{"id":"F2024L01729","name":"Income Tax Assessment (Build to Rent Developments) Determination 2024","slug":"income-tax-assessment-build-to-rent-developments-determination-2024","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":105544,"registerId":"commonwealth-F2024L01729-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Income Tax Assessment (Build to Rent Developments) Determination 2024.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The later of:

(a) the day after this instrument is registered; and

(b) 1 January 2025.

1 January 2025

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under the Income Tax Assessment Act 1997.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Income Tax Assessment Act 1997 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n> assessing event, for a dwelling, means any of the following:\n\n (a) a lease being entered into for the dwelling;\n (b) the lease for the dwelling being renewed;\n (c) after a lease is entered into or renewed, one of more of the following occurring:\n (i) an adult individual moving in or out of the dwelling;\n (ii) a dependent child of an adult individual occupying the dwelling moving out of the dwelling, resulting in no dependent children of an adult individual occupying the dwelling continuing to occupy the dwelling;\n (iii) an individual occupying the dwelling providing a notice under subsection 7(6).\n\n> average annual earnings means the amount of the full‑time adult average weekly ordinary time earnings (original), for the most recent period for which an amount has been published by the Australian Statistician, multiplied by 52.\n\n> Note: In 2024, statistics published by the Australian Statistician could be viewed on the Australian Bureau of Statistics website (http://www.abs.gov.au).\n\n> BTR owner, in relation to a dwelling, means the owner of the dwelling that forms part of a build to rent development.\n\n> dependent child: an individual is a dependent child of another individual if:\n\n (a) the second individual is a parent of the first individual; and\n (b) either:\n (i) the first individual is a dependent child of the second individual within the meaning of subsection 5(2) or (4) of the Social Security Act 1991; or\n (ii) the first individual is receiving a disability support pension (within the meaning of the Social Security Act 1991), and lives with the second individual.\n\n> lower-income dwelling has the meaning given by subsection 7(1).\n\n> moderate-income dwelling has the meaning given by subsection 6(1).\n\n> the Act means the Income Tax Assessment Act 1997.","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"Build to rent developments","content":"## Part 2—Build to rent developments","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Requirements for affordable dwellings","content":"#### 5 Requirements for affordable dwellings\n\n (1) Under subsection 43‑153(3) of the Act, each of the following requirements for a dwelling to be an affordable dwelling are determined:\n (a) the dwelling is either:\n (i) a moderate-income dwelling; or\n (ii) a lower-income dwelling;\n (b) the dwelling is part of a build to rent development in which the number of dwellings that are lower-income dwellings is equal to or greater than:\n (i) 2% of the number of the dwellings; or\n (ii) if the number of dwellings worked out under subparagraph (i) is not a whole number—that number rounded down to the nearest whole number of dwellings;\n (c) the dwelling is part of a build to rent development that satisfies subsection (2);\n (d) if the dwelling is tenanted—each tenant of the dwelling was identified by an eligible community housing provider as a prospective tenant for the dwelling (having regard only to the requirements for dwellings in this instrument and any matter expressly advised to the provider by the BTR owner).\n (2) For the purposes of paragraph (1)(c) a build to rent development satisfies this subsection if the BTR owner engages an eligible community housing provider to assist the BTR owner to:\n (a) identify prospective tenants for each affordable dwelling in the development; and\n (b) ascertain, for each assessing event in relation to each affordable dwelling in the development, whether the dwelling satisfies the criteria in subsection 6(2) or 7(2) (whichever applies).\n (3) The requirements in paragraphs (1)(c) and (d) do not apply to a dwelling if special circumstances exist in relation to the dwelling.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Meaning of moderate-income dwelling","content":"#### 6 Meaning of moderate-income dwelling\n\n (1) A dwelling is a moderate-income dwelling if:\n (a) the dwelling satisfies the criteria set out in subsections (2) and (4); and\n (b) the dwelling is not a lower-income dwelling.