Jim Chalmers says environment laws need overhaul to stop people ‘burning cash waiting for approvals'
Labor is planning to reform the Environment Protection and Biodiversity Conservation Act after failing to deliver promised changes in its first term.
Jim Chalmers, speaking to Guardian Australia ahead of next week's next economic reform roundtable, said better rules and processes were needed for faster approvals, while still protecting nature.
'It will be one of the main ways that people think through our regulatory challenges and our challenges around the time it takes to get projects approved,' Chalmers said.
Sign up: AU Breaking News email
'In all the consultation I've been doing – in housing, renewable energy projects – there are too many instances where people are burning cash waiting for approvals to build things that we desperately want people to build.'
Legislating a federal environment protection agency was a 'very high and immediate' priority for the re-elected Labor government, the new environment minister, Murray Watt, said in May.
Watt signalled he wanted nature laws passed quickly to avoid another drawn-out political fight.
The former Treasury boss and environment campaigner Ken Henry has pitched the redesign as a productivity measure, comments Chalmers welcomed in his Guardian interview. He said other stakeholders had expressed similar views about the Howard-era laws to him privately in recent months.
'The status quo is no longer acceptable on the EPBC Act,' the treasurer said.
The goal of cutting cumbersome environmental regulation while maintaining environmental protections has eluded both sides of politics for more than a decade.
The Abbott government campaigned against 'green tape' and gave state and territory governments sole responsibility for approving projects.
The prime minister, Anthony Albanese, scuttled a deal with the Greens to pass the so-called 'nature positive laws' at the end of 2024, fearing a backlash in resources-reliant Western Australia.
Labor wants to push changes through federal parliament within 18 months, likely as one package of laws rather than in multiple stages – as attempted by the former environment minister Tanya Plibersek.
Treasury included reforms to environmental rules that would free up an estimated 30,000 additional housing approvals in a list of potential outcomes from the roundtable, which was leaked to the ABC on Thursday.
Chalmers said there were already 'green shoots' emerging in Australia's housing affordability and supply crisis, promising further moves to accelerate construction and planning approvals.
Welcoming an uptick in recent official homebuilding data, the treasurer said Labor was determined to speed up approvals for as many as 65,000 new homes, part of efforts to build 1.2m new dwellings by 2029.
'We'll do better on housing if everyone does their bit,' Chalmers said.
'I'm confident that people in all parts of the system, investors, states and territories, certainly the commonwealth, the industry, there is a real appetite to work together to build more homes more quickly, and so that's why we've got such an open mind to the ideas that people have been raising with us.'
The 1.2m target will be a challenge for the Albanese government, with Treasury and industry warning sluggish approval times and workforce shortages will make it hard to reach.
But Chalmers said work by the housing minister, Clare O'Neil, and this week's change by corporate regulator Asic to review rules requiring superannuation funds to disclose stamp duty paid on residential real estate will help speed up new construction.
Sign up to Breaking News Australia
Get the most important news as it breaks
after newsletter promotion
The so-called RG97 rule forces investors to declare stamp duty costs and is considered a deterrent to some investment. If implemented, the change could mean an extra 35,000 homes being built, Chalmers said.
'The last four or five datasets on housing, we've seen green shoots.'
Chalmers used an address to the National Press Club on 18 June to suggest the roundtable could deliver concrete tax reform proposals, declaring that 'no sensible progress can be made on productivity, resilience or budget sustainability without proper consideration of more tax reform'.
But weeks later, it was clear that the prime minister had become concerned the government was losing control of expectations, and moved quickly to rein in excitement over what the roundtable would achieve.
'The government will make decisions, and the roundtable isn't a substitute for government decision-making,' Albanese said on 6 August.
Days later, the prime minister killed off any immediate hopes of tax reform.
'The only tax policy that we're implementing is the one that we took to the election,' he said.
Labor has faced calls from unions for a minimum 25% tax rate on high earners. The ACTU called for a 25% levy on LNG exports and caps to limit diesel fuel rebate payments to big corporations, as well as a four-day week for some workers.
