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The government “paused” plans to immediately implement controversial changes to the Future of Financial Advice reforms yesterday following <a href="https://www.smartcompany.com.au/legal/politics/41219-fast-lane-why-we-need-to-make-a-fuss-about-fofa" target="_blank">fierce opposition</a>.
Finance Minister Mathias Cormann was handed back responsibility for the government’s planned changes to FoFA after assistant treasurer, <a href="https://www.smartcompany.com.au/growth/economy/41175-assistant-treasurer-steps-down-amid-icac-probe-accc-releases-product-safety-guide-for-online-businesses-midday-roundup" target="_blank">Arthur Sinodinos, stood aside</a>.
Cormann said in a statement the government “remains committed” to implementing its proposed changes to FoFA “as soon as possible”.
But while the legislation was before the Senate Economics Committee, Cormann said he decided to “pause” implementation of the regulations “to enable the government to consult in good faith with all relevant stakeholders”.
Cormann said the government is committed to restoring the balance between appropriate levels of consumer protection and access to affordable high-quality financial advice.
“The government is committed to the retention of the best interest duty and that we do not intend to reintroduce conflicted remuneration or sales commissions for financial advisers,” he said.
The FoFA reforms originally set out to ban commissions for financial advice, require financial advisers to ask clients whether they wish to continue receiving their service every two years and require financial advisers to act in the best interests of their clients.
But led by Sinodinos, <a href="https://www.smartcompany.com.au/legal/35388-burdensome-financial-advice-reforms-watered-down" target="_blank">the Abbott government moved to water down the “burdensome” reforms</a> and announced many of the changes would be made by regulation not legislation, meaning there would be no scrutiny by a parliamentary committee.
Cormann appears to have blinked in the face of increasing opposition to the watered down reforms from the Financial Planning Association, National Seniors, Council on the Ageing, Choice and Industry Super Australia.
John Hewison, managing director of Hewison Private Wealth, told SmartCompany he applauded the government’s decision to pause the changes. 
“I think the direction the government was heading in watering down the submissions was completely wrong,” he says.
“I’m hoping the government abandons the exclusion of general advice from products on commission and it retains the best interest duty.”
He says the system as it stands is broken and advice needs to be separated from product. 
“Frankly the Australian consumer deserves to be able to obtain un-conflicted opinions and advice from a professional adviser when they are talking about something as important as their life savings,” he says.  
Legislation to impose the changes was introduced into the House of Representatives as part of the <a href="https://www.smartcompany.com.au/legal/politics/41168-business-reacts-to-the-red-tape-repeal-what-s-missing" target="_blank">government’s repeal day</a>.
But now the reforms have been referred to the Senate economics committee, which will report on 16 June.
Even if the laws do not pass the upper house, waiting for that report still leaves the government two sitting weeks to table regulations to force through its changes before Labor’s existing FoFA laws come into effect on July 1.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Government puts Future of Financial Advice reforms on ice

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The fight is on over the Abbott government’s push to unwind Labor’s Future of Financial Advice reforms.
<a href="https://www.smartcompany.com.au/finance/30625-government-tweaks-fofa-reforms-on--conflicted-remuneration" target="_blank">The FoFA reforms</a> initially set out to ban commissions for financial advice, require financial advisers to ask clients whether they wish to continue receiving their service every two years and require financial advisers to act in the best interests of their clients.
But led by former assistant treasurer Arthur Sinodinos, the Abbott government moved to <a href="https://www.smartcompany.com.au/legal/35388-burdensome-financial-advice-reforms-watered-down" target="_blank">water down the “burdensome” reforms</a> and announced many of the changes will be made by regulation not legislation, meaning there will be no scrutiny by a parliamentary committee.
The key amendments under FoFA now include removing the opt-in requirement, streamlining the annual fee disclosure requirements, amending the best interests duty to allow for scaled advice, exempting general advice from conflicted remuneration and amending grandfathering to allow for adviser movements.
It’s now open slather with the sudden resignation of Sinodinos and the fight is on as to whether companies should be free to motivate employees offering consumers general product information with commissions and bonuses to maximise sales. 
Finance Minister, Mathias Cormann, is now back in the driver’s seat and he has made it clear he believes an effective ban on incentivising employees to provide basic general advice is “just ridiculous”.
The political wrangling means that FoFA’s guiding principle of bringing clarity to financial service clients appears to have been lost.
The financial services industry has been preparing for the FoFA reforms for a long time and the constant changes are just adding to the uncertainty.
For the more forward thinking members of the industry it should be abundantly clear that commissions and financial advice ‘fees’ of which clients are unaware of need to come to an end.
Requiring financial advisers to act in the best interests of their clients should be standard, not controversial.
Cara Waters is editor of <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Why we need to make a fuss about FoFA

