The build-to-rent (BTR) development tax incentives give owners access to:
- An accelerated deduction rate of 4% for capital works relating to BTR developments
- A concessional final withholding tax rate of 15% on eligible fund payments (amounts referable to rental income and capital gains from the BTR development).
To access these incentives, the BTR owner must first notify the ATO to opt in by lodging the Build to rent development – notice of events form.
From 1 January 2025, owners or purchasers of a BTR development must notify the ATO of the development events, using the ‘Build to rent development – notice of events’ form.
BTR owners must notify the ATO of the following events:
- Commencing an active BTR development – The form should be provided to the ATO before the commencement date. Otherwise, the choice will be taken to have been made on the day the form is received.
- Expanding an active BTR development.
- The ownership interest in the active BTR development is acquired by another entity.
- They acquire the ownership interests in an active BTR development.
- Ceasing an active BTR development.
The form can be completed by an authorised person and must be lodged (by email) with the ATO on or before 28 days after the relevant event.