Expanding tax incentives for investments in affordable housing
On 9 May 2017 the Government announced that from 1 January 2018, it will provide an additional ten percentage point capital gains tax (CGT) discount for resident individuals who invest in qualifying affordable housing.
This will increase the CGT discount to 60%.
To qualify for the 60% discount, housing must be provided to low to moderate income tenants, and rent charged at a discount below the private market rental rate.
The affordable housing must be managed through a registered community housing provider and the investment held for a minimum of three years.
Legislation and supporting material
Legislation is being developed for this measure.
- 2017-18 Budget Paper No. 2 - Revenue Measures page 29External Link
- 2017-18 Budget Fact Sheet 1.10 - Boosting affordable housing for Australians through investment tax incentivesExternal Link