Pre-budget submission outlines future for productive cities
Policies that support productive cities, improve housing affordability, assist older Australians to rightsize and cut carbon emissions are on the table in the Property Council’s pre-budget submission to the Turnbull Government.
According to the Property Council’s chief executive Ken Morrison, the property industry is now Australia’s largest employer and industry.
“We are Australia’s biggest employer and largest industry. Every day, we hand over the keys to 630 new homes and keep more than 1.4 million Australians in jobs,” Morrison says.
“Another 14.1 million Australians have a stake in the property industry through their super fund.”
“As Australia continues to grow and evolve, the job of the property industry is to respond to the changes in our country – from creating the spaces for business to flourish to alleviating the pressures on housing affordability.
“But we need supportive policies that will benefit our communities, create jobs, and enhance the productivity and long-term sustainability of our cities,” Morrison says.
Better functioning cities is top of the Property Council’s wish list.
“Expanding the federal government’s cities agenda with a City Deal for every major capital city, and sufficient resources to ensure each is delivered, is the best place to start,” Morrison says.
Bringing forward the infrastructure spending for the National Urban Rail from 10 to five years, and a commitment to invest in at least $ billion in infrastructure funding over the next four years are also high priorities.
The Property Council also supports the Productivity Commission’s recommendation to apply competition policy principles to land use regulation and policies. An incentives-based model would improve housing supply and affordability.
“We urge the Turnbull Government to commit $0 million to fund incentive payments that would encourage best practice reforms in planning, zoning and infrastructure delivery to increase housing supply,” Morrison says.
Housing affordability remains a hot-button issue. Identifying more land disposal opportunities for new housing supply, incentivising planning reform, reinstating the National Housing Supply Council and working with the states to provide low deposit home loans are all high priorities for the Property Council.
“The federal government can also address housing affordability by supporting the emerging build-to-rent. We think taxation measures, and build-to-rent mandates for suitable redundant Commonwealth property will both bolster this asset class,” Morrison adds.
“Policies that recognise the value of rightsizing and provide financial certainty will also address housing affordability and will ensure older Australians can access housing that meets their needs.”
Energy market reforms, an economy-wide target of net zero emissions by 20, and recognition of the role buildings play in meeting those targets are among the Property Council’s policy recommendations to enhance energy security and address climate change.
The Property Council’s pre-budget submission also underscores the importance of foreign investment to the Australian economy.
“It is vital that Australia has the right balance of taxes and investment rules to attract global capital which is essential to drive economic growth. Our rules are among the toughest in the world and we should not seek to impose further taxes and regulations on foreign investment,” Morrison concludes.