Corridors of Power – 28 July 2015

Corridors of Power – 28 July 2015First steps taken towards federation and tax reform by our leaders; Social Services Minister Scott Morrison speaks out about housing supply; and Opposition Leader Bill Shorten announces sustainability policy at Labor’s national conference. Stay up to date with all the latest government developments affecting the property industry here each week.First steps were taken last week by the Prime Minister and First Ministers towards federation and tax reform. Ideas considered included an increase in the GST to 15 per cent put forward by Mike Baird and Jay Weatherill; and raising the Medicare levy pushed by Daniel Andrews and Anastasia Palaszczuk. Importantly the leaders reached agreement in a number of areas, including broadening the GST to cover overseas online transactions under $1000; infrastructure funding and the role of local government; and the importance and need for greater access to affordable housing. Housing affordability was also the topic of a major speech by Scott Morrison. The Social Services Minister said the full list of interconnected issues need to be on the table around housing supply, including land release planning, regulation reform, infrastructure provision, seniors downsizing and transaction taxes to name a few. Both the COAG retreat and speech from Minister Morrison follow comprehensive research released by the Property Council in recent weeks which found that changing the tax mix to replace inefficient taxes (such as stamp duty) with more efficient taxes (such as an increase in the rate of GST), is both supported by over two thirds of Australians, and could benefit the national economy by as much as $10 billion every year. Over the weekend the Australian Labor Party held its National Conference in Melbourne to settle its policy platform in the lead up to the next federal election. While immigration policy and marriage equality were the two issues to dominate conference, sustainability policy also featured prominently with Opposition Leader Bill Shorten announcing that a Labor Government would aim for per cent renewable energy by 2030 and introduce an Emissions Trading Scheme. The Party also amended its platform to enshrine consideration of negative gearing and capital gains tax concession as previously flagged publicly by the Shadow Treasurer. Meanwhile planning took a backwards step in Western Australia with retrograde changes to R-codes. The Property Council has warned that messing around with car parking requirements will add substantial costs to development which will ultimately have to be shouldered by the consumer. The solution to concerns around parking is parking permits or better infrastructure – solutions that will not impact housing affordability.