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Under the legislation, the land tax exemption for eligible build-to-rent projects will rise from 50 per cent to 75 per cent – a move brokers have broadly welcomed as a positive step towards boosting housing supply.
The policy represents the most generous land tax exemption for build-to-rent developments nationally.
The tax concession is designed to further support the build-to-rent sector in Western Australia by lowering barriers to investment and assisting in expanding the future supply of rental housing.
Large-scale build-to-rent projects are an emerging housing model in Western Australia, with apartments developed specifically for rental purposes rather than being sold, and typically offering longer-term tenancies.
The qualifying window for the 75 per cent exemption will be extended to five years, with developments completed between 2025–26 and 2029–30 eligible for the increased concession.
The higher exemption will apply to eligible new build-to-rent developments for a period of 10 years following completion, after which the existing 50 per cent exemption will again apply.
Treasurer Rita Saffioti said: “Our government is doing everything it can to accelerate housing supply, with build-to-rent developments key to delivering more affordable rentals across the State.
“These exemptions and our $75 million Build to Rent Kickstart Fund will support more developments to get off the ground sooner and help more Western Australians into a home.
“It’s all part of our record $6.3 billion investment in housing and homelessness measures since 2021.”
In Perth, housing demand has continued to surge, despite a record-low supply. Annual house price growth in the Western Australian capital reached 15.9 per cent in 2025, the second-highest among the capital cities behind Darwin at 18.9 per cent, according to property analytics company Cotality.
What do brokers think?
Adam Burstein, managing director of Core Finance Co, called the tax relief a “step in the right direction”.
“From where I sit as a broker, and not someone in the build-to-rent world, anything that genuinely increases rental supply has to be seen as a positive,” he said.
“I’m speaking with families every week who are doing it tough trying to find a rental, especially at the more affordable end of the market. If this policy helps bring more long-term, well-managed rental homes online for people who need them most, that’s a really good outcome.
“There’s no doubt mum and dad investors are already navigating a changing landscape with higher costs and talk around future tax changes, but overall I see this as a step in the right direction.
“More supply should ease some of the pressure renters are feeling, and that’s something worth supporting. The key will be making sure the balance is right, so we can improve affordability and availability while still keeping everyday investors engaged in the market.”
Eli Hayes, owner and manager of Mortgage Choice, Albany, said that the tax relief would provide a “much-needed boost” to housing supply.
“This level of support will accelerate build-to-rent project delivery as it will directly slash the holding costs for developers and institutional investors,” she said.
“It should lower barriers for offshore and super fund investors deterred by land tax. The only downside is attracting and holding construction workers in WA with this increase in demand, when our mining industry is more appealing for construction workers paying the higher salaries.”
Narinder Singh, senior finance broker for IndOz Finance Australia, said that the policy would reduce rental shortages in Western Australia by attracting more builders and investors.
He added: “Indirectly, it will boost the construction industry, creating more job markets for local trades and suppliers which will ultimately grow the WA economy. This incentive will surely increase the rental supply and secure the long-term tenancy for the consumers. It is also good incentive to attract more investors in the market which will also improve the rental shortage.”
Robert Flynn, director of Vorteil Financial Group, praised the decision, but added that it needs to form part of a larger strategy.
He said: “From my perspective, any policy that supports new supply is a positive step, particularly given how tight the WA rental market is currently. Increasing the land tax exemption should ease some of the cost burden and help with the feasibility of some build-to-rent projects, which may attract more institutional investment into the state.
“That said, this really needs to form part of a broader, multi-faceted approach to supply, and any impact will take time to flow through. Projects are still facing delays caused by construction costs, labour shortages, and planning and approval red tape. This policy will help feasibility, but it doesn’t remove the structural bottlenecks slowing delivery.
“So, while the incentive helps projects stack up on paper, there are still regulatory and delivery constraints that will impact how quickly new supply actually comes online.
“I think it’s also worth noting that build-to-rent projects primarily help to expand rental stock rather than supporting pathways into home ownership. So while this may help to ease rental pressures, it doesn’t directly improve accessibility for everyday Australians looking to buy.”
[Related: Western Australia drives national mortgage surge]