Keeping the door open to investment

The Treasurer’s speech “Keeping the door open to our economy” highlights the value of foreign investment to a growing Australian economy according to the Property Council of Australia.

“The Treasurer has put a compelling case foreign investment as a source of growth, employment and contributes to higher living standards”, said Ken Morrison, Chief Executive of the Property Council of Australia.

“With $3 trillion of foreign investment in Australia, including $735 billion in direct investment, Australia depends on foreign investment as a means of generating jobs and prosperity.

“Foreign investment is a mighty contributor to commercial construction – building the shopping centres, office blocks and manufacturing precincts that Australia needs.

“The foreign investment rules also direct investment towards new housing supply and not existing housing. This ensures that foreign investment contributes to construction and in turn, new housing stock.

“Foreign investment in the property sector has a powerful multiplier that extends throughout the economy so that every Australian experiences or shares in some of the economic and social benefits.

“The Treasurer was right to detail how FIRB transparency has dispelled the myths about foreign investment and agricultural property. The same transparency is vital in the housing and commercial property sectors.

“Australia has experienced 25 years of economic growth and this is the envy of the world. However, complacency is growing and Australians are losing sight of the economic benefits that flow from foreign investments.

“Decisions by the Victorian, NSW and Queensland governments to tax foreign investment in property will flow through to construction, jobs, tax revenues and to new housing supply. These are short-sighted decisions by state governments that cut across national policies directed to encouraging further investment in Australia.

“The Treasurer’s speech reminds us that Australia must resist isolationist policies that can only harm Australia’s economic interests.”

Media contact:  Paul Ritchie  |E pritchie@propertycouncil.com.au