<html><body>
Retail giant Woolworths has revealed its home improvement chain Masters continues to operate at a loss.
Woolworths reported yesterday financial losses this financial year at the big box retailer exceeded the year before.
<a href="https://www.smartcompany.com.au/growth/41756-masters-has-machismo-but-needs-aldi-smarts" target="_blank">Masters</a> recorded sales of more than $1.5 billion in the 2014 financial year but will not break even in 2016 as previously forecast.
Woolworths chief executive Grant O’Brien said in a statement he is “disappointed” but still “confident” Masters will make it into the black eventually.
“The rationale for entering this [home improvement] market remains strong,” he said.
“It is a $45 billion market with 5% annual growth and one significant retailer with approximately 17% market share. It is a fragmented market that is in the process of consolidation as demonstrated by the 42% Masters sales growth in financial year 2014.”
The “one significant retailer” which serves as Masters’ main competitor is of course <a href="https://www.smartcompany.com.au/legal/intellectual-property/30259-hardware-fight-gets-nasty--bunnings-registers-masters-business-name-in-new-zealand" target="_blank">Bunnings</a>.
Stephen Kulmar, founder of retail consultancy Retail Oasis, said when Bunnings entered the home improvement category and consolidated the market Woolworths clearly saw an opportunity.
“But Masters is so similar to Bunnings that it is hard to see how they differentiate or compete against them,” he says.
“They haven’t done a good enough job in targeting females, that casual DIY market is where they should have pitched the market.”
Kulmar says, if anything, Bunnings has enjoyed the challenge of having Masters in the market.
“I also don’t think you can discount the performance of Mitre 10, which has targeted trade and serious DIY,” he says.
“The two of them have made it very difficult for Masters to establish a position in the market.”
If it’s difficult for Masters to compete, Kulmar says it is even more difficult for independent retailers in the sector. 
“There has been natural consolidation in the market anyway,” he says.
“But it is tougher for independents today than it was 10 years ago.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany.</a>
YOU MAY ALSO LIKE TO READ: 
<a href="/expert-insights/investing/masters-could-learn-a-lot-from-aldi">Masters could learn a lot from Aldi</a>
</body></html>

cwaters-YrtBR88nBe

Woolworths reveals Masters failure: Financial losses continue to build

<html><body>
The SMSF Professionals’ Association of Australia has developed best practice guidelines for self-managed super fund limited recourse borrowing arrangements (LRBA).
This week SPAA announced NAB has agreed to adhere to the two separate guidelines.
NAB is the first lender to sign up to the guidelines for <a href="https://www.smartcompany.com.au/finance/superannuation/22072-20110922-borrowing-smsf-cash-for-property-repairs-the-do-s-and-don-ts" target="_blank">LRBA</a> with the SPAA saying sign up from the other major banks is in progress.
Andrea Slattery, chief executive of the SPAA, said in a statement the association has been “very conscious” of concerns expressed about LRBAs and in particular about a “tiny rogue minority” spruiking this borrowing facility.
“We believe that by publishing these guidelines, and with NAB signing on and other major lenders in the pipeline (the major banks are estimated to have more than 85% of this market), the government and regulators can have a high degree of confidence that LRBAs are being used appropriately and that the industry has best practice guidelines for lending and advice in place,” she says. 
The two guidelines are LRBA lenders’ best practice guidelines and LRBA advice best practice guidelines.
Slattery says adherence to the guidelines by the banking and financial advice industry will ensure LRBAs are being used appropriately by SMSF trustees, and encourages self-regulation in the SMSF lending sector by lenders and advisers.
Jeff Bresnahan, chairman of SuperRatings, told SmartCompany there is a need for restrictions like this in the SMSF sector. 
“If SMSFs are going to come under scrutiny and there is going to be failures, there is a high chance it will be in the property area. There will always be the temptation for unscrupulous behavior in that sector,” he says.   
“The property spruikers are back and are targeting SMSF members so these guidelines can offer protection.”
Bresnahan says he is not concerned that some SMSFs may miss out on loans under the guidelines. 
“If the guidelines are well thought out then there should be an appropriate level of gearing, if people miss out because they were going to do something highly leveraged then that is not a bad thing,” he says.
“That is a positive move to protect people.”
Bresnahan warns the industry, valued at half a trillion dollars, has its risks.
“SMSFs are great for a lot of Australians, but there are a lot of SMSFs out there that have been sold probably inappropriately to people who should not have them and they have to be protected from their own greed and lack of financial literacy,” he says.    
Bresnahan says in mainstream super funds investors are protected by the Australian Prudential Regulation Authority in the event of default but SMSFs don’t have that protection.
“The more restrictions that are put in place the better I believe,” he says.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

