The changes follow months of engagement by the Property Council and industry, which consistently warned that forcing businesses to restructure long-standing trust arrangements would impose significant cost, complexity and uncertainty on the family-owned and mid-tier businesses responsible for delivering housing, jobs and investment across Australia.
Property Council Chief Executive Mike Zorbas said the introduction of an elective deeming framework is a major improvement on the Government’s original proposal.
“This is the first sign that the Albanese Government has heard the concerns raised by industry.
“The original proposal risked costly restructures and significant stamp duty liabilities for organisations. The introduction of an elective deeming framework moves us away from the cliff’s edge.
“Family-owned and mid-tier developers are the backbone of Australia’s housing pipeline. They use discretionary trusts for legitimate commercial reasons, including managing risk, funding projects and retaining capital for future investment.
“This is a meaningful improvement and the Government deserves credit for listening on one of industry’s core concerns.
“Equally, our initial review suggests the treatment of family business groups, access to existing tax losses, future capital gains tax implications and the practical operation of the election mechanism still need to be addressed.
“Housing supply depends on market confidence, investment and projects stacking up commercially. Right now, buyer confidence and project feasibility is at a low water mark in key markets across the country.
“We will continue working through the detail to ensure the final legislation supports the supply of new homes, sheds and shops rather than creating new barriers to it.”
