The tax exemption policy for affordable housing in Victoria

The Victorian Parliament is considering a new bill called the "Tax and Property Act 2024", which aims to introduce a series of tax reform measures. Among them, the most concerned one is the tax exemption policy for developers of affordable housing.

WHAT is affordable housing?

Affordable housing is a type of housing specifically designed for middle and low-income families, and its rent is usually lower than the market average. To be eligible, housing must meet the following conditions:

The rent level is lower than the market average.

Meet the income requirements of middle and low-income families.

Time range of exemption

This exemption policy will apply to the development projects of affordable housing from July 1, 2024 to June 30, 2028.

Objects of Exemption

Eligible developers of affordable housing will enjoy exemption from land tax.

How does affect real estate developers?

Eligible real estate developers will enjoy the land tax exemption policy when developing affordable housing. This can not only reduce the development cost, but also attract more investment into the field of affordable housing, thereby increasing the supply of affordable housing in the market.

How to qualify for exemption?

Developers of affordable housing who wish to enjoy this policy must meet the qualification requirements set by the Victorian government, including:

Real estate development projects must comply with the definition and regulations of affordable housing.

It is necessary to register on the list of affordable housing developers of the Victorian government.

The Tax and Property Act 2024 will have a positive impact on Victoria's affordable housing market. Real estate developers should pay close attention to this policy and plan the development strategies of affordable housing projects in advance.