The Property Council of Australia says new details of the Government’s tax reform package fail to address key concerns around housing supply, warning investment confidence remains at risk as critical housing settings are deferred to future legislation and total national tax take on property investment continues to increase.
Property Council Chief Executive Mike Zorbas stated that while additional clarity had been provided, the core issues affecting housing supply and investment remain unaddressed.
“High construction, labour and capital costs are not going away. The feasibility of new projects has rarely been more stretched.
“Whether through state and local taxes, or tax hikes via trusts, negative gearing or CGT, property organisations that employ 1.4 million Australians face an historic investment burden if these Bills pass into law. Between three levels of government that total tax take is north of $130bn annually and rising.
“The changes announced on discretionary trusts still do not address the broader, material impacts on the tens of thousands of family-owned businesses that play a critical role in delivering Australia’s city-shaping commercial, industrial and housing assets.
“Moreover, the many scalable housing types that are backed by long-term, patient capital like build to rent, retirement living, purpose built student accommodation and land lease communities are still being left out of the debate at a time when we need to pull every lever to increase the supply of new homes.
“We look forward to further engagement with the Federal Government as the full extent of impact becomes clear.”
Mike Zorbas, Chief Executive, Property Council