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A Victorian construction contractor which has been in business since 2002 has been placed in voluntary administration.
Remedial Concrete Works provided specialist design and support contract services to construction projects around Australia.
But <a href="https://www.smartcompany.com.au/growth/economy/34976-the-20-most-notable-collapses-of-2013">the business has ceased trading</a> and Laurie Fitzgerald and Stephen Dixon of Grant Thornton were appointed as administrators on Monday.
Fitzgerald told SmartCompany Remedial Concrete Works had a turnover of $17 million a year and at its peak it was employing about 70 people. 
Most of these staff were let go before the administrators were appointed.
“[Remedial Concrete Works] got into some contractual problems on some major projects in the last nine months which caused it to sustain some heavy losses,” Fitzgerald says.
“Because it’s a contracting company, it works with skinny margins.”
Creditors are owed around $4.5 million with the Australian Tax Office a key creditor.
“We are looking to recover what we can in the way of assets in the company,” Fitzgerald says.
“It has a significant number of projects with outstanding guarantees on so we are trying to get those guarantees returned and determine who the creditors are.”
Fitzgerald says while it is “early days still”, the administrators are confident most employees have got their pay and are now just working out the details owed for superannuation. 
A first meeting of creditors will be held on March 27 in Melbourne.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Construction company with $17 million turnover collapses

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The former chief executive of West Australian hotel chain Compass Hotel Group has had his original sentence quashed by the NSW Court of Criminal Appeal and has received a tougher sentence of three years and six months’ imprisonment.
Bryan Northcote pleaded guilty to breaching directors’ duties and submitting false and misleading documents to the Australian Securities and Investments Commission after the <a href="https://www.smartcompany.com.au/growth/economy/19201-20110323-another-hotel-group-collapses-with--100-million-in-debt" target="_blank">Compass Hotel Group collapsed in 2011</a> with debts of $100 million.
The chain consisted of 12 hotels and taverns including the Carine Glades Tavern, the Belmont Hotel and the Albion Hotel.
Following an ASIC investigation, Northcote pleaded guilty to dishonestly withholding information from the Compass Hotels Group board and using his position to gain a financial advantage after he <a href="https://www.smartcompany.com.au/legal/28240-former-boss-of-collapsed-pub-group-charged-over-alleged-hotel-sale-kickbacks" target="_blank">siphoned more than $1.5 million in hotel broker commissions</a> into his own private company.
Northcote was initially sentenced by the Sydney District Court to two years’ imprisonment on the charge of breaching directors’ duties and one year for each of the two counts of submitting false and misleading documents to ASIC, with the sentence to be served by way of Intensive Correction Order.
The Commonwealth Director of Public Prosecutions, in consultation with ASIC, appealed the sentence on the basis that it was manifestly inadequate.
The NSW Court of Criminal Appeal agreed and quashed the sentences imposed by the District Court.
Northcote was re-sentenced to a term of imprisonment for a period of three years and six months for breaching his directors’ duties and one year imprisonment for each of the lodging false and misleading documents offences.
Northcote is now due to be released on September 26, 2015, upon entering a recognisance that he be of good behaviour for the balance of the term of his sentence.
The court said the original sentence was manifestly inadequate “because it did not reflect the seriousness of the offence, the extent to which the respondent personally was financially advantaged by the offence, the need for general deterrence and to the need to impose a sentence which both punished Mr Northcote and denounced his criminal conduct.”
ASIC Commissioner John Price said the regulator is committed to ensuring company directors act appropriately as this is integral to ensuring fair and efficient markets.
“Directors who step over the line by abusing their position for their own dishonest purposes need to know that they are risking jail time for their actions,” he said in a statement.
Ian Ramsay, professor of commercial law at the University of Melbourne, toldSmartCompany ASIC is likely to be happier with the tougher sentence.
“What’s clear is that the sentence of imprisonment has gone up significantly from a total of two years to three-and-a-half years, what is unclear is how it is to be served,” he says.
“The original sentence was an Intensive Correction Order, which is essentially serving it in the community, there’s a vast difference between an ICO and serving your time in jail.”
Ramsay says if the revised sentence is to be served in prison “then this is a very substantial repudiation of the original sentencing decision”.
He says it indicates a willingness on the part of ASIC, when it does believe sentences are significantly adequate, to work with the DPP to seek an appeal.
“The conduct here was obviously very significant, this was a very blatant conflict of interest, where Northcote personally profited by taking funds that otherwise belonged to the company of which he was CEO.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Court slaps former CEO of collapsed Compass Hotel Group with three-year jail sentence

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A free trade agreement between Australia and China appears to be a step closer, after Chinese Premier Li Keqiang said his government would seek to “accelerate” an agreement with the Australian government.
Li made the comments during a speech to the Chinese parliament this week, in which he said the Chinese economy will grow at around 7.5% this year, according to reports in <a href="https://www.afr.com/p/world/li_warns_of_china_pc_growth_pains_w8xcQEDh7FTYwSsyDb7aPO" target="_blank">Fairfax</a>.
He also said China will look to speed up free trade agreements with South Korea and the Gulf states.
However, Li give no timeframe for the signing of an agreement, which would allow imports and exports to enter each country without paying duties.
An Australia-China free trade agreement has been in the works for more than nine years and Prime Minister Tony Abbott has previously said he is aiming to secure a free trade agreement with China and Japan <a href="https://www.smartcompany.com.au/growth/export/35043-crossbencher-s-bill-could-scuttle-china-free-trade-agreement" target="_blank">by the end of 2014</a>.
Peter Mace from the Australian Institute of Export told SmartCompany Li’s comments are a “positive sign” ahead of Abbott’s scheduled visit the China in April.
But he says “there is still some water to go under the bridge” before the parties can reach an agreement and it is unlikely that an agreement will be secured anytime soon.
Nevertheless, Mace is “hopeful” a deal can be nutted out by the end of the year.
Mace warns there are “still some sticking points” that will be need to be addressed for an Australia-China free trade agreement to proceed, including improved access to investment in Australian firms for Chinese companies and access to the Chinese agricultural market for Australian exporters.
He says based on the New Zealand experience, where agricultural exports to China rose “exponentially” after the country signed a free trade agreement with China, an Australian agreement presents significant opportunities for Australian companies.
University of New South Wales economics professor Tim Harcourt <a href="https://www.smartcompany.com.au/growth/export/32734-free-trade-agreement-back-on-the-table-with-china---good-news-for-smes" target="_parent">previously told SmartCompany</a> a free trade deal would make trading with China easier for Australian SMEs.
“Small and medium-sized enterprises are now more likely to go to China and south-east Asia than anywhere else in the North Atlantic,” said Harcourt.
“Opportunities exist particularly in regards to the urbanisation in China, which is opening up opportunities for architects and construction and services firms.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.     
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China seeks to “accelerate” free trade agreement with Australia

