ThreePs Full Report by Property Council of Australia

_____ Three Ps

People Productivity

PLACE www.propertyoz.com.au/sa

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Division Council

The Property Council of Australia

President

The Property Council represents the property investment sector in Australia.

Justin Hazell Connor Holmes

Our members include every major property investor and developer in the state.

Vice-Presidents

Members are engaged in the entire property investment universe, which includes all:

Ben Yates Aspen Developments James Young Colliers International Immediate Past President James Sarah Sarah Group

Councillors Alex Candetti Candetti Constructions David Cooke Hames Sharley Malcolm Creswell Westfield Nick Emmett Emmett Property Gavin Kain Woods Bagot Steve Lockwood Schiavello Bryan Moulds Masonic Homes

• dimensions of property activity (financing, funds management, development, ownership, asset management, transaction and leasing); • major property types (offices, shopping centres, residential development, industrial, tourism, leisure, aged care, retirement and infrastructure); • major regions of Australia and international markets; and • the four quadrants of investment – public, private, equity and debt. Some key statistics: • the value of investment grade stock under management in South Australia is about $3.5 billion; • it is estimated by the Centre for International Economics that there is almost 25 million square meters of lettable commercial floor space in South Australia1; • more than half a million South Australians collectively own major segments of the state’s most valuable commercial property assets; • the market value of foreign assets owned by Australians is $50 billion; • total construction spending across South Australia over the next 18 months is forecast to be $21 billion; comprising $9.4 billion in residential construction, $3.1 billion in non-residential construction and $8.5 billion in infrastructure2; • about $61 million flows in to the property sector from super funds in an average week; and • around $1.5 billion in property specific taxes are paid annually to the State Government. The Property Council is an Alliance Partner on South Australia’s Strategic Plan and, in recognition of the importance of the environment, the Property Council also has a Sector Agreement with the Government committing our sector to reduce its impact on the environment

Nick Rosshirt Bestec Philip Rundle CB Richard Ellis Matthew Salisbury WSP Lincolne Scott Vince Scanlon Adelaide Airport Steve Smith Leedwell Properties

1. CIE, The Size, Structure and Location of Australia’s Commercial Property Stock, February 2008 2. Construction Forecasting Council [http://www.cfc.acif.com.au/] January 2009

Table of Contents Introduction

Why is the property industry important?

SUMMARY OF RECOMMENDATIONS

PEOPLE

Productivity

place

Introduction When the powers that be in England in the early 1800s decided to send a boatload of settlers to establish the colony of Adelaide it was seen as an opportunity to create a utopian environment of wealth, culture and opportunity.

This Report has been broken down into the three key elements that are needed to ensure future prosperity; building the capacity of our people, improving productivity and transforming our places to drive results for the community.

South Australia has since had its share of ups and downs, but there is no question that each of our political leaders and governments have contributed in some way, shape or form to the great state that we have today.

By preparing and releasing the Three Ps Report, the Property Council is declaring that we will partner with the state to deliver the best possible future for current and future generations.

Now, following the lows of the economic downturns of the 1980s and 1990s, when we were tied down with a ballooning state debt, an economy supported by dying industries, a declining population and a very dark future, we now find ourselves at five minutes to dawn and the sun about to rise on a new day. Over the past decade we have seen a realignment of the stateâ&#x20AC;&#x2122;s economy away from old, traditional industries to new, strong and developing industries ranging from defence to cleantech to education to resources.

We encourage South Australians to review, get involved, comment and debate this report and its recommendations.

Justin Hazell President Property Council of Australia (SA Division)

While some of these are still niche industries in the overall context of our economy, their potential to put South Australia on the map is without doubt. The fact that the South Australian economy has been outperforming the nation, and indeed has been one of the key contributors to keeping Australia out of recession, is no coincidence. Both political parties can take some credit for this outcome. But like the early 1800s it is again time to take stock of our opportunities and put them into play to ensure South Australians attain the economic prosperity and sustainability they seek.

4 Three Ps [People, Productivity, Place] â&#x20AC;&#x201C; Property Council of Australia (SA Division)

Nathan Paine Executive Director Property Council of Australia (SA Division)

Why is the property industry important? The property sector is one of the most important sectors to the state economy. The property industry directly: • represents about 17% of Gross State Product; • employs almost 20% of all South Australians; and • pays over $6 billion in salaries to those working in the sector. Moreover, it is the property industry that houses or supports the creation of more than 75–80% of the state’s Gross State Product. Property provides the ‘boxes’ in which our manufacturing and business services are generated, our health services are delivered, our children and citizens are educated and our families and communities live. Through its infrastructure investments the industry also provides the linkages that physically tie the state’s economic activities to each other and to the world.

Aside from the billions invested in property on behalf of working South Australians and the massive tax receipts paid by the sector each year, the wider property development sector also delivers the lion’s share of the community’s economic and social backbone. The property sector shapes the physical world we live in, and provides the foundations of the intellectual and social world we create for ourselves. It builds and reshapes our cities to meet the public’s changing expectations of a seamless nexus of practicality and beauty in the built environment. In short, the property sector provides magnets for people, the platform for productivity and the plan for place.

Summary of Recommendations

People Continue to promote international migration Actions

• Develop a program, under the auspices of DTED, aimed at marketing South Australia as a destination of choice for migration. • Continue to advocate to the Federal Government for the retention of South Australia’s regional status for migration purposes.

Attracting and retaining young South Australians Actions

• Work with the Property Council and other stakeholders to create an advisory body of young professionals charged with promoting the benefits of working, investing and living in South Australia. • Develop a policy that reinforces South Australia as a cultural and lifestyle hub of the nation. • Ensure major companies can relocate to Adelaide with minimal cost and time delay through further reforms to planning and development assessment systems.

Coordinated marketing of South Australia Action

• Develop, with the Property Council, a ‘match-making’ service for interstate and international investment in South Australia.

Attracting and retaining international students Actions

• Work collaboratively with tertiary institutions including the University of Adelaide, Flinders University and the University of South Australia to maintain South Australia’s pre-eminence and reputation as a place of education and a destination for international students. • Deliver a service to assist overseas students to apply for residency in South Australia. • Create a taskforce of relevant stakeholders to identify work engagement, housing and other opportunities to encourage the retention of overseas students. • Commit to providing headleases on student accommodation projects to ensure adequate dwelling supply.

Developing Adelaide into a growth catalyst Action

• Implement the recommendations of the Property Council’s report on the needs for South Australia’s future economic and social capital in Adelaide 2036: Building on Light’s Vision.

