Western Australia Increases its Land Tax Exemption for Build-to-Rent Investments.

As housing demand continues to surge in WA, the State Government has announced an initiative to increase land tax exemption for properties built exclusively for renters. ^[1]

Previously, investors in Western Australia were able to secure a 50% exemption; this has been increased to a 75% exemption on land tax for building for investment purposes.

How This Works.

The exemption applies to new-build residential properties available solely for rental purposes. This should help boost investor activity in the build-to-rent space and create more affordable opportunities for renters in WA. Property Investors will be eligible for the 75% exemption for properties built between 2025 and 2030.

There are important eligibility criteria that the properties need to meet.

• The developments must include a minimum of 40 residential dwellings; these dwellings must be self-contained.
• Dwellings must be available to renters for a three-year lease, to ensure long-term residency.

Existing build-to-rent properties in WA will also qualify if expanded before 2029-2030.

What This Means for Investors. 

There are several benefits for local and international, large-scale investors from this decision. Barriers to entry for offshore and super fund investors that have previously been deterred by the larger costs associated with the land tax. Under the new legislation, investors who have purchased land valued at $10 million save $1.5 million in land tax over the span of 10 years.^[2]

Western Australia will also likely see an indirect boost to its construction industry because of this change, bringing more funds and workers into the state. However, they’ll be competing with the states’ already established mining sector, which boasts larger salaries for workers.

Australia’s Western State, particularly the capital city of Perth, has seen a surge in property prices in the last few years, and more rental supply will hopefully ease the pressure on renters not yet looking, or able, to buy.

With demand high and supply low across the country, it remains to be seen if other states will adopt similar initiatives. In 2024, the national government launched a similar build-to-rent initiative to alleviate a cramped market.

If you’re looking to invest in property, reach out to your local MoneyQuest finance specialist. We can help you secure competitive loan products and features and establish funding to support you in the long run.

Whether your investment is big or small, reach out to us today to unlock your future.

[1] www.wa.gov.au. (n.d.). Build-to-rent land tax exemption. [online] Available at: https://www.wa.gov.au/government/announcements/build-rent-land-tax-exemption.

[2] Western Australian Government. (2025). Land tax exemption to help more Western Australians have a home | Western Australian Government. [online] Available at: https://www.wa.gov.au/government/media-statements/Cook%20Labor%20Government/Land-tax-exemption-to-help-more-Western-Australians-have-a-home-20260218 [Accessed 2 Mar. 2026].

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