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Technology company AWA Limited is up for sale after collapsing into administration last week.
AWA Limited services the technology needs of businesses and its website claims “where there is technology infrastructure that needs to be installed and maintained AWA will be there making it all work.”
The tech company started operations in 1909 as a radio manufacturer and radio broadcaster, but in recent years has focused on providing technology services to major businesses and government organisations.
It began as Australasian Wireless Limited, a Telefunken wireless agent, and since then has grown to employ 240 staff with a network of regional agents in over 700 locations around Australia.
It fields 15,000 service calls a month and 40,000 inventory transactions with a blue chip customer base which includes Flight Centre, Dimension Data, HP and NEC.
The business has been placed for sale by Andrew Spring and Roderick Sutherland of Jirsch Sutherland who were <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/34976-the-20-most-notable-collapses-of-2013">appointed as receivers</a> on February 28, 2014.
“We are continuing to seek expressions of interest in respect to the sale of the business/assets of the company,” Spring and Sutherland said in a sale advertisement placed today.
AWA Limited was placed in administration last week with Philip Carter, Daniel Walley and Alan Walker of PPB Advisory appointed as administrators.
Carter told <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-02-26/awa-appoints-administrators-after-105-years/5285602?section=business">ABC radio</a> that AWA's board had "run out of time" and "run out of options".
"The company was either about to become insolvent or already insolvent, so in this case they have acted at a time when it looked like they were shortly to become insolvent."
Expressions of interest in buying the business are open until March 10, 2014.
Jirsch Sutherland and PPB Advisory were contacted for comment but failed to respond prior to publication.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
                             
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Tech company with 240 staff collapses after 105 years

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Malz Motoring &amp; Leisure Zone is up for sale after the car parts retailer <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/34976-the-20-most-notable-collapses-of-2013">collapsed</a> earlier this month.
Malz’s directors appointed Kim Strickland from WA Insolvency Solutions as administrators and then KPMG partners, Hayden White and Damian Templeton, were appointed receivers and managers of Malz on February 3, 2014.
The West Australian retailer sells automotive aftermarket parts, accessories, tools, equipment and leisure items.
Malz operates from four custom-fitted stores across metropolitan Perth and has a standalone head office and warehouse facility.
The retailer has lease arrangements in place for a further two stores.
Malz opened its first store in December 2004 and since then has grown to generate an unaudited turnover for this financial year of $11.3 million.
A spokesperson for KPMG said White and Templeton have assumed control of the assets and operations of Malz and started evaluating the financial position of the business with a view to selling it.
Notices advertising the sale of the business ran in newspapers last week.
“KPMG is already in discussions with a number of parties interested in purchasing part of, or all of, the existing business,” the spokesperson says.
In the interim, Malz is continuing to trade.
Australia’s retail sector has been weathering tough conditions with the collapse already this year of retailers <a target="_blank" href="https://www.smartcompany.com.au/finance/cashflow/35295-creditors-line-up-after-fashion-retailers-collapse-dion-lee-ellery-and-mercedes-benz-fashion-week-all-owed-cash">Jasu</a> and <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/35064-peeptoe-shoes-collapses-as-retailers-continue-to-face-financial-pressures">Peeptoe Shoes</a>.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Car parts retailer with $11 million turnover collapses

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An <a target="_blank" href="https://www.smartcompany.com.au/growth/economy/31298-imf-report-cautiously-optimistic-about-global-growth">International Monetary Fund</a> review of Australia <a target="_blank" href="https://www.imf.org/external/pubs/ft/scr/2014/cr1451.pdf">released today</a> recommends the Aussie dollar should trade at “low US80c” and backs the federal government’s anticipated budget cuts.

