The result reinforces the need for policies that support investment, strengthen confidence and attract the capital needed to drive housing, jobs and productivity.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said attracting investment is critical to delivering the housing, productivity and economic growth Australia needs.
“At a time when Australia needs more homes, more infrastructure and stronger productivity, governments should be focused on attracting investment, not making it harder,” Mr Kandelaars said.
“The property sector is already one of the nation’s largest taxpayers, contributing around $130 billion each year. On a new home, close to four in every ten dollars is absorbed by taxes and charges before a buyer receives the keys.
“Private capital funds the overwhelming majority of Australia’s new homes, workplaces, industrial facilities and city-shaping infrastructure. Without investment, projects do not proceed.
“Investors do not assess tax changes one by one. They look at the total cost and risk of investing in Australia.
“The consultation on discretionary trust tax changes has now closed, with serious concerns remaining over a proposed tax that risks crippling the family-owned and mid-tier businesses Australia relies on to deliver new homes.
“Every additional tax, charge or layer of complexity affects the willingness of capital to fund new projects.
“When investment slows, project pipelines shrink. When project pipelines shrink, housing supply, jobs and economic growth suffer.
“If governments are serious about affordability, productivity and growth, Australia needs to be known as a competitive destination for investment, not a higher-tax destination for capital.”