The Productivity Commission has already proposed slashing the company tax rate to 20% for firms with less than $1bn in annual turnover, as well as a 5% net cashflow tax on about 500 of the country's biggest businesses, including miners and supermarkets.
Albanese has ruled out changes to the rate and base of the GST and negative gearing, while changes to generous capital gains tax concessions and negative gearing rules for property investors look too politically sensitive.
With expectations now firmly lowered, questions have been asked about the value of the three-day roundtable, particularly in the context of the enormous ministerial and departmental effort involved.
'There's been a heap of effort, working around the clock for four weeks to make sure that people's voices are heard and that we can shape up a meaningful and useful roundtable,' Chalmers said.
'I see it as three days to help inform three budgets.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
2 hours ago
- Daily Mail
Fed-up locals in 'overcrowded' suburb slam the hundreds of units being built on their doorstep - warning the area is already at breaking point
Sydneysiders living in a suburb set to receive hundreds of new units have voiced their anger at the pressure on their already 'overcrowded' and under-resourced community. Construction giant Meriton has proposed 620 new units in Carlingford, 22km north-west of the CBD, with the first stage under construction promising seven luxury residential towers, soaring to 29 levels. The development on 18 Shirley Street and 263–273 Pennant Hills Road, which boasts the tallest towers in the area, has been met with backlash from locals who feel the area is already overcrowded. Parramatta Council reluctantly supported Meriton's proposal for the new development in 2023, citing fears the area could have lost out on community infrastructure if they didn't back the plans. 'We feel like our hands are tied because we're going to get the developments anyway,' Councillor Michelle Garrard said at the time. Meriton's new development, which temporarily shut down last week after construction worker Paulo Mau'u died on site and another was left fighting for his life, includes plans for a community centre, library and a supermarket. However, locals claim there isn't sufficient infrastructure in the area such as schools and hospitals to support the already overcrowded community. Carlingford resident Claudine told Daily Mail the development is 'driven by money and very little thought'. 'They need to fix the roads first before they start moving more people in, that's the biggest thing,' she said. 'The traffic is already really s**t around here. It would be nice if they had a plan for that too.' She stressed the need for more local schools and hospitals adding: 'I was in hospital recently in ED and there were people waiting for almost 48 hours to be seen because there's too many people.' Young couple James and Amelia voiced their concerns that the new development will be unaffordable for local families. One-bedroom apartments in the development are on the market starting from $595,000 while at the other end of the scale four-bedrooms are priced up to $1,895,000. 'People are being pushed further and further west,' James said. 'No one can afford to live where they've grown up. 'I know families that have grown up here but they've had to move all the way out west because everything has shot up in price or been turned into apartment blocks they can't afford.' The couple, who live about 6km away in West Ryde, said new high-rise developments have 'blocked off the view' and fear the same for Carlingford. Sandra (pictured), who moved to Sydney in 1972, said the new apartments represent the 'changing face of Australia' 'There's so many new developments being built but there's no infrastructure to support it,' James added. 'People out here are already struggling to get jobs locally.' Sandra, who moved to Sydney in 1972 for a working holiday and decided to stay, said the new apartments represent the 'changing face of Australia'. 'I don't like it, it's so sad,' she said. 'We came here in the 70s and there were so many wonderful, fabulous opportunities for everybody, but it's all changed now. 'I wouldn't tell anybody to emigrate here anymore and if I was rich, I'd go back home, but I'm not. 'There's too many units being put up everywhere. It's horrible how the city is changing.' Victor, who recently moved to Carlingford from Brighton-Le-Sands, said he feels there's 'too many people for such a small area'. 'I only moved in three weeks ago and I can feel it's growing so fast - it feels full,' he added. Local resident Alina said the area was in desperate need of more 'shops, cafes and restaurants'. A spokesperson for Meriton said they 'worked closely with council to ensure the project addresses local concerns such as traffic, parking, and infrastructure needs'. The proposal 'went through an extensive planning process, including assessment by independent planning and design review panels, referrals to key government agencies such as the Department of Education and Transport for NSW, and thorough community consultation. 'The proposal was endorsed by Council in July 2024 following a comprehensive assessment report. 'In addition to housing, the project will deliver over 5,000m² of new public open space, interactive children's playgrounds, upgraded pedestrian links, on-site childcare, specialty and service based retail shops, a national supermarket, and a new 2,500m² Community Hub featuring a library and multiple community facilities, bringing improved and lasting benefits to both residents in the local Carlingford community and beyond. 'Importantly, the development will contribute significantly to NSW's critical housing supply, with 90 per cent of apartments at The Carling priced well below Sydney's median house price of $1.5million. 'To further support home buyers, Meriton is offering Australia's lowest two-year fixed home loan rate of just four per cent, making purchasing more affordable than renting for many. 'The apartments have been well received by the market and are selling strongly.'
