The Property Council welcomes last night’s Federal Budget as one which will promote growth and increase savings.
"Peter Costello’s 11th Budget will return money to taxpayers’ pockets and give them a bigger slice of their own superannuation," Property Council Chief Executive Peter Verwer said.
"The combination of personal and business tax cuts, along with superannuation reforms, will stimulate investment which is sure to have flow-on benefits for the property sector.
"A significant part of every extra dollar of personal savings will find its way to the property investment sector, given its strong track record in building stable retirement wealth for ordinary Australians."
The Property Council also commends the Government’s stronger commitment to national security.
"The property sector is working closely with government to ensure that people and places are better protected against the threat of terrorism."
The Property Council also welcomed last night’s $2.3 billion boost to infrastructure funding, via the AusLink and Roads to Recovery programs.
"These programs are designed to better target funding at areas of real need, particularly at a local government level," Mr Verwer said.
"The additional spending will help remedy Australia’s growing infrastructure deficits which directly cramp our international competitiveness."
Mr Verwer said the Government had moved from its ‘hands off’ approach to planning and infrastructure by earmarking around $15 billion in consecutive budgets.
"The Federal Government has shown it has an important role to play in the planning and funding of critical urban and regional infrastructure," he said.
"Its next challenge is to introduce a proper governance structure to join-up all its infrastructure spending programs and take a more strategic approach to building community capacity."
The Property Council also welcomed initiatives to lift depreciation rates, while calling for greater simplification of the depreciation system.
Mr Verwer also said the commitment to a more market-oriented child care system should provide a boost for the emerging child care property asset class.
Peter Verwer, CEO, Property Council of Australia, 0407 463 842