Banks to impose restrictions on SMSF borrowing

<html><body>
The last financial year surprised many with strong economic results. 
Despite concern around the Australian economy’s dependence on the mining industry, shares, bonds and property have all done well over the last 12 months. Interest rates remain at record lows and the economy continues to grow. 
As businesses are now <a href="https://www.smartcompany.com.au/legal/42593-a-guide-for-small-business-the-legal-changes-you-need-to-know-about-for-the-new-financial-year" target="_blank">planning for the new financial year</a>, we take a look back on the highs and lows of the past year and asks experts what to expect for the year ahead.
Sharemarket
Chief economist for the NAB, Alan Oster, told SmartCompany he expects the sharemarket to continue to perform well after finishing the year up about 12%.
“Basically the economy behaved as expected, maybe a touch stronger,” he says.
“It’s all about export versus domestic demand, which is still quite weak.”
He is tipping another “moderate” 10% increase in the sharemarket for the year ahead. 
Consumer confidence
Consumer confidence <a href="https://www.smartcompany.com.au/growth/economy/42155-consumer-confidence-hits-gfc-lows-450-jobs-to-go-at-qantas-midday-roundup" target="_blank">took a hit after the budget in May</a> but Warren Hogan, chief economist at ANZ, says it is “slowly coming back in recent weeks”.
“The overall economy has been pretty good given the challenges we face and a lot of uncertainty still hanging around after the financial crisis,” he says.
Looking to the next financial year, Hogan says there is still “a lot of uncertainty” about how much traction the non-mining recovery will get in Australia.
“We are still watching that closely, all the signs are that it should happen. If we get a broader lift in non-mining business investment and the job creation associated with that it could be a very strong year for Australia.”
Property
Australia’s strong economy has received a big boost from new home building, according to Harley Dale, chief economist of the Housing Industry Association.
“We saw a recovery in new residential construction over the course of the year and that generated demand in parts of the retail manufacturing and supply distribution sectors that you wouldn’t have seen in the economy without that new home building recovery,” he says.
But Dale warns new home building can’t on its own successfully transition the Australian economy away from mining related investment towards more domestic-focused activity.
“The year ahead is another strong one for new home building, we appear to be on track to build the second highest number of new homes on record and hopefully maintain historically high levels of new residential construction in 2015 as well,” Dale says.    
Interest rates
The Reserve Bank of Australia has <a href="/expert-insights/finance/rba-keeps-interest-rates-on-hold-for-july">held firm on interest rates again today</a> and experts predict this approach will continue over the next 12 months.
“We believe interest rates will remain on hold until the middle of 2015 with a slight chance of a further interest rate reduction this core cycle,” Dale says.
Similarly, Hogan says “interest rates are unlikely to do anything”.
“The consensus is for a modest increase next year, but I wouldn’t be surprised if we see interest rates in the same place,” he says.
Dollar
The fate of the Aussie dollar is “one of the uncertainties” hanging over Australia’s economy for the next financial year, according to Hogan.  
“At the moment it is a little bit high compared to the underlying fundamentals,” he says.
Hogan says he would like to see the Aussie dollar come down over the next six to 12 months to the mid 80c mark, which would help the economy.
“One of the risk factors for the year ahead is that the dollar will go up because the rest of the world is in such poor shape that capital finds its way to Australia and pushes the dollar up,”
However, Oster predicts currency will only drift down to “90c maybe a bit below”. 
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