The Australian dollar closed yesterday at US90.63c and the IMF’s review was prepared when it was US89c, but the IMF still characterised the Australian dollar as too high and 5% to 10% higher than it should be.
The IMF model suggests the Aussie dollar should be between US80c and US85c.
"Australia's floating exchange rate has been a vital shock absorber for the economy during the upswing of the mining investment boom," the IMF report says.
But more recently as minerals prices have fallen, "the exchange rate did not depreciate as would normally be expected".
It says government officials have expressed surprise that the exchange rate has remained as high as it has and Reserve Bank staff have told it that market intervention remains "part of the policy toolkit, although more recently used only at times of market dysfunction".
Export Council of Australia general manager Peter Mace told SmartCompany there is “a bit of consensus” around exporters that around 80c to 85c would be an appropriate level for the dollar to be at.
“A lower dollar as a general rule is good for exports,” he says.
“There are a lot of vagaries in terms of the drivers on trade, certainly the commodities side of export has an impact.”
<img src="https://www.smartcompany.com.au/images/stories/news/imf-graph-600.jpg" style="max-width: 370px; max-height: 247px; display: block; margin-left: auto; margin-right: auto;">
But Mace cautions that exporters’ competitiveness is not just reliant on the dollar.
“It’s built on international supply and demand structures, which is dependent how our trading partners are pricing items,” he says.
The IMF report recommends budget deficit reduction as a means to “take pressure off the dollar over the medium term”.
“Staff supported the broad aim of improving the budget position over the medium term, which would help rebuild fiscal buffers and increase the policy scope to deal with adverse shocks, but cautioned that it should be done in a way that does not disrupt growth prospects in the near term,” the report says.
The IMF calculates Australia will have the largest spending growth among 17 advanced economies between 2012 and 2018.
Outlays are expected to rise by more than 15% after inflation taking into account the upcoming government spending surge involving expensive promises on education, disability services and paid parental leave.
“Achieving and sustaining a surplus over the next decade will be challenging in light of current social spending commitments,” the IMF says.
“Early decisions on policy changes required to ensure the medium-term consistency of fiscal policy goals would help to preserve policy flexibility.”
<a target="_blank" href="https://www.smartcompany.com.au">This article first appeared on SmartCompany.</a>
 
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IMF calls for lower Australian dollar and budget cuts

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Pollster Gary Morgan is embroiled in a bitter legal stoush with the Fair Work Building Industry Inspectorate following a Federal Court judgment finding his family trust <a target="_blank" href="https://www.propertyobserver.com.au/https://www.austlii.edu.au/au/cases/cth/FCCA/2013/1097">engaged in sham contracting</a>.

The pollster is not going down without a fight and has vowed to appeal the decision, declaring it “a sham”.
The Federal Circuit Court found Morgan’s family trust, Linkhill, underpaid 10 employees who it had maintained were contractors.
The 10 workers were engaged by Linkhill Pty Ltd to perform the renovation works at 384-386 Flinders Lane, Melbourne.
The court ordered Linkhill pay its workers $178,941 in unpaid wages and entitlements.
In his evidence to the court, Morgan was highly critical of the Fair Work Building Inspectorate and the government.
“I mean, you’ve got a very vicious government who wants to stitch people up, like me,” he told the court.
“And, they want to basically try and control independent contractors and small business. That’s what it’s about this case, nothing to do with a few bricklayers who were independent contractors…”
Morgan described Fair Work as “the most outrageous misnaming of an organisation in the country.  It’s not fair.”
Morgan claimed the workers were contractors and wanted to be contractors.
“So long as they are, in my opinion, remunerated above what the award is and fairly and have a job to do, I think that is what they’re doing,” he says.
“What the government’s trying to do is rope them all into large corporations or large building businesses and kill the small businesses, small entrepreneur who’s trying to start up his brick business.”
But the court found the evidence showed the 10 workers, engaged between June 2007 and August 2010, were employees not contractors.
“An examination of the totality of the relationships between each of the individual workers and Linkhill, the system and arrangements pursuant to which they worked and the work practices which regulated that work, clearly establishes by reference to the established indicia that each of those relationships were in the nature of employment and not independent contractor relationships,” Federal Circuit Court judge Justice O’Sullivan found.
O’Sullivan found the “relationships” between Linkhill and the workers were “contracts quintessentially in the nature of contracts of employment for the personal provision of each workers labour to Linkhill”.
The court found Linkhill reserved control over where, when and to what ends the workers’ labour was to be directed and it directed and supervised the performance of the work of each worker on a daily basis.
O’Sullivan found  the requirement for workers to supply an ABN, the lack of taxation deducted from the payments they received from Linkhill and payment pursuant to invoicing arrangements imposed by Linkhill did not alter these “fundamental features” of their engagement.
But Morgan told SmartCompany Linkhill did not engage in sham contracting.
“The only sham here is that engaged in by the Australian Building and Construction Commissioner and the Fair Work Inspectorate,” Morgan says.
“Intimidation, threats and blackmail of workers and companies appear to be standard operating procedures for these organisations.”
“A Royal Commission is needed into the unions and the Fair Work Building Industry Inspectorate.”
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
 
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Fair Work “a sham”: Pollster Gary Morgan hits back as court finds his family trust engaged in sham contracting

