Canberra Roundtable Explores Regulatory Reforms to Boost Investment and Streamline Approvals

Superannuation funds could potentially invest billions more into housing and renewable energy projects if certain regulations were adjusted. This follows a broad consensus reached at a recent productivity roundtable in Canberra, where participants acknowledged the need for change.

Current regulations require super funds to meet a "performance benchmark" to ensure they are effectively managing members' retirement savings. However, critics argue that these rules inadvertently discourage investment in certain assets. One specific concern is the requirement to disclose stamp duty as a fee, which is seen as a disincentive for housing investments. The government has indicated its intention to revise the benchmark, following a 2023 review that identified similar unintended consequences.

The roundtable discussions also highlighted the potential for accelerating housing and renewable energy investments by modifying these rules. The Treasurer has signaled a willingness to revisit these reforms. The focus of the talks was on boosting housing supply, responsibly reducing regulation, and speeding up approvals.

Participants also supported a Productivity Commission recommendation to establish a "strike team" to expedite approvals for key infrastructure projects, particularly in the renewable energy sector. The goal is to compete with markets that can deliver projects faster and more affordably, thereby attracting more capital.

Additionally, there was agreement on the potential for a pause on certain construction rules. This follows warnings about red tape hindering housing approvals. While changes to safety standards would continue, discussions centered on pausing "non-essential" rules within the National Construction Code, such as new energy efficiency requirements.

The roundtable also addressed the complex issue of environmental approvals. Attendees cautiously welcomed progress on reforming Australia's Environmental Protection and Biodiversity Conservation Act, which governs the environmental approval process for major projects. A major review in 2020 concluded that the existing laws were no longer effective.

A key point of discussion was the establishment of a federal Environmental Protection Agency (EPA). While there were differing views on its specific powers, there was a general consensus on the need for an EPA. Business groups indicated they would support an EPA, with the caveat that the final decision-making authority would rest with the environment minister. Environment groups, however, sought to give the EPA final approval powers.