From 1st July 2017, managed investment trusts (MITs) are able to invest in affordable housing, allowing investors to receive a 60% CGT discount on any capital gains made.
MIT's will be able to acquire, construct or redevelop property subject to satisfying the following conditions:
- Qualifying housing must be provided to low to moderate income tenants.
- Rents charged must be below the private market rental rate.
- The affordable housing must be available for rent for at least 10 years.
- The MIT must derive at least 80% of its assessable income from affordable housing in a year.