6 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

Housing affordability as a population attractor Actions

• Extend stamp duty concessions for First Home Buyers purchasing new homes. • Commit to ensuring a rolling 15 year supply of land for housing, including at least five year supply of zoned and serviced land. • Commit to removing barriers to multi-level residential development in South Australia. Including: »» Amend the affordable housing support programs to reflect the additional costs associated with multi-storey apartment developments. »» Develop and deliver a marketing support to promote the cost, lifestyle and environmental advantages of apartment living close to the public transport hubs and corridors. »» Consider a new scale of First Home Buyer stamp duty reductions for those purchasing a multi-level residential dwelling to remove the disincentive to purchase this product. »» Introduce a stamp duty concession for “off the plan sales” equivalent to the concession offered to residential purchasers by the Victorian Government. »» Exclude Community Title subdivision of land, for residential apartments (including apartments managed for student accommodation) in the City Square Mile and in designated transit corridors from the Open Space Levy requirements. »» Develop a policy for using funds from the Open Space Contribution Scheme in a locationally relevant context to those that contribute. »» Create a Taskforce to review and reform other cost barriers to delivering multi-story residential; including union requirements and building code issues.

A skills strategy for future challenges and emerging industries Actions

• Set a stretch target to have 80% of skilled migrants licensed and qualified to work in the industry of their expertise within four months of their arrival in South Australia. • Provide funding via RenewablesSA to ensure South Australia has a world-leading approach to workforce development in the clean tech industry. • Work with industry and tertiary institutions to improve the recruitment and retention of property professionals and trades people.

Housing Diversity for an Ageing Population Actions

• Ensure planning policy responds to and facilitates the development of a diversity of housing supply in well located areas of all metropolitan centres. • Ensure all local government planning policy recognises and facilitates seniors living communities (such as retirement villages and aged care facilities). • Ensure service delivery infrastructure is able to be integrated into all future centres. • Consider fiscal incentives (such as stamp duty relief, land tax reform, rate incentives etc) that encourage new developments in existing areas specifically targeting seniors housing.

Summary of Recommendations

Productivity Strive for global leadership in renewable energy technology Actions

• Invest in the State’s ‘thinking industries’ including: »» deliver the full masterplan for the Bioscience Accelerator facilities at Thebarton; and »» a renewables research and education cluster at Tonsley Park. • Establish and fund a ‘SmartGrids’ Taskforce to develop and implement a framework for delivery. • Create, with the Universities, an institute focused on research and development of new opportunities for value adding to our uranium resources. • Develop the testbed delivery infrastructure for hydrogen use in transport, energy production and industrial uses.

Boost the supply and productive returns of Employment Land Actions

• Designate at least one employment land area as a Zone of State Significance. • Commit to ensuring that a rolling 15 year ‘employment land bank’ is identified and protected, including at least five year supply of zoned and serviced land. • Ensure existing employment lands are appropriately protected to sustain long-term industrial activities. • Ensure that changing industrial development trends are reflected in planning controls that place often unnecessary and damaging barriers between employment and residential land to better utilise existing space. For example, reducing car parking ratios.

Maximise economic, investment and heritage returns from tourism Actions

• Develop a Tourism Investment Plan to promote increased private investment in tourism infrastructure. • Improve existing hard infrastructure and better link tourism destinations through transport options and interpretive signage.

Eliminate the red tape burden on South Australian businesses Actions

• Commit to co-operate with other state governments to achieve uniform property legislation and procedures. The scope of proposed uniformity should incorporate: »» Property law legislation. »» General conditions for the sale of land and for the leasing of land. »» Land Titles Offices’ practices and procedures. • Reform the Strata Titles Act 1988 to allow for the dissolution of a strata community by agreement of 80% of unit holders replacing the current requirement for unanimous agreement.

8 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

• Reform the process of applying the exemptions from the Shop Trading Hours Act to require only consideration by the Minister. • Amend the Land Agents Act to remove the requirement for non-residential agents to be licensed. • Implement a ‘One In / One Out’ policy for regulation. • Instruct the Competitiveness Council to undertake a review of ‘green tape’ to assess the impact and efficacy of environmental regulations on the South Australian business sector.

Continue the process of planning and development reform Actions

• Establish a Department of Planning and Local Government / Property Council / Local Government Association working group to identify residual gaps in South Australia’s development assessment system when assessed against the Development Assessment Forum principles and deliver a third tranche of reform. • Commit to delivering a Commercial Development Code. • Ensure all development plans provide for separate definitions for student accommodation and residential dwellings. • Regulate ‘existing building envelope rights’ to promote better development outcomes. • Require the creation of Regional Development Assessment Panels, based on the regions established in the 30 Year Plan, to assess all applications over $2 million in the metropolitan area. • Conduct a review of the Open Space Levy (Section 50 of the Development Act 1993) with the aim of moving from a percentage approach to an outcomes approach. • Commit to an annual review of the 30 Year Plan for Greater Adelaide. • Commit to removing the GST component from the calculation of the CITB levy imposed on any new construction.

Maximise the productive returns from infrastructure investment Action

• Deliver a prioritised and sequenced Strategic Infrastructure Plan for South Australia; incorporating the Property Council’s Top 10 Infrastructure Priorities.

Implement a competitive and sustainable taxation regime Actions

Land Tax • Increase the maximum threshold to $2.5 million at a top rate of 2.5%. • End land tax aggregation. • Cap annual valuation increases to a maximum of 30% per annum. • Reform valuation appeals process. • Amend the Commercial Leases legislation to enable property owners to pass on land tax as an outgoing.

Summary of Recommendations

Stamp Duty • Reform stamp duty on non-residential conveyances to: »» Short Term: Reform the rates and thresholds to bring South Australia into line with New South Wales; and »» Long term: abolish stamp duty on non-residential conveyances. • Exempt corporate reconstructions from stamp duty. • Exempt the GST component relating to the sale of a commercial property or a business. • Commit to implementing the Property Council’s National Harmonisation Program for Corporate Reconstructions and Land Rich Provisions.

Council Rates • Deliver universal consistency in the collection of council rates in respect to matters of valuation and differential rating.

Emergency Services Levy (ESL) • Cap any ESL funding increases by CPI. • Guarantee existing levy caps remain and are limited to CPI increases. • Conduct an audit of the previous years’ ESL budget and spending plans to determine necessity rate levels. • Examine opportunities to incorporate ESL into an existing tax to achieve greater efficiency.

Water Rates • Reform water connection charges to promote water saving technology. • Introduce user pays pricing to allow the market to drive water usage rates.

Place Bolster the city centre of Adelaide as the pre-eminent economic, cultural and governance hub of South Australia. Action

• Implement the recommendations of the Property Council’s report on the needs of South Australia’s future economic and social capital in Adelaide 2036: Building on Light’s Vision.

