The Property Council has called on the Treasury's Business Tax Working Group to hold discussions with companies operating in the Australian property sector regarding the likely impact of new proposals regarding corporate tax.
"While the Property Council believes there is value in exploring options for modernising Australia's business tax framework, it cannot support any changes that force taxpayers to breach existing contracts," commented chief executive of the Property Council Peter Verwer.
The present proposals include a minor reduction in the corporate tax rate paid for by eliminating or scaling back interest deductions under thin capitalisation rules and amortisation deductions.
However, the proposals so far fail to deliver the hard evidence to back up this move, Mr Verwer claims.
The news follows a recent announcement from the Real Estate Institute of Australia (REIA), which praised the introduction of new licensing for individuals operating in the Australian property sector.
REIA president Pamela Bennett noted however that the move should not be to the detriment of existing best practice within the industry.
Posted by Steve Douglas
