Real Estate industry wants to see higher standards and better regulation as a result of Vic Budget

Date: 26 May 19

Sunday, 26 May 2019

The Victorian property industry contributes 47 per cent of the State’s income from tax, so we have a lot of skin in the game with regards to the Victorian Budget.

Real Estate Institute of Victoria CEO Gil King said property has underpinned our economic activity over the past decade and we need a sound legislative, policy, infrastructure and funding base around that if we want this to continue.

“In addition to our traditional focus on planning, infrastructure and sustainable development, the Real Estate Institute of Victoria has lobbied to address our member’s concerns about accessing capital, the burden of increasing taxation, cutting red tape and investing in skills and training for our members,” REIV CEO Gil King said.

“The REIV is passionate about elevating the standards of the real estate industry to ensure that real estate professionals are adequately trained and educated to do the best job possible in this complex regulatory environment.

“Consumer Affairs Victoria must urgently revise regulations and required qualifications for real estate professionals in Victoria to comply with the National Training Package that is being embraced and implemented by other States and Territories.”

Mr King said real estate training in Victoria will be out of date if Consumer Affairs Victoria fails to act quickly and diligently to revise the required qualifications by March 2020.

“I am not confident that CAV is the right body to regulate the real estate industry and to set the rights standards which is important for both consumers and people who want to be proficient in a real estate career. No one benefits from CAV’s failure to lift the bar with regards to property transactions,” Mr King said.

“You can act as a Real Estate Agent Representative in Victoria after completing a five-day course which is clearly insufficient when they have to be across 14 pieces of legislation.

“The REIV would like to see the establishment of a Property Services Commissioner who could oversee all the complex aspects of the property market including land development, building and construction and the sale and rental of real estate.”

The REIV’s priorities for the budget include:

  • Smart industry: promoting education and employment opportunities
  • Retaining and enhancing liveability
  • Growing regional Victoria
  • Keeping Victoria competitive – property taxes
  • Reducing business costs – payroll tax
  • Review the regulatory approach to real estate
  • Removing legislative impediments to provide a secure investment environment
  • Protecting the livelihood and reputation of our members

Mr King said the REIV would like to see Section 55 (4) (b) of the Estate Agents Act 1980 repealed.

“This prohibits an estate agent from claiming a commission for selling a property to relatives or employees which is unworkable and unfair, particularly in country towns,” Mr King said.

“There needs to be safeguards but there needs to be capacity for agents to obtain their appropriate commission. No one who is doing their job in good faith should miss out on their commission.

“This law is particularly discriminatory in regional Victoria where the pool of purchasers is much smaller. It is a ridiculous law. If you do the job, and you are open and transparent, then you should get paid.”

The REIV’s full Budget submission is attached.

Media contact:
Chanelle Pearson 0402 241 621