The field of business finance is changing, in Perth and across Australia. According to a major consultancy company called AEC Group, the property industry is now the largest segment of the Australian economy. In the last ten years, the GDP of the property industry has doubled, reaching $182.5 billion in 2013-14.
The study was commissioned by the Property Council of Australia, who are the largest association for the property investment and development industry.
Not only does the property industry move more money, they create the second-highest number of jobs in Australia, at 1.1 million direct jobs. When indirect or “flow-on” jobs are also counted, the number increases to the equivalent of 2.7 million full time jobs.
The report was shared as part of the Property Leaders dinner in Canberra, a Property Council event. The event was attended by political leaders such as Prime Minister Tony Abbott and Treasurer Joe Hockey.
Ken Morrison, who is the national CEO of the Property Council, noted that “one in four” people in Australia receive money, directly or indirectly, from the property industry. In his case for reforms to help the property industry flourish, Mr Morrison noted that the property industry pays close to twice as much tax by percentage as any other industry.
To back up his assertion, he pointed out that in 2013-14, the property industry paid a total of $72.1 billion in taxes, fees and rates to local and national Governments.
What it Could Mean to You
For us, the most important takeaway is that now is a great time to be involved in the property industry and that it will only get better. We feel that some of the recent changes are designed to make property more affordable.
But there is also more risk if you are not careful. If you want to get involved in property investment, you need financial planners and mortgage brokers who specialise in Perth investors.
Make the right choice and call Purely Finance today: (08) 9453 8888.