Reduce the democratic deficit of Local Government to ensure better place making outcomes for communities Actions

• Fund the Property Council to deliver a statewide campaign to improve non-residential voter enrollment and participation in the 2010 Local Government elections. • Institute an inquiry into the optimal size of local councils that balances democratic representation, efficient delivery of services, environmental catchments, funding powers and ability to attract (and retain) professional staff.

10 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

• Support a constitutional commission to develop a model for establishing councils as local parliaments. A key feature of the model would be the application of the separation of powers doctrine to key local government activities. • Require all councils to develop local action plans based on key performance indicators (KPIs), similar to South Australia’s Strategic Plan. All councils should develop 25 year infrastructure plans.

Delivering a sustainable state Actions

• Provide additional funding to extend the Building Innovation Fund program to reduce greenhouse gas emissions from the built environment. • Review regulatory barriers to the delivery of cogeneration and other renewable energy sources connecting to the distribution network. • Change feed in tariff policy from a net to a gross feed in tariff model to provide greater financial incentive for the take up of renewable energy sources. • Fund the extension of the Glenelg to Adelaide Recycled Water Pipeline through the CBD for use in commercial buildings.

Retain and reinforce the State’s commitment to urban renewal Actions

• Create a statutory Urban Renewal Authority to oversee the development and implementation of designated Transit Oriented Developments. • Consider alternative funding mechanisms for urban renewal such as ‘Growth Area Bonds’. • Provide funding to the Property Council to deliver a Transit Oriented Development Education and Awareness building program on the importance of TOD.

Reinforcing our heritage assets Actions

• Support the Property Council in developing a community education portal for adaptable heritage reuse. • Deliver a state-wide fund to provide incentives for adaptive reuse of heritage assets. • Establish a working group of State Government, Local Government Association and the Property Council to review and deliver an amended Building Code to facilitate the adaptive reuse of heritage assets. • Exempt properties on the national, state and local heritage lists from land tax.

Summary of Recommendations

12 Three Ps [People, Productivity, Place] â&#x20AC;&#x201C; Property Council of Australia (SA Division)

PEOPLE Corresponding SASP Targets

Introduction

T1.16, T1.22, T1.23, T1.24

The most important resource any state has is its people.

Principles • People are our most valuable resource. • Population growth is a core component of economic prosperity. • A strong skill base is critical to enduring future challenges and exploiting growth industries. • Changing population demographics require a diversity of housing products. • An appealing and vibrant local environment helps attract people from interstate and overseas and encourages local family formation. • Good planning and urban design is critical in solving housing and population issues.

It is the people that determine the confidence of the state, its economic prosperity and its directions. In times of declining population such as the 1980s and 1990s in South Australia, when young people left the state in droves for opportunities interstate and overseas, there has been a direct impact on the overall psyche of the state. In many ways, South Australia has still not fully recovered from the impact of that period, and we still wrestle with a malign parochialism, a fear that we are smaller and less significant than our colleagues over the borders. But things are changing; broader opportunities and an affordable, appealing lifestyle results now results in young people staying and others looking to move to South Australia. These same attributes can underpin and sustain a growing population and prosperity to ensure that we get the best of interstate and international migration. However, we must remain vigilant about the realities of demographic change and the housing and service challenges of a maturing and ageing population. These will present significant workforce issues over time and consequently heighten the importance of effective international migration policies and achieving an optimal population balance.

PEOPLE Recommendations Continue to promote international migration

people must be engaged in policy development, market assessment, marketing and other activities that help us to retain this valuable cohort.

The state has long enjoyed Regional Migration Status (RMS), a factor that has enabled the state’s population to grow despite migrants’ historic preference for Australia’s eastern states. RMS is allocated on the basis of a state’s population growth rate consistently sitting behind the national rate. And despite South Australia’s improving economic fortunes and effective state policies on immigration turning around this trend, a new challenge is emerging in likely skill shortages. For this reason the retention of the RMS is critical to our continued economic and population growth.

Actions

Actions • Develop a program, under the auspices of DTED, aimed at marketing South Australia as a destination of choice for migration. • Continue to advocate to the Federal Government for the retention of South Australia’s regional status for migration purposes.

Attracting and retaining young South Australians Despite great success in attracting international migrants to live and work in South Australia, net interstate losses remain high in the 25 to 35 age group. Although our youth clearly benefit from work and experiences outside of our borders, this disproportionate outflow further exacerbates problems of an ageing population, considering many of the young professionals we lose tend to be in the family formation years. Work opportunities are a key driver for these moves. Although South Australia’s economy will trend towards internationalisation as our resource and defence industries reach their zenith, in turn attracting national and international headquarters for some of the world’s biggest companies, the issue must be addressed now. Major companies, with their global reach and massive internal career opportunities, provide critical mass of employment for youth. Policies to increase the appeal of South Australia to young working professionals must be driven from the group that does remain here. There is no shortage of enthusiastic professionals passionate about growing the state’s economy and community dynamism and these

Coordinated marketing of South Australia While South Australia is gradually gaining international renown for its wine, fresh produce and broadacre agriculture, we remain beholden to the eastern states’ dominance of Australian marketing. When it comes to industry promotion, investment attraction, and espousing South Australia’s credentials as a tourism and education destination, we have underutilised potential to funnel economic returns to the state. Often opportunities for South Australian businesses, products or ideas are missed simply because no channel existed to bring the local and international partners together. For example, South Australia’s property investment sector is viewed by a small number of international private investors as remarkably attractive, but no formal avenue exists for facilitating the way of capital into the state. A simple website attached to other trade, tourism or migration should provide a direct ‘match-making’ service that also performs this task. Both approaches should also recognise and exploit cross-opportunities, for example business investors who might be ideal targets for business migration. The Property Council is willing to support these efforts.

Action • Develop, with the Property Council, a ‘match-making’ service for interstate and international investment in South Australia.

14 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

Attracting and retaining international students South Australia’s intake of international students has historically exceeded our population share, driving education exports as a pre-eminent industry in this state. However, more can be done to maximise the student experience to ensure that either their reports on South Australia upon their return home are positive, or that they choose to remain in the state. Policy levers to be examined should include preferential visa and residency options (possibly for the student’s family as well as the individual), improved engagement with the local workforce with a view to transitioning to permanent, full-time employment, and assistance with housing and other life essentials.

Actions • Work collaboratively with tertiary institutions including the University of Adelaide, Flinders University and the University of South Australia to maintain South Australia’s pre-eminence and reputation as a place of education and a destination for international students. • Deliver a service to assist overseas students to apply for residency in South Australia. • Create a taskforce of relevant stakeholders to identify work engagement, housing and other opportunities to encourage the retention of overseas students. • Commit to providing headleases on student accommodation projects to ensure adequate dwelling supply.

