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, corporate governance and regulation, accounting, and finance affecting the property industry. Recent advocacy updates include:
- ASIC discussion paper on public and private markets: we have established a working group to respond to ASIC’s discussion paper on Australia’s evolving capital markets, tackling the regulators concerns on private credit and interactions with public markets.
- ASX corporate governance: on 20 February the ASX Corporate Governance Council announced that consultation had formally closed on the draft Fifth Edition of the Corporate Governance Principles and Recommendations. The Fourth Edition, introduced in 2019, will remain in effect.
- Wholesale investor test inquiry: the Parliamentary Joint Committee on Corporations and Financial Services recommended in its report that, rather than suggest an increase in the individual wealth test threshold, that the government consult on reforms to the sophisticated investor test, aligned with the Property Council’s position.
- Anti-money laundering: our submission to AUSTRAC on the exposure draft Rules has focused on ensuring flexibility for reporting entities, exemptions where a contractual obligation conflicts with the delayed verification of customers, and allowing entities to rely on other government approvals (such as FIRB) to satisfy initial customer due diligence. We are expecting further consultation on the Rules in May.
- Thin Capitalisation: our submission to the ATO on 14 March outlined fifteen recommendations to guidance notes that assist industry working with Thin Capitalisation rules. Our key concerns remain what is classified as an Australian asset, commercial activities within Australia, allowing for swaps on both interest rates and currency hedging, and continuing conduit financing rules. We remain committed to working with government to advocate for a workable system for members and industry.
- Foreign Investment Review Board: we are working with FIRB to ensure the Future Made in Australia policy meets its stated aims. With shorter timeframes for responses, additional resourcing to look after investors that will build our cities. Issues remain around exemption certificates and sensitive land which we remain committed to advocating for solutions that work for industry.