The end of financial year: Experts tip strong year ahead

<html><body>
Newly formed company Australian Gaming &amp; Entertainment has collapsed after launching a bid last month to publicly list and buy a $95 million portfolio of Sydney pubs.
AG&amp;E was placed in administration on Monday with Cliff Rocke, John Bumbak and David Winterbottom of KordaMentha appointed as administrators.
It’s a speedy fall from grace for the pub group, which had optioned five pubs from the private Lewis group for $95 million in a bid to become an aggregator in NSW’s fragmented pub industry.
AG&amp;E, which was to be chaired by industry veteran Bill Brown, was planning on an initial public offering.
But Rocke told SmartCompany this morning the IPO didn’t ever get off the ground as the funds could not be raised.
“[AG&amp;E] were going to have a float and get confirmation from the joint lead managers from the float and the proceeds from the float were going to be used to acquire the hotels,” he says.
But despite indications AG&amp;E’s bookbuild was proceeding as planned, “cornerstone” institutional investors did not submit bids as expected and so the group could not exercise its option to purchase.
AG&amp;E described this to Rocke as “devastating news” with “no time to make alternate arrangements”. 
Rocke is still determining who the major creditors are and says at this stage there were no employees.
“The directors have some exposure whether they put in equity or unsecured amounts,” he says.    
The pubs at the centre of AG&amp;E’s plans were the Beverly Hills Hotel, The Canley Hotel, the Croydon Park Hotel in Ashfield, Wentworthville Hotel near Parramatta, along with either the Kogarah Tavern or the Lapstone Hotel.
<a href="https://www.theaustralian.com.au/business/property/new-pub-group-australian-gaming-entertainment-looking-at-listing/story-fnko7zi0-1226887041722">The Australian</a> reported last month investment banks CIMB and Wilson HTM had been drafted in to assist AG&amp;E in raising ­equity, with a roadshow for the Sydney-based company scheduled to kick off after Easter.
The administration follows the collapse last year of pub group <a href="https://www.smartcompany.com.au/growth/economy/31345-receivers-appointed-to-sydney-pub-group-turning-over--23-million-a-year">J&amp;J O'Brien</a> and of pub group <a href="https://www.smartcompany.com.au/growth/economy/22408-20111010-pub-group-in-receivership--blames-onerous-leases-for-collapse">National Leisure &amp; Gaming </a>, which operated 35 pubs in New South Wales and Queensland.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