Developing Adelaide into a growth catalyst Through projects such as Thinkers in Residence, innovation clustering and a commitment to the arts, the current government has taken significant strides towards enhancing South Australia’s reputation for progressive policy and innovation. But the major next step requires direct community engagement in innovation and policy formation, and extending that to promotion beyond our state borders. It also must be recognised that the built environment is critical in

stimulating the community’s creative impulses and engaging the community in the creativity process. Many of the proposals in the Property Council’s blueprint for a redesigned CBD, Adelaide 2036: Building on Light’s Vision focused on building on South Australia’s history of innovation by using the built environment to enhance vibrancy and to bring communities together. Fulfilling the recommendations in Adelaide 2036 will help Adelaide maximise its creative potential and in turn, increase returns from a greater emphasis on value-adding in production.

Action • Implement the recommendations of the Property Council’s report on the needs for South Australia’s future economic and social capital in Adelaide 2036: Building on Light’s Vision.

Housing affordability as a population attractor Along with work opportunities, housing affordability is one of the principal drivers of relocation decisions. In recent years, housing affordability, particularly for first home buyers, has fallen as a competitive advantage for Adelaide over other capitals. The Government must redouble its efforts to get its multi-tiered housing land strategy into place, placing equal emphasis on releasing new land and increasing density and infill.

Actions • Extend stamp duty concessions for First Home Buyers purchasing new homes. • Commit to ensuring a rolling 15 year supply of land for housing, including at least five year supply of zoned and serviced land. • Commit to removing barriers to multi-level residential development in South Australia. Including: »» Amend the affordable housing support programs to reflect the additional costs associated with multi-storey apartment developments. »» Develop and deliver a marketing support to promote the cost, lifestyle and environmental advantages of apartment living close to the public transport hubs and corridors.

PEOPLE Recommendations

»» Consider a new scale of First Home Buyer stamp duty reductions for those purchasing a multi-level residential dwelling to remove the disincentive to purchase this product. »» Introduce a stamp duty concession for “off the plan sales” equivalent to the concession offered to residential purchasers by the Victorian Government. »» Exclude Community Title subdivision of land, for residential apartments (including apartments managed for student accommodation) in the City Square Mile and in designated transit corridors from the Open Space Levy requirements. »» Develop a policy for using funds from the Open Space Contribution Scheme in a locationally relevant context to those that contribute. »» Create a Taskforce to review and reform other cost barriers to delivering multi-story residential; including union requirements and building code issues.

A skills strategy for future challenges and emerging industries Skills development processes MUST be industry driven. Industry Skills Boards provide a valuable conduit from industry to government skills planning, however more must be done at the coal face to ensure individuals are up to date with their skill requirements. To ensure consistency in training processes and to enhance equity in the provision of publicly-funded skills training, industry bodies such as the Property Council should be given funding and administrative support to provide their own training courses, specific to the peculiarities of the commercial property development sector. Further, these courses must be officially recognised as contributing to the Continuing Professional Development of commercial property operators. It is critical that efforts are underway now to ensure the skills are available when those industries hit their peak. In particular the ‘clean tech’ industries will require direct government support in their early years of workforce development. RenewablesSA should allocate a proportion of its fund towards developing an internationally-renowned workforce development process for clean tech.

Skilled migration is rarely questioned as a critical arm of our skills development policy, however the licensing, qualification and skills recognition processes confronting some migrants slow their assimilation into the workforce (and therefore into the community) and damage the goodwill South Australia is developing as a migration destination. These processes must be amended as a matter of urgency to ensure that skills are either recognised prior to, or within three months of, the migrants’ arrival.

Actions • Set a stretch target to have 80% of skilled migrants licenced and qualified to work in the industry of their expertise within four months of their arrival in South Australia. • Provide funding via RenewablesSA to ensure South Australia has a world-leading approach to workforce development in the clean tech industry. • Work with industry and tertiary institutions to improve the recruitment and retention of property professionals and trades people.

Housing Diversity for an Ageing Population We must ensure there is sufficient supply and diversity of well-designed housing development opportunities in all localities that respond to the needs of an ageing population. To do this we must recognise that there are different housing requirements for the sector. This necessitates a review of planning criteria for retirement living products. Secondly, to ensure that this is planning approach is standardised across the state, it will be necessary to create and enforce a statewide retirement living definition. Furthermore, our planning for and provision of services and physical infrastructure must be integrated behind demographic plans, and incentives must be delivered to promote retirement living developments.

16 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

Actions • Ensure planning policy responds to and facilitates the development of a diversity of housing supply in well located areas of all metropolitan centres. • Ensure all local government planning policy recognises and facilitates seniors living communities (such as retirement villages and aged care facilities). • Ensure service delivery infrastructure is able to be integrated into all future centres. • Consider fiscal incentives (such as stamp duty relief, land tax reform, rate incentives etc) that encourage new developments in existing areas specifically targeting seniors housing.

Summary of Recommendations

18 Three Ps [People, Productivity, Place] â&#x20AC;&#x201C; Property Council of Australia (SA Division)

Productivity Corresponding SASP Targets

Introduction

T1.1, T1.2, T1.6, T1.13, T4.1, T4.7, T4.10, T4.12

Productivity is a broad term that is taken to mean many different things according to its use and by its political application. But in the context of promoting economic growth, it refers to the capacity to produce or the outcome of productive effort. Put simply, improving productivity is the process of encouraging better results from existing resources.

Principles • Increased productivity is the critical next step to delivering prosperity. • Productivity is best driven through innovative approaches to production, which requires wide regulatory flexibility to encourage entrepreneurship. • The free flow of capital is critical to effective entrepreneurship. • Advanced manufacturing that delivers a significant value-add should tap into South Australians’ tendency for creativity, innovation and invention. • South Australia’s future depends on maintaining a competitive advantage as a place to do business.

In his book ‘The Age of Diminished Expectations’, American economic writer Paul Krugman famously wrote ‘Productivity isn’t everything, but in the long run it is almost everything’. This quote reflects the increasing view that there is more to economic growth than ongoing population growth and increasing consumption. As much as both of these have been critical components of the reigning economic paradigm of the past quarter century, there is increasing recognition, including by Australian Prime Minister Kevin Rudd, that the next phase in boosting Australian living standards will be driven by productivity. All sectors of the South Australian community can be engaged in the process of improving productivity. By the nature of our community, the great majority of us are engaged in productive capacity. By enhancing the returns from each unit of labour, massive returns can be delivered to the community as a whole. As our State moves away from traditional ‘old’ manufacturing and towards defence, resources and new technologies, it is critical to have consistent and bipartisan support for these industries. The property sector is well placed to help governments boost productivity in the local economy. As the builders, owners and custodians of built environment, the property sector is responsible for the physical foundation of most economic development. The sector must be empowered for the efficient delivery and effective use of the built environment if we are to achieve prosperity through productivity.

