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  • Expanding tax incentives for investments in affordable housing

    In the 2017 Federal Budget the Government announced that it will provide up to an additional ten percentage point capital gains tax (CGT) discount for resident individuals who invest in qualifying affordable housing from 1 January 2018.

    This will increase the CGT discount up to a maximum of 60%.

    To qualify for the additional discount, housing must be provided to low to moderate income tenants, and rent charged at a discount below the private market rental rate.

    Qualifying affordable housing must be managed through a registered community housing provider (CHP) and the investment held for a minimum of three years in aggregate.

    CHPs will determine the tenant eligibility criteria, including the rent charged, consistent with state and territory affordable housing policies.

    Legislation and supporting material

    The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019External Link was re-introduced to parliament on 23 October 2019.

    This page will be updated when the legislation receives royal assent.

     

      Last modified: 24 Oct 2019QC 51989