Land tax relief carrot for rental market developers

Developers will be able to access a 75 per cent land tax exemption under the latest state government move to increase the number of rental properties in Western Australia.

Lifting the current 50 per cent exemption for certain criteria, Treasurer Rita Saffioti, Housing Minister John Carey and Finance Minister David Michael, said the new incentive for build-to-rent projects would be the most generous in the country.

"Large scale build-to-rent developments are an emerging model of housing in Western Australia, where apartments are being developed for the purpose of renting rather than being on sold," Mr Michael said.

He said the qualifying period for the 75 per cent exemption will now be set at five years for developments completed between 2025-26 and 2029-30.

The 75 per cent land tax exemption is applied for 10 years after completion.

"After the initial 10 years, the existing 50 per cent exemption will be applied for the next 10-year assessment period," Mr Michael said.

Mr Carey said the delivery of apartments in Western Australia had been a challenge and put some of the blame on nimbyism.

"If we want younger generations, our kids, to be able to live where they grow up, it's not going to be in a four-by-two, it's likely to be a unit or an apartment," he said.

"This nimbyism has to stop. We need apartments. We need housing. Do not deny us this housing. So I am actually taking comfort that I think new generations of young people are saying we need density and it's critical."

Wednesday's tax exemption announcement backs in Labor's election commitment and could represent savings of more than $1.5 million across a decade for developers.

The development has to provide at least 40 self-contained properties and be available for a three-year residential lease.

"Initiatives that increase supply is our priority," Ms Saffioti said.

"Initiatives to support more government projects to increase housing supply and to facilitate the private sector."