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<h3>1. Deficit</h3>
It should come as no surprise this year’s budget will deliver a deficit.
The government has used the lead-up to the budget to lay the blame for the shape of the country’s finances with the previous government, warning the electorate that immediate sacrifices are needed for <a href="https://www.smartcompany.com.au/legal/politics/41701-abbott-reveals-budget-plan-no-changes-to-age-pension-for-three-years" target="_blank">long-term gain</a>.
The most recent estimates place the expected deficit in the arena of $47 billion, with future budgets also expected to show the government’s accounts in the red until at least 2019-20.
Hockey has <a href="https://www.smartcompany.com.au/legal/politics/41665-hockey-s-budget-roadmap-industry-assistance-age-pension-and-welfare-payments-on-treasurer-s-hit-list">said in pre-budget speeches</a> that the government will aim to reduce real spending growth by 1.75% over the next five years to turn things around.
<h3>2. A debt levy of some kind</h3>
The government’s so-called debt levy has gone through a number of guises since it was <a href="https://www.smartcompany.com.au/growth/economy/41721-how-the-government-s-debt-tax-targeting-top-earners-will-hit-your-business" target="_blank">first leaked</a>, but cabinet has signed off on the tax increase, so we know it is coming.
The government looks likely to impose a 2% increase on the highest income tax rate, which will <a href="https://www.smartcompany.com.au/legal/politics/41840-budget-2014-debt-levy-could-hit-650-000-australians-abbott-prepares-10-billion-infrastructure-fund">affect around 650,000 taxpayers on incomes above $180,000</a>.
Unsurprisingly, the debt levy is one of the more controversial measures to be included in the budget, with accusations the government has broken pre-election promises not to change existing taxes or introduce new taxes being hurled at the government, even from within its own ranks.
Hockey and Prime Minister Abbott have both said the levy will be temporary, but as most people know, once a tax is introduced it is very difficult to undo.
<h3>3. Less money for corporate welfare</h3>
In one of the more recent pre-budget leaks, the government has said it will <a href="https://www.smartcompany.com.au/federal-budget-2014/41892-budget-2014-10-billion-cut-to-industry-assistance-asic-corporate-registry-to-be-privatised">reduce the amount of money available to struggling companies by $10 billion</a>.
Hockey flagged the move a <a href="https://www.smartcompany.com.au/legal/politics/41665-hockey-s-budget-roadmap-industry-assistance-age-pension-and-welfare-payments-on-treasurer-s-hit-list">few weeks ago</a>, using a speech about the economy to outline the government’s position when it comes to corporate welfare. However, there is little information about what shape the cuts will take at this stage.
Hockey said on the weekend “those who depend heavily on government support will not necessarily receive the same support into the future”. 
“Business has a responsibility to manage itself in the same way we expect (others to do so), other than those most vulnerable in the community,” he said.
<h3>4. A raise in the retirement age</h3>
Australians will need to start preparing to work for longer, with the government <a href="https://www.smartcompany.com.au/legal/politics/41533-are-you-ready-to-work-until-you-re-70-hockey-flags-plans-to-raise-retirement-age" target="_blank">set to raise the retirement age to 70 within coming decades</a>.
While Prime Minister Abbott has <a href="https://www.smartcompany.com.au/legal/politics/41701-abbott-reveals-budget-plan-no-changes-to-age-pension-for-three-years" target="_blank">ruled out</a> making changes to the eligibility or indexation of the age pension for the next three years, the government is widely tipped to proceed with plans to change the age at which Aussie workers can retire.
“With four or five seniors on the pension, the number of workers per retiree dropping from five to three by 2050, and more than 1000 people becoming eligible for the age pension every single week, long-term reform is essential and unavoidable,” said Abbott recently.
<h3>5. Paid parental leave</h3>
Voters can also expect to see Abbott’s paid parental leave in the budget, although in a scaled-back form.
The scheme, first proposed by the Coalition when it was in opposition, is expected to cost $5.5 billion each year, with the aim of encouraging more Australian women to return to work after having children.
The eligibility threshold for the scheme was originally set at $150,000, but faced with growing concerns about the affordability of the scheme from opposition parties and within his own party ranks, <a href="https://www.smartcompany.com.au/growth/economy/41720-what-will-abbott-s-scaled-back-paid-parental-leave-scheme-look-like-a-smartcompany-q-a" target="_blank">Abbott has cut the threshold to $100,000</a>.