Productivity Recommendations Strive for global leadership in renewable energy technology South Australia must capitalise on our abundance of renewable energy sources by not only bringing those energy sources to the national market but also by becoming the pre-eminent jurisdiction in the development of renewable energy production. Wind, solar, tidal and geothermal energy all have enormous potential for local energy production. But even greater potential exists in our capacity to export locallygenerated intellectual property on such technology. A cleantech research cluster based in Adelaide should bring together the best thinkers in the world of renewables to maximise the intellectual output from our proximity to natural energy sources. Due to the complexities of delivering some of these energy sources to market, industry and business must be engaged in local energy production wherever possible. A cleantech industry must include embedded generation for precincts or major buildings to ensure our cities and towns are also part of the cleantech industry expansion. In addition to South Australia being recognised as the pre-eminent hub of research and education in the cleantech sector, we must also become the pioneering leader of a new approach to powering sustainable cities. Following the principles behind water-sensitive urban design, the use of renewable energy technology should be considered in all aspects of urban development. The Property Council has drafted a program known as ‘The Vision Project’ that describes a ‘closed loop’ greenprecinct in which energy, water and other resources are generated, regenerated, cleaned, stored and reused within precincts. Such a model, coupled with major sources of project funding such as the Federal Government’s SmartGrids project could facilitate Adelaide becoming the centre of South Australia as a smart energy state. South Australia is renowned for its work to date in geothermal energy, however the remote locations of geothermal sites is problematic for transmission. While answering such challenges it is critical that we continue to explore more immediately accessible forms of energy. Due to Adelaide’s coastal proximity, wave power should have greater representation in our renewables mix. Another virtually untapped resource exists in hydrogen-based generation. The technology to drive energy from hydrogen exists, but the major barrier to

its use is the need for new delivery infrastructure. With Adelaide’s existing commitment to renewable energy and presuming the formation of clean energy clusters, such infrastructure could be placed in and around experimental clusters. This would encourage the dayto-day use of locally-generated hydrogen in transport, energy production and industrial uses in and around those precincts.

Actions • Invest in the State’s ‘thinking industries’ including: »» deliver the full masterplan for the Bioscience Accelerator facilities at Thebarton; and »» a renewables research and education cluster at Tonsley Park. • Establish and fund a ‘SmartGrids’ Taskforce to develop and implement a framework for delivery. • Create, with the Universities, an Institute focused on research and development of new opportunities for value adding to our uranium resources. • Develop the testbed delivery infrastructure for hydrogen use in transport, energy production and industrial uses.

Boost the supply and productive returns of employment Land The timely supply and delivery of strategically located, well serviced and cost-competitive employment land to meet current and future needs is vital. However, South Australia’s growing population and changing industry profile is placing further pressure on land traditionally allocated to industrial developments. The 30 Year Plan for Greater Adelaide goes some way towards protecting existing spaces, but more must be done to ensure a rolling supply to meet future needs, particularly considering the demands of growth industries such as defence, resources and cleantech. Supply means more than locking vacant land off for future use. It means identifying potential rezoning of land and developing long-term infrastructure such as roads, water and energy services. This requires ongoing dialogue with the industry to ensure that supply and demand are appropriately balanced and that infrastructure keeps pace with demand. It is critical that the state maintains a commitment to a rolling supply of employment land.

20 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

Because of its size, its proximity to major transport corridors and its central location, the Gillman Crescent area provides one of the best opportunities for delivering the next major tranche of industrial land to market. However, there are recognised challenges to delivering that land, primarily the existing requirement to level the site with vast quantities of high-quality clean fill. These requirements currently are prohibitively costly. If dedicated land supply is necessary to the state’s ongoing economic development, a cooperative State Government and industry approach to delivering it to market is needed urgently. While demand for industrial land in the north of Adelaide continues to grow, the fading fortunes of the automotive industry in South Australia have left an employment vacuum. The state’s emerging industries have more than sufficient potential to absorb any excess from these industries, but seed capital is urgently needed to offset the investment risk attached to exploratory venture expenditure. The location of industrial land, both north and south, continues to raise questions over the planning of commercial and residential development. It is critical that industrial land is recognised as land that generates employment and, in turn, produces extensive multiplier effects to the local economy. With the move to highorder manufacture – which is anecdotally cleaner, quieter and less aesthetically challenging – it is possible to more closely align residential areas with employment areas, with obvious social, economic and environmental benefits.

Actions • Designate at least one employment land area as a Zone of State Significance. • Commit to ensuring that a rolling 15 year ‘employment land bank’ is identified and protected, including at least five year supply of zoned and serviced land. • Ensure existing employment lands are appropriately protected to sustain long-term industrial activities. • Ensure that changing industrial development trends are reflected in planning controls that place often unnecessary and damaging barriers between employment and residential land to better utilise existing space. For example, reducing car parking ratios.

Maximise economic, investment and heritage returns from tourism South Australia has enormous untapped potential in its tourism assets, many of which can be unlocked through good investment in tourism infrastructure. Although several of our regions are achieving growing national and international attention, our built and natural heritage are both underutilised as economic generators. Tourism is not only an economic generator on its own, it is also the window through which interstate and international visitors view investment opportunities. Interpretive tourism has expanded greatly in Australia in recent years, but the growing range and diversity of tourists and potential tourists requires a new approach to such interpretive integration of tourist experiences. In addition to signage, walkways and information facilities, tourist attractions require imaginative, complementary developments that maximise the experience. Appropriately and sensitively designed accommodation and entertainment facilities incorporated into or near natural assets maximise accessibility to the asset and enhances local economic returns. Planning and development controls must recognise the economic benefits of tourism and identify that appropriate development can help protect and maintain natural assets. Given the complexities of sensitively integrating building design with tourism assets, some public support for such developments will help generate long return tourism returns for the state as a whole.

Actions • Develop a Tourism Investment Plan to promote increased private investment in tourism infrastructure. • Improve existing hard infrastructure and better link tourism destinations through transport options and interpretive signage.

