Property Council Chief Executive Mike Zorbas said the Committee had ignored repeated warnings from industry about the consequences for housing investment, new construction and small businesses.
"The government-chaired Senate Committee has delivered a House of Horrors for Australians desperate to find a home to buy or rent.
"The only sustainable long-term solution for our housing challenge is to build many more new homes than we are currently managing.
"In recommending these bills pass without recommended fixes, the Committee has premiered a scary movie where new projects are the innocent victims.
"The apartment building that never gets financed, the rental home that never gets built and the first-home buyer left waiting.
"The consequences of getting housing tax policy wrong are the ghosts of missing future supply that will haunt Australian renters and homebuyers ."
The Property Council has proposed six practical recommendations to address the legislation's unintended consequences, including extending eligibility for new residential dwellings from 24 to 36 months, protecting build to rent investment, preserving legitimate capital loss arrangements and rejecting the proposed minimum tax on discretionary trusts.
These changes would help protect housing supply, reduce unnecessary barriers to investment and prevent small and family-owned development businesses from being caught by poorly designed tax rules.
The Property Council is calling on the Government and Senate crossbench to make these amendments before the legislation proceeds, while also delaying the discretionary trust measures by 12 months to give businesses more breathing room.
