Do property trusts pay their fair share of tax?

[totallyproperty]

Over the last few years we have seen the emergence of an array of different property funds many of which are focused around real estate investment trusts (REITs) which have a very attractive tax structure. The structure effectively means that the majority of tax due is paid by unit holders on income received. However, a report in Australia this week suggests that around $1.5 billion in tax is lost by the Australian authorities due to the manner in which these particular trusts are structured.

Is this short-term thinking, ignoring the benefits that real estate investment brings to business and the private sector, or is this a fair point?