Cabinet ministers unveil housing reforms
The national cabinet has announced a more supportive tax environment for build-to-rent housing developers and a new energy efficiency policy. Investors who finance a BTR scheme from July 2024 will pay a 15 per cent managed investment trust withholding tax rate instead of the usual 30 per cent and be able to apply 4 per cent deprecation up from 2.5 per cent.
The cabinet ministers will now work alongside the Australian Local Government Association on reforms to boost housing supply and affordability. . Federal and state housing ministers will develop a proposal for policies to strengthen the rights of renters that they will present to the national cabinet in the second half of this year.
The Property Council of Australia, which welcomed the reforms, is calling on the government to extend the property tax reforms to investor who fund affordable “key worker” housing that provide homes at rents 20 per cent below the market average.
In other policy news, the federal government is offering small businesses with turnover of less than $50 million to claim a 20 per cent tax deduction on spending of up to $100,000 on energy efficiency measures in the 2023-24 financial year. Up to 3.8 million businesses could be eligible for the tax deduction, and if they all take it up it could unlock $1.5 billion in investment.
Clean energy revolution worth up to $65 billion for Australia
Australia has a once in a generation opportunity to be at the forefront of emerging low-carbon heavy industries including green iron and steel, hydrogen, and the extraction of critical minerals, research by EY has found.
The report, Seizing Australia’s Energy Superpower Opportunities, states that Australia could excel at first stage iron processing for use as an input to electric arc furnace (EAF) steep production and consolidate its position as a leader in the extraction of critical minerals including lithium, copper, nickel and rare earths. The report also highlighted the potential for Australia to nurture a hydrogen export industry.
Capitalising on these opportunities could unlock $65 billion in economic activity and add $40 billion to national income by 2050, the report found. To limit global warming to within 2°C of pre-industrial temperatures, global emissions must fall by 70 per cent by 2050. Heavy industries must play a critical role in this transition and reduce its emissions intensity by a combined 80 per cent.
Infrastructure under review
In a move that might take some of the heat out of the building and construction (just in case the litany of builder collapses haven’t already done so) the federal government is reviewing the $120 billion it has committed to infrastructure projects around the nation, Minister for Infrastructure Catherine King announced on Monday.
Most of the funding was allocated to around 800 projects under the previous Coalition government, but Labor is not convinced they are all worthy of support.
“The proper management of the $120 billion infrastructure investment pipeline should lead to projects that are able to be built, that have a lasting benefit for Australia, and enhance our economic and social productivity and prosperity,” King said in a statement.
The review will take 90 days and has the support of state and territory governments, as agreed at last week’s National Cabinet meeting. Reece Waldock AM, Clare Gardiner-Barnes and Mike Mrdak AO will undertake the review.
“It is time to clean up the mess left by the Liberals and Nationals clogging the pipeline with ‘press release projects’ – announced but unable to be delivered,” Minister King added.
“This review will put confidence back into the investment pipeline, benefitting the states and territories and the communities we all serve.”
New designers for Buchan
Global design firm Buchan has hired three senior designers with specialist experience in the health, sport and leisure sectors. Lynn Van Dievoort joins the practice as a senior associate. She is a qualified architect who has worked on projects including the Coomera Health Precinct in the Gold Coast, Blue Care aged care facilities and the Mackay Regional Sports Precinct.
Interior designer Carol Leung has been appointed as an associate. She has led projects in Southeast Asia and Australia including the Powerhouse Museum in Parramatta, the Star Western Precinct Upgrade and the Icon mixed use development in Brisbane.
My Thuat Ho joins Buchan as a senior project designer with expertise spanning health, hospitality, mixed use and residential. She has worked on Sydney Children’s Hospital, The Children’s Hospital at Westmead and Norht Shore Health Hub as well as projects in Vietnam.
CBRE appoints new property management leader
CBRE has hired Natalie Slessor to lead its Pacific Property Management team. With more than two decades of experience in the industry including 11 years at Lendlease where she was most recently head of product strategy, investment management. Prior to this she had stints at Macquarie Group and Woods Bagot, where she developed expertise as a workplace strategist and placemaking specialist.
Slessor will begin in her new role in the CBRE Sydney office in June.