The Property Council of Australia has welcomed the Opposition's discussion paper outlining plans to cut red tape and lift national productivity with clear targets, a new regulatory stocktake and improved transparency.
Property Council Chief Executive Mike Zorbas said productivity reform was central to building more homes and commercial and industrial assets our cities need, thereby lifting investment and confidence across the economy.
"We welcome a target-based approach to red tape reduction and look forward to engaging fully with this process with evidence and examples that demonstrate the benefits.
"In particular, housing and construction need to be treated as a priority area. This is where delays, duplication and regulatory creep translate directly into fewer completions and higher costs, acting as a drag on productivity and economic growth" Mr Zorbas said.
The Property Council said the actions outlined in the paper broadly align with what the property sector has been calling for.
"A stocktake of the existing regulatory burden, a plan to cut duplicative rules and a pro-investment mindset is a healthy start," he said.
"As we've seen with the National Housing Accord, the transparency of regular tracking against targets creates discipline and focus - in this case it would make regulatory delay transparent so appropriate balance can be achieved," Mr Zorbas said.
The Property Council said productive investment settings are as important as productive delivery settings, and that it is crucial to welcome capital into housing and city-building.
"If we want more supply, we have to compete for investment. One clear example is fixing RG 97 so stamp duty is not treated as a 'cost' that distorts superannuation investment decisions. That change alone can support up to 35,000 additional homes over five years," Mr Zorbas said.
"Recent research from the Property Council showed taxes on large global investors have reduced investment in Victorian property by 53 per cent - we need to ensure that bad state taxes don't undo the good work occurring at the national level to unlock housing.
"Technology and AI should also be used to simplify compliance and reduce regulatory burden, but we mustn't lose sight of the end goal - faster, clearer pathways that move projects through delivery," he said.
Mr Zorbas said a serious productivity agenda also needs a serious workforce agenda.
"We cannot regulate our way out of a skills shortage. New construction workers historically make up just 1.8 per cent of skilled migrants, and that mix needs to shift if we're serious about housing and infrastructure delivery for a growing Australia," he said.
