Latest news with #PropertyCouncil
ABC News
2 days ago
- Business
- ABC News
Opposition Leader Mark Speakman pledges AI rollout as part of NSW budget response
Artificial intelligence (AI) would be rolled out across government agencies and free loans offered to businesses adopting the technology, if the Coalition was running New South Wales. In reply to the state budget on Thursday, Opposition Leader Mark Speakman revealed the alternative government's plan to embrace the technological revolution, including establishing the state's first minister for AI. Mr Speakman said Labor had failed to address low productivity growth, which the budget papers forecasted to continue absent "meaningful reforms or a major technological breakthrough". "A Coalition government would embrace, would embed, responsible artificial intelligence across public service processes," Mr Speakman told the legislative assembly. Mr Speakman said the idea was "to improve services, to free up teachers, healthcare professionals and public servants" and alleviate "unnecessary administrative burdens". He said a Liberal-National government would bring in a zero-or-low-interest loan scheme for small and medium businesses looking to introduce "responsible AI" into their operations. On housing policy, the Coalition vowed to pause charges imposed on developers in a bid to make home building more viable and boost stock. Under the Housing and Productivity Contribution, developers are required to pay up to $12,000 per unit in Greater Sydney. The Property Council of Australia said on Tuesday up to 40 per cent of the cost of a development consisted of state and local charges. Mr Speakman said the contribution would not be charged until the end of the National Housing Accord, which runs until July 2029. "Affordability starts with supply. Supply starts with government that gets out of the way, not one that stacks on more costs," he said. The Coalition launched an attack over what it called a "slush fund" of more than $868,000 in the budget. According to the budget papers, the "special appropriation" fund for the treasurer is for spending related to "state contingencies … election commitments and essential services". Mr Speakman told parliament the fund was "so broadly defined that it could be used for almost anything". "If the government has specific plans for this funding, the public deserves to know," he said. A special appropriation fund is a standard feature of budgets, but the amount has risen significantly from the $178 million allocation in last year's budget. Treasurer Daniel Mookhey said it was "obvious" why there was a higher level of contingency funding. "Members can examine the events of May in NSW and reach their own conclusion," he said, in an apparent reference to last month's flood disaster. The budget Dominic Perrottet delivered as treasurer in 2021-22 contained $806 million for "COVID-19-related expenses" as well as "changes in wage awards and conditions". Extra expenses that could come out of this year's fund include wage rises ordered by the Industrial Relations Commission and the cost of running the Northern Beaches Hospital if the government was to take over the facility.
News.com.au
21-06-2025
- Business
- News.com.au
Victorian build-to-rent landlords dodge new minimum lease terms
The Victorian government has quietly backed away from a plan to set minimum 12-month lease terms for thousands of Melbourne rentals. A proposed change to the Land Tax Act 2005 would have removed a deduction offered to build-to-rent operators from January 1 next year, unless they set the minimum lease term. Industry groups challenged the plan, citing research showing that between 10 and 30 per cent of tenants signing on for leases in the city's tenants-only complexes had specifically sought shorter terms. They also warned removing the tax benefit could have impacted attracting much needed development to build more rental homes across Melbourne. The city is currently Australia's capital for build-to-rent apartments, which effectively replace mum and dad investor landlords with corporate groups and super funds. Earlier this week the Victorian government acknowledged 1000 build-to-rent apartments had been built in the 2023-2024 financial year, with a further 18,200 under construction. The changes requiring the minimum term were removed from the State Taxation Acts Amendment Bill 2025 just prior to its passage into parliament late this week. In 2020 the Victorian government created a tax benefits program for build-to-rent projects that has helped it to become the nation's top destination for developers planning such builds. It is understood the decision to remove the minimum terms requirement is subject to further discussion with the property industry. Property Council of Australia Victorian executive director Cath Evans said the change was vital to accommodate a wide range of renters including couples separating, people working interstate for short periods, families completing home renovations who needed the flexibility of shorter leases. 'So we were very pleased to see the government took our advice and has amended the policy as it went through,' Ms Evans said. She added that with the change maintaining stability for the build-to-rent sector, it was hoped more operators would be willing to undertake developments in the space and help boost the supply of new homes for tenants in Melbourne. 'There is a significant need to grow the BTR sector further as part of our broader need to deliver more homes for Victorians,' Ms Evans said. 'A more competitive property taxation regime is critical across all parts of the housing market to keep investment flowing and delivering the homes our communities urgently need.' Build-to-rent projects typically cater for Melbourne's higher-priced rental market, with many operators charging more than $800 a week for two-bedroom residences, but offering significant levels of luxury ranging from pools and gyms to podcasting and work-from home spaces around the complexes. With operators typically seeking to engage tenants long term, leases of up to three years are not uncommon where would-be residents are seeking security. Traditional residential tenancies do not currently have minimum lease terms, with most set at one year before rolling over to a month-by-month arrangement — or being renewed for another 12 months. Tenants Victoria chief executive Jennifer Beveridge said they would be speaking with the government further about creating more stability and security for tenants. 'The government have said they want to consult more with renters, and we'll be calling for more availability of longer term options,' Ms Beveridge said. 'Build-to-rent properties are built for the express purpose of remaining rental homes. We should take this opportunity to give people real security to stay there and make homes in them.'
