The Labor government has announced plans to provide incentives for workers to relocate to other areas and new Australian property.
Under the changes, job seekers will receive as much as $6,000 (£3,438) if they are willing to move to take up a job.
David Airey, president of the Real Estate Institute of Australia (REIA), said that this is a credible objective but is the wrong measure at the current time.
He said that, instead, state-based property taxes, such as conveyancing duties, should be scrapped as they are a constraint on investment and social and economic development.
"The removal of state-based property taxes would achieve a better outcome without the necessity to provide financial incentives," Mr Airey explained.
He concluded that the new government needs to put in place long-term measures that "address the objectives of economic growth and labour mobility".
Figures from the Australian Bureau of Statistics have shown that employment in Australia increased by 2.7 per cent from July 2009 to the same month of this year.
Posted by Ravin Chatlani