The proposal would give an instant write-off to family investors who implement energy upgrades in rental properties
The Real Estate Institute of Australia has expressed its support for the proposal put forth by Independent for Wentworth, Allegra Spender MP, to introduce an instant tax write-off for family investors who implement energy upgrades in rental properties.
This initiative aims to address the barriers hindering the adoption of better energy efficiencies for renters and investors, particularly in light of rising mortgage costs.
With rental portfolios in Australia's real estate industry amounting to a staggering $3 trillion, REIA said that practical incentives to aid investors in implementing small energy upgrades would be mutually beneficial for both investors and renters. Moreover, such incentives would also contribute to raising energy efficiency standards across the entire housing stock.
“Calls for an instant tax write off for family investors to implement small energy efficiency upgrades should absolutely be supported by government in the long term and not simply as a short-term measure as suggested by the Crossbench,” said REIA president Hayden Groves.
Groves highlighted the need for a collaborative approach between the government and the market to facilitate the transition to net-zero. He said that relying solely on regulations without actively engaging property managers and family investors may hinder the success of the net-zero plan for the built environment.
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“REIA have gone to government with a suite of solutions to work with our 2.2 million family investors, including a smarter approach to the distribution of the $1 billion in clean energy loans that the Clean Energy Finance Corporation (CEFC) is responsible for developing.” Groves said.
Groves said that engaging property managers and family investors in this transformation was crucial for the program's success and would ultimately benefit renters, who make up a significant proportion of the housing market.
“It’s great to talk about a net-zero plan for the built environment, but we need the right tools to just get on with the job by supporting those working in the field to actually deliver it,” he said.
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