States need to tread carefully with land taxes, rental freezes

Undermine the long-term confidence of big institutional investors at your peril, says Charter Hall chief executive. States need to tread carefully with taxes and policies designed to free up housing supply because they risk having the opposite effect, says the CEO of direct property at Australia’s biggest landlord, Charter Hall. Speaking on the latest Accountants Daily podcast, Steve Bennett said proposals such as rental freezes could backfire. “It may suit some people in accommodation,” he said. “It’s not going to do anything to help the supply issues. In fact, it’ll likely reduce supply in the long term.” The Victorian government’s recent land tax changes were also a concern. “State governments do need to be careful that if they do want to encourage long-term investment the big institutional investors – whether they are super funds, offshore pension funds, Australian real estate managers – they want that regulatory certainty to give them confidence over the long term.”