The 2014 Federal Budget provides a down-payment on an economic blueprint that will restore the nation’s finances to the black and invest in growth.
Property Council Chief Executive, Peter Verwer, said “This is a budget that invests in Australia’s future and unlocks productivity boosting opportunities for the business community”.
“The $50 billion infrastructure investment pipeline (over the medium term) will provide a significant boost to competitiveness in Australia’s cities and regions.
“Critical infrastructure projects will help unleash the productivity potential of Australia’s cities – the powerhouses of the economy.
“Every State and Territory will see investment in vital infrastructure projects.
“The Property Council is particularly excited by the Asset Recycling Initiative which will allow the private sector to work with governments to deliver the transport infrastructure of the 21st century.
“Incentives to encourage the States to further invest in infrastructure offer keys to unlocking the benefits of private sector partnerships with Government.
“The promised corporate tax cut is another piece of the Abbott Government’s economic growth plan, and will encourage business to invest and create jobs across Australia.
“We also welcome the Government’s decision to defer the start date for the proposed Managed Investment Trust reforms to ensure we implement the right measures at the right time for industry and investors.
“An optimal MIT tax regime offers Australian property trusts more flexibility to respond to investor needs.
“However, the budget is not all good news for Australia’s property industry.
“The continued pillaging of Australia’s renowned terrorism re-insurance pool scheme is a cash grab of money paid in good faith by business.
“The terrorism reinsurance pool is not a cash cow for government to milk – it is Australia’s insurance against a major terrorist attack and ransacking the insurance pool leaves the nation vulnerable.
“The scrapping of the National Rental Affordability Scheme is also concerning if it marks the end of the Federal Government’s involvement in housing supply.
“We urge the Federal Government not to forget the importance of housing in underpinning productivity and liveability.
“A clear plan for housing is needed – one that tackles the affordability and supply challenge faced by Australians. Housing is an issue for all Governments, not just the states.
“In all, the 2014 Budget sets the scene for a growth partnership between government and the business community to drive economic prosperity and boost productivity into the future.
“The budget sets out a plan to deal with a fiscal emergency, which we acknowledge. The bigger challenge for Australia is to boost productivity, increase workforce participation and better service much needed population growth.
“Tonight’s statement is a down-payment on a strategic nation building partnership.
The key issue for business is the many reviews being undertaken by government, particularly those into the modernisation of the nation’s tax system and federal-state relations.
It is critical to move beyond the fiscal emergency, to addressing the strategic challenges that face Australia.” Mr Verwer concluded
Original Article: http://www.propertyoz.com.au/Article/NewsDetail.aspx?p=16&id=9373