The government is considering responses to its exposure draft Competition and Consumer (Notification of Acquisitions) Determination 2025, including the Property Council’s submission which was made on 2 May.
The Property Council welcomed consultation on the exposure draft, which gave effect to the government’s commitment from October 2024 to exempt from mandatory notification acquisitions for the following purposes:
- Developing residential premises, and
- Any purpose of the person in carrying on a business primarily engaged in buying, selling or leasing land, other than a purpose relating to operating a commercial business on the land.
Following the Property Council’s advocacy, the government also provided an exemption for lease extensions or renewals, which would remove approximately 50 per cent of potential lease transactions from the regime.
Following engagement with members and consistent with our long-term advocacy priorities, the Property Council made a number of recommendations regarding the section 2-20 exemption for certain land acquisitions, including the need to exempt new leases (other than those covered by additional notification requirements), expanding the activities covered by the exemption to developing  and managing land, as well as explicitly exempting the ancillary functions of these types of businesses, such as leasing and tenancy management, reception or concierge services, facilities management, maintenance and security.
In addition, we made recommendations regarding agreements for lease and other pre-lease arrangements, stressing that flexibility was required to meet the needs of the property industry and their tenants.
The Property Council made further recommendations regarding the definition of connected entities, the definition of entities connected with Australia, and exemptions for other acquisitions such as convertible equity instruments and security interests.
Further engagement with Treasury is expected in the coming weeks.