News.com.au
20-06-2025
- Business
- News.com.au
1100 units in limbo: The projects at risk of not going ahead
More than a quarter of Brisbane's apartment projects are at risk of not getting off the ground, as new figures reveal more than 1100 units are stuck in limbo. The research conducted by Urbis for the Property Council of Australia reveals apartment completions are falling well short of targets, with 27 per cent of future supply at risk of not being completed by 2028. Exclusive research by PRD reveals there are currently 22 apartment projects either abandoned or deferred in Brisbane, putting some 1100 units in limbo — plus hundreds more that remain incomplete well past their construction due dates. Under the South-East Queensland Regional Plan, Brisbane is required to build about 7,977 apartments annually from 2021 to 2031. But, according to the research, only about a quarter of this target — around 2000 — has been delivered each year since 2019. Urbis director Paul Riga said tracking of forward apartment completions suggested 2026 to 2028 would 'at most' deliver around half of the target — with some projects at risk of not proceeding at all. Auction drama marks jaw-dropping sale of Aus' 'best build' 'With competition for labour expected on the back of significant infrastructure investment, action needs to be taken now to ensure dwelling development activity increases beyond 2028,' Mr Riga said. Property Council Queensland executive director Jess Caire said apartment completions were projected to increase to around 4000 units in 2025, however, that was still well short of the targets and the bulk of new supply beyond 2025 was difficult to predict. 'The data tells a stark reality and there is no sugar coating the scale of the challenge in front of us — building over 7000 apartments a year would be a quantum leap forward in comparison to what we have been able to achieve in recent years,' Ms Caire said. 'The good news is we know we can build the number of apartments we need because we have done it before.' Ms Caire said 9527 and 9128 units respectively were built in 2016 and 2017, but industry headwinds had increased significantly, with high construction costs, declining productivity, acute labour shortages, and tax settings, which had become increasingly regressive. 'To remedy this, we need to be bold and pull every available policy and taxation lever to boost supply because every year we miss our targets the greater the challenge becomes,' she said. BRISBANE APARTMENT PROJECTS ABANDONED OR DEFERRED IN 2025 Project Suburb Number of units 1. ZEPHYR HEIGHTS APARTMENTS UPPER MOUNT GRAVATT 55 2. 28 MACGREGOR STREET APARTMENTS UPPER MOUNT GRAVATT 197 3. 143 BEATRICE TERRACE UNITS ASCOT 5 4. 35 HORSINGTON STREET UNITS MORNINGSIDE 7 5. 14-16 PARKHILL STREET APARTMENTS CHERMSIDE 9 6. 16-20 CHARLOTTE STREET UNITS CHERMSIDE 55 7. LATITUDE ALBION 48 8. MCGOLDRICK RESIDENCES WYNNUM WEST 11 9. 45A & 47 CLARENCE ROAD APARTMENTS INDOOROOPILLY 26 10. 30-34 WARDLE STREET UNITS MOUNT GRAVATT 27 11. 448 HAMILTON ROAD UNITS CHERMSIDE 11 12. 9 STANLEY TERRACE UNITS TARINGA 4 13. 61 JOSLING STREET UNITS TOOWONG 4 14. BODHI APARTMENTS UPPER MOUNT GRAVATT 68 15. 76 COMMERCIAL RD MIXED USE TENERIFFE 54 16. 151 CAVENDISH RD MIXED USE COORPAROO 37 17. TOOWONG CENTRAL MIXED USE TOOWONG 145 18. EAST VILLAGE PRECINCT 2D STAGES 1 & 2 CANNON HILL 137 19. 52 STATION ROAD MIXED USE INDOOROOPILLY 15 20. 61 DOULTON STREET MIXED USE CALAMVALE 10 21. 351 BEAMS ROAD MIXED USE TAIGUM 23 22. TRICARE RELOCATABLE HOME PARK ROCHEDALE 169 Source: PRD Research 'Since 2016, Queensland's foreign tax settings have cost the state 33,000 new homes. That is 33,000 rooves that could have been over the head of Queenslanders. 'We are in a race to build 1 million new homes by 2044 — a race that would be hard enough to win without a self-imposed handicap, which is effectively what our foreign tax regime amounts to.' Mr Riga said difficulties in finding builders, combined with high construction costs and labour shortages, was stopping many projects from going ahead. He said collaboration between builders and developers in the past year had helped see some projects through to completion. Purdy Developments founder Craig Purdy said more developers were adopting full integrated, in-house models for designing, building, and selling residential product. 'You've got control then, but there's risk too,' Mr Purdy said. 'Builders are all struggling, and they've all left the tier 2 space.' Mr Purdy said a 'box' in inner Brisbane now cost about $2m and three to four years to build. 'It's eye-watering how long it takes to do prestige product now,' he said. 'Sites are so expensive now. Then you've got the construction costs and finding a builder. It seems people are prepared to pay for it though — that's the irony.'
