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The NSW government has extended a land tax cut to accelerate the delivery of build-to-rent (BTR) housing developments ahead of the state budget.
As part of the state’s 2025–25 budget to be released next Tuesday (24 June), the NSW government will extend tax concessions for build-to-rent (BTR) developments to boost levels of available rental stock across the state.
While the previous BTR land tax concession had a 2039 end date, the new amendment will see owners of eligible BTR developments access a 50 per cent reduction in assessed land value indefinitely.
The NSW government said that BTR developments typically generate long-term and stable rental income for investors, with the change designed to provide investors with certainty and boost rental housing supply.
Treasurer of NSW, Daniel Mookhey, said the decision to make the 50 per cent land tax exemption for BTR developments would give the industry the “certainty they need to build more homes, faster”.
“Extending the tax incentives for build-to-rent will make it easier for developers to build and give renters more choice,” Mookhey said.
Draft developer guidelines released for industry feedback
To expedite the delivery of new housing and corresponding infrastructure, the NSW government also announced the release of proposed guidelines for the state's “works-in-kind” framework.
The state government said that it would finalise rules around works-in-kind frameworks, which allow developers to dedicate land for public purposes or the delivery of an infrastructure project, as opposed to paying a Housing and Productivity Contribution.
The NSW government said formalising how developers provide land or infrastructure to public authorities will fast-track critical infrastructure and surrounding housing delivery.
Premier of NSW, Chris Minns, said that the revised guidelines would enable developers to fast-track the development of housing and infrastructure across the state.
“You can’t build new homes without roads, parks and schools to match, and the community shouldn’t have to wait for them,” Minns said.
The new guidelines, to be finalised after consultation and industry feedback, will outline how works-in-kind proposals are evaluated, prioritised and managed.
To accelerate housing delivery, the NSW government also announced looking into multiple Infrastructure Opportunities Plans to identify and sequence the infrastructure to support housing and industrial land targets.
NSW executive director of the Property Council of Australia, Katie Stevenson, said that the measures were a “constructive move” that would help to improve project feasibility, unlock housing supply, and deliver critical infrastructure to support the delivery of new homes.
“Making the BTR exemption permanent provides long-term certainty to investors and developers, helping to enable more high-quality rental homes to be delivered across NSW,” Stevenson said.
“This has been a consistent ask from the Property Council – and it’s great to see the government recognise the value of BTR in providing more housing stock and broader housing choice,” she added.
Stevenson also said that the exhibition of draft guidelines for works-in-kind agreements would help speed up the delivery of infrastructure and the surrounding communities and housing opportunities it unlocks.
“Large parts of Sydney exist today because developers partnered with the government to bring forward essential infrastructure projects that unlocked new homes and suburbs.”
“This must continue if we are to deliver the housing our state needs to accommodate its growth,” she said.
Stevenson said the announcements came at the right time, noting there’s “no time to waste”.
A recent State of the Housing System 2025 report showed that NSW is on track to deliver just 61 per cent of its 376,000 home share of the National Housing Accord Target of 1.2 million homes by 2029.
“Government and industry need to partner to turn approvals into homes and plans into projects quickly,” Stevenson concluded.
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