Is the ABCC due for a comeback?
The Federal Election is finally over. The speeches have been made, the votes cast and it looks like the Turnbull government is set to retain power for another election period. Now that the excitement is out of the way, homeowners with real estate in Australia are likely thinking what’s next for their property.
While the question of capital gains and negative gearing changes have now been put to bed, that is hardly the end of the discussion around property under the new government. A great deal of this election was based either directly or indirectly around the real estate sector – and a major point of discussion was that of the reformation of the Australian Building and Construction Commission (ABCC).
“Critical economic reform”
“The election was called on the basis of these two bills.”
These are the words that prime minister Malcolm Turnbull used to describe the introduction of the ABCC bill. The ABCC, before its abolition in 2012, acted as a watchdog for the construction industry before it was replaced by the independent agency Fair Work Building and Construction.
Citing the Royal Commission into Trade Union Governance and Corruption, the Coalition made the promise of reforming the ABCC in order to combat the quoted two out of every three working days lost due to industrial disputes in the construction industry.
The decision has been met with approval from major real estate industry bodies, including the Property Council of Australia, which has also voiced its support for the Registered Organisations bill, which will impose higher regulation standards on unions.
“The election was called on the basis of these two bills, and we can’t afford to turn our backs on these important reforms,” explained Ken Morrison, Property Council chief executive.
Not a sure thing
The passing of the bill is not necessarily guaranteed.
However, the passing of the bill is not necessarily guaranteed, despite the election win from the Coalition. With a more broad base of political parties in the Senate, the bill may face more opposition than was expected. Labor, which won a fair number of seats itself, was staunchly opposed to the reintroduction of the ABCC, and this could well create a hurdle for its passing.
There are a number of other significant changes on the horizon in light of the election result, including the ambitious City Deals plan that is intended to completely revamp how the various levels of government work together in order to improve housing for the local residents.
There’s plenty in store for the Australian homeowner or investor, so keep an eye on the headlines to make sure you stay ahead of the game!