The Guardian
4 hours ago
- The Guardian
The ultra-wealthy have exploited Australia's tax system for too long. It's time to ensure everyone pays their fair share
Unions want to tackle intergenerational inequality by reforming Australia's tax system. For the first time in living memory, younger Australians risk facing lower living standards than those before them. This is not acceptable to the union movement, so our one big idea is to rebalance the tax system so that productivity gains are fairly shared, housing becomes more affordable, and essential services are properly funded. Australia's current tax system is exploited by big business and the ultra-wealthy, entrenching intergenerational inequality and placing affordable housing out of young workers' reach, which threatens the services and infrastructure we all rely on. We need a minimum 25% tax on gas export revenues, a minimum 25% tax for trust funds and individuals earning more than $1m, and a one investment property limit for negative gearing and the capital gains tax discount benefits, with the grandfathering of current arrangements for five years. These changes have a simple intention: to make sure everyone pays their fair share, so productivity gains flow across society fairly. These proposed reforms would help restore fairness and opportunity for young Australians to get ahead in their lives. For the past 25 years, productivity increases have gone back into company profits, shareholder dividends, share buybacks and executive bonuses. Working people know that every time they check their bank accounts, there is no 'direct debit system' where the extra profits generated by increased productivity are automatically shared with them. Australia is a rich country but, for decades, as the 'economic pie' has got bigger, corporations have not just taken their own bigger slice, they have been eating into ours. The way to stop this is to make sure workers have strong rights at work to get the pay rises they deserve and to make sure our tax system ensures everyone – not just the ordinary worker – pays their fair share of taxes. There are flaws in our tax system that disadvantage younger Australians and reinforce inter-generational inequity. Just 1% of taxpayers own 25% of investment properties, fuelling house prices, skyrocketing rents and putting home ownership out of reach. House prices have gone up at twice the rate of wages in the last 25 years. The result? Workers can no longer afford to live near their jobs, while young people face high rents and are priced out of buying homes. It is true that housing supply needs to increase, but the tax system is adding to the affordability problem and that needs to change. The loudest complaints will come from those who have gamed the system to accumulate enormous economic and political power. Australia's economy is dominated by an artificially inflated property market, in addition a small number of large companies in a small number of industries. Claims that working people will automatically be better off if productivity increases are wrong. Dr Jim Stanford's recent paper on productivity shows that if real wages had grown at the same rate of productivity since 2000, average wages would be 18% – or $350 per week – higher than they are now. What you won't hear from big business is the real reason productivity growth in Australia has been slow: they have prioritised distributing profits rather than investing in capital, research and people. Workers' rights are not 'red tape', they are the way we get pay rises and limits on working hours. They are essential to workers benefiting from the productivity gains our hard work creates. If we take them away, workers will get even less. Our proposed reforms are targeted and achievable. These are simple changes that close loopholes and restore balance, because we recognise that the problem isn't everyday investors who are looking to build a nest egg with a housing investment, the problem is that the current tax system rewards investing in housing as an asset class so the richest mega-investors are accumulating a large number of properties, tying up capital that could be invested in things that contribute to productivity growth and forcing property prices up beyond what any ordinary working person can afford. Working people pay their fair share of tax, we just want everyone else to as well. Ninety-one people with an income over $1m paid no income tax in 2022-23. Not one cent! When the very wealthy pay less tax than a bus driver or an aged care worker, something is very wrong. Trust funds have also become tax minimisation schemes for rich people, and mega-profitable resource companies are also getting away with paying little or no corporate tax. Our proposals are about ensuring the economy works for those who actually keep it running: working people. Sally McManus is a trade unionist and political activist who has served as the secretary of the Australia Council of Trade Unions since 2017