Eliminate the red tape burden on South Australian businesses Red tape reduction should be an ongoing goal of government with benchmarked performance indicators monitored and achieved each year. The principles of red

Productivity Recommendations

tape reduction are simple: new regulation should only be developed on a ‘one-in, one-out’ basis and productivity impacts should be considered in all government interventions with business. An ongoing issue for the commercial property industry has arisen due to recent legislative changes, requiring commercial property agents to complete training that is irrelevant to their industry in order to practice, often even when they have practiced in the role for years prior. This situation has left South Australia as uncompetitive in the provision of property management skills and poorly responsive to the need for skills development. Current training requirements for licensing must be amended to reflect the very different role of commercial property professionals to that of residential real estate agents. It is critical to remove red tape impediments to and deliver incentives for the uptake of sustainable technologies in South Australia’s built environment in order to deliver a more productive and environmentally sustainable economy. Rate and tax relief should be considered for building owners implementing sustainable practices. The built environment can help the environment in other ways, such as changes to commercial water use and waste management. Incentives must be put in place to encourage these practices.

Actions • Commit to co-operate with other State Governments to achieve uniform property legislation and procedures. The scope of proposed uniformity should incorporate: »» Property law legislation »» General conditions for the sale of land and for the leasing of land »» Land Titles Offices’ practices and procedures • Reform the Strata Titles Act 1988 to allow for the dissolution of a strata community by agreement of 80% of unit holders replacing the current requirement for unanimous agreement. • Reform the process of applying the exemptions from the Shop Trading Hours Act to require only consideration by the Minister. • Amend the Land Agents Act to remove the requirement for non-residential agents to be licensed.

• Commit to removing the GST component from the calculation of the CITB levy imposed on any new construction. • Implement a ‘One In / One Out’ policy for regulation. • Instruct the Competitiveness Council to undertake a review of ‘green tape’ to assess the impact and efficacy of environmental regulations on the South Australian business sector.

Continue the process of planning and development reform An effective planning and development system should help ensure that a community has a competitive business and housing environment. The pursuit of continual improvement in the state’s planning and development system is the best means of achieving this. As a result of this reform over the past decade South Australia is now at the forefront of the nation’s planning systems. However, there is still some way to go before we achieve the Development Assessment Forum (DAF) best practice model. Further to the current limits on progress towards DAF principles, the state’s planning and development system does not recognise the special place of Adelaide’s central business district in the state’s economy. This makes it critical that we reform the governance structures guiding the future development of Adelaide’s central business district. While the State Government’s decision to limit the types and scale of development projects the Adelaide City Council’s Development Assessment Panel can consider, there needs to be additional initiatives to encourage commercial development in the CBD. A Commercial Development Code would provide certainty to prospective investors about the types of development likely to gain approval.

Actions • Establish a Department of Planning and Local Government / Property Council / Local Government Association working group to identify residual gaps in South Australia’s development assessment system when assessed against the Development Assessment Forum principles and deliver a third tranche of reform. • Commit to delivering a Commercial Development Code.

22 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

• Ensure all development plans provide for separate definitions for student accommodation and residential dwellings. • Regulate ‘existing building envelope rights’ to promote better development outcomes. • Require the creation of Regional Development Assessment Panels, based on the Regions established in the 30 Year Plan, to assess all applications over $2 million in the metropolitan area. • Conduct a review of the Open Space Levy (Section 50 of the Development Act 1993) with the aim of moving from a percentage approach to an outcomes approach. • Commit to an annual review of the 30 Year Plan for Greater Adelaide. • Commit to removing the GST component from the calculation of the CITB levy imposed on any new construction.

Maximise the productive returns from infrastructure investment Along with the built environment, infrastructure provides the critical platform for economic growth. This platform delivers economic outcomes over multiple generations, meaning responsible government borrowing to fund infrastructure is a valuable investment in a community’s future development. However, given the size and fiscal impact of such investments, they must be made according to rigorous assessment of multiple criteria. The Property Council’s South Australian Division has used a multi-criteria analysis in determined the types of projects that warrant this type of funding. The criteria are streamed across five outcome areas: • Economic: The project increases productivity and efficiency gains; • Social: The project maximises community well-being; • Environmental: The project reduces ecological footprint; • Governance: The project modernises community decision making frameworks and optimises resource allocation; and • Strategic: The project facilitates new or significant market opportunities.

In using this multi-criteria analysis to determine its own recommended priorities, the Property Council determined that the key projects for immediate or medium-term funding are those that facilitate the movement of people within, to and from Adelaide and projects that support the continued population growth of the state on the back of the state’s growth industries. The ten projects identified, in order of priority, are: 1. Modernisation of the metropolitan rail network 2. Expedite the North-South road corridor 3. Fill regional rail gaps 4. Upgrade regional airports 5. Expand reticulation of non-potable water supplies 6. Fast-track South Australia’s desalination capacity 7. Stormwater recovery and storage program 8. Facilitate geothermal energy 9. New gas-fuelled power station 10. Modernise telecommunications In order to ensure the orderly, efficient and strategic rollout of key infrastructure projects, the state must deliver a prioritised and sequenced Strategic Infrastructure Plan for South Australia, incorporating the Property Council’s Top 10 Infrastructure Priorities. It is critical that this is overlaid upon the state’s principle strategic and planning documents, the 30 Year Plan for Greater Adelaide and South Australia’s Strategic Plan.

Action • Deliver a prioritised and sequenced Strategic Infrastructure Plan for South Australia; incorporating the Property Council’s Top 10 Infrastructure Priorities.

Implement a competitive and sustainable taxation regime The ongoing situation of inefficient taxation on property has a critical brake effect on the state’s economy. Major property taxes are a direct drain on the state’s economic platform and are therefore a tax on economic growth and employment generation. While we recognise and welcome the initial land tax policies announced by both the Government and Opposition, there remains more reform needed to bring South Australia into line with our interstate counterparts.

These criteria should be used when judging all infrastructure spending priorities.

Productivity Recommendations

At a time when we should be focusing on maximising community returns from the confluence of growing global attention on our natural resources, the rapid expansion of our growth industries and the massive public investment in economic infrastructure, it runs counter to other worthy government objectives to continue to levy inequitable and punitive taxes on the commercial property sector.

Council Rates • Deliver universal consistency in the collection of council rates in respect to matters of valuation and differential rating.

Emergency Services Levy (ESL)

The Property Council has developed a comprehensive report containing the arguments for sweeping tax reform. Obviously any local changes cannot pre-empt the outcome of the Federal Henry Review of Taxation, however, a commitment must be made to ensuring that own-state taxation does not disadvantage South Australian businesses or prejudice investment decisions.

• Cap any ESL funding increases by CPI. • Guarantee existing levy caps remain and are limited to CPI increases. • Conduct an audit of the previous years’ ESL budget and spending plans to determine necessity rate levels. • Examine opportunities to incorporate ESL into an existing tax to achieve greater efficiency.