\n (2) A dwelling satisfies the criteria in this subsection if the dwelling is tenanted, or available to be tenanted, only by one or more of the following:\n (a) an adult living alone whose taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 120% of average annual earnings;\n (b) 2 or more adults living together whose combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 130% of average annual earnings;\n (c) one adult living with one or more dependent children of the adult, where the adult’s taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 140% of average annual earnings;\n (d) 2 or more adults living with one or more dependent children of any of the adults, where the adults’ combined taxable incomes for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 140% of average annual earnings.\n (3) Despite subsection (2), if a dwelling no longer satisfies the criteria in that subsection only because of an event mentioned in subparagraph (c)(i) or (ii) of the definition of assessing event, the dwelling is taken to continue to satisfy the criteria until:\n (a) if, immediately before the event, the dwelling was taken to satisfy the criteria in subsection (2) because of a previous application of this subsection—the day worked out under paragraph (b) for that previous application; or\n (b) otherwise—the earlier of:\n (i) the end of 12 months after the event; or\n (ii) the end of the lease for the dwelling.\n (4) A dwelling satisfies the criteria in this subsection if the rent payable under a lease for the dwelling is 74.9% or less of the market value of the right to occupy the dwelling under the lease.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Meaning of lower-income dwelling","content":"#### 7 Meaning of lower-income dwelling\n\n (1) A dwelling is a lower-income dwelling if the dwelling satisfies the criteria set out in subsections (2) and (4).\n (2) A dwelling satisfies the criteria in this subsection if the dwelling is tenanted, or available to be tenanted, only by one or more of the following:\n (a) an adult living alone whose taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 75% of average annual earnings;\n (b) 2 or more adults living together whose combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 90% of average annual earnings;\n (c) one adult living with one or more dependent children of the adult, where the adult’s taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 100% of average annual earnings;\n (d) 2 or more adults living with one or more dependent children of any of the adults, where the adults’ combined taxable incomes for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 100% of average annual earnings.\n (3) Despite subsection (2), if a dwelling no longer satisfies the criteria in that subsection only because of an event mentioned in subparagraph (c)(i) or (ii) of the definition of assessing event, the dwelling is taken to continue to satisfy the criteria until:\n (a) if, immediately before the event, the dwelling was taken to satisfy the criteria in subsection (2) because of a previous application of this subsection—the day worked out under paragraph (b) for that previous application; or\n (b) otherwise—the earlier of:\n (i) the end of 12 months after the event; or\n (ii) the end of the lease for the dwelling.\n (4) A dwelling satisfies the criteria in this subsection if the rent payable under a lease for the dwelling is not more than the lesser of:\n (a) 74.9% of the market value of the right to occupy the dwelling under the lease; and\n (b) 30% of:\n (i) if the dwelling is tenanted by an adult (either living alone or with one or more dependent children)—the taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event; or\n (ii) if the dwelling is tenanted by 2 or more adults living together (either with or without one or more dependent children)—the combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event.\n (5) Despite subsection (4), if:\n (a) an event mentioned in subparagraph (c)(iii) of the definition of assessing event occurs in relation to a dwelling; and\n (b) because of that event, the dwelling no longer satisfies the criteria in subsection (4);\n the dwelling is taken to continue to satisfy the criteria in that subsection for the period of 60 days after the event.\n Request for rental review\n (6) A tenant of a lower-income dwelling may provide a notice to the owner of the dwelling requesting a review of the rent payable under the lease for the dwelling if:\n (a) the notice is provided during a financial year; and\n (b) a notice has not previously been provided in respect of the dwelling for the financial year.\n (7) The notice must:\n (a) be made in writing; and\n (b) be accompanied by information that would enable the owner to assess whether the dwelling satisfies the criteria in subsection (4).","sortOrder":8},{"sectionNumber":"Part 10","sectionType":"part","heading":"Transitional Provisions","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n This instrument is the Income Tax Assessment (Build to Rent Developments) Determination 2024.\n\n#### 2 Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The later of:

(a) the day after this instrument is registered; and

(b) 1 January 2025.

