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Ralph saves property trusts



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To: Political editor Media Monitors

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PROPERTY COUNCIL o f Australia

~ The Voice o f the Property Industry ~

MEDIA RELEASE MEDIA RELEASE MEDIA RELEASE MEDIA RELEASE

Tuesday, September 21,1999

R A L PH SAVES P R O P E R T Y TRU STS

The Property Council o f Australia has backed the Government’s response to the Ralph Report, saying the reforms were a boon for millions of ordinary Australians.

Speaking from Canberra, Property Council Chief Executive Peter Verwer said the big wins for the property industry are:

■ Property trusts will not be treated as companies for tax purposes. • A 50 per-cent cut to capital gains tax for individuals and a concessional rate for

superannuation funds. • A lower corporate tax rate.

• The retention o f negative gearing.

"The Ralph reforms arc a win win situation for the industry and die community and should be supported by flic Opposition and the Democrats,” Mr Verwer said.

“Under the Government’s proposals, more money will be delivered into the hands o f tire nine million ordinary Australians who invest in property through superannuation payments.

“This is due to the exclusion o f property from Treasury’s plan to treat property trusts as companies for tax purposes.

‘Tf the legislation is passed unamended, property trusts will grow even further as an attractive savings option for the ‘mum and dad” investors in the community.

“As well as protecting property trusts, the Government has proposed a massive cut in capital gains tax to stimulate investment

“When you add that to a lower corporate tax rate and fewer indirect taxes, there will be a greater demand for the property industry’s product due to greater business proliferation.

“Australia w ill becom e more internationally competitive which w ill fuel demand for office space

around the country.

‘W e will be putting a very strong case to both Labor and the Democrats not to change the general thrust o f Ralph’s historic reforms.”

Media contacts: Peter Verwer 0407463 842 or Chris Newlan 0413 707140

PROPERTY COUNCIL OF AUSTRALIA LIM ITED ACN 008 474422

Level 26 A ustralia Square 2tit George Street Sydney N S W 2000 Telephone: 02 9252 31JJ - Facsimile: 02 9252 3103 ~ E-mail: info@propenvoz.com.au - www.propertyoz.com.au