Pub group collapses after failed attempt at IPO and $95 million hotel buy-up

<html><body>
Coal baron Nathan Tinkler has finally agreed to sell his beloved horse racing stud Patinack Farm.
Tinkler announced a deal yesterday to sell the thoroughbred racing and breeding operation to a consortium of local and overseas parties from the Middle East.
Tinkler has been clinging onto control of Patinack Farm since 2012 when it was <a href="https://www.smartcompany.com.au/finance/wealth-management/29211-nathan-tinkler-s-horse-racing-empire-goes-into-liquidation">placed in liquidation</a>.
The sale shows how far Tinkler has fallen after once topping BRW’s Young Rich List with an estimated net wealth of $1.1 billion by the age of 35.
Throughout all his troubles he has fought to retain his horse racing empire.
The consortium which has bought Patinack Farm is unnamed but the deal was negotiated by UAE-based investment firm Cibola Capital.
The sale will be on a “walk in, walk out” basis for an undisclosed sum.
It is unclear how much Tinkler will get back of the estimated $200 million to $300 million he has ploughed into buying the training facilities, stud farms and hundreds of high-quality racehorses which make up Patinack Farm. 
Sale contracts have been exchanged and the transaction will be completed in the coming weeks.
Tinkler said he was “extremely pleased” with the sale and described the consortium as “an ambitious group” who will “continue to build” on Patinack Farm’s foundations.
“I am also satisfied that the investment I have made into the Patinack Farm facilities and bloodlines will continue and that Patinack staff will be offered employment,” Tinkler said in a statement.
Tinkler said he sold up as he now resides overseas and his focus is on the Tinkler Group’s “core operations” in resources and mining.
“The sale will allow further capital to be used in the development of our existing operations” Tinkler said.
He needs the cash after <a href="https://www.smartcompany.com.au/growth/41939-tinkler-back-in-the-game-after-queensland-coal-mine-purchase?utm_source=SmartCompany&amp;utm_campaign=ada43c65e9-Wednesday_14_May_201414_05_2014&amp;utm_medium=email&amp;utm_term=0_234118efee-ada43c65e9-93974049">re-entering the coal market last week</a> with a $150 million purchase of Peabody Energy’s Wilkie Creek mine in Queensland.
Daniel Kenny, chief executive officer of Cibola Capital, said in a statement the consortium was excited about growing the business by investing in breeding and racing across Australia and internationally.
“We are planning to expand the current operation offering a mixture of proven and new stallions for every breeder in Australia,” Kenny said.
“In a short space of time, Nathan has created and built Patinack Farm into one of the leading equine operations, with exceptional facilities and the ability to produce Group 1 winners.”
Patinack Farm is made up of three major properties including a 3300 acre breeding facility at Sandy Hollow in the NSW Hunter Valley, a 1000 acre training facility and stud at Canungra on the Gold Coast and 950 acres of undeveloped horse country at Monegeetta, Victoria close to the racecourses of Melbourne.
It currently has bloodstock of close to 600 horses.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

Tinkler finally forced to sell his horse racing empire

<html><body>
Ratings agency Standard &amp; Poor’s has warned Australia’s AAA credit rating is at risk unless substantial cuts are made to the budget.
Lead sovereign analyst for S&amp;P, Craig Michaels, told the <a href="https://www.afr.com/p/national/australia_aaa_credit_rating_at_risk_5qqhkQyjknWnUmQ6RXwPLK">Australian Financial Review</a> the agency was looking to see the government improve budget performance over the next few years.
If it looked as though “sizeable budget deficits were considered acceptable at the political and the community level then we might reassess, certainly, government commitment and also potentially the trajectory for public sector debt”, Michaels told the newspaper.
Despite this warning, a spokesperson for S&amp;P said the ratings agency currently has a stable outlook on Australia’s AAA rating. 
“Which effectively means there's less than a one in three chance of a rating change in the next two years,” the spokesperson says.
We asked three economists, Shane Oliver from AMP Capital, Warren Hogan from ANZ and Alan Oster from the NAB, whether Australia’s credit rating is really at risk.
Also asked was <a href="https://www.smartcompany.com.au/finance/32623-standard-poors-faces-us-court-over-credit-ratings">whether credit ratings even matter</a> in light of a string of recent court cases against the ratings agency in which S&amp;P’s lawyers argued claims to its ratings being “independent”, “objective” and “free of conflicts of interests” are just marketing “puffery” anyway that “reasonable investors” shouldn’t rely on.
Is Australia’s AAA credit rating really at risk?
Oliver: “It’s not particularly surprising [S&amp;P] would say this. It’s always an issue for Australia as we have relatively strong fundamentals but that doesn’t mean we are not vulnerable.”
Oliver says S&amp;P’s warning “partly supports the government’s line of reasoning that we have to keep the budget under control” but the question is how this is done.
Oster: “Really what [S&amp;P] are saying is there is less than a one in three chance they will change [the rating] if the budget doesn’t get through.”
“Those comments are looking a little bit political,” he says.
Hogan: “The important point is the Australian government can lose its AAA rating more quickly than other governments and the reason for that is we have a lot of leverage in our economy outside of government as we have very high household debt and very high foreign debt.”
Hogan says because of this even though Australia’s debt is only projected to go to 15%, if it did reach 30%, Australia would be under some pressure even though countries like Germany have debt levels of 100%. 
“I think what S&amp;P is getting at is it would become worried if the government puts forward a budget repair program that is blocked, it would see that as a material impediment to improving Australia’s financial system,” he says.   
Does it matter if Australia loses it’s AAA rating?
Oliver: “Cynics might argue they often just reflect current conditions anyway, but by the same token they are reflecting valid concerns which are out there.
“One might question the role the ratings agencies played in facilitating the bubble in and around the US sub prime mortgages.”
“But I would say we would ignore it at our peril, all S&amp;P is really saying is common sense.”
Oliver warns Australia could be at risk of going down the path of European countries where debt levels spiral out of control.
“We shouldn’t care so much about the rating, it is more about the consequences that flow from escalating debt levels,” he says.
“It would be wrong of Australians to just shoot the messenger and say ‘It’s just S&amp;P what do they know, they got sued by the US government’.”
Oster: “It matters in terms of psychology.”
“This is not one of the ratings agencies finest hours. They have a track record of making sensational comments.  If Australia’s net debt is a problem then there aren’t any AAA countries in the world.” 
Hogan: “Right now a downgrade would be unlikely to have a material impact on the cost of finance for the government and that is really the main channel credit ratings impact.
“Right now it isn’t a problem, but that doesn’t mean it won’t become one as Australia is a very small economy and highly integrated into the world economy. 
“To not have a AAA rating could make Australia a riskier proposition should the international situation change.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

