The Property Council of Australia has released a seven-point plan to help stimulate economic recovery after COVID-19.
The plan aims to stimulate construction, attract investment and improve confidence in the real estate sector, said Ken Morrison, general manager of the Property Council.
"As Australia's largest employer, which contributes more than 13% of GDP, the real estate industry can be a driver of economic recovery and growth with the right policy frameworks and market incentives from federal, state and territorial governments, "he said.
One of the policies included in the plan is to embark on a comprehensive tax reform, which will include the removal of stamp duties. According to the Council's proposals, revenue from stamp duties could instead come from broadening the Goods and Services Tax (GST) base in the medium term.
Citing data from Deloitte Access Economics, counsel said that replacing stamp duty with a broader GST base could increase consumption by $ 6 billion to $ 9.6 billion a year.
"This reform is in line with the recommendations of the Henry Tax Review and recognizes the reality that broad-based property taxes will not be enough to replace revenue from stamp duties, as demonstrated by the unsuccessful attempt by the & # 39; ACT to do it, "said the board.
Read also: Will COVID-19 make a big dent in house prices?
The Property Council also proposed to keep the negative deals on negative gears and capital gains, which could significantly support construction and the economy. The board said the construction industry and the economy would have lost $ 766 million and $ 1.5 billion, respectively, if calls for negative gearing and capital gains reforms had been made. successful last year.
Other immediate tax improvements have also been planned, including the removal of surcharges for foreign tax on commercial goods and new developments, investment guarantees, a permanent tax system and financial incentives for business efforts. Energy efficiency.
The Real Estate Council also proposed a series of policies that would encourage activity in the residential construction sector. The plan includes the introduction of a $ 50,000 grant for 50,000 home buyers who are considering buying a newly built home.
Additional state and territory policies are encouraged to complement this program.
The proposal also pushes for the construction of a $ 1 billion housing infrastructure managed by the National Housing Finance and Investment Corporation. The board said it would help facilitate new housing projects.
The other five policies included in the Real Estate Council's seven-point plan are as follows:
Accelerate real estate and infrastructure projects in the public and private sectors that have the greatest potential to catalyze economic growth
Permanently address the causes of artificially high housing prices in Australia
Ensuring Australia can tap the essential local and international capital to create the housing and commercial real estate the nation needs – from retirement villages to office towers to industrial parks
Incorporate lessons from the pandemic period to deepen current economic strengths, foster new areas of competitive advantage and increase the resilience of the economy and our communities
Restore Australia's traditional migration settings as a key driver of Australia's economic recovery
The Property Council's seven-point plan is accessible via this link.
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