1 January 2025

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n#### 3 Authority\n\n This instrument is made under the Income Tax Assessment Act 1997.\n\n#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Income Tax Assessment Act 1997 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n> assessing event, for a dwelling, means any of the following:\n\n (a) a lease being entered into for the dwelling;\n (b) the lease for the dwelling being renewed;\n (c) after a lease is entered into or renewed, one of more of the following occurring:\n (i) an adult individual moving in or out of the dwelling;\n (ii) a dependent child of an adult individual occupying the dwelling moving out of the dwelling, resulting in no dependent children of an adult individual occupying the dwelling continuing to occupy the dwelling;\n (iii) an individual occupying the dwelling providing a notice under subsection 7(6).\n\n> average annual earnings means the amount of the full‑time adult average weekly ordinary time earnings (original), for the most recent period for which an amount has been published by the Australian Statistician, multiplied by 52.\n\n> Note: In 2024, statistics published by the Australian Statistician could be viewed on the Australian Bureau of Statistics website (http://www.abs.gov.au).\n\n> BTR owner, in relation to a dwelling, means the owner of the dwelling that forms part of a build to rent development.\n\n> dependent child: an individual is a dependent child of another individual if:\n\n (a) the second individual is a parent of the first individual; and\n (b) either:\n (i) the first individual is a dependent child of the second individual within the meaning of subsection 5(2) or (4) of the Social Security Act 1991; or\n (ii) the first individual is receiving a disability support pension (within the meaning of the Social Security Act 1991), and lives with the second individual.\n\n> lower-income dwelling has the meaning given by subsection 7(1).\n\n> moderate-income dwelling has the meaning given by subsection 6(1).\n\n> the Act means the Income Tax Assessment Act 1997.\n\n## Part 2—Build to rent developments\n\n#### 5 Requirements for affordable dwellings\n\n (1) Under subsection 43‑153(3) of the Act, each of the following requirements for a dwelling to be an affordable dwelling are determined:\n (a) the dwelling is either:\n (i) a moderate-income dwelling; or\n (ii) a lower-income dwelling;\n (b) the dwelling is part of a build to rent development in which the number of dwellings that are lower-income dwellings is equal to or greater than:\n (i) 2% of the number of the dwellings; or\n (ii) if the number of dwellings worked out under subparagraph (i) is not a whole number—that number rounded down to the nearest whole number of dwellings;\n (c) the dwelling is part of a build to rent development that satisfies subsection (2);\n (d) if the dwelling is tenanted—each tenant of the dwelling was identified by an eligible community housing provider as a prospective tenant for the dwelling (having regard only to the requirements for dwellings in this instrument and any matter expressly advised to the provider by the BTR owner).\n (2) For the purposes of paragraph (1)(c) a build to rent development satisfies this subsection if the BTR owner engages an eligible community housing provider to assist the BTR owner to:\n (a) identify prospective tenants for each affordable dwelling in the development; and\n (b) ascertain, for each assessing event in relation to each affordable dwelling in the development, whether the dwelling satisfies the criteria in subsection 6(2) or 7(2) (whichever applies).\n (3) The requirements in paragraphs (1)(c) and (d) do not apply to a dwelling if special circumstances exist in relation to the dwelling.\n\n#### 6 Meaning of moderate-income dwelling\n\n (1) A dwelling is a moderate-income dwelling if:\n (a) the dwelling satisfies the criteria set out in subsections (2) and (4); and\n (b) the dwelling is not a lower-income dwelling.\n (2) A dwelling satisfies the criteria in this subsection if the dwelling is tenanted, or available to be tenanted, only by one or more of the following:\n (a) an adult living alone whose taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 120% of average annual earnings;\n (b) 2 or more adults living together whose combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 130% of average annual earnings;\n (c) one adult living with one or more dependent children of the adult, where the adult’s taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 140% of average annual earnings;\n (d) 2 or more adults living with one or more dependent children of any of the adults, where the adults’ combined taxable incomes for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 140% of average annual earnings.\n (3) Despite subsection (2), if a dwelling no longer satisfies the criteria in that subsection only because of an event mentioned in subparagraph (c)(i) or (ii) of the definition of assessing event, the dwelling is taken to continue to satisfy the criteria until:\n (a) if, immediately before the event, the dwelling was taken to satisfy the criteria in subsection (2) because of a previous application of this subsection—the day worked out under paragraph (b) for that previous application; or\n (b) otherwise—the earlier of:\n (i) the end of 12 months after the event; or\n (ii) the end of the lease for the dwelling.\n (4) A dwelling satisfies the criteria in this subsection if the rent payable under a lease for the dwelling is 74.9% or less of the market value of the right to occupy the dwelling under the lease.\n\n#### 7 Meaning of lower-income dwelling\n\n (1) A dwelling is a lower-income dwelling if the dwelling satisfies the criteria set out in subsections (2) and (4).