Australia’s AAA credit rating at risk: Does it really matter?

<html><body>
In his first budget Treasurer Joe Hockey has taken the axe to a range of measures designed to assist SMEs while sticking to the government’s promise to lower the company tax rate.
The government will abolish key business programs including Commercialisation Australia, Enterprise Solutions and the Innovation Investment Fund and will redirect the savings into other budget areas and the establishment of an Entrepreneurs Investment Program. 
“We know that for some in the community this budget will not be easy,” Hockey said in his budget speech.   
“I say to the business community we need you to help out.  Rather than corporate welfare, the government’s focus will be on strengthening the overall business environment, so that enterprise, large and small, can create more jobs in Australia.”
Hockey claims despite the cuts the government will improve business opportunities by sticking to its promise to lower the company tax rate to 28.5%.   
He says the 1.5% cut will help 800,000 businesses although the budget does not contain any provision for the company tax cut.  
The key budget measures that will impact SMEs are:
<ul>
<li>Cutting the company tax rate to 28.5%;</li>
<li>Scrapping schemes to support apprentices and instead providing a loan program;</li>
<li>Scrapping Commercialisation Australia, Enterprise Solutions and other assistance schemes and replacing them with the Entrepreneurs Investment Program; </li>
<li>Extending unfair contract provisions to small business;</li>
<li>Abolishing the Small Business Commissioner to be replaced by a Small Business Ombudsman with more far ranging powers;</li>
<li>Wage subsidy program of up to $10,000 for businesses which employ older workers;</li>
</ul>
The budget also:
<ul>
<li>Links increases in pensions to inflation;</li>
<li>Reduces the income threshold for Family Tax Benefit Part B to $100,000;</li>
<li>Freezes pay for one year for politicians, judges and senior public servants;</li>
<li>Allows direct financial assistance for students studying diploma and sub bachelor degree courses;</li>
<li>Switches unemployed people under the age of 25 from Newstart to Youth Allowance; </li>
<li>Provides for a $20 billion Medical Research Future Fund;</li>
</ul>
The budget confirmed measures previously reported including:
<ul>
<li>A debt levy for high income earners;</li>
<li>A Paid Parental Leave scheme with a cap of $100,000;</li>
<li>A higher level of fuel excise tax;</li>
<li>Increase in the pension age to 70 by 2035;</li>
<li>The abolition of 70 government agencies;</li>
</ul>
“Doing nothing is not an option. The days of borrow and spend have come to an end,” Hockey said in his speech.
But the Opposition branded the budget a “broken promises budget” before it was even released.
"This is a budget of broken promises and twisted priorities," Opposition Leader Bill Shorten said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

