The Property Council of Australia has stated that the 2025 Federal Budget highlights the need for tax and regulatory reform to attract foreign investment into critical city infrastructure.
Property Council Chief Executive Mike Zorbas has made a statement declaring that the nation’s growing budget deficits and financial constraints at the state level underscore the urgency of securing international institutional investment.
“As Australia has grown, overseas investment has always helped grow our cities for the better. Now we have maxed out the national credit card, and with big state deficits, we are going to need other peoples’ money to build the best parts of our cities.
“Industrial hubs, commercial buildings and new housing communities, which Australians need to create opportunities and to support their daily lives, will need increasing institutional investment from overseas.
“We repel overseas investment through overly complex foreign investment review board and ACCC merger frameworks.
“These compound with daft state taxes on overseas institutions that seek to partner with Australian businesses to create city assets.”
Mike Zorbas, Chief Executive, Property Council
The Property Council also called for a broader national discussion on productivity and tax reform, emphasising the need to attract skilled migration to sustain economic growth and maintain the country’s tax base.
“Our next national debate has to start with lifting the productivity handbrake on institutional investment and eventually tackle root and branch tax reform.
“Parliamentarians also must grapple with the inconvenient truth that we need a higher proportion of skilled migration to support our economy and sustain our tax base.
“That vision is missing from this budget, and the pre-election pitches of both sides.”
Mike Zorbas, Chief Executive, Property Council
Despite these concerns, Mike has acknowledged the positive elements in the Federal Budget, particularly regarding housing and planning reforms.
“Putting housing and planning in context for the last three years, the Government deserves a solid tick for continuing housing targets, rewarding planning reform across industrial, commercial and residential property projects and Build to Rent investment reforms that unlock 80,000 homes.”
Mike Zorbas, Chief Executive, Property Council
The Property Council also welcomed the previously announced $54m investment in advanced manufacturing for prefabricated and modular housing, along with an expansion of the Help to Buy scheme.