Actions

Water Rates

Adopt the recommendations of the Property Council’s Tax Manifesto:

• Reform water connection charges to promote water saving technology. • Introduce user pays pricing to allow the market to drive water usage rates.

24 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

Summary of Recommendations

26 Three Ps [People, Productivity, Place] â&#x20AC;&#x201C; Property Council of Australia (SA Division)

place Corresponding SASP Targets

Introduction

T1.1, T1.2, T1.5, T1.23, T2.2, T2.4, T4.3,

The design of buildings, streets, squares, Park Lands and public spaces in the central city is one of the most significant influences on its economic vitality and on its social, cultural and environmental value.

Principles • Place represents all aspects of the public realm, as well as how the individual interacts with the private realm. • The central city, as an asset belonging to all South Australians, should receive state-level investment to build its appeal, character and functionality. • Home ownership should continue to be viewed as a positive for its enforced savings and the family stability it provides. • Managing population growth will require a multifaceted approach to housing that incorporates greenfield development, infill in existing suburbs and urban renewal. • Urban renewal and Transit Oriented Developments are critical to the future of housing in South Australia but both are suffering setbacks due to misconceptions about them in the community.

Around the world, the most successful cities have been those which have set an inspiring design vision, backed it up by delivering a series of connected and citychanging projects, and then maintained a commitment to this vision and action agenda through electoral cycles and across levels of Government. Public spaces have been energised, creating dynamic and vital streets and squares with a “buzz” of diverse activity throughout the day and well into the night. Quality design, innovative public art and a rich blend of historic and modern architecture make up the picture. What makes cities competitive and sustainable is their environment, architecture, facilities, building stock and distinctive character. Good urban design seeks to identify what is special about a place, and then to build on these special qualities by improving the way the public realm works – not only by upgrading the public spaces themselves, but by carefully guiding the way that new development shapes the public spaces around it.

place

Recommendations

Bolster the city centre of Adelaide as the pre-eminent economic, cultural and governance hub of South Australia

Reduce the democratic deficit of Local Government to ensure better place making outcomes for communities

Effective place making can mean the difference between a vibrant, exciting and appealing space and a vacuum of character and life. In 2009 the Property Council released a major report outlining the steps to ensuring that Adelaide’s city centre remains the doorway to the rest of the state for visitors, prospective residents and workers.

In 2009 the State Government introduced and passed legislation that removes the automatic enrollment of non-residential ratepayers for Council Election Rolls. The Adelaide City Council was exempted from this provision.

The report, titled Adelaide 2036: Building on Light’s Vision outlined the priority actions for redesigning the central city to unleash its potential that have broadly been supported by both major political parties. The report also identified the need to expand the city centre’s residential population as a key factor in driving vibrancy and vitality. High-rise or apartment living has great potential in Adelaide’s city centre, and much has been done to encourage the uptake of existing stock. However, many barriers exist in the development of new multi-level residential buildings. Some steps to reduce these barriers include: • Factor in the additional costs associated with multi-storey apartment development in the terms of affordable housing support programs. • Provide State Government marketing support to promote the cost, lifestyle and environmental advantages of apartment living close to the public transport hubs and corridors. • Exclude Community Title subdivision of land, for residential apartments in the City Square Mile or in designated transit corridors from the Open Space Levy under Section 50 of the Development Act 1993. • Use the Open Space Contribution Scheme in a transparent and locational way to fund projects which increase the recreational value and landscape quality of public space near to planned higher rise residential dwellings. • Consider offsets on multiple holdings for land tax purposes. Implementing these changes will be critical to achieving the vibrant economy and community needed for the future of the state.

Action • Implement the recommendations of the Property Council’s report on the needs of South Australia’s future economic and social capital in Adelaide 2036: Building on Light’s Vision.

The Property Council, like the Government and Councils, is keen to ensure maximum participation by those eligible to vote in Council elections. The impact of the most recent reforms will be that many nonresidential ratepayers will be unaware that they are not automatically enrolled. As property investors and owners are a critical part of the community and make a significant contribution to Councils’ rates revenues, a dedicated enrollment campaign should be rolled out in mid-2010 to ensure all those that are eligible to vote are reminded to enroll. The Property Council recommends that the State Government conduct this program across the state. It is envisaged that the program would involve a postcard campaign, letters, marketing material and other collateral. In addition to an enquiry into the optimal size of local councils, consideration should also be given to a new model for councils, possibly constituting them as local parliaments. These reconstituted bodies would be responsible to key performance indicators, similar to the accountability of State Government departments to South Australia’s Strategic Plan.

Actions • Fund the Property Council to deliver a statewide campaign to improve non-residential voter enrollment and participation in the 2010 Local Government elections. • Institute an inquiry into the optimal size of local councils that balances democratic representation, efficient delivery of services, environmental catchments, funding powers and ability to attract (and retain) professional staff. • Support a constitutional commission to develop a model for establishing councils as local parliaments. A key feature of the model would be the application of the separation of powers doctrine to key local government activities. • Require all councils to develop local action plans based on key performance indicators (KPIs), similar to South Australia’s Strategic Plan. All councils should develop 25 year infrastructure plans.

Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

Delivering a sustainable state In 2009 the Federal Government has announced funding for a major project that would see an Australian capital city re-engineered towards a nexus of energy exchange between transport mechanisms and the built environment. For a number of practical reasons South Australia is unlikely to win the project, however due to the state’s access to solar energy and other renewables, a similar project should be undertaken regardless. A cross-linked series of building-mounted generators, tied into parking bays for electric cars, both feeding into one another based on energy demand and supply is at the heart of a SmartGrid system. Such a program in Adelaide could go further, towards the creation of a ‘smart energy state’ as discussed in section 2, Productivity. However, in order to progress towards the ultimate goal of a smart energy state, some basic building blocks must be in place. Technology exists to drastically reduce our reliance on decentralised energy, a practice that leads to massive energy waste due to transmission losses. Precinct-based or even building-based energy production is possible now, and should be implemented in a city like Adelaide which has the advantage of its relatively small size. However, ETSA’s Network Access Rules currently prohibit owners feeding excess energy from building generators into the grid. In addition to regulatory limitations, the network is also not sufficiently robust to tolerate surges into the grid. This is a massive disincentive to building owners and managers attempting to improve their building’s environmental performance by generating energy on site. Similarly, significant water savings can be generated from simple actions in buildings, however building owners often either have no incentive to improve their water efficiency or they are kept to certain practices by regulation.

the water supply charge is based on property value, the more water-saving technology a building owner invests, they might actually pay a higher supply charge. Water charges should reflect the cost of its provision to better encourage water efficient technology. Further opportunities to restrict water use are obstructed by an overly cautious approach to water safety by water authorities. Recycled water, third pipe systems and sewer mining are all used in other communities around the world, but risk-averse policy making has hampered an opportunity to increase the reuse of non-potable water. The Government must work with industry to find answers to challenges to reusing non-potable water rather than simply deeming it unsafe. Waste management has fallen off the community radar following the prevalence of carbon pollution in all aspects of modern life. However, waste itself is a large source of carbon pollution, and diverting waste from landfill remains a critical goal in attaining sustainability. Commercial buildings in Adelaide have limited access to frequent recycling services, leading to large amounts of recyclable material going to landfill. Adelaide City Council should work with the Property Council and Zero Waste SA to improve recycling rates in commercial buildings.

