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In a bid to address rental affordability across Canberra, the ACT government has announced the indefinite extension of land tax exemptions for landlords.
Rental property owners in the ACT can reduce their land tax if they choose to give Canberrans, on low to moderate incomes, access to their rental property through a registered community housing provider, the government has highlighted in a new announcement.
This means that to access the scheme, eligible landlords have to rent their property at less than 75 per cent of the market rate.
“Landlords are now being encouraged to sign up to the scheme to increase the number of affordable rental properties in the territory while they reduce their rental property liabilities,” said ACT chief minister Andrew Barr.
Based on the latest quarterly data from Domain, Canberra remains the most expensive city to rent both houses and units, with the median at $600 and $500 per week, respectively.
“Incentives such as these empower the community to make a real difference to people’s lives,” Mr Barr said.
“Every Canberran, no matter their circumstances, should have access to safe and affordable housing that suits their needs.”
The extended land tax exemption will now cover 250 properties — up from the initial 100 properties in 2019 which increased to 125 in 2020. Currently, there are 54 landlords signed up to the scheme.
While the land tax exemption scheme is not expected to be a be-all and end-all solution for rental affordability, Minister for Homelessness and Housing Services Rebecca Vassarotti said that it will empower more Canberrans to “contribute a significant piece of the puzzle as we work towards ensuring everyone has a place to call home”.
“We all know that Canberra is expensive to rent [in] and that there is a lack of affordable housing options, particularly for those on low incomes,” she said.
“While both the federal and ACT governments have a key role to play in responding to affordability, the land tax exemptions scheme is an opportunity for our community to get involved in a direct, visible and people-focused approach to the housing crisis.”
Ultimately, the scheme will not merely be a tax incentive, but “a contribution landlords can be proud of”, the minister added.
“We hope that changes such as this will help to transform the view of housing, as a right and a community good rather than as a vehicle for wealth generation,” Ms Vassarotti concluded.
The news comes after the release of the latest federal budget, which includes a commitment to deliver $124.7 million for social housing and community service workers in the housing and homelessness sectors across all states and territories.
For all the ways the budget looks set to benefit housing, click here.
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