Hockey warns it’s not easy as he slashes business assistance but cuts company tax: Budget 2014

<html><body>
The Australian Securities and Investments Commission has banned celebrity chef Justin North and his wife Georgina North from managing corporations following their involvement in the failure of three companies.
ASIC announced today the Norths have been banned for two years and 18 months respectively, effective from 4 April, 2014.
The ASIC ban follows the <a href="https://www.smartcompany.com.au/growth/economy/26274-the-heat-is-on-in-the-kitchen---acclaimed-sydney-restaurant-group-with-150-staff-collapses" target="_blank">appointment of liquidators to award-winning Sydney restaurant Becasse</a> in June 2012 and to Etch Restaurant and North Food Catering in July 2012. 
The businesses employed 150 staff at their peak but administrators Jim Sarantinos and John Melluish of Ferrier Hodgson found the Norths’ "rapid growth" led to a "number of underlying business issues".
The regulator found the Norths failed to exercise their powers and discharge their director's duties with the requisite degree of care and diligence.
ASIC found this failure resulted in “large deficiencies” owed to creditors totalling a combined sum of over $7 million for the three companies.
ASIC Commissioner Greg Tanzer said in a statement: “ASIC's power to disqualify directors of failed companies is an important preventative measure used by ASIC to safeguard the public interest.”
North was born in New Zealand and trained in New Zealand, Australia, France and the UK before returning to Australia in 1999.
He worked under chef Liam Tomlin at Sydney's Banc Restaurant and moved through the ranks of the kitchen to the role of head chef before venturing out with his wife, who was the sommelier at Banc, to open Becasse.
North has also released two cookbooks and is well known from his appearances on MasterChef.
<a href="https://www.smartcompany.com.au/growth/economy/26274-the-heat-is-on-in-the-kitchen---acclaimed-sydney-restaurant-group-with-150-staff-collapses" target="_blank">When Becasse initially went into administration</a> North posted on Twitter from his account @JustinBecasse: "Thank you everyone for your support, to confirm Georgia &amp; I have put Becasse Group into voluntary administration with a view to restructure.
"In the meantime it is business as usual. We will post more updates soon.
"The support and messages have been overwhelming, sorry we haven't been able to respond to all, come by and eat with us soon."
The restaurant closed shortly afterwards and North’s Twitter account is no longer active.
Persons banned by ASIC have a right to appeal their banning to the Administrative Appeals Tribunal, and may lodge their appeal within 28 days.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
</body></html>