\n (2) A dwelling satisfies the criteria in this subsection if the dwelling is tenanted, or available to be tenanted, only by one or more of the following:\n (a) an adult living alone whose taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 75% of average annual earnings;\n (b) 2 or more adults living together whose combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 90% of average annual earnings;\n (c) one adult living with one or more dependent children of the adult, where the adult’s taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 100% of average annual earnings;\n (d) 2 or more adults living with one or more dependent children of any of the adults, where the adults’ combined taxable incomes for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 100% of average annual earnings.\n (3) Despite subsection (2), if a dwelling no longer satisfies the criteria in that subsection only because of an event mentioned in subparagraph (c)(i) or (ii) of the definition of assessing event, the dwelling is taken to continue to satisfy the criteria until:\n (a) if, immediately before the event, the dwelling was taken to satisfy the criteria in subsection (2) because of a previous application of this subsection—the day worked out under paragraph (b) for that previous application; or\n (b) otherwise—the earlier of:\n (i) the end of 12 months after the event; or\n (ii) the end of the lease for the dwelling.\n (4) A dwelling satisfies the criteria in this subsection if the rent payable under a lease for the dwelling is not more than the lesser of:\n (a) 74.9% of the market value of the right to occupy the dwelling under the lease; and\n (b) 30% of:\n (i) if the dwelling is tenanted by an adult (either living alone or with one or more dependent children)—the taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event; or\n (ii) if the dwelling is tenanted by 2 or more adults living together (either with or without one or more dependent children)—the combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event.\n (5) Despite subsection (4), if:\n (a) an event mentioned in subparagraph (c)(iii) of the definition of assessing event occurs in relation to a dwelling; and\n (b) because of that event, the dwelling no longer satisfies the criteria in subsection (4);\n the dwelling is taken to continue to satisfy the criteria in that subsection for the period of 60 days after the event.\n Request for rental review\n (6) A tenant of a lower-income dwelling may provide a notice to the owner of the dwelling requesting a review of the rent payable under the lease for the dwelling if:\n (a) the notice is provided during a financial year; and\n (b) a notice has not previously been provided in respect of the dwelling for the financial year.\n (7) The notice must:\n (a) be made in writing; and\n (b) be accompanied by information that would enable the owner to assess whether the dwelling satisfies the criteria in subsection (4).\n\n## Part 10—Transitional Provisions\n\n### Division 1—Transitional provisions relating to the Income Tax Assessment (Build to Rent Developments) Amendment (Expanding Affordability Requirements) Determination 2025\n\n#### 100 Application provision\n\n The amendments of this instrument made by the Income Tax Assessment (Build to Rent Developments) Amendment (Expanding Affordability Requirements) Determination 2025 (the amending determination) apply in relation to a dwelling on and after the day that is 12 months after the commencement of the amending determination.","sortOrder":9},{"sectionNumber":"Division 1","sectionType":"division","heading":"Transitional provisions relating to the Income Tax Assessment (Build to Rent Developments) Amendment (Expanding Affordability Requirements) Determination 2025","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n This instrument is the Income Tax Assessment (Build to Rent Developments) Determination 2024.\n\n#### 2 Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The later of:

(a) the day after this instrument is registered; and

(b) 1 January 2025.

1 January 2025

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n#### 3 Authority\n\n This instrument is made under the Income Tax Assessment Act 1997.\n\n#### 4 Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Income Tax Assessment Act 1997 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n> assessing event, for a dwelling, means any of the following:\n\n (a) a lease being entered into for the dwelling;\n (b) the lease for the dwelling being renewed;\n (c) after a lease is entered into or renewed, one of more of the following occurring:\n (i) an adult individual moving in or out of the dwelling;\n (ii) a dependent child of an adult individual occupying the dwelling moving out of the dwelling, resulting in no dependent children of an adult individual occupying the dwelling continuing to occupy the dwelling;\n (iii) an individual occupying the dwelling providing a notice under subsection 7(6).\n\n> average annual earnings means the amount of the full‑time adult average weekly ordinary time earnings (original), for the most recent period for which an amount has been published by the Australian Statistician, multiplied by 52.\n\n> Note: In 2024, statistics published by the Australian Statistician could be viewed on the Australian Bureau of Statistics website (http://www.abs.gov.au).\n\n> BTR owner, in relation to a dwelling, means the owner of the dwelling that forms part of a build to rent development.