not have been previously used for another purpose
These rules ensure the concession benefits genuine, long-term rental developments rather than short-term investment projects.
Conditions and Withdrawal Provisions
While the concession offers significant savings, it also includes strict compliance conditions.
The land tax concession may be withdrawn if:
- The property is subdivided; or
- Ownership of the parcel of land is divided or transferred within the first 15 years of accessing the concession.
This measure aims to promote sustained investment and discourage early turnover of large-scale rental assets.
Refunds on Surcharge Duty and Land Tax
The Bill also makes key changes to the Duties Act 1997 (NSW) and Land Tax Act 1956 (NSW). These include:
- Refunds of surcharge purchaser duty and surcharge land tax for eligible build-to-rent developments that qualify under the new ongoing scheme
- Preservation of existing entitlements for refunds under the prior, time-limited BTR concession scheme
Together, these measures create a more consistent and investor-friendly environment for build-to-rent projects across New South Wales.
What This Means for Sydney Property Investors and Developers
For property developers and large-scale investors in Sydney, this reform is a strong signal of continued government support for rental housing supply.
By reducing the ongoing land tax burden and refunding certain surcharges, the legislation enhances the financial viability of build-to-rent projects — particularly in high-demand areas such as inner Sydney, Parramatta, and key growth corridors.
Investors and developers should review their project structures to determine whether they qualify for the new ongoing concession or remain under the time-limited scheme.
How BOA & Co. Chartered Accountants Can Help
At BOA & Co., we assist Sydney property investors and developers with:
- Assessing eligibility for NSW build-to-rent land tax concessions
- Managing refund applications for surcharge land tax and duty
- Structuring property ownership to maintain long-term concession eligibility
- Ensuring compliance with ongoing reporting and valuation requirements
Our expertise helps ensure you don’t miss valuable tax opportunities while staying compliant with state legislation.
The Bottom Line
The new NSW Build-to-Rent Land Tax Concession Scheme provides a substantial incentive for developers and institutional investors to create long-term rental housing.
However, navigating eligibility rules, subdivision restrictions, and refund applications requires careful planning.
📞 Contact BOA & Co. Chartered Accountants today to ensure your property portfolio is optimised for the latest state tax concessions.
📧 [email protected]
🌐 www.boanco.com.au
📍 Sydney, NSW
Smart structure. Sustainable growth. Strategic tax outcomes.