Property industry welcomes adjustment to Government’s super reforms

The Property Council of Australia has welcomed changes to the Federal Government’s Your Future Your Super reforms which will ensure that unlisted property investments are fairly assessed through the new annual performance test.

The original methodology for the test proposed benchmarking the performance of investments in Australian property against a listed index. This approach did not reflect the different risk/return profiles, volatility and fee schedules of unlisted and listed property investments.

Property Council Chief Executive, Ken Morrison, said the Government’s changes were welcome news for the industry and investors.

“More than 16 million Australians have a stake in property through their superfunds, so this sensible adjustment the Government’s superannuation settings is welcome,” Mr Morrison said.

“Superannuation investment into property provides long-term stable financial benefits for investors, create thousands of jobs and ensures Australia’s future supply of office buildings, industrial precincts, shopping centres and housing.”

“These common-sense changes means the performance of unlisted property funds will be assessed on an apples to apples basis, allowing investment to flow into much needed projects that benefit our cities and the economy.”

“The Government’s methodology adjustments reflect the reality of the market and demonstrate a willingness to work with industry in the implementation of these reforms.”

Source: Property Council of Australia