The Guardian
18-06-2025
- Business
- The Guardian
Chris Minns to reveal NSW plans to bolster housing construction
Developers in New South Wales will be able to choose between paying a levy of $12,000 per lot, or building infrastructure such as roads and parks themselves as an 'in kind payment' payment in a further push to speed up the construction of new housing in the state. The changes will be revealed today by the premier, Chris Minns, ahead of next week's state budget. It will probably be welcomed by groups like the Property Council of NSW which has long complained that the $12,000 levy adds to developers' financing costs and puts them at the mercy of government agencies to provide infrastructure like roads, parks and schools. However, past experiments with developer-constructed infrastructure has resulted in serious problems. A housing development at Wilton on Sydney's fringe was without sewer services when homeowners began moving in, leaving residents reliant on having sewerage trucked away. Sign up for Guardian Australia's breaking news email 'You can't build new homes without roads, parks, and schools to match, and the community shouldn't have to wait for them,' Minns said of the new arrangements. 'Whether it's new tax incentives, planning reforms or fast-tracking infrastructure, we're focused on making it faster and easier to build the homes and communities NSW needs.' The treasurer, Daniel Mookhey, said the government's focus was improving efficiency of investment, and that meant making government investment more effective as well as making private sector investment easier. 'Household income is beginning to be rebuilt, but we do have a challenge of making sure that the economy is growing so living standards are growing … and that we are delivering for people the quality of life that they expect,' he said. 'And so that's what's been sitting behind, thinking around the strategy of this budget, that we have to fix the essentials that people rely upon and set the state up for growth.' A focus of the budget is likely to be further streamlining investment in planning. The budget will probably allocate funds to overhaul NSW's planning laws after a round table in February and an offer by the opposition to work on planning reform. The government has already announced changes to zoning around transport nodes to encourage low and medium density development. The transport oriented development program is designed to build 112,000 new homes within 800 metres of transport within five years. Mookhey will also announce changes to tax concessions for build-to-rent developments, which are designed to promote investment in developments that offer long-term, stable rental options and in some cases, housing for key workers. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion BTR projects have been slow to gain acceptance among developers in NSW despite a 50% land tax discount, introduced by the previous government. Labor will announce the discount will be extended indefinitely. Victoria leads the way with 11,098 BTR units either completed or under construction, and another 14,440 in the pipeline – totalling 25,538. NSW has 3,584 completed or under construction and 11,505 in the pipeline, with the total number of BTR units totalling 15,089. Build-to-rent developments typically provide returns to investors through long-term and stable rental income. This means that build-to-rent housing may offer longer-term lease options, better security for tenants, and more housing choice for people at different life stages. The expiry of the tax concession in 2039 is a key factor affecting investment decisions today, Mookhey said. The budget, which will be handed down on Tuesday 24 June, will reveal the pressures that natural disasters have put on the state's finances, as well as the increased claims for psychological injuries, particularly by the state's workers.
The Age
17-06-2025
- Business
- The Age
Crisafulli flags budget infrastructure spend ‘like never before'
Queensland Premier David Crisafulli says he is 'sublimely confident' he can reach an Olympic funding deal with the federal government, as he flagged a record infrastructure spend in next week's state budget. Speaking at a Property Council lunch on Tuesday, Crisafulli said the generational infrastructure demands of the Brisbane 2032 Olympic and Paralympic Games gave the state a 'not negotiable' deadline, which would be reflected in next Tuesday's budget. 'When I say record infrastructure spend, I mean like never before in our history,' he said. 'The four-year forwards will be something that shows you how serious we are about the future of this state. 'It will be about respect for your money, but it won't be about austerity. We've got to get this state moving, and that means spending a record amount, but making sure that it drives value, that we get more for what we are doing.' Central to Queensland's bottom line was the $7.1 billion Games infrastructure funding agreement with the Commonwealth. The Albanese government had agreed to fund the arena – then planned for Roma Street – under an intergovernmental deal with the then-Palaszczuk government. But the Crisafulli government's Olympic delivery plan, stemming from its 100-day Games infrastructure review, will instead task the private sector with delivering the arena in its new Woolloongabba location, meaning that agreement needs to be renegotiated. Crisafulli said he was 'sublimely confident' a deal would soon be reached.