ASIC bans celebrity chef Justin North after $7 million restaurant collapse

<html><body>
Reserve Bank of Australia board member John Edwards has claimed the biggest surge in export volumes on record may be holding up the dollar despite falling commodity prices.
Edwards says Australia was in the grip of a <a href="https://www.smartcompany.com.au/growth/export/36030-smes-confident-exporting-will-improve-but-hurdles-still-high" target="_blank">“bountiful” mining and energy export-driven revenue surge</a> according to <a href="https://www.afr.com/p/national/rba_member_exports_holding_up_OB9luyKSYe7sj1LwCqzf7H" target="_blank">The Australian Financial Review</a>.
He indicated this was helping underpin the Australian dollar because exports were supporting the economy and ultimately federal government taxes.
“I personally would have certainly preferred to see it weaken and it hasn't and that does suggest global markets have more rapidly adjusted to the Fed's plans to normalise than expected,” Edwards told the paper.
We asked the experts whether there was a surge in exports and what the impact was on the dollar and on SMEs.
Is there a surge in exports?
The <a href="https://www.efic.gov.au/country/ExportMonitor/Pages/ExportMonitor.aspx" target="_blank">latest figures</a> from the Export Finance and Insurance Corporation record a trade surplus for Australia of $1.4 billion in January, its highest level in nearly two-and-a-half years.
“Export values have surged, driven by increases in rural and resource export volumes,” Cassandra Winzenried, senior economist at EFIC said in a statement.
“This is despite steep declines in commodity prices to multi-year lows over the past month that have been driven by slowing growth and signs of financial stress in China”.
EFIC predicts the trade balance is likely to continue in surplus as the Australian resource boom moves from the investment to the export phase.
This is fuelling speculation that not just a trade, but a current account, surplus may emerge – for the first time since 1975.
Is the growth confined to the resources sector?
The growth in exports is mainly driven by the mining and resources sectors according to Peter Mace, general manager of the Export Council of Australia. 
“I don't think it is coming through outside the resource sector,” he told SmartCompany.
“There's good opportunities, meat had a good run last year but that was on the back of a lot of farmers reducing their stock.”
Mace says there is potential for export growth in the IT sector and the health and aged care sectors.
“There is a lot of potential with the free trade agreements with Japan and Korea being signed up,” he says.
“Growth will be huge if China signs up [to a free trade agreement]. New Zealand's exports rose by up to 50% after its agreement with China was signed.” 
What's the impact on currency and SMEs?
While exports have gone up over the last couple of years the Australian dollar has fallen from around $1.07 USD to around the 80c mark, according to export business consultant Cynthia Dearin. 
“Rising export volumes are not traditionally correlated to a higher dollar,” she says.
“Export volumes have gone up significantly and it has happened as the mining and resource sector has dropped off.”
Dearin says whenever the dollar falls the opportunities to export improve for small and medium size businesses.
“I don't think it is going badly for the SME sector but I think it could be going better,” Dearin says.
She says regardless of the currency situation SMEs find it a challenge to start exporting as many are not sure how to go through the process.
“If you look at countries like the UK, Germany and Singapore they all do significantly more to support their exporters than we do,” Dearin says.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany.</a>
</body></html>

RBA member claims “bountiful” export surge: Is it true?

<html><body>
The number of businesses in Australia slumped to just under 2.1 million as at June 2013, a fall of 2.9% according to data released today by the Australian Bureau of Statistics.
The ABS figures (<a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/8165.0">available in full here</a>) show fewer new businesses are starting up in Australia, but the number of businesses <a href="https://www.smartcompany.com.au/technology/information-technology/31806-number-of-businesses-in-australia-continues-to-stagnate-abs">shutting up shop has also decreased slightly</a>.
The entry rate of businesses was 11.2%, down from 13.5% in 2011/12 while the exit rate was 14.1% per cent, up from 13.1% in 2010/11.
<img src="https://www.smartcompany.com.au/images/stories/new/business-chart-1-296.jpg" alt="">
The figures show construction is the biggest industry, making up 15.8% of businesses with 328,485 businesses, followed by professional, scientific and technical services at 11.6%, and rental, hiring and real estate services at 10.6%.
Electricity, gas, water and waste services had the smallest number making up only 0.27% of businesses with 5606 businesses recorded. 
Craig James, chief economist at CommSec, says it is clear from the data how tough the last year has been for Aussie businesses.
“Clearly if Aussies are more confident and business conditions are good, then you would expect to see fewer businesses folding and more businesses starting up,” he said in a statement.
James points to the fall in business numbers and the rise in unemployment. 
“As you would expect, the relationship between the number of businesses and employment is quite precise with a lag of around six months from the decline in business numbers to the decline in jobs.”
James says the good news is that monthly business numbers from the Australian Securities and Investments Commission have lifted since September and there is tentative evidence that employment is starting to lift again.
<img src="https://www.smartcompany.com.au/images/stories/news/business-chart-2-600.jpg" width="600" height="346">
The ABS statistics show the most common business in Australia is a small company, employing few staff with a turnover of less than $200,000 a year.
“No wonder the job market is holding up despite high profile job losses at big companies – most businesses employ few staff and they have been holding onto staff or making modest additions to employee numbers over the past year,” James said.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

Number of businesses in Australia slumps: ABS

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Joel Robinson

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

A proposal to redevelop one of North Sydney's ageing commercial buildings has taken another step forward, with plans for a 38-storey mixed-use tower adding momentum to the long-awaited transformation of the Alfred Street precinct.