\n\n> dependent child: an individual is a dependent child of another individual if:\n\n (a) the second individual is a parent of the first individual; and\n (b) either:\n (i) the first individual is a dependent child of the second individual within the meaning of subsection 5(2) or (4) of the Social Security Act 1991; or\n (ii) the first individual is receiving a disability support pension (within the meaning of the Social Security Act 1991), and lives with the second individual.\n\n> lower-income dwelling has the meaning given by subsection 7(1).\n\n> moderate-income dwelling has the meaning given by subsection 6(1).\n\n> the Act means the Income Tax Assessment Act 1997.\n\n## Part 2—Build to rent developments\n\n#### 5 Requirements for affordable dwellings\n\n (1) Under subsection 43‑153(3) of the Act, each of the following requirements for a dwelling to be an affordable dwelling are determined:\n (a) the dwelling is either:\n (i) a moderate-income dwelling; or\n (ii) a lower-income dwelling;\n (b) the dwelling is part of a build to rent development in which the number of dwellings that are lower-income dwellings is equal to or greater than:\n (i) 2% of the number of the dwellings; or\n (ii) if the number of dwellings worked out under subparagraph (i) is not a whole number—that number rounded down to the nearest whole number of dwellings;\n (c) the dwelling is part of a build to rent development that satisfies subsection (2);\n (d) if the dwelling is tenanted—each tenant of the dwelling was identified by an eligible community housing provider as a prospective tenant for the dwelling (having regard only to the requirements for dwellings in this instrument and any matter expressly advised to the provider by the BTR owner).\n (2) For the purposes of paragraph (1)(c) a build to rent development satisfies this subsection if the BTR owner engages an eligible community housing provider to assist the BTR owner to:\n (a) identify prospective tenants for each affordable dwelling in the development; and\n (b) ascertain, for each assessing event in relation to each affordable dwelling in the development, whether the dwelling satisfies the criteria in subsection 6(2) or 7(2) (whichever applies).\n (3) The requirements in paragraphs (1)(c) and (d) do not apply to a dwelling if special circumstances exist in relation to the dwelling.\n\n#### 6 Meaning of moderate-income dwelling\n\n (1) A dwelling is a moderate-income dwelling if:\n (a) the dwelling satisfies the criteria set out in subsections (2) and (4); and\n (b) the dwelling is not a lower-income dwelling.\n (2) A dwelling satisfies the criteria in this subsection if the dwelling is tenanted, or available to be tenanted, only by one or more of the following:\n (a) an adult living alone whose taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 120% of average annual earnings;\n (b) 2 or more adults living together whose combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 130% of average annual earnings;\n (c) one adult living with one or more dependent children of the adult, where the adult’s taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 140% of average annual earnings;\n (d) 2 or more adults living with one or more dependent children of any of the adults, where the adults’ combined taxable incomes for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 140% of average annual earnings.\n (3) Despite subsection (2), if a dwelling no longer satisfies the criteria in that subsection only because of an event mentioned in subparagraph (c)(i) or (ii) of the definition of assessing event, the dwelling is taken to continue to satisfy the criteria until:\n (a) if, immediately before the event, the dwelling was taken to satisfy the criteria in subsection (2) because of a previous application of this subsection—the day worked out under paragraph (b) for that previous application; or\n (b) otherwise—the earlier of:\n (i) the end of 12 months after the event; or\n (ii) the end of the lease for the dwelling.\n (4) A dwelling satisfies the criteria in this subsection if the rent payable under a lease for the dwelling is 74.9% or less of the market value of the right to occupy the dwelling under the lease.\n\n#### 7 Meaning of lower-income dwelling\n\n (1) A dwelling is a lower-income dwelling if the dwelling satisfies the criteria set out in subsections (2) and (4).\n (2) A dwelling satisfies the criteria in this subsection if the dwelling is tenanted, or available to be tenanted, only by one or more of the following:\n (a) an adult living alone whose taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 75% of average annual earnings;\n (b) 2 or more adults living together whose combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 90% of average annual earnings;\n (c) one adult living with one or more dependent children of the adult, where the adult’s taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 100% of average annual earnings;\n (d) 2 or more adults living with one or more dependent children of any of the adults, where the adults’ combined taxable incomes for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event, was less than 100% of average annual earnings.\n (3) Despite subsection (2), if a dwelling no longer satisfies the criteria in that subsection only because of an event mentioned in subparagraph (c)(i) or (ii) of the definition of assessing event, the dwelling is taken to continue to satisfy the criteria until:\n (a) if, immediately before the event, the dwelling was taken to satisfy the criteria in subsection (2) because of a previous application of this subsection—the day worked out under paragraph (b) for that previous application; or\n (b) otherwise—the earlier of:\n (i) the end of 12 months after the event; or\n (ii) the end of the lease for the dwelling.