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Agencies being given upwards of $2,000 for financial advice is just one of the ways that the Real Estate Institute of Australia (REIA) wants the Australian government to support agencies in 2021.
A spotlight has been shone on occupation mobility, business continuity, financial advice and training incentives as areas needing government attention in this May’s federal budget.
In a new document, the REIA has outlined a number of priority areas it hopes to see accounted for in the upcoming federal budget.
REIA president Adrian Kelly said there’s a need for policies and investments that will continue to drive growth in the property sector.
The four that most directly relate to agencies are outlined below:
- Financial advisory
One such measure is to help real estate agents manage their cash flow in response to COVID-19 disruptions, with cash-flow problems continuing to be a major issue for small businesses.
“We’re proposing a kit that is a predictive tool to assess a business’s viability, and while the kit can be used at any stage of the business life cycle, it is particularly useful to prevent financial stress.”
It would see $2,000 to $5,000 worth of assistance be provided to all agencies, allowing for individual advice from a trusted adviser to “improve financial viability and productivity which will assist in the government achieving a higher economic growth rate that would otherwise be the case”, Mr Kelly outlined.
- Occupational mobility
Despite being well intentioned, the REIA has asked that real estate agents do not be included in new proposals for automatic mutual recognition of their qualifications between states.
It’s not the first time the professional body has made the request, with the REIA instead calling for automatic deemed recognition that honours national training reforms and would require a diploma of property services for business owners and a full Certificate IV for associates or equivalents for recognition across state and territory borders.
- Business continuity
The REIA is also asking the national cabinet to form a long-term policy that would allow agencies to undertake “bare minimum” activities to service customers requiring assistance in advanced lockdown scenarios. This would account for marketing and photo shoots, 1:1 inspections or virtual inspections, settlements, removals and moving activities.
This is in response to REIA’s recognition that COVID-19 lockdowns “may continue to occur” — seeing this as a “critical step” to ensure continuity of housing solutions for all Australians.
- Training incentives
The fourth budget priority flagged for agencies requests the development of specific training packages “to support additional qualifications for both new entrants to the industry and existing employees”.
According to the REIA, by providing assistance to real estate businesses to offset the cost of allowing upgrades to licensing, there would be a significant and corresponding increase to the standards of real estate provided to consumers.
In addition, it argues that the real estate workforce could also see growth.
“In small- to middle-sized agencies, this could allow up to 50 per cent of the workforce to reskill,” the document stated.
Mr Kelly has cited REIA research that showed four in five agents (more than 80 per cent) surveyed in 2020 believed ongoing solutions would be needed to succeed in a “COVIDNormal” Australia.
In total, the Real Estate Institute of Australia flagged 12 items as priorities for the 2021–22 federal budget, covering off property customers, first home buyers, investors and agencies.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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