The scheme will continue to pay six months of 26 weeks parental leave based on the recipient’s full-time salary, but the maximum payouts from the scheme will now be capped at $50,000 instead of $75,000.
This article continues on the next page. Please click below.
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<h3>6. Extending unfair contract protections for small business</h3>
Small Business Minister Bruce Billson has advocated for the extension of unfair contract protections for small business for some time and small business owners can expect to see this policy in tonight’s budget.
The policy would grant small business the same unfair contract protections currently available to consumers under the Australian Consumer Law.
Billson <a href="https://www.smartcompany.com.au/people/industrial-relations/30184-coalition-s-unfair-contract-provisions-move-could-lead-to-uncertainty-for-small-business--legal-expert-warns" target="_blank">previously said</a>  he finds small businesses often have to negotiate with big business on a take it or leave it basis under standard form contracts which place a disproportionate burden on one party over the other.
“What happens with standard form contracts is businesses use them irrespective of the scale or legal status of the person they are contracting with, consumers have certain protections but small businesses have no more power to negotiate and no access to those unfair contract provisions,” he said.
<h3>7. A higher level of fuel excise</h3>
In a bid to improve the budget’s bottom line, the government will use the budget to increase petrol tax by reintroducing the twice-yearly practice of indexing fuel excise in line with inflation.
It’s been 13 years since the fuel excise was indexed to inflation and in that time motorists have paid 38.1 cents per litre in fuel excise. According to news reports, unfreezing the indexation will add up to three cents a litre in the first year.
It’s bad news for small businesses, which will be faced with rising costs and therefore tougher competitions from the big end of town.
Peter Strong, executive director of the Council of Small Business of Australia, <a href="https://www.smartcompany.com.au/growth/economy/41868-government-s-petrol-tax-hike-to-slug-small-business?utm_source=SmartCompany&amp;utm_campaign=0bed38ffe7-Friday_9_May_201409_05_2014&amp;utm_medium=email&amp;utm_term=0_234118efee-0bed38ffe7-93985385">previously said</a> it’s important for small business owners to start planning for the change now.
“The costs of goods will go up everywhere because the cost of transport is going up,” said Strong. “If you’re in a business where you’re using your car a lot, you’re going to have to think about what this means.”
<h3>8. Cash for infrastructure</h3>
Hockey said this week that a higher level of fuel excise will <a href="https://www.smartcompany.com.au/federal-budget-2014/41892-budget-2014-10-billion-cut-to-industry-assistance-asic-corporate-registry-to-be-privatised" target="_blank">help fund a massive investment in roads</a>, worth a total $82 billion.
The government plans to commit $40 billion to its roads package, with the remaining $42 billion to come from state governments and the private sector.
“If we are going to make any changes to fuel excise, it will go into roads, and we are laying out a plan for the biggest increase in road expenditure in Australian history,” said Hockey.
However, at least some of the government’s contribution will come from re-announcing projects earmarked by the previous Labor government, and opposition infrastructure spokesperson Anthony Albanese has raised concerns the spending will come at the expense of investment in public transport.
<h3>9. Privatisation of the ASIC register</h3>
Media reports have put the number of government agencies to be abolished, merged or sold in this year’s budget at somewhere between 50 and 70.
One agency which appears to be in the confirmed table is Australian Securities and Investments Commission’s corporate register, which the government <a href="https://www.smartcompany.com.au/federal-budget-2014/41892-budget-2014-10-billion-cut-to-industry-assistance-asic-corporate-registry-to-be-privatised">will seek to privatise</a>.
As <a href="https://www.smartcompany.com.au/legal/41549-privatisation-of-asic-corporate-registry-on-the-table" target="_blank">previously reported</a>, the register is estimated to generate more than $625 million in revenue and has annual costs of around $140 million.
<h3>10. Health co-payments and welfare cuts</h3>
The introduction of co-payments for GP visits and cuts to welfare payments have been <a href="https://www.smartcompany.com.au/legal/politics/41665-hockey-s-budget-roadmap-industry-assistance-age-pension-and-welfare-payments-on-treasurer-s-hit-list" target="_blank">expected for some time</a>.
