Affordable Community Housing Land Tax Exemption Scheme

Benefits of the scheme

Benefits of the scheme

Eligible ACT property owners can get a full land tax exemption under the Affordable Community Housing Land Tax Exemption scheme.
If you take part, you:

are helping to deliver more affordable housing in Canberra

won’t have to pay land tax on your rental property

are supported by Rentwell’s experienced property managers.

Check if you can apply

You must be a property owner renting your property:

at less than 75% of market rate

to eligible tenants through an approved property management provider, such as Rentwell.

Visit the ACT Revenue Office website to find out how you can rent your home through the scheme.

Land Tax Exemption*

If your property is being offered for rent at a rate that is a discount to market rent of more than 25%, and the tenant meets income eligibility requirements, you may fit the ACT Government’s criteria for a full land tax exemption.

ATO Tax Ruling**

We have an ATO class ruling that may allow us to provide you with a tax-deductible donation receipt for rent foregone by offering your property at below market rent. This would enable you to reduce your assessable income.

The tax incentives allow you to make a big difference without greatly affecting your finances.

*Revenue Legislation Amendment Bill 2019 and Land Tax (Affordable Community Housing) Determination 2025
** ATO Class Ruling CR2023/26

SETTING THE RECORD STRAIGHT ON LAND TAX EXEMPTION

Some providers claim to be the only ones able to pass on a land tax exemption because they are licensed real estate agents. While that may be technically correct in their case, it’s important to know that Community Housing Providers (CHPs) like us are exempt from needing a real estate license – and we are fully approved to pass on the same land tax exemption to eligible property owners.

As a registered CHP, we meet rigorous standards for governance, compliance, and service delivery. Our charitable property management service provides you with the same financial benefits while ensuring your investment supports safe, secure housing and you play a direct role in tackling the housing crisis and improving rental affordability.

Rentwell is proud to offer you:

• Full access to land tax exemptions through our CHP status

• Transparent, ethical property management

• A genuine social impact in your community

Any mention of tax incentives, deductions, or financial benefits related to participation in affordable rental programs is provided as general information only and does not constitute financial or tax advice. The value of any potential benefits will depend on factors such as the Land Tax Exemption and the property owner’s personal marginal tax rate. Property owners are encouraged to seek independent advice from a qualified financial adviser, tax agent, or accountant to understand their individual circumstances and determine their eligibility for benefits, including (but not limited to) land tax exemptions, depreciation claims, or charitable deductions.

Shelly’s Affordable Rental Tax Savings Example

Shelly owns a 3-bedroom house in Lyneham and joins Rentwell because she wants a young mother to have access to good local schools. The property is valued for market rent at $850/week by Opteon. Rentwell rents it affordably at $710/week (74.9% of market), and Shelly pays no Allhomes listing fees.

Rent Foregone Donation Example
At year-end, Rentwell issues Shelly a tax-deductible donation receipt for rent forgone: 52 weeks × $140/week = $7,280.
This reduces her assessable rental income by $7,280 under the ATO ruling for affordable housing programs.
At an assumed personal marginal tax rate of 37%, her tax savings total $2,694 ($52/week equivalent) [$7,280 × 0.37].

Land Tax Exemption Example
Shelly qualifies for a full ACT land tax exemption on the property while rented affordably through Rentwell.
If her standard annual land tax bill would be $3,000, she saves the full $3,000 each year.

Total Annual Benefit

Tax savings from donation: $2,694

Land tax exemption: $3,000

Combined: $5,694

Note: Figures depend on individual circumstances; seek professional tax advice. Rentwell’s property management fee is not included in this case study depiction.