\n (4) A dwelling satisfies the criteria in this subsection if the rent payable under a lease for the dwelling is not more than the lesser of:\n (a) 74.9% of the market value of the right to occupy the dwelling under the lease; and\n (b) 30% of:\n (i) if the dwelling is tenanted by an adult (either living alone or with one or more dependent children)—the taxable income, for the most recent income year, for which the Commissioner has given the adult a notice of assessment, ending before the dwelling’s most recent assessing event; or\n (ii) if the dwelling is tenanted by 2 or more adults living together (either with or without one or more dependent children)—the combined taxable incomes, for the most recent income year, for which the Commissioner has given each adult a notice of assessment, ending before the dwelling’s most recent assessing event.\n (5) Despite subsection (4), if:\n (a) an event mentioned in subparagraph (c)(iii) of the definition of assessing event occurs in relation to a dwelling; and\n (b) because of that event, the dwelling no longer satisfies the criteria in subsection (4);\n the dwelling is taken to continue to satisfy the criteria in that subsection for the period of 60 days after the event.\n Request for rental review\n (6) A tenant of a lower-income dwelling may provide a notice to the owner of the dwelling requesting a review of the rent payable under the lease for the dwelling if:\n (a) the notice is provided during a financial year; and\n (b) a notice has not previously been provided in respect of the dwelling for the financial year.\n (7) The notice must:\n (a) be made in writing; and\n (b) be accompanied by information that would enable the owner to assess whether the dwelling satisfies the criteria in subsection (4).\n\n## Part 10—Transitional Provisions\n\n### Division 1—Transitional provisions relating to the Income Tax Assessment (Build to Rent Developments) Amendment (Expanding Affordability Requirements) Determination 2025\n\n#### 100 Application provision\n\n The amendments of this instrument made by the Income Tax Assessment (Build to Rent Developments) Amendment (Expanding Affordability Requirements) Determination 2025 (the amending determination) apply in relation to a dwelling on and after the day that is 12 months after the commencement of the amending determination.","sortOrder":10},{"sectionNumber":"100","sectionType":"section","heading":"Application provision","content":"#### 100 Application provision\n\n The amendments of this instrument made by the Income Tax Assessment (Build to Rent Developments) Amendment (Expanding Affordability Requirements) Determination 2025 (the amending determination) apply in relation to a dwelling on and after the day that is 12 months after the commencement of the amending determination.","sortOrder":11}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"This instrument goes beyond a narrow tax‑definition exercise by imposing operational and compositional requirements on build‑to‑rent developments (minimum 2% lower‑income dwellings, engagement of eligible community housing providers to identify tenants and verify eligibility, tenant rent review rights, and detailed income and rent tests). It therefore expands the legal and administrative scope from a simple definitional ruling into a set of ongoing compliance and operational rules that affect owner behaviour, tenant selection, information flows and valuation practice (see sections 5–7). The instrument also explicitly contemplates a later amending determination that \"expands affordability requirements\" and includes a transitional timing rule that phases in those expanded requirements 12 months after that amending determination commences (section 100), confirming the scope is intended to grow beyond the original core definitions."},"complexity_factors":["Multiple defined terms (assessing event, average annual earnings, BTR owner, dependent child, moderate‑income dwelling, lower‑income dwelling) requiring cross‑reference to other statutes (Social Security Act 1991) and Commissioner notices","Income thresholds expressed as percentages of ABS average annual earnings with different percentages by household composition (sections 6(2), 7(2))","Dual rent tests for lower‑income dwellings combining a market‑value cap (74.9%) and a household income‑linked cap (30% of taxable income) (section 7(4))","Continuation and transitional timing rules (assessing‑event carry‑over periods in sections 6(3), 7(3) and 7(5); commencement timing and the 12‑month lag for the 2025 amending determination in section 100)","Operational requirement for engagement of an \"eligible community housing provider\" and information flows between providers, tenants, owners and the Commissioner (section 5(2), 5(1)(d))","Minimum composition rule (at least 2% lower‑income dwellings) that applies to developments as a whole, creating portfolio‑level compliance (section 5(1)(b))","Several conditional exceptions (special circumstances carve‑out in section 5(3); continuation exceptions tied to previous applications)","Cross‑reference to the Income Tax Assessment Act 1997 (s43‑153(3)) for the legal effect of an \"affordable dwelling\" classification"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- Establishes the tests the Commissioner of Taxation must use to decide when a dwelling in a \"build to rent\" development counts as an \"affordable dwelling\" for the Income Tax Assessment Act 1997 (see section 43‑153(3) of the Act). (A \"determination\" like this tells the Commissioner which criteria to apply.)\n\n- Defines two categories of affordable dwellings: \"moderate‑income dwellings\" and \"lower‑income dwellings\", and sets the precise income and rent tests that create those categories (see sections 6 and 7 and the definitions in section 4).