Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 (138 of 2024)

Schedule 1   Build to rent developments

Taxation Administration Act 1953

18   At the end of section 12-450 in Schedule 1

Add:

Income from a build to rent development

(5) Subject to subsection (7), the amount is not MIT residential housing income of the *managed investment trust under subsection (2) to the extent any of the following paragraphs applies to the amount in relation to a *dwelling of an *active build to rent development:

(a) the amount is, or is referable to, a payment of rental income under a lease of the dwelling;

(b) the amount is, or is attributable to, a *capital gain from a *CGT event in relation to the dwelling;

(c) all of the following subparagraphs apply:

(i) the amount is, or is attributable to, a part of a capital gain from a CGT event in relation to a *membership interest in an entity;

(ii) just before the time of the CGT event, all or part of the *market value of the membership interest is referable to the dwelling;

(iii) subsection (6) applies to the part of the capital gain.

(6) This subsection applies to the part of a *capital gain mentioned in paragraph (5)(c) worked out as follows:

where:

value of the interest in the dwelling means so much of the value of the membership interest as is referable to the *dwelling.

value of the membership interest means the *market value of the *membership interest just before the time of the *CGT event.

(7) Subsection (5) does not apply to an amount if:

(a) the *build to rent compliance period for each of the *dwellings of the *active build to rent development has ended; and

(b) assuming that the build to rent compliance period for each of the dwellings had not ended, the active build to rent development would have *ceased to be an active build to rent development.