Foreign investment reform package

Legislation introduced into the federal parliament today promises to enhance the operation of Australia’s foreign investment framework but won’t improve housing affordability.

The Property Council of Australia acknowledged the Government’s consultative approach in putting together this reform package after the original policy announcement earlier this year.

Chief Executive Ken Morrison said it was important to ensure compliance with foreign investment rules but cautioned that these measures will not address housing affordability concerns.

“It’s good to see the Government taking action to better enforce compliance with foreign investment rules but this won’t improve housing affordability,” Mr Morrison said.

“This legislation, and the regulations that are yet to come, have been developed in consultation with industry which will help make sure it operates as intended.

“Critically, many of the necessary enhancements that promise to free up and streamline commercial transactions will come through in the regulations later this year.

“The proposed land register will be very beneficial to inform policy in the future and should be augmented by better data on housing supply.

“We note that the new foreign investment fee regime is set to raise $200 million annually, three times the cost of administering the enhanced compliance measures.

“Stamping out illegal foreign investment activity isn’t the main game when it comes to issues around housing affordability.

“Improving affordability hinges on abolishing stamp duty and increasing new housing supply.

“Governments must adopt genuine tax reform and improve planning frameworks if we are to ease house price pressures – they are the only meaningful solutions.

“State and territory treasurers have a very valuable opportunity tomorrow to make real progress on both these fronts.”

 

Media contact: Fiona Benson | M 0407 294 620 | E [email protected]