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The federal government released its watered down version of the draft of the <a target="_blank" href="https://www.smartcompany.com.au/finance/30625-government-tweaks-fofa-reforms-on--conflicted-remuneration">Future of Financial Advice</a> legislation yesterday.
Assistant Treasurer Arthur Sinodinos said the government is supportive of the principles of FOFA but the previous government’s reforms were “unwieldy, burdensome and unnecessarily complex”.
The government announced in December that it would seek to overturn the majority of the former Labor government’s financial advice reforms.
Research undertaken by Rice Warner Actuaries in 2013 found that the previous government’s FOFA laws would reduce the average cost of financial advice from $2,046 before the reforms to $1,163 after the reforms by 2026-27 and double the provision of financial advice in Australia.
But Sinodinos says <a target="_blank" href="https://futureofadvice.treasury.gov.au./">draft legislation and regulations</a> will still reduce compliance costs and remove red tape on the financial services industry.
“The proposed reforms will reduce the burden on industry and pressures on the cost of advice to consumers,” Sinodinos said in a statement.
The government has now announced many of the changes will be made by regulation not legislation, meaning there will be no scrutiny by a parliamentary committee.
“In order to provide certainty for industry and to ensure that the measures have effect as soon as possible, the government will implement time-sensitive measures through regulations to the extent legally possible, with amendments to be subsequently made in the primary legislation,” Sinodinos said.
The key amendments include removing the opt-in requirement, streamlining the annual fee disclosure requirements, amending the best interests duty to allow for scaled advice, exempting general advice from conflicted remuneration and amending grandfathering to allow for adviser movements.
The government said the interim regulations will be repealed once the legislative amendments have been passed, while those amendments best addressed via regulations will remain in place.
A spokesperson for Sinodinos defended the amended FOFA regulations toSmartCompany and said the "catch-all" provisions had been removed from the best interests duty because they created "significant legal uncertainty" on how advisers can actually satisfy the best interests duty.
"Removing this provision will make the best interests duty more objective and ensure that advisers have access to a true safe harbour," she said.
"The best interests duty without paragraph g will still provide appropriate levels of protection to consumers as the remaining elements of the duty (i.e. sections a-f) impose an appropriate standard of care."
But Industry Super Australia is critical of the government’s approach and says a thorough assessment is needed of the impact of proposed changes to laws designed to protect consumers from conflicted financial advice.
David Whiteley, chief executive of Industry Super Australia, said Australians want impartial financial advice that is in their best interests and not tainted by sales commissions, ongoing advice fees, volume rebates or other types of incentives paid to financial planners by banks and other institutions.
“Industry Super Australia is concerned that these proposed changes will re-permit the payment of conflicted remuneration and re-open the debate about whether a financial planner is an impartial adviser or a sales rep,” he said in a statement.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany.</a>
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Coalition water down "burdensome" FOFA reforms

The Gold Coast economy has grown by 25 per cent since 2020/21 to surpass $55 billion, but perhaps the more significant story is what sits behind the headline number.

For decades, the Gold Coast has been viewed through the lens of tourism, lifestyle and population growth. The latest State of the City Report suggests that perception is increasingly out of step with reality.

Released by Invest Gold Coast, the report ranks the Gold Coast as Australia's largest non-capital city economy and, perhaps more notably, second nationally behind Sydney for Economic Complexity, a measure that assesses the diversity and sophistication of an economy.

It's a result that places the Gold Coast ahead of Melbourne, Brisbane, Perth and Adelaide, highlighting the extent to which the city's economic base has broadened beyond its traditional industries.

Today, the Gold Coast supports more than 350,000 jobs, is home to over 83,000 businesses and generates $19 billion in annual exports. Manufacturing now accounts for 62 per cent of international export growth, while sectors including health, education, advanced manufacturing, technology and professional services are becoming increasingly important contributors to the local economy.

[smartcode_project:default project_id=150017 project_image_fid=372547]

Gold Coast Mayor Tom Tate said the report confirmed the city's evolution into one of Australia's most significant economies.

"The Gold Coast economy continues to grow at an incredible pace. This is no surprise to those of us who have watched the evolution up close," Mayor Tate said.

"As one of the most entrepreneurial, investment driven and opportunity focused economies in the country our ambition has been realised and possibilities are endless.

"The Gold Coast has built a reputation as the city that says yes. We say yes to investment, yes to opportunity and yes to people who want to build something.

"It's this mindset helping us drive major growth across health, advanced manufacturing, screen production, marine, technology and the knowledge economy."

[smartcode_project:default project_id=149670 project_image_fid=360975]

While population growth has been one of the defining stories of the past decade, the report points to a broader economic transformation taking place.

The city's knowledge economy now contributes $7.9 billion annually and supports around 31,000 jobs, while the health and wellbeing sector contributes $5.2 billion and employs more than 42,000 people. Together, the six priority sectors identified in the report account for almost $24 billion in economic output and more than 145,000 jobs.

One of the strongest examples is the Gold Coast Health and Knowledge Precinct at Southport. The 200-hectare precinct now contains more than $5 billion worth of health, education, research and innovation infrastructure and supports over 16,000 jobs.

The report also highlights the growing role of advanced manufacturing, particularly in aerospace, defence and modular construction.

Gold Coast-based Gilmour Space Technologies recently became the first Australian commercial company to attempt an orbital launch, while companies including Modscape and ModnPods are helping establish the Yatala-Stapylton corridor as one of Australia's fastest-growing advanced manufacturing hubs.

The city's entrepreneurial culture is also translating into business growth.

Since 2019/20, the number of businesses operating on the Gold Coast has increased by 22 per cent, while firms employing more than 200 people have grown by 80 per cent. The report suggests the next challenge is converting more local start-ups and medium-sized businesses into nationally significant companies.

Development activity remains another key indicator of confidence.

There are currently more than $23 billion worth of major projects underway across the Gold Coast, supported by a record 75 active cranes, a figure that now exceeds Brisbane and represents a 150 per cent increase since 2016.