Actions • Provide additional funding to extend the Building Innovation Fund program to reduce greenhouse gas emissions from the built environment. • Review regulatory barriers to the delivery of cogeneration and other renewable energy sources connecting to the distribution network. • Change feed in tariff policy from a net to a gross feed in tariff model to provide greater financial incentive for the take up of renewable energy sources. • Fund the extension of the Glenelg to Adelaide Recycled Water Pipeline through the CBD for use in commercial buildings.

Water pricing is a key barrier to investment in waterefficient technology as water use itself makes up a relatively small component of the charge. Further, given

place

Recommendations

Retain and reinforce the State’s commitment to urban renewal A major component in the attractiveness of a city for young professionals and migrants is the presence of large companies. With the BHP Billiton expansion of Roxby Downs getting closer, the likelihood of that company’s competitors and ancillary businesses taking up a role in Adelaide is increasing. To ensure this occurs, Adelaide needs policies in place that make Adelaide an appealing place to invest in major commercial buildings. The Adelaide City Council development planning controls must reflect that unprecedented economic and employment growth necessitate greater flexibility in architectural responses to building challenges, faster turn-around times on applications and more preferential treatment of highrise development. Likewise, State processes must also be ready to adapt to unexpected surges in development activity; in particular the Better Development Plan process must ensure that mooted changes to plans can be implemented at short notice. In business, time is money. Time wasted in planning approvals and bureaucracy hampers the property industry’s capacity to respond to demand for developments that have untold multiplier benefits for the entire community. To deliver an integrated approach to urban renewal, one which supports the targets of South Australia’s Strategic Plan, the Property Council recommends the immediate establishment of an Urban Renewal Commission, tasked with establishing the structure for the delivery of TOD projects across the metropolitan area. Urban Renewal Commissions are authorities established to resolve bureaucratic and structural impediments to the revitalisation or transformation of specific precincts. They are generally responsible for activities such as: • • • • • • •

creating masterplans; accommodating growth; coordinating infrastructure; coordinating whole-of-government activity utilising government sites; encouraging investment; facilitating public finance opportunities to revitalise communities; and • educating local communities and communicating the benefits of and need for urban regeneration.

The Urban Renewal Commission must also drive solutions to the constraints that potential slow the implementation of TODs. These include ageing rail facilities, contaminated land and the need for remediation, planning issues such as zoning constraints, building height and density restrictions, land acquisition and site consolidation and water, gas, and electrical infrastructure demands. Appropriate policy settings by State and Local governments should be sufficient to overcome these challenges and facilitate private sector management of any additional issues. It would be incumbent on the Urban Renewal Commission to guide the uptake of these policy settings. Growth Area Bonds provides an option to fund renewal and infrastructure projects where the State does not wish to fund it off the balance sheet. This model draws on the financial dividend infrastructure delivers over time to help fund its cost up front. Specifically, it avoids governments’ traditional reliance on expanding or adding taxes to fund investments. Instead it involves appropriating the increase in tax revenue attributable from an investment in infrastructure (within a prescribed district) to pay back the infrastructure development cost. The Property Council has been very supportive of the State Government’s commitment to better planned future for South Australia, through the 30 Year Plan for Greater Adelaide and new approaches to housing delivery. A key element in the Government’s long-term growth plan for Adelaide is the connectivity of the proposed public transport investment with Transit Oriented Developments (TODs). TODs will feature heavily in South Australia’s future both to ensure we can house unprecedented population growth, while also reducing greenhouse gas emissions, promoting stronger communities and encouraging people’s ability to live, work and enjoy strong local communities within a single precinct. However, many in the community incorrectly align TODs with terms such as ‘slums’ or ‘ghettos’. This is partly due to Adelaide’s traditional push-back against increased density and is rooted in parochial viewpoints that attempt to deny younger homebuyers housing choice. The Property Council is strongly supportive of TODs as one housing option that will help meet future needs, and this is a message that the community must understand if we are to provide housing choice in the long term.

30 Three Ps [People, Productivity, Place] – Property Council of Australia (SA Division)

The Property Council proposes to partner with other key stakeholders in delivering education seminars in the community, combined with a media communications campaign and an online TOD education portal to be a home for information on TODS from around the world.

Actions • Create a statutory Urban Renewal Authority to oversee the development and implementation of designated, State Government Transit Oriented Developments. • Consider alternative funding mechanisms for urban renewal such as ‘Growth Area Bonds’ • Provide funding to the Property Council to deliver a TOD Education and Awareness building program on the importance of Transit Oriented Developments.

Actions • Support the Property Council in developing a community education portal for adaptable heritage reuse. • Deliver a state-wide fund to provide incentives for adaptive reuse of heritage assets. • Establish a working group of State Government, Local Government Association and the Property Council to review and deliver an amended Building Code to facilitate the adaptive reuse of heritage assets. • Exempt properties on the national, state and local heritage lists from land tax.

Reinforcing our heritage assets There is no question that South Australia has some amazing heritage assets that have been protected over various reviews in the last couple of decades. However, cities are not museums. While the protection of architectural heritage is a worthy and important goal, preserving heritage without allowing sufficient flexibility to owners will inevitably lead to these properties falling into disrepair. Heritage policy should seek to create an environment where the buildings can continue to contribute to the verve and mojo of the city while also providing for contemporary uses, such as we have seen with the Treasury building. Part of this process is about providing building owners with the information and tools they can use to modernise their buildings without losing their character. At the same time, if we are to protect and preserve our heritage for the community and for future generations, the community must contribute to the maintenance of those properties. This can be achieved by providing incentives to owners of listed properties to ensure that they continue to contribute to the city. These incentives must be financial and non-financial in nature to ensure the best outcomes for South Australia.

Property Council of Australia (SA Division) 142 Gawler Place Adelaide SA 5000 GPO Box 2190 Adelaide SA 5001 t: 08 8236 0900 f: 08 8223 6451 www.propertyoz.com.au/sa twitter.com/PropertyOzSA