While the introduction of a GP co-payment may not appear to have an obvious impact on small businesses, SmartCompany blogger Bri Williams says there are some <a href="https://www.smartcompany.com.au/people/41875-a-behavioural-perspective-on-the-budget-s-6-gp-fee">important behavioural and business lessons to take from the policy</a>.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
Picture courtesy of Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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10 things to expect from the federal budget

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State Treasurer Michael O’Brien has billed Victoria’s 2014-15 budget, handed down yesterday, as “a terrific budget for business”, but experts aren’t so sure. 
The budget projects an operating surplus of $1.3 billion in 2014-15, which will grow to $3.3 billion in 2017-18.
The big ticket item in this year’s budget is the promise to <a href="https://www.smartcompany.com.au/finance/tax/32073-payroll-tax-fights-continue-across-the-country-as-south-australian-businesses-demand-permanent-change" target="_blank">cut payroll tax</a> by 0.05%, from 4.9% to 4.85%, from 1 July, which will affect an estimated 39,000 employers.
However, Crowe Horwath tax specialists Adam Mallabone and George Psarrakos, told SmartCompany the cut is “more a headline” than a fundamental structural change to the state’s payroll tax.
Mallabone said while the tax rate is being reduced, there are no planned changes to the tax-free threshold for companies paying payroll tax, which would have been more beneficial for small and medium-sized business.
“The real catch with payroll tax is that it kicks in once a company’s payroll exceeds $550,000 a year,” says Mallabone. “We would have liked to have seen an increase in the threshold so as to exclude a higher number of employers.”
Likewise, Psarrakos says Crowe Horwath does not want to see “employers penalised for hiring more people”.
Mallabone says payroll tax is “the most regressive tax you can get”, and while Victoria’s payroll tax rate has been declining in recent years, it is still higher than other states.
However, the Victorian Employers’ Chamber of Commerce welcomed the move, saying in a statement on Tuesday the cut “keeps Victoria’s taxes competitive against other states and reduces the cost of doing business”.
Elsewhere in the budget, Mallabone and Psarrakos say SMEs and individuals will be affected by an increase in motor vehicle registration fees. Car stamp duty will rise by $0.40 per $200 and light vehicle registration costs will rise from $25 to $270.  
Meanwhile, individuals are expected to save $16 million over four years as a result of the government’s decision to scrap duties payable on life insurance in Victoria.
<a href="https://www.dtf.vic.gov.au/Publications/State-Budget-publications/2014-15-State-Budget/2014-15-Budget-Papers" target="_blank">According to the budget papers</a>, Victorian property investors are also set to pay more land tax in 2014-15 as housing prices in Victoria continue to rise. The value of land tax paid by Victorians is projected to increase by $275.8 million to $1.9 billion, although Mallabone says there will be no actual increase in the land tax rate.
Infrastructure is the big ticket item in the budget, with the government outlining plans to spend up to $27 billion on the state’s road and rail networks, including a remodelled Melbourne Rail Link that will include a train line to the airport.
VECCI chief executive Mark Stone welcomed the infrastructure boost outlined in the budget, which he said will create jobs and stimulate economic growth.
“The budget provides important funding for East West Link Stage 2 as well as funding to progress the Melbourne Rail Link project, both of which will create jobs and are key to enhancing the capacity of Melbourne’s transport system,” said Stone.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Is the Victorian budget “a terrific budget for business”?

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It’s that time of year again when tens of thousands of investors from around the globe descend on Omaha, Nebraska, to hear billionaire Warren Buffett dole out his investment wisdom.
Along with Buffett’s <a href="https://www.smartcompany.com.au/leadership/35872-five-pearls-of-wisdom-from-warren-buffett-s-2014-letter-to-berkshire-hathaway-shareholders" target="_blank">annual letter to shareholders</a>, the annual shareholders’ meeting for Buffett’s investment group Berkshire Hathaway is one of the biggest events on the investment calendar, with the “Oracle of Omaha” always generous in his comments and advice.
Buffett is also not shy on speaking on issues that are important to him and in the lead up this year’s meeting <a href="https://online.wsj.com/news/articles/SB10001424052702303948104579536184228959734" target="_blank">caused a stir when he took aim at the Omaha hotel industry for “price gouging” his visiting shareholders</a>. He even went one step further and suggested his fellow investors could save a few bucks by booking accommodation through online startup Airbnb.