[smartcode_project:default project_id=112024 project_image_fid=343235]

Importantly, the report notes the next phase of investment will need to extend beyond residential development.

While 93 per cent of crane activity is currently tied to housing, Invest Gold Coast argues future investment will increasingly need to focus on cultural, civic, infrastructure and industry-enabling projects that strengthen the city's long-term economic resilience.

Invest Gold Coast Chair Will Hodgman said the city was now benefiting from years of economic diversification.

"What is happening on the Gold Coast is the result of the city's economic base broadening, fuelled by industries with long-term, high-growth potential," Mr Hodgman said.

"This is no longer a secondary Australian economy, the Gold Coast is becoming a globally connected city with deeper capability across health, knowledge and creative industries, advanced manufacturing, technology and exports."

[smartcode_project:default project_id=108274 project_image_fid=365786]

Looking ahead, the Gold Coast's population is projected to exceed one million residents by 2046.

For a city that was once largely defined by tourism and lifestyle, the latest figures suggest the Gold Coast is becoming something more significant, one of Australia's most diverse and economically sophisticated urban economies, and increasingly one that national and international investors can no longer afford to overlook.

Joel Robinson

75 cranes, $23 billion pipeline and a $55 billion economy: Inside the Gold Coast economic boom

Ron Bakir's Homecorp has sold more than 75 per cent of the apartments in its wellness-driven Florence Residences in Surfers Paradise following its first weekend release.

The <a href="https://www.apartments.com.au/new-apartments/florence-residences-24-monte-carlo-avenue-surfers-paradise-qld-4217">26-storey project on Monte Carlo Avenue</a>, which commenced construction earlier this year, has seen a flurry of buyers secure their slice of the Gold Coast's latest wellbeing-focused offering in one of the nation's most competitive property markets.

Since the pandemic, the Gold Coast's population has grown by more than 11 per cent, a rate approximately four times faster than Sydney's, driven largely by lifestyle changes and interstate migration. While buyer activity has moderated in some markets nationally, demand for newly built dwellings on the Gold Coast continues to gain momentum as purchasers increasingly prioritise lifestyle, amenity, wellbeing, liveability and long-term investment potential.

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Homecorp CEO Ron Bakir says buyers today are looking for more than just a home.

"What we are seeing is a shift in how people define value in property," Bakir says.

"What attracts residents to new developments is a desire for more than just a residence. They are looking for a place that complements their lifestyle, supports their wellbeing and reflects the way they want to live into the future.

"Lifestyle, longevity, proactive health, wellbeing, connection and a sense of community are increasingly shaping purchasing decisions, particularly on the Gold Coast, where these factors continue to be a major drawcard."

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Bakir says Homecorp is responding to this shift through an approach that places greater emphasis on design, amenity and experience working together to create places that feel considered, connected and enduring in value.

Inspired by Eastern European design, Florence Residences will comprise 120 apartments alongside a private residents-only wellness club featuring a resort-style rooftop pool, hot and cold plunge pools, a spa retreat, contemporary gymnasium, and a spacious yoga and Pilates studio.

The development will also feature a residents-only lounge with private dining facilities and a rooftop bar, premium outdoor entertaining areas, a hotel-style lobby lounge, generous bike parking, and pet-friendly amenities including a heated dog wash.

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A limited number of apartments remain available, with an exclusive collection of four-bedroom sub-penthouses set to be released in the coming months.

Florence is one of the latest additions to Homecorp's expanding multi-billion-dollar property portfolio, which also includes plans for a <a href="https://www.apartments.com.au/news/qld/homecorp-lodges-plans-for-260-million-moroccan-bathhouse-inspired-tower-in-budds-beach">$260 million development in Budds Beach</a> tailored to the growing wellness market.

A development application has been lodged for a 27-storey, 156-residence tower at 8–10 Acacia Avenue and 25–27 Oak Avenue, featuring a residents-only Moroccan spa-inspired sanctuary.

Apartments at Florence Residences are priced from $1,249,000, with construction expected to be completed by late 2027.

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Buyers rush to Homecorp's Florence Residences as Gold Coast wellness trend gains momentum

The NSW Government has expanded its $1 billion Pre-sale Finance Guarantee program, broadening access for affordable housing providers and smaller residential developments as it seeks to accelerate housing delivery across the state.

The Minns Government says the program has already helped bring forward more than 600 homes across Sydney and regional NSW since launching in September 2025, with similar models now adopted in South Australia and Western Australia.

The latest changes, announced by Treasurer Daniel Mookhey and Minister for Planning and Public Spaces Paul Scully, are designed to improve access to finance for projects that have planning approval but are struggling to secure funding.

Among the key changes is an expansion of support for community housing providers. The program will now support up to 100 per cent affordable housing projects valued at up to $30 million when delivered by not-for-profit providers, while support for larger affordable housing developments will increase for projects worth up to $80 million.

The government says the changes will help accelerate the delivery of housing for low-income workers, older people, people living with disability, and those at risk of homelessness, while reducing reliance on direct grants or subsidised loans to bridge funding gaps.

The eligibility criteria for smaller residential developments have also been broadened. The previous $5 million minimum project value threshold has been removed and replaced with a requirement that projects deliver at least four homes.

Support has also increased for projects delivering fewer than 20 homes, with the guarantee now able to cover up to 75 per cent of dwellings in a development, capped at $30 million per project.

