Home Property Australia May advocacy updates

May advocacy updates

  • May 24, 2024
  • by Property Australia

The Capital Markets Division is leading or contributing to a number of key policy priorities engaging our members through our more than 12+ committees and working groups.

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

  • Merger reform: the government has released its updated proposal to reform Australia’s merger control regime. Industry has won support for removing the ACCC’s “call-in” power, and not reversing the onus of proof onto merger entities. The Property Council is finalising its position on the proposal

  • Anti-money laundering regime: the government has released its long-awaited next round of consultation on extending the anti-money laundering regime to cover tranche two entities, including real estate professionals, accountants and lawyers. Through our ongoing advocacy we have seen residential and commercial leasing and property management removed from the proposal. The Property Council will respond to the consultation by 13 June

  • 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: on 15 May the Property Council made its submission to the parliamentary inquiry looking at the wholesale investor/client tests. Our position was that there is limited evidence to show a consumer or market failure because of the current thresholds, and as such the government should consider further reforming the sophisticated investor test, looking at creating objective requirements such as an education or training component

  • Assurance over climate information: in a submission to the Auditing and Assurance Standards’ Board the Property Council has reinforced its position that reasonable assurance should be limited to financial impacts to financial statements. We also recommended at-least two full reporting periods of limited assurance for disclosure topics before reasonable assurance is mandated

  • Sustainable Finance Taxonomy: the Australian Sustainable Finance Institute (ASFI) has briefed Property Council members on its taxonomy development project on behalf of the Australian Government. Consultation has now opened and the Property Council will make a submission following engagement with members.

  • Your Future, Your Super (YFYS): in April the Property Council briefed Treasury on the implications of Your Future, Your Super and how it is preventing investment into property. RG97 was also highlighted as an additional burden, with Treasury advising ASIC are responsible for this regulation. The Property Council is engaging with ASIC to discuss a pathway forward

  • Thin Capitalisation: the Property Council has raised concerns with the Australian Tax Office over the lack of advice given to industry since the passing of the legislation. This is following their evidence at the February Senate hearing stating that they would be able to give appropriate advice to industry with adequate time to prepare for the end of financial year. We continue to liaise with members on the best way forward.