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Pm Pivots To Positive As Real Estate Overtakes Mining

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PM pivots to positive as real estate overtakes mining

Malcolm Turnbull has elevated trust and economic competence as the key requirements in a changing economy just as real estate overtakes mining to become Australia's most profitable industry.

Real estate produced $8.6 billion of taxable profit in a quarter, ahead of the old mainstay of mining, which produced just $3.6 billion.

Speaking at a Canberra-based, hi-tech defence company, CEA Technologies, the Prime Minister returned to his favoured territory of agility and innovation, in a noticeable change of rhetoric after a week in which he had been widely criticised for being too negative about Labor's negative gearing plans.

"You see for us to succeed in the 21st century, we have to transition from an economy that has built around a mining-construction boom, to a new economy. That is an economy based on innovation, on technology, on opening markets," he said.

But he did not entirely leave Labor's policy alone, continuing to deride its implications for an economy still looking for all of the growth available.
The latest figures, from the Bureau of Statistics, came as Mr Turnbull called for the transition away from mining to "technologies of the future".

"We have seen the biggest mining boom in our history," he told Parliament later in the day. "The economy has been driven by a massive level of mining construction investment. That is tailing off.

"What is Labor's tax policy going to do? Undermine confidence, undermine the value of the largest asset class, the family home. "

The figures show rental, hiring and real estate service companies made $14 billion before tax in the second half of 2015 while mining companies made only $9.8 billion.

Real estate profits were twice those of the retail and construction industries and way in excess of those of the finance and insurance industries, which recorded a combined loss.

Two years earlier, mining profits were five times those of real estate.

Read more: http://www.smh.com.au/federal-politics/political-news/pm-pivots-to-positive-as-real-estate-overtakes-mining-20160229-gn6gio.html

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