THE Federal Budget is a reminder we need tax and red tape reform to welcome foreign investment into building the assets our cities need, says Property Council Chief Executive Mike Zorbas.
Mr Zorbas said future Federal Budget deficits and matching state financial shortfalls were the strongest argument yet for more overseas investment and a comprehensive rebase of our tax and regulatory systems.
“As Australia has grown, overseas investment has always helped grow our cities for the better,” Mr Zorbas said.
“Now we have maxed out the national credit card, and with big state deficits, we are going to need other people’s money to build the best parts of our cities.
“Industrial hubs, commercial buildings and new housing communities, which Australians need to create opportunities and to support their daily lives, will need increasing institutional investment from overseas.
“We repel overseas investment through overly complex foreign investment review board and ACCC merger frameworks. These compound with daft state taxes on overseas institutions that seek to partner with Australian businesses to create city assets.”
Mr Zorbas said our next national debate had to start with lifting the productivity handbrake on institutional investment and eventually tackle root and branch tax reform.
“Parliamentarians also have to grapple with the inconvenient truth that we need a higher proportion of skilled migration to support our economy and sustain our tax base,” he said.
“That vision is missing from this budget and the pre-election pitches of both sides.”
The Property Council also welcomed the previously announced inclusion in the Federal Budget of $54 million for advanced manufacturing of prefabricated and modular home construction and an expansion of the Help to Buy scheme.
“Putting housing and planning in context for the last three years, the Government deserves a solid tick for continuing housing targets, rewarding planning reform across industrial, commercial and residential property projects and build-to-rent investment reforms that unlock 80,000 homes.”
