Corridors of Power – 7 July 2015

Corridors of Power – 7 July 2015The Federal Government takes a look out our cities, NSW introduces new minimum apartment sizes and the Palaszczuk Government gets ready to hand down the QLD Budget. Stay up to date with all the latest government developments affecting the property industry here each week.The Federal Government this week released the latest report in the State of Australian Cities series, which found that record levels of demand are being felt across Australia’s transport networks. The House of Representatives Economics Committee Inquiry into Home Ownership continues and the Property Council has lodged its submission as part of the consultation process. Also out of Canberra were rumblings of a further crackdown on foreign investors with media speculation about a tightening of FIRB criteria to remove the ability for foreigners to buy existing homes that have reached end of economic life, as well as ending negative gearing for foreign investors. This was in addition to the Government’s move to tighten compliance with the existing FIRB framework and introduce new fees for foreign investors, for which the Government this week released two Bills to implement the measures and sought input from stakeholders. The consultation period on the Bills closes on 17 July.In Adelaide the state government has announced an extension of the tramline along North Terrace and East Terrace, enhancing the attractiveness of the Royal Adelaide Hospital site to potential investors. In Victoria the new foreign investment fees commenced on 1 July, albeit with some important modifications to the guidelines negotiated with the Property Council and UDIA. Meanwhile the New South Wales Government has introduced new planning regulations, effective from 17 July mandating a minimum apartment size of 35 square metres. North of the border the Queensland Government is preparing to hand down the state budget and the Property Council is advocating for fast-track approvals and new financing ideas. Queensland executive director Chris Mountford said “(t)he government does not always have the answer on what the best use for an asset might be, so it is important that proponents are able to approach the government with unsolicited suggestions that will assist in the delivery of key policy objectives”.