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

The Property Council of Australia has voiced its support for the new Competition and Consumer (Notification of Acquisitions) Determination 2025 by the government, which aims to simplify the regulatory process for routine property transactions.

The exposure draft introduces exemptions for particular land acquisitions, aligning with the government’s commitment made in October 2024 to exclude residential developments and specific commercial transactions related to buying, selling, or leasing land.

In response to the efforts of the Property Council, a new exemption has been added for lease renewals and extensions on land where commercial businesses are located. This modification is anticipated to prevent numerous low-risk property deals from undergoing unnecessary reviews by the Australian Competition and Consumer Commission (ACCC).

Property Council chief executive Mike Zorbas expressed satisfaction with the changes, emphasizing the positive impact on tenants, homebuyers, and customers. He stated, “This is a win for tenants, homebuyers, and customers through an efficiency boost for the thousands of ordinary but important transactions that support the industrial, residential, and commercial assets our cities need to function well.” Moreover, Zorbas highlighted the potential for significant delays and increased costs for homebuyers if the initial version of the reforms had been implemented, particularly during a national housing crisis.

Although improvements have been made, concerns linger regarding the effects on new leases. Lessees may still be obligated to seek approval from the ACCC if their transaction meets specific notification requirements, potentially leading to delays due to a waiver process or determination.

The Property Council intends to maintain its engagement with Treasury on the draft determination and unresolved issues, particularly those concerning new leases. Additionally, the council plans to work collaboratively with the ACCC on its draft assessment and process guidelines.

Overall, the government’s efforts to streamline the regulatory process for routine property transactions have been positively received by industry stakeholders. The Property Council’s advocacy and ongoing dialogue with regulatory bodies aim to address any outstanding concerns and ensure that the reforms benefit all stakeholders in the property sector.