The changes are expected to particularly benefit smaller-scale and regional developments, which often face greater challenges meeting pre-sale requirements imposed by lenders.

Treasurer Daniel Mookhey said the scheme demonstrates how government can use its balance sheet to stimulate housing supply without relying solely on taxpayer-funded grants.

"The Pre-sale Finance Guarantee shows how this Government is using its balance sheet to reduce risk and unlock private investment, enabling new homes to move from design to construction faster," Mookhey said.

"This landmark reform allows us to deliver homes for working families at a lower cost to taxpayers, while also maintaining strong financial discipline."

Planning Minister Paul Scully said the program had already proven effective in bringing stalled projects to market.

"The Pre-sale Finance Guarantee has already proven it can unlock stalled projects and accelerate housing delivery by giving lenders the confidence they need to back good developments," Scully said.

"These changes will allow more affordable housing and smaller developments to access support so more homes can be built faster where communities need them most."

Housing Minister Rose Jackson said the expansion would help community housing providers overcome financing barriers that often delay projects.

"We know community housing providers are ready to build more homes, too often they're held back by barriers to finance," Jackson said.

"Expanding the Pre-sale Finance Guarantee helps remove those barriers so more affordable homes can get off the ground sooner."

The announcement was welcomed by the Property Council of Australia, which has long advocated for measures aimed at improving project feasibility and access to finance.

Property Council NSW Executive Director Katie Stevenson described the expansion as a practical intervention that addresses one of the most immediate constraints on housing delivery.

"This is exactly the kind of practical intervention we need right now, focused on getting projects out of the ground, not just approved," Stevenson said.

"It builds on a model the Property Council has worked closely with government to develop following calls for such a scheme ahead of last year's NSW Budget, so it's great to see it being expanded."

Stevenson said the reforms would help unlock projects that are ready to proceed but have been delayed by financing challenges. However, she noted that broader feasibility issues remain a significant barrier to increasing housing supply.

"The biggest challenge in NSW housing today is delivery. Too many projects have planning approval but are simply not financially viable to proceed under current settings," she said.

Speaking at the Property Council's NSW Housing Summit, Housing Minister Rose Jackson acknowledged that feasibility and financing pressures continue to constrain housing delivery, while reaffirming the government's commitment to work with industry on solutions.

Stevenson said the government's recognition of those challenges was encouraging ahead of next week's state budget.

"It's positive to see the government clearly recognising that feasibility pressures are now a binding constraint on supply," she said.

"With the Budget just days away, the focus must be on backing delivery, making sure projects stack up, finance can flow, and more homes can move from approval to construction."

The expanded Pre-sale Finance Guarantee forms part of the NSW Government's broader housing agenda, which also includes planning reforms, the NSW Housing Pattern Book, and a series of rezonings intended to increase housing capacity across the state.

NSW expands Pre-sale Finance Guarantee to unlock more affordable and regional housing

Design-led developer-builder Lowe Living has unveiled its latest residential development, Jardin House, marking its first foray into Melbourne's blue-chip City of Boroondara.

Located a short walk from Camberwell Junction, <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House</a> has been designed to appeal to affluent local downsizers and established families seeking a low-maintenance alternative to the large homes that have long defined Camberwell and surrounding suburbs.

The project will comprise a collection of two and three-bedroom apartments ranging from 92 sqm to 280 sqm, alongside a limited number of penthouse residences featuring rooftop terraces spanning more than 100 sqm, with optional private pools.

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Lowe Living Co-Founder and Managing Director Tim Lowe said Camberwell represented a natural next step for the developer as it expands into some of Melbourne's most tightly held residential markets.

"Jardin House is an important project for our team as it marks the next evolution of our portfolio into different well-established blue-chip pockets of Melbourne," Lowe said.

"Camberwell, with its incredible walkability, family-led neighbourhood feel and superb access to education and transport, makes it a natural choice for us."

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Designed by Tristan Wong Architects, with interiors by Hecker Guthrie and landscaping by Acre, the development takes inspiration from the Art Deco architecture that remains a defining feature of many of Camberwell's established streets.

A curved facade, arched openings, textured brickwork and sculpted forms reference the suburb's architectural heritage, while extensive landscaping softens the building's presence and creates a strong connection to the surrounding tree-lined streetscape.

The project will be set behind a secure gated entrance, with residents arriving through landscaped gardens designed to create a transition between the public realm and private residences.

Inside, the residences feature natural stone and timber finishes, full-height glazing, Miele appliances and generous open-plan living areas designed for long-term owner occupation.

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While the apartments themselves have been designed to attract discerning owner-occupiers, it is the amenity offering that sets Jardin House apart from many other boutique projects currently launching across Melbourne.

The centrepiece is a 350 sqm private bathhouse curated in partnership with Aurora Spa &amp; Bathhouse founder Lyndall Mitchell.

The wellness precinct includes mineral pools, hydrotherapy experiences, a Himalayan salt room, sauna, steam room, cold plunge pools and dedicated relaxation spaces, creating what Lowe Living describes as a private wellness retreat exclusively for residents.

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The collaboration follows Lowe Living's recent partnership with Aurora at Maison Savoy in Brighton, although Jardin House is the first project to incorporate both indoor and outdoor wellness experiences.

Emma Lowe, Co-Founder and Managing Director of Lowe Living, said wellness was becoming an increasingly important consideration for apartment buyers.

"Collaborating with Lyndall Mitchell from Aurora Spa &amp; Bathhouse for a second time is an intentional nod to creating residences that are more than just homes, but a way to enrich the lives of our residents through wellness and longevity," Lowe said.

The amenity offering is complemented by a Technogym fitness studio, residents' lounge, private dining spaces and concierge services.

The launch comes as developers increasingly target Melbourne's established eastern suburbs, where rising land values, ageing housing stock and growing downsizer demand are creating opportunities for boutique apartment projects.

Lowe said the company expects significant generational wealth transfer across suburbs such as Camberwell in coming years, creating further demand for luxury apartment living.

"Camberwell is a blue-chip suburb where homes regularly transact for multiple millions of dollars," he said.

"The generational change of wealth in these locations expected in the coming years is significant, so we see an opportunity to create exclusive residences that appeal to older families and downsizers in order to meet this demand."

Apartments at Jardin house start from $1,195,000. The project forms part of Lowe Living's near-$1 billion portfolio of new developments across Melbourne.

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Lowe Living launches Jardin House in Camberwell

As <a href="https://www.apartments.com.au/developments/north-sydney-nsw-2060">North Sydney</a> continues its transition from a commercial centre into a more layered residential and lifestyle precinct, a new generation of apartment developments is reshaping expectations around scale, amenity, and long-term liveability.

Improved transport connections through the Victoria Cross Metro, continued investment in dining and public spaces, and a constrained supply of new luxury apartments have sharpened demand for homes that combine proximity to the CBD with the privacy and outlook traditionally associated with harbourside houses.

At 177 Walker Street, <a href="https://www.apartments.com.au/developers/aland">ALAND</a>’s new apartment development <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> enters the market with a distinctly residential approach to high-rise living. The 30-level tower will deliver 161 residences, ranging from one-bedroom apartments through to sub-penthouses and a full-floor penthouse, all oriented to capture uninterrupted views across Sydney Harbour, the Opera House, and out toward the Pacific Ocean.

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Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, the project takes advantage of the site’s natural topography and elevated position above the harbour. Rather than relying on density alone, the architecture focuses on outlook, orientation, and spatial flow, with every apartment occupying a corner position to maximise natural light and cross ventilation.

Rothelowman says the site itself shaped much of the architectural response.

“The site has a long history in terms of its inevitable transformation and when we came in, we took inspiration from the idea of reestablishing a sense of the site’s natural terrain and fall. Our scheme aims to integrate with the terrain and the landscape, using the undulating site to slowly reveal glimpses and views of the harbour. The rotation of the tower off grid means every apartment has a view and is naturally cross ventilated. The building's colour palette is quintessentially Sydney, with bronze and sandstone and a luminescent green colour in the glass, making it very earthy and grounded in its location.”

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Inside the residences, the emphasis moves toward larger-format living typically associated with standalone homes. Kitchens sit at the centre of the apartments, connecting directly to open-plan dining and living areas before extending outward into expansive winter gardens and balconies. Calacatta marble, bespoke joinery, integrated appliances, and custom metal detailing are used throughout, while three distinct interior palettes, Terrace, Opera, and Harbour, allow buyers to personalise the spaces without compromising the architectural consistency of the project.

The larger residences place particular attention on separation between entertaining and private zones. In many apartments, master suites occupy the outer corners of the floorplates, allowing bedrooms to benefit from floor-to-ceiling glazing and harbour outlooks independent of the living spaces. Dressing rooms and ensuites continue the material palette through fluted detailing, freestanding baths, and layered stone finishes.

Rothelowman says the design intent centred on creating homes that feel enduring rather than transient.

“Our philosophy is all about the way people live in these spaces, and we wanted to create homes that reflect the quality of life in this unique Sydney location. The apartments showcase expansive living spaces that are generous, sophisticated, and bold, with the ability to connect with views throughout each apartment.”

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A separate four-storey amenity building known as The Pavilion expands the residential offering beyond the apartments themselves. Positioned alongside the tower, the building consolidates wellness, recreation, and social spaces into a dedicated resident retreat. Facilities include a 20-metre rooftop pool and sundeck, sauna, spa, ice bath, wellness studio, gymnasium, concierge service, wine cellar, residents’ lounge, private dining spaces, and dedicated co-working areas with meeting rooms and boardroom facilities.

The amenity mix reflects the buyer profile emerging in North Sydney, where owner-occupiers and downsizers are increasingly prioritising convenience, apartment scale, and long-term usability over purely investment-driven decisions.

The Walden also represents a significant milestone for ALAND, marking the company’s first major move into Sydney’s inner-city luxury apartment market after more than two decades delivering large-scale residential communities across Greater Sydney. Founder Andrew Hrsto says the Walker Street site stood apart because of both its positioning and its rarity.

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“As a company, we had been searching for a site in one of Sydney’s blue-chip locations, spanning the Eastern Suburbs, the Sydney CBD and the North Shore, and when we had the opportunity to purchase this site, we immediately recognised that it could be something iconic.”

At launch, The Walden recorded more than $103 million in sales, with buyers drawn to the project’s harbour positioning, apartment scale, and proximity to the Metro, which now connects North Sydney to Barangaroo in three minutes and Martin Place in five.

ALAND has commenced construction, and is expecting a completion date in 2028.

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Cara Waters

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