Housing tax incentives - build to rent developments
The housing tax incentives give owners and investors in large-scale eligible build to rent developments access to:
- an accelerated deduction of 4% for capital works relating to build to rent developments
- a concessional final withholding tax rate of 15% on eligible fund payments (amounts referrable to rental income and capital gains from the build to rent development).
To access the tax incentives:
- a build to rent development must meet all the eligibility criteria
- the owner must notify the Commissioner in the approved form of their choice for the development to be an active build to rent development.
All eligibility conditions must be met for a minimum period of 15 years.
- If the conditions aren't met while accessing the concessions, we may issue a Build to rent development misuse tax notice of assessment to the owner of the development. We will use this new tax to clawback the incentives during the relevant period. A deduction cannot be claimed for misuse tax paid.
Include the amount of a capital works deduction at the 4% depreciation rate at item 11 Deductions - label D Capital works deductions if the fund is claiming a deduction.
For more information, see Housing tax incentives - build to rent developments.
Overseas interests – changes
We have modified item 17 – label C in the Fund income tax return 2025 to help you work out when you need to complete this question.
We modified these as follows:
- heading at label C is now, Overseas interests and Australian branch operations.
- question at label C is now, Did the fund have branch operations in Australia or overseas, or a direct or indirect interest in a foreign trust, foreign company, controlled foreign entity or transferor trust? Reducing the use of cheques for tax refunds.
The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act 2024External Link amends tax law to provide the ATO with a discretionary power to retain certain tax refunds and credits for up to 90 days. We can retain the refund from the date the refund or credit becomes payable.
This period enables us time to contact you to nominate a valid Australian financial institution details (FID) to receive your refund by electronic fund transfer (EFT).
Where the Commissioner retains a refund, we will contact you by letter, email or a message in myGov.
The Commissioner can refund an amount to an account that satisfies the following conditions:
- the account holder is the
- entity
- entity and another entity
- entity’s registered tax agent or BAS agent
- entity’s legal practitioner as trustee or executor.
- the account is at a branch or office of a financial institution within Australia.
The holding period doesn't apply if an entity supplies their valid Australian financial institution details in their tax return. Where this happens, we will pay the refund to the account of an entity in a timely manner.
Continue to: How to lodge your fund tax return and pay
Return to: How to get the fund income tax return 2025