The Property Council of Australia is raising alarms over the ACT’s proposed Developer Licensing legislation, particularly its personal liability clause, fearing it could scare off vital residential investment in Canberra.
The council is set to address the Standing Committee on Planning, Transport, and City Services, advocating for a significant revision of the bill.
Shane Martin, Property Council’s ACT and Capital Region executive director, warned about the consequences of not amending the legislation. Martin argued that the bill, as it stands, threatens to create a hostile environment for the housing investment Canberra critically needs.
“This legislation could divert crucial investment away from our city,” he said.
The Property Council supports raising building standards and is not against developer licensing in principle but takes issue with the introduction of personal liability for directors.
“It goes further than just applying personal liability for rectification orders to directors; it also has a 10-year retrospectivity element,” Martin said. “This is an extreme measure for development directors, particularly when not everyone in the development cycle is brought into accountability.”
He urged the government to undertake independent economic analysis to assess the risk this legislation poses to investment, criticising the lack of evidence supporting the introduction of such measures.
Mike Zorbas (pictured above), Property Council CEO, pointed out the experimental nature of imposing personal liability on company directors, saying it positioned the ACT as a uniquely unwelcoming jurisdiction for investment.
“The government runs the risk of single-handedly gifting community assets, jobs, and investment to neighbouring jurisdictions where more balanced regulatory settings are in place,” he said.
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