\n\n- Requires that, within a build to rent development, a minimum share of dwellings must be lower‑income dwellings (at least 2% of the dwellings, rounded down if necessary) for other dwellings in the development to qualify as affordable dwellings (section 5(1)(b)).\n\n- Requires the build to rent owner (BTR owner) to engage an \"eligible community housing provider\" to help identify prospective tenants and to verify, at each \"assessing event\" (e.g. lease start, lease renewal, or certain changes in occupants), whether a dwelling meets the income criteria (section 5(2)).\n\n- Gives tenants of lower‑income dwellings a statutory right to provide a written notice requesting a rent review once per financial year; the notice must include enough information for the owner to assess whether the dwelling meets the lower‑income rent test (section 7(6)–(7)).\n\n- Sets transitional timing for later amendments that expand affordability requirements: any amendments made by the referenced 2025 amending determination apply to a dwelling only from the day that is 12 months after that amending determination commences (transitional provision, section 100).\n\n\nWho is affected\n\n- BTR owners (the registered owners of dwellings in a build to rent development): they must ensure developments meet the composition and procedure rules to qualify dwellings as \"affordable\" under the tax law, engage an eligible community housing provider to assist, and respond to tenant rent review requests.\n\n- Eligible community housing providers: they are required as a matter of practice to identify and verify prospective tenants for owners who rely on the affordable dwelling rules.\n\n- Tenants in BTR developments: their eligibility for a moderate‑ or lower‑income dwelling is determined by the income limits and rent tests in the instrument; tenants of lower‑income dwellings gain a statutory right to request a rent review (once per financial year).\n\n- Commissioner of Taxation / ATO: must apply these determination tests when administering the tax law and rely on statutory income information (notice of assessment) and market value measures.\n\n\nKey tests and numbers (how the categories are measured)\n\n- \"Average annual earnings\" = ABS full‑time adult average weekly ordinary time earnings (original) × 52 (definition in section 4).\n\n- Moderate‑income dwelling: tenant(s) must fall under income thresholds that are multiples of average annual earnings depending on household type (120%, 130%, or 140% in different household scenarios), and rent must be at most 74.9% of the market value of the right to occupy (section 6).\n\n- Lower‑income dwelling: tighter income thresholds (75%, 90%, or 100% depending on household type) and a rent test that is the lesser of (i) 74.9% of market value and (ii) 30% of the tenant(s)' taxable income (section 7(4)).\n\n- \"Assessing events\" that trigger checks include lease start, lease renewal, or certain occupant changes and tenant requests for review (definition in section 4).\n\n\nOfficial purpose claim and practical implications\n\n- The instrument is presented as specifying how dwellings in build to rent developments can meet the \"affordable dwelling\" test under the income tax law (this is the stated purpose). That classification will affect tax outcomes for owners who structure developments to meet the tests.\n\n- Practical consequences and trade‑offs to consider:\n - Who pays: BTR owners bear direct compliance and operational costs (engaging community housing providers, verifying tenant incomes, keeping rents below specified thresholds, record keeping and responding to review notices). These costs reduce net returns on affected dwellings compared with unrestricted market rents (see sections 5–7).\n - Information flow and privacy: eligibility depends on taxpayers' (tenants') taxable income as shown in the Commissioner's notices of assessment, so owners or their agents will need access to tenant income information or confirmation from an eligible provider to apply the tests (sections 4, 5(1)(d), 5(2)(b), 6(2), 7(2)).\n - Administrative burden and enforcement: the ATO must apply income‑based and market‑value tests and will need rules and procedures to verify claims. Market value of the \"right to occupy\" is a valuation exercise that can be disputed or require specialist advice (sections 6(4), 7(4)).\n - Behavioural incentives: owners may respond by (a) setting aside the minimum required lower‑income dwellings and keeping other units at market rates, (b) avoiding BTR classification where possible, or (c) changing lease terms or tenant selection practices to manage eligibility. Community housing providers will be the gatekeepers for tenant identification under the instrument (section 5(2)).\n - Concentration of benefits and costs: benefits (lower rents) are targeted to qualifying tenants; costs (lower revenue and compliance) fall on owners and potentially on community housing providers. The 2% floor for lower‑income dwellings concentrates the requirement but makes it mandatory to have some lower‑income supply in each development that seeks the affordable classification (section 5(1)(b)).\n - Edge cases and implementation risk: multiple timing rules (\"assessing events\" and continuation periods where an occupant change does not immediately change status — sections 6(3), 7(3) and 7(5)), the special circumstances carve‑out for some requirements (section 5(3)), and the dual rent tests for lower‑income dwellings create conditional complexity and potential disputes.\n\n\nWhat to watch for in practice\n\n- How \"market value of the right to occupy\" will be determined and evidenced in audits (sections 6(4), 7(4)(a)).\n- The operational test for an \"eligible community housing provider\" and the commercial arrangements between BTR owners and those providers (section 5(2)).