The Property Council has expressed its approval of the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024, which aims to reduce property market red tape.
The reform focuses on easing delays in residential and commercial land transactions, ensuring that land purchases for these purposes are streamlined without unnecessary barriers.
Initially, notification thresholds in the reform would have captured numerous residential and commercial land transactions, potentially disrupting the housing market’s ability to price, finance, and deliver new homes.
Property Council CEO Mike Zorbas (pictured above) explained that the original draft could have “put a rocket under new house prices.”
However, with today’s amendments, these unintended consequences are expected to be avoided, supporting the housing and commercial property markets.
Zorbas commended the government’s approach, particularly the backing of Treasurer and Housing Minister Clare O’Neil.
“The government has listened to industry feedback and acted to address unintended consequences for the capital-intensive but low-risk property sector,” Zorbas said.
The bill exempts land acquired for residential or commercial development aimed at leasing or selling, which will be formalised by ministerial instrument after further consultation.
The Property Council also stressed that the reforms align with Australia’s ambitious goal of delivering 1.2 million homes by 2029.
“Strongly supported by industry, the ambitious national target ... deserves the alignment of all government policies that affect property,” Zorbas said.
While the Property Council is optimistic about the reforms, Zorbas highlighted the importance of ongoing consultation with the industry to finalise the details.
If implemented correctly, the changes will help maintain the momentum of residential and commercial developments, reducing unnecessary red tape while ensuring Australia meets its housing and economic goals, according to the Property Council.
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