Tax jump jolts investors
Many had raised serious concerns about the transparency of the Australian investment landscape and were considering alternative investment destinations.
A leading Australian property group has strongly criticised federal government tax changes, arguing they have stopped international investors from putting their money into Australian property.
The government in the budget doubled the withholding tax rate for international managed investment trusts (MIT), from 7.5 per cent to 15 per cent. The measure has since been approved in the Senate, with a concession for new energy efficient buildings.
Peter Frith, managing director of property and development adviser, Napier & Blakeley, said the action, with no consultation or warning, was a huge mistake and was apparently based on misguided thinking. Continue reading
Industry dismay at budget
The federal government’s abandonment in the budget of tax breaks for green buildings has left the property industry in a state of shock.
The Australian Sustainable Built Environment Council (ASBEC) said the government had missed an opportunity to reduce greenhouse gas emissions quickly and cost effectively.
The Green Building Council of Australia said the move meant Australia’s low carbon economy had taken a step backwards. ”The decision … is extremely disappointing … and bewildering,” said GBCA chief executive Romilly Madew.
Leading quantity surveyors Napier & Blakeley said the about-face showed a lack of real commitment to the carbon reduction agenda. ”Energy efficiency improvements to the existing building stock is the single most cost effective and fastest way to reduce our collective carbon footprint,” said director Alastair Walker. Continue reading
