Property industry priorities for new government

Property industry priorities for new governmentThe re-election of the Turnbull Government delivers a mandate to retain negative gearing and capital gains tax arrangements, but the fate of the Australian Building and Construction Commission remains unclear.The Coalition’s victory in the 2016 federal election brought to an end the longest election campaign since 1954. While the counting continues, and the final make-up of the Senate is yet to be decided, a larger crossbench brings with it new political challenges.Property Council chief executive Ken Morrison welcomes the election result, but warns that it is not a “three-year leave pass from economic reform”.High on the Property Council’s priority list is the reinstatement of the ABCC – the construction industry watchdog established by the Howard Government in 2005. Between 2005 and 2012, industrial action in construction fell by half, before the ABCC was wound back by the Gillard Government.Prime Minister Malcolm Turnbull has argued that the ABCC bill is a “critical economic reform” that will reduce the high levels of industrial disputes on building sites.The complementary Registered Organisations bill seeks to impose higher standards of regulation on union officials, and aligns penalties to those currently in place for company directors.”The election was called on the basis of these two bills, and we can’t afford to turn our backs on these important reforms,” Morrison says, adding that the most likely scenario for a positive outcome is a joint sitting of Parliament to push the bills through both houses.The Property Council also has its sights set on new City Deals to maximise productivity and growth in Australian cities, the expansion of the Emissions Reduction Fund to include buildings and a taxation reform plan that stimulates economic growth.While the issue of negative gearing and capital gains tax concessions has been put to bed, Morrison says housing affordability is also a vital issue for this parliament.”There has been no shortage of policy reviews on this issue and the need for supply side solutions is clear,” Morrison says.”The Turnbull Government can start by re-establishing the National Housing Supply Council and by developing competition-style payments to address supply blockages.”Morrison says he is optimistic that the industry can work with all political parties to address housing affordability, and other national challenges.”With an economy in transition, anaemic productivity growth and long-term fiscal pressures from demographic change, collaboration with the property industry on good policy presents an opportunity to drive economic growth, investment and jobs.”