THE Federal Government plans to increase the pressure on the states to cut back the regulatory red tape for new homeowners, with plans under way to develop electronic settlement systems.
Finance Minister Lindsay Tanner has told BusinessDay, in a new weekly blog, that online settlement was being examined by each of the state governments.
The issue will be part of the Council of Australian Governments agenda when the state leaders and the Prime Minister meet in Sydney on Thursday.
Mr Tanner said the Federal Government was keen to make it easier to settle housing purchases, with the current system burdensome and adding unnecessarily to the overall costs.
"Some state governments have been working on this problem for some time, but there's still a way to go," Mr Tanner writes on BusinessDay today.
"And the big risk is that we'll end up with different systems in different states. If you're NAB or Westpac, having to run six or eight different electronic conveyancing systems would be a nightmare. And the ordinary home buyer would foot the bill."
The plan would allow online settlement but the mechanics of lodging documents are still being examined. "It's not as simple as it seems though. Victoria has invested a lot in developing software, which it naturally wants the other states to adopt. There's no guarantee they'll agree as work still needs to be done to determine whether it is suitable to roll out nationally," he says.
Mr Tanner joins the deputy opposition leader, Julie Bishop, from today as exclusive online columnists for Fairfax's BusinessDay.
The blogs will be available from midday and the two political opponents will alternate their commentary each Monday and Tuesday.
After today, Mr Tanner will write next Monday and Ms Bishop next Tuesday, before rotating each week.
In her first blog, Ms Bishop said she felt Australians were becoming too focused on the role of government and had ignored the influence they had as consumers.
The commentary from both sides of politics will be available on http://www.businessday.com.au.
6 comments:
Question Mr Tanner
This Wednesday, 2nd July 2008 marks the 150th anniversary of the Torrens system of land registration in Australia. The Land Registries have a proud tradition of being the custodian of land title records. That is their function. Land Registries have never been involved in settlements or financial transactions. That is not their role, nor should it become their role. Settlements and financial transactions would be far better left to industry to implement such changes on their own terms.
My question for Finance Minister Lindsay Tanner is "When can we see the Federal Government taking a lead in creating a National Property Register; Uniform Property Legislation; and Abolition of Stamp Duty on property transfers?"
I wish to point out - the securities industry achieved the goals of a single stock exchange; the national Corporations Law; and abolition of stamp duty on share transfers.
I wrote an article on this topic:
A National Property Register The merger of six states registries into one.
http://247legal.blogspot.com/2008/04/national-property-register.html
Brett Hayton - 247legal
You talk about the possibility of the states adopting the Victorian system. Isn't it up to industry to determine its requirements for the national system and whether any system can meet those requirements? In other words, it is not a decision that can be made by the states.
The Sunday Age recently gave press to the Victorian Government pumping $40 million into ECV "the white elephant". This gives me little confidence that the Victorian system can meet the requirements of the industry in Victoria, let alone the single national system.
What process are you proposing to ensure the system develops is
1. National
2. Meets industry requirements (ie the banks, conveyancing practitioners and the consumer)
3. Leveraging off the work already being done towards developing the national system.
* Posted by: Jaci Wang on June 30, 2008 1:02 PM
My question for Minister Lindsay Tanner is "When will the Federal Government stand up and be counted by stopping all the feuding between states in relation to Electronic conveyancing. You introduced licensed conveyancing which is a huge step forward for Victoria yet conveyancers still can not work as a conveyancer in Quennsland!
In this day and age with everything electronic banking, stock exchange, ebay etc etc how is it we have states that can not settle on some form of standard electronic conveyancing it is not that hard you could get kids to sit down and do it.
Buying or selling a property is an emotional and exciting time in peoples lives and laying claim to their slice of the "Australian Dream". It is one of the bigest investments or decisions in peoples lives. So the Conveyancing part should be a fast and efficient service that takes all the stress out of the whole transaction.
Banks are posting massive profits yet they are cutting more and more staff back in the areas of conveyancing which increases cost of approximatly $140 per purchase or sale on each property.
Mr Simon Libis is one of the most versed, learnerd and well respected person in the industry who if he was given the chance to run with the project instead of being handcuffed and stuck between the states fueding about minor and fundermental issues, this project, the NECS, would most likley be up and running.
It seems some people in senior positions are like spoilt schoolkids and look at a lot of things personally instead of standing back and looking at the big picture and what is better for the industry, states and most importantly the better service that can be provided to consumers.
These people would be later recognised as the great forefathers who had the forsight to see the savings and efficiencies in NECS and for the consumers, banks, conveyancers and solicitors.
More and most importantly, help save the enviroment by getting rid of the mountains and truckloads of paper we dispose of daily?
* Posted by: Mark Lak
Mr Tanner, there are other electronic land registration systems operating in the World quite successfully within the Torrens system of land registration and it beggars belief why we in Australia have to reinvent the wheel at great cost because the States and Territories cannot agree to adopt one system. Please take a look across the "ditch" and take a leaf out of the New Zealanders' book. We were in the starting blocks together, and their system has been up and running for three years. Why have we not progressed to uniform application of the Torrens system after all these years?
* Posted by: Nicholas Thomas
Thank you everyone for your responses to my first blog.
Brett,
Our Business Regulation and Competition Working Group is currently working on 27 areas of regulatory reform, so there is a need to prioritise and complete current projects before looking at new areas.
The Commonwealth does not directly regulate property law and is not proposing a Commonwealth takeover. Instead, the Rudd Labor Government is keen to work with the states, to deliver savings for businesses and homebuyers.
Jaci - Thanks for your comments.
The states need to be involved in this as any electronic system needs to be able to "talk" to the land title registers maintained by the state governments. Otherwise, even if your bank could transfer the dollars electronically, you'd still have to physically meet up with the vendor to transfer title deeds and then lodge them at a title office.
However you are completely right that the requirements of all stakeholders need to be considered as well. Our working party has been talking to industry groups to determine what would be the essential elements of a national system and settle a process to take the project forward.
Thanks Mark, you may have seen today that the Prime Minister and I announced that COAG has agreed to the establishment of a national platform to settle all property transactions electronically and this will be discussed at tomorrow's meeting. A single national electronic conveyancing system is a significant step towards creating a seamless national economy in Australia.
Nicholas, Thanks for your suggestion. We will look at what New Zealand has done in this area.
"It (news reports) also reports that the inter-state argy-bargy on a uniform national electronic conveyancing system in which Victoria has featured prominently has been resolved. A good thing too: this boring subject was clogging the Legal Affairs pages for too long."
Steven Warne - Australian Professional Liability Blog.
http://lawyerslawyer.net/2008/07/05/from-the-newspapers/
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