Now on public exhibition through the NSW Government's Housing Delivery Authority-led State Significant Development pathway, the proposal for 271-273 Alfred Street would replace an underutilised commercial building with 95 apartments, ground-floor retail, commercial space and affordable housing. The proposal was submitted by&nbsp;Tara Shore Pty Ltd, acting for the John Taylor Family Trust.

While the project will deliver much-needed housing on the southern edge of the North Sydney CBD, it also represents another piece of a broader precinct that has spent years in planning limbo.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="7e1ce1b4-38df-48ab-992f-386814d86308" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20podium.png?VersionId=sC_h6w.A9VEoB98qsqowPlIoz__sBZBt" />

Despite its proximity to both North Sydney Station and the Victoria Cross Metro, redevelopment of Alfred Street has progressed slowly over the past decade as broader planning controls, zoning and building heights remained unresolved. The introduction of the Housing Delivery Authority pathway has provided a new avenue for projects to progress, allowing rezoning and development assessment to occur concurrently and unlocking sites that have long been earmarked for renewal.

Designed by Office of Cortese &amp; Gilder, the proposal seeks to do more than replace an ageing office building. The architects have positioned the project as the first stage of a wider public domain vision that would improve pedestrian connectivity and create a more cohesive mixed-use precinct as neighbouring sites are redeveloped over time.

The proposal includes a widened Alfred Street setback, new street trees, landscaping and outdoor seating, along with a landscaped through-site pedestrian link connecting Alfred Street with Little Alfred Street. The connection is intended to become the first section of a future east-west pedestrian network extending across the precinct.

<img alt="First look: New public domain vision underpins 95-apartment North Sydney tower on Alfred Street" data-entity-type="file" data-entity-uuid="8ea39ac3-46ad-4562-b4a0-b862e91c2dda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Alfred%20St%20da%20site.png?VersionId=K7umCd21KpetEFuVfsPlnJKhUOsmTTdV" />

The mixed-use tower would comprise retail space at ground level, commercial uses on level two and apartments from level three upwards.

In total, the development would deliver 95 apartments, including nine one-bedroom, 28 two-bedroom, 56 three-bedroom and two four-bedroom residences. Twenty-one apartments, representing 15 per cent of the residential gross floor area, would be secured as affordable housing and managed by a registered community housing provider for at least 15 years.

Nine basement levels would provide 133 resident car spaces, seven motorcycle spaces and 111 bicycle spaces.

According to the Architecture and Urban Design Report, the public domain strategy is designed to transform what is currently an inward-facing commercial edge into a more active and connected pedestrian environment, creating a stronger relationship between the commercial core and surrounding residential neighbourhoods.

Office of Cortese &amp; Gilder has also prepared a broader public domain framework spanning neighbouring properties between 263 and 283 Alfred Street, arguing that a coordinated approach to redevelopment will deliver better public spaces, improved tower separation and a more connected streetscape as the precinct evolves.

The proposal comes at a time where North Sydney is slated for future residential growth. Commercial developer FiveX has residential plans for the neighbouring site at 275 Alfred Street. They've proposed a 39-storey mixed-use tower with 184 apartments, while Freecity was recently approved for nearly 300 apartments across a 51-storey building on Walker Street.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-freecity-gets-green-light-for-mixed-use-apartment-and-hotel-tower-in-north-sydney">First look: Freecity gets green light for mixed-use apartment and hotel tower in North Sydney</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-plans-39-storey-residential-tower-in-booming-north-sydney">First look: Fivex plans 39-storey residential tower in booming North Sydney</a>

&nbsp;

Alfred Street the latest North Sydney pocket to be transformed by residential development

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

&nbsp;

[smartcode_project_cta:default project_id=145590]

Cara Waters

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News