A Prime Minister for Property

The Morrison Government carries on from the Turnbull legacy and keeps Cities as a Ministerial portfolio albeit with a “congestion busting” focus by adding population. Alan Tudge as Minister for Cities, Infrastructure and Population has a big job ahead. But he will have good tutelage because never before has Australia had a Prime Minister that has such a deep understanding of the property sector. The new Morrison Ministry is outlined at the end of the report and Urbanised has identified 7 Ministers for the industry to engage with.

For those who aren’t aware, the new Australian Prime Minister started his career at the Building Owners’ and Managers’ Association (now the Property Council of Australia). He was head of research and developed some of the most significant advancements in property policy in Australia especially with respect to taxation (Model Tax Policies) and planning (States of Progress and Planning for Change). He (along with Peter Verwer) convinced the Treasurer Paul Keating to introduce accelerated depreciation in the famous One Nation Statement.  

Coalition governments do not typically have Ministers for Cities however the previous two administrations have bucked tradition. This Minister will require unbelievably deft public policy skills and support because congestion and population policy is becoming a threshold issue. The property industry groups need to work harder and smarter this time around. If Minister Tudge is going to succeed in this space he will need to be a traffic cop, helping to guide the industry through the Ministerial maze to ensure there are rational policy settings for Australia’s most economically significant industry. He will have enough on his plate trying to fix congestion in our cities and that in itself will require particularly artful work. The challenge is solving the issue without scorching investment and the industry (as it is with affordability).

The industry needs to step up. It is no secret that in Canberra there has been disappointment with the level and, especially, the quality of engagement. Rather than play in the political sphere, with this new PM and Minister we would be well advised to focus in the policy space. Think about the challenges that are facing our cities and look towards policy solutions not cash splashes benefitting marginal electorates.

Urbanised has already written about using federalism to solve overcrowding issues in our cities. Minister Tudge can revert to the benefits (and the frustrations) of federalism to solve congestion.  But there is a multitude of other challenges. Revisiting some of the recent tax changes and creating a rational and non distorting tax system should be top of mind. Developing ways to finance infrastructure outside of value capture need to be developed. Improving the performance of the States (especially NSW) in planning approvals and reform has to be ramped up. Most importantly, cracking the housing affordability policy problem (without destroying private investment) is imperative. When Scott Morrison was Treasurer he invested a large amount of political capital in housing affordability. These issues require substantial intellectual and financial investment from the industry and it is up to the industry to build the narrative. If successful, there will be great immediate and intergenerational returns to the Australian economy.

The New Morrison Ministry

 Scott Morrison – Prime Minister

Josh Frydenberg – Treasurer

Marise Payne – Foreign Affairs

David Coleman – Immigration, Citizenship and Multicultural Affairs

Peter Dutton – Home Affairs

Melissa Price – Environment

Dan Tehan – Education

Michael McCormack – Deputy Prime Minister, Infrastructure, Transport, Regional Development

Nigel Scullion – Indigenous Affairs

Michael Keenan – Human Services, Digital Transformation

Bridget McKenzie – Regional Services, Sport, Local Government, Decentralisation

Christopher Pyne – Defence

Steve Ciobo – Defence Industry

Darren Chester – Veterans’ Affairs, Defence Personnel, Minister Assisting the Prime Minister for the Centenary of Anzac

Simon Birmingham – Trade, Tourism, Investment

Christian Porter – Attorney General

Alex Hawke – Special Minister of State

Mitch Fifield – Communications; Arts

Mathias Cormann – Finance, Public Service, Leader of the Government in the Senate

Greg Hunt – Health

Matt Canavan – Resources and Northern Australia

David Littleproud – Agriculture; Water

Kelly O’Dwyer – Jobs, Industrial Relations and Women

Michaelia Cash – Small and Family Business, Skills and Vocational Education

Karen Andrews – Industry, Science and Technology

Paul Fletcher – Families and Social Services

Angus Taylor – Energy

Ken Wyatt – Senior Australians and Aged Care; Indigenous Health

Alan Tudge – Cities, Urban Infrastructure and Population

(bold portfolio signifies property industry relevance)