Industry welcomes move as government commits to further consultation
The Victorian government has backed away from a plan to enforce minimum lease terms for build-to-rent (BTR) projects as part of its proposed State Taxation Acts Amendment Bill 2025, pending further consultation.
The move has been welcomed by the property industry, which had raised concerns that mandatory minimum leases could hinder the sector’s growth and limit options for renters seeking shorter-term agreements.
Since the introduction of a tax incentives package for BTR projects in 2020, the sector has expanded steadily across Melbourne, offering professionally managed rental homes in well-located urban areas.
For Cath Evans (pictured), Victorian executive director of the Property Council of Australia, the government’s decision to consult further with the industry is a positive step.
“Build-to-rent caters to renters looking for flexibility, high-quality design, and professionally managed homes – often on shorter leases,” Evans said. “Analysis supplied by BTR members indicates anywhere between 10 and 30% of BTR developments are occupied by people who have specifically sought a shorter-term lease. This is due to a number of factors including relocating for work or lifestyle reasons or simply wanting to try the BTR lifestyle for a shorter period before making a longer-term commitment.”
Evans also pointed to the broader housing supply challenge, noting that growing the BTR segment is part of the solution.
“There is a significant need to grow the BTR sector further as part of our broader need to deliver more homes for Victorians,” she said. “The need to provide certainty for operators and investors, and considering the voice of the renter, is critical in informing future decision making.
“A more competitive property taxation regime is critical across all parts of the housing market to keep investment flowing and delivering the homes our communities urgently need.”
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