What is a bigger contributor to Australia’s economy than iron ore and coal exports combined? What directly and indirectly generates more gross domestic product than New Zealand’s economy?
The answer: Australia’s property sector.
The Property Council of Australia this week launched its Let property grow the economy campaign, which highlights the significant contribution the sector makes to the economy. And the role property can make in helping the economy make a smooth transition from the end mining boom.
A report commissioned by the PCA, and conducted by the consulting firm AEC Group, found the property sector directly contributed $182.5 billion to the economy in 2013-14 and another $279.7 billion through flow-on demand for goods and services.
The Property Council campaign launched at this year’s Property Congress on the Gold Coast is calling for a series of reforms to allow property contribute more to the economy including fairer taxes, better planning, less red tape and improved infrastructure in Australia’s major cities.
“In the most urbanised country in the world, Australia’s productivity challenges need to be solved in our cities,’’ says the chief executive of the Property Council Ken Morrison.
The PCA has also developed an online resource which shows how many jobs and how much economic activity is generated by property in every Federal electorate across Australia.
The report found the property industry is the country’s second biggest employer, with 1.16 million full-time equivalent employees.
It also found the property sector contributed $72.1 billion in tax in 2013-14, of which $21.5 billion went to the Federal Government, $27.4 billion to state governments and $23.2 billion in local governments in 2013-14.
“This equates to 16.0 per cent of total Australian and state/territory taxes and local government rates, fees and charges revenues in 2013-14,’’ said the report.