Home Property Australia July advocacy updates

July advocacy updates

  • July 19, 2024
  • by Property Australia
From merger reform to Thin Capitalisation, an update on some of the advocacy priorities for the Capital Markets Division and its committees and working groups.

The Capital Markets Division is leading or contributing to a number of key policy priorities and engaging our members through our committees and working groups.

Our priorities cover tax and foreign investment policy, corporate governance and regulation, accounting, and finance affecting the property industry. Recent advocacy updates include:

  • Merger reform: the government has released its exposure draft legislation to reform mergers and acquisitions in Australia. Specifically, the exposure draft sets out the framework of the new system including the definition of acquisitions, notification requirements, timelines, and the new Competition and Substantial Public Benefit tests. The Property Council is preparing a submission for 13 August
  • ASX corporate governance: in its submission to the ASX the Property Council noted that the fifth edition of its Principles and Recommendations remain too prescriptive, will add additional regulatory burden and compliance costs, and could deter listing and promote de-listing – all negative to a healthy and functioning stock exchange. We have maintained our long-term position that the framework should be principles-based and not form quasi-regulation on listed entities
  • Wholesale investor test inquiry: the Property Council made its submission to the parliamentary inquiry looking at the wholesale investor/client tests. There is limited evidence to show a consumer or market failure because of the current thresholds, and as such we suggested the government should consider further reforming the sophisticated investor test, looking at creating objective requirements such as an education or training component
  • Sustainable Finance Taxonomy: the Property Council has made its submission to the Australian Sustainable Finance Institute on its taxonomy project. We outlined our priorities including seeking clarity on the coverage and applicability of the taxonomy, making the transition of existing assets a key objective and focusing on buildings powered by renewable energy, not simply on-site solar. The Property Council is engaging further with ASFI in August
  • Your Future, Your Super (YFYS): in June the Property Council briefed ASIC on the implications of RG97, highlighting the increased burden with reporting transfer duties as fees rather that a recorded cost. We will now engage with the Treasurer’s office to seek the Ministerial guidance for a path forward
  • Thin Capitalisation: the Property Council made a submission to the Australian Tax Office on the review into Thin Capitalisation practices of industry.  We continue to liaise with members on the best way forward.