The Guardian
4 hours ago
- The Guardian
Maker or faker? Australia's handicraft markets face rise in mass-produced goods
Peggy Byrne was strolling through market stalls held by artisans and makers in Adelaide. A selection of crocheted flowers and animals caught her eye. Byrne, the owner of Bowerbird, a design market in the city, asked the stallholder which pattern was his favourite. 'He looked at me like I was an alien,' she says. 'There is no way this guy is the maker of these things.' Tiziana Ferrero-Regis, an associate professor of fashion at Queensland University of Technologysays markets are the 'number one place' people go to find that 'special thing'. But over the past 18 months market organisers and vendors have noticed a rise in mass-produced goods being bought online then resold in ways that imply they are locally handmade. Sign up for the fun stuff with our rundown of must-reads, pop culture and tips for the weekend, every Saturday morning Georgia Richards, who used to sell handmade ceramics at several markets across Brisbane, says many have been 'overrun with resellers'. She has also noticed resellers who claim their goods are handmade, and has seen them at markets that specifically promise local and artisanal wares. Jo Harvey, who manages the Kirribilli markets in Sydney, says she has seen resellers 'slapping … little 'handmade' signs on everything'. She believes this practice is wrong: 'It's not fair on those people that put a lot of time, money and effort into it. Their products are beautiful and it means something because they are handmade.' Harvey has strengthened Kirribilli's stallholder application process to combat this practice. She now asks would-be vendors to include videos or pictures of themselves making the product to prove it is handmade. Kirribilli also uses Google Lens when looking over applications, to cross-reference images against websites including Temu, Alibaba or Aliexpress, where resellers may have purchased their goods. 'We get the same person applying 20 or 30 times, under different names, under different emails,' Harvey says. Emma Morris, a founder of the design market Makers and Shakers, has also experienced an increase in applications from resellers and says she is surprised at how pervasive the model has become. 'That's the business,' she says. 'It's 'what can I import and sell?'.' Resale vendors usually sell their goods at low prices, which has left small designers and creatives struggling to compete. Richards believes that their presence comes at the expense of local artisans. 'I would have times where I would be placed next to a reseller who was selling items at a fifth of the price I was selling my items for. Sign up to Saved for Later Catch up on the fun stuff with Guardian Australia's culture and lifestyle rundown of pop culture, trends and tips after newsletter promotion 'Between vendors it creates … an impossible price comparison. Artists price their work based on their skill, time, materials and much more to create something unique.' This cannot be compared to the cost of mass produced items, she says. Kai Salvador spends nearly every weekend shopping at markets around Sydney. She agrees with Richards, saying she has noticed a change in the quality of wares being sold at markets. It 'ruins the culture', she says, and to see fewer local, small-scale vendors is 'just a bit … saddening'. She says people go to markets is to support local brands and to find quality items that people pour their time into. On a wet Sunday, the Kirribilli markets are still busy. People take their time picking up, touching and feeling the items on display. Two shoppers, Alyssa Ellwood and Annalese Vochteloo, say that they have both noticed more mass-produced items coming into markets, rather than 'little homemade things'. At Kirribilli markets, artisans and general stallholders are kept separate, in different sections, and most people Guardian Australia spoke to there had not noticed any vendors misrepresenting the origin of their goods. Maddie Boyd, another shopper, says she has noticed a rise in mass-produced crochet but believes the differences between a handmade item and something that has been bought online are obvious. 'I think you can easily tell … but they're often mixed in with pieces that are genuinely handmade, or made by local artists.' It's something you have to look out for, she says. Boyd has mixed feelings about whether mass-produced items have a place at markets. 'It also does sometimes provide a cheaper alternative for people to engage in a market,' she says. Clearly distinguishing artisanal goods from mass-made is something Richards advocates for. She says resellers do have a place. 'They're essentially doing what retail stores do,' she says. 'But 'handmade markets' should be for handmade artists. 'There's nothing worse than going to an artisan market and seeing a table full of Temu wares.'