\n- The record‑keeping and privacy safeguards used to rely on commissioners' notices of assessment for tenant incomes (sections 4, 6, 7).\n- Effects on BTR owners' investment decisions where units must be rented at the specified caps or where the minimum 2% lower‑income rule constrains portfolio returns (section 5(1)(b)).\n\n\nPrimary sections cited: definitions (section 4), requirements for affordable dwellings (section 5), meaning and tests for moderate‑income dwellings (section 6), meaning and tests for lower‑income dwellings including tenant review rights (section 7), and transitional application for 2025 amending determination (section 100)."},"summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This determination does not amend the Act; it specifies requirements for a dwelling to be an affordable dwelling within the existing build-to-rent tax framework."},"complexity_factors":["Multiple income thresholds based on household composition","Rent caps linked to market value and tenant income","Requirement for eligible community housing provider engagement","Transitional provision for future amendments"],"plain_english_summary":"This determination sets the rules for when a dwelling in a build‑to‑rent (BTR) development qualifies as an “affordable dwelling” for capital‑works tax incentives. It defines two categories—moderate‑income and lower‑income—specifies household income and rent caps for each, requires at least 2% of a development be lower‑income dwellings, and generally requires owners to engage an eligible community housing provider to verify tenant eligibility. It affects BTR developers, owners, community housing providers and prospective tenants by prescribing the thresholds needed to claim the tax benefits."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose of defining affordable housing criteria for build-to-rent tax incentives. The inclusion of Part 10 transitional provisions for a 2025 amending instrument indicates normal legislative evolution rather than scope creep."},"complexity_factors":["Multiple nested definitions: 'assessing event' triggers income tests, which themselves depend on household composition (single, couple, with/without children) with four different percentage thresholds (75%, 90%, 100%, 120%, 130%, 140%)","Recursive grace period logic in sections 6(3) and 7(3) that references previous applications of the same subsection","Dual rent caps for lower-income dwellings (74.9% of market value OR 30% of income, whichever is lower) creating a 'lesser of' calculation","Cross-references to external legislation: Income Tax Assessment Act 1997 (primary Act), Social Security Act 1991 (for 'dependent child' definition), and Australian Bureau of Statistics data (for 'average annual earnings')","Conditional exemptions: 'special circumstances' exception in section 5(3) with no defined criteria","Temporal complexity: requirements apply 'on and after' specific dates with 12-month transitional delays for amendments","Administrative burden: requires ongoing verification of tenant income through tax notices of assessment and engagement with eligible community housing providers"],"plain_english_summary":"This legislation sets the rules for when a rental property qualifies as an 'affordable dwelling' under Australia's tax laws for 'build to rent' developments. These are large-scale residential developments purpose-built for long-term rental rather than sale.\n\n**What it does:**\n- Creates two categories of affordable housing: **moderate-income dwellings** and **lower-income dwellings**.\n- Sets income thresholds based on 'average annual earnings' (a published statistic from the Australian Bureau of Statistics). For example, a single person earning less than 75% of average earnings could qualify for a lower-income dwelling.\n- Caps rent at 74.9% of market value for moderate-income dwellings, and the lesser of 74.9% of market value or 30% of the tenant's income for lower-income dwellings.\n- Requires at least 2% of dwellings in a development to be lower-income dwellings.\n- Requires developers (called 'BTR owners') to work with community housing providers to identify eligible tenants and check their income status.\n- Includes 'grace periods' so tenants don't immediately lose affordable status if their income changes or household composition shifts (for example, a partner moving out).\n- Allows lower-income tenants to request a rent review once per financial year.\n\n**Who it affects:**\n- Property developers building large rental-only residential projects.\n- Community housing providers who partner with developers.\n- Low and moderate-income renters seeking affordable housing.\n- The Australian Taxation Office, which administers the tax incentives linked to these rules.\n\n**Why it matters:**\nThis determination unlocks tax incentives for developers who provide affordable housing. Without meeting these specific requirements, developers cannot access the 'build to rent' tax concessions in the Income Tax Assessment Act 1997. The rules aim to encourage private investment in affordable rental housing while ensuring the benefits actually reach lower-income Australians."}},"importantCases":[],"_links":{"self":"/api/acts/income-tax-assessment-build-to-rent-developments-determination-2024","history":"/api/acts/income-tax-assessment-build-to-rent-developments-determination-2024/history","analysis":"/api/acts/income-tax-assessment-build-to-rent-developments-determination-2024/analysis","conflicts":"/api/acts/income-tax-assessment-build-to-rent-developments-determination-2024/conflicts","importantCases":"/api/acts/income-tax-assessment-build-to-rent-developments-determination-2024/important-cases","documents":"/api/acts/income-tax-assessment-build-to-rent-developments-determination-2024/documents"}}