Property Council supports draft legislation on mergers and acquisitions reform – Mortgage Professional

The recent proposed changes by the government are expected to ease the regulatory burden on routine property transactions, as the Property Council of Australia has welcomed the Competition and Consumer (Notification of Acquisitions) Determination 2025 exposure draft. This draft aims to streamline the process and reduce regulatory obstacles for everyday property deals.

The new exemptions introduced by the draft are aligned with the government’s commitment from October 2024, excluding residential developments and specific commercial transactions where the primary business activity involves the buying, selling, or leasing of land. In response to the Property Council’s advocacy, an additional exemption has been included for lease renewals and extensions on land utilized by commercial businesses. This change is anticipated to prevent unnecessary reviews by the Australian Competition and Consumer Commission (ACCC) for many low-risk property transactions.

Mike Zorbas, the chief executive of the Property Council, expressed his support for these reforms, highlighting the positive impact they will have on tenants, homebuyers, and customers. He emphasized the enhanced efficiency these changes would bring to the thousands of essential transactions that support industrial, residential, and commercial assets critical for cities to function effectively. Zorbas also recognized the potential delays and increased costs for homebuyers that could have arisen from the initial version of the reforms, especially during a national housing crisis.

While these amendments address unintended consequences on the capital-intensive, low-risk property sector, concerns persist regarding new leases. Lessees may still be required to seek approval from the ACCC if their transaction meets certain criteria, potentially leading to delays due to additional processes. The Property Council plans to maintain dialogue with Treasury to address outstanding issues around new leases and collaborate with the ACCC on evaluation guidelines and procedures.

The government’s responsiveness to feedback from industry stakeholders like the Property Council demonstrates a willingness to fine-tune regulatory frameworks to better support property transactions. By carefully considering the implications of these changes on various aspects of the property market, the government aims to strike a balance between necessary oversight and regulatory efficiency in facilitating routine property deals. The ongoing collaboration between industry bodies, regulatory agencies, and policy-makers is crucial in ensuring that these reforms achieve their intended objectives without stifling the property market’s growth and operation.