This year, more than 30,000 shareholders were <a href="https://dealbook.nytimes.com/2014/05/03/live-blog-berkshire-hathaways-2014-shareholder-meeting/?_php=true&amp;_type=blogs&amp;_r=0" target="_blank">keen to hear</a> Buffett speak about Berkshire’s first-quarter earnings, in which net income was down, and the investment guru’s decision to abstain from voting against Coca-Cola’s controversial executive compensation plan.
Here’s five pieces of wisdom from this year’s meeting.
<ol>
<li>
On playing nice around the board table Buffett said there is a need for board directors to be diplomatic, and that trying to force change amounts to rude corporate behaviour. “I’ve voted for compensation plans in various places that are far from what I would have designed myself. That is the way boards work. You keep belching at the dinner table, you’ll be eating in the kitchen.” 
</li>
<li>
On the nature of corporate boards “The nature of boards is that they are part business and part social and people behave sometimes with their business brain and sometimes with their social brain”. 
</li>
<li>
On climate change “I don’t think in making a decision on Berkshire and other companies that climate change should be a factor in the decision-making. A lot of people are over-climbing that they know the impact. We are agnostic. It’s not there isn’t global warming because there is, but those that say they know its impact are talking out of their hats”. 
</li>
<li>
On managing Berkshire’s culture “Managers, when they work, are joining a business that is unlike anything else. It’s a huge corporate asset and we want to maintain that message well beyond my lifetime.” 
</li>
<li>
On concerns about Berkshire Hathaway’s growing cash stockpiles “We are finding things to do that tend to sop up the cash. We will always have around $20 billion around Berkshire; we will never be dependent on the kindness of strangers, which didn’t work well for Blanche DuBois. We cannot depend on anybody else to keep our own strength and maintain our operations.”
</li>
</ol>
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
Picture courtesy of Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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Five gems from Warren Buffett’s annual shareholders’ meeting

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International cosmetics retailer Sephora will arrive in Australia in time for Christmas, with the retailer confirming on Thursday that it will open a stand-alone store in Sydney’s CBD in December.
After <a href="https://www.smartcompany.com.au/marketing/sales/41469-sephora-tipped-to-open-in-australia" target="_blank">reports earlier this year</a> that the retailer would enter the Australian market in the first half of 2015, <a href="https://www.afr.com/p/business/companies/sephora_to_open_first_australian_PzbdFGr3eLfG9vgtnaKtUN" target="_blank">Fairfax reports</a> Sephora has secured a three-level 800 square metres store in Pitt Street Mall which is currently occupied by clothing retailer Esprit.
It’s just the first step in the retailer’s ambitious plans to shake up the local beauty and cosmetics market, with Ravi Thakran, group president for Asia and the Middle East for parent company LVMH, telling Fairfax there is room for around 20 Sephora stores to launch in Australia in coming years.
Sephora is the fastest growing brand within the LVMH group, which includes other brands such as Louis Vuitton, Givenchy and Bulgari.
The retailer will be hoping to secure a share of Australia’s cosmetic and toiletry sector, which according to the latest figures from IBISWorld generates annual revenues of $5.5 billion, and is projected to grow at an annual rate of 3% over the next five years.
Senior IBISWorld analyst Caroline Finch told SmartCompany the local cosmetics market is “big bikkies”, with local shoppers choosing to spend their cash with a variety of retailers, including David Jones and Myer, Priceline, and speciality retailers such as Aesop and the Body Shop.
As the latest <a href="https://www.smartcompany.com.au/growth/economy/33935-uniqlo-to-open-first-australian-store-in-melbourne" target="_blank">international retailer to set its sights on the Australian market</a>, we’ve pulled together three quick pieces of information you probably didn’t know about Sephora.
1. European market leader
Sephora has a long history in the European beauty and cosmetics market, having been founded in in 1969. The retailer is now the market leader in Europe, as well as holding a large portion of the United States cosmetics market.
The business was acquired by LVMH in 1997 and now operates more than 1,400 stores in 30 countries.
2. A wide range of premium products
According to Finch, Sephora will opt for a “targeted approach” to the Australian market that will be based on offering an extensive range of premium beauty products, including high-end brands such as Marc Jacobs not currently distributed locally.
For this reason, Finch believes the retailer will pose the biggest threat to DJs and Myer, rather than Priceline, which competes on everyday low prices. In fact, Finch says Sephora may complement Priceline’s strategy, with customers choosing to buy high-end products from Sephora but continuing to visit Priceline for basics.
3. More bang for your buck
Finch says the biggest challenge for the department stores will come from Sephora’s customer service strategy, with the retailer’s sales staff able to sell across brands.
While sales staff at DJs and Myer work on commissions, customers visiting Sephora stores will be shown products from more than one retailer at a time. Finch says this is likely to please shoppers, who will see value in the approach.
Internationally, Sephora is also known for providing free samples to its customers, another feature of the retailer’s strategy likely to impress local shoppers.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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International cosmetics giant Sephora to open first Australian store in December

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Residents in the Sydney suburb of Mosman paid the most income tax in 2011-12, according to <a href="https://www.ato.gov.au/About-ATO/Research-and-statistics/In-detail/Tax-statistics/Taxation-statistics-2011-12/" target="_blank">data released by the Australian Tax Office</a> today.
The wealthy suburb topped the ATO’s list of postcodes that paid the highest level of <a href="https://www.smartcompany.com.au/legal/politics/41685-debt-levy-on-income-tax-would-hit-small-business-the-hardest" target="_blank">income tax</a>, with a tax bill of close to $874 million. According to the data, 15,300 people in Mosman and Spit Junction paid tax in 2011-12, with a mean taxable income of $164,484.
Other suburbs to record high tax bills include Mackay in north Queensland’s, where residents paid $757 million in 2011-2012, and the affluent Melbourne suburb of Brighton, where locals paid taxes worth $569 million.
At the other end of the scale, the 90 taxpayers in the Gippsland towns of Baw Baw and Icy Creek recorded a tax bill of just $485,495.
According to the data, the Queensland town of Bundaberg is home to the most number of welfare recipients, with locals receiving $15 million in Centrelink payments during the period, while Toowoomba is home to the largest number of pension recipients.
Professor Chris Evans from the Australian School of Business at the University of New South Wales toldSmartCompany the results are “not at all surprising”.
“These suburbs record the highest level of tax because they generate the highest levels of income, and disproportionately so,” said Evans, who said these locations also have high levels of capital.
Evans said that income inequality has been steadily increasing in Australia, with the rich getting richer. The same suburbs and cities have been topping these lists for a long time and the income tax system “is not as progressive as it once was”, he said.
“There has been no spreading of wealth in Australia and, in fact, there has been a concentration,” he said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Which suburbs and towns pay the most tax? 

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An Australian women’s fashion retailer with annual turnover of $62 million has collapsed.
The directors of Grace Fashion, the parent company of retail chain SES Fashions, appointed Stewart Free, Bradd Morelli and Sule Arnautovic of Jirsch Sutherland as administrators on 22 April.
SES Fashions currently operates 44 retail stores across the country, employing approximately 300 workers. The chain specialises in affordable women’s fashion items, including clothing, shoes and accessories.
Free told SmartCompany that Jirsch Sutherland has had nine parties register interest for the business ahead of the first meeting of creditors, which will be held in Sydney on 2 May.
Free said the administrators are still investigating the state of the company’s books but its debts are believed to be around $12 million.
Free said a “very lacklustre” retail market in the first few months of this year is the main factor in pushing the company into administration, along with “some pressure from suppliers”.
Colin Porter, managing director of Creditwatch, told SmartCompany that it is “definitely a tough environment” for retailers in Australia.
Porter said the collapse of SES Fashions is a prime example of the need for wholesales and suppliers to “be really vigilant” and understand their clients and the market they are supplying.
SES Fashion’s administration follows the <a 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" target="_blank">collapses earlier this year</a> of fashion retailers Jasu and UnderCoverWear. 
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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$62 million fashion retail chain collapses

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As the Abbott government inches closer to <a href="https://www.smartcompany.com.au/legal/politics/41665-hockey-s-budget-roadmap-industry-assistance-age-pension-and-welfare-payments