The Property Council has welcomed the Senate's decision to send the government's flawed discretionary trust tax changes to committee for proper scrutiny.
Property Council Executive Director of Capital Markets Torie Brown said the referral was a win for common sense after the Property Council highlighted the significant problems with the government's legislation.
"Common sense has prevailed. The government has tried to rush sweeping tax increases through the Parliament without addressing the serious problems raised in the consultation.
"Now Parliament can understand what these changes mean for businesses, investment and critically, housing supply, and fix the problems.
"The government has massively underestimated the complexity of these reforms and the consequences they could have for family-owned and mid-tier developers across housing, commercial and industrial property.
"When Australia desperately needs more homes, we cannot afford tax changes that make it harder to get projects off the ground."
Industry has highlighted the massive costs of restructuring, the lack of consideration for family tax groups, and unanticipated consequences like stamp duty. To date, government has ignored these factors in pursuit of their radical tax agenda.
"This inquiry is an opportunity to address the concerns from industry and fix the serious flaws in the legislation before it becomes law."
The Property Council will continue to advocate through the inquiry for changes that protect investment and housing supply.
