Investment property laws 'unreasonable' in ACT
The Property Council of Australia (PCA) has submitted a pre-budget 12 point plan to address fiscal challenges in the ACT, highlighting unfair laws around investment property, among other things.
At this stage, developers are penalised for not meeting time constraints for project commencements and completions, even if it is well out of their control. The PCA believes this is a big disincentive to invest in the area.
Among the other key points in the plan, the submission highlights a negative outlook on the budget, points out that the ACT has Australia's highest tax burden per capita, and suggests that civil services should be paid for by all who use them, not just residential property owners.
Speaking to the PCA, Paul Braddick as the head of property research for ANZ summed up the situation in the ACT after an industry confidence survey.
"With the combination of an uncertain political outlook leading up to the September federal election and a continued unwinding of the 2011 dwelling construction boom likely to have weighed on ACT property industry confidence, 50 per cent of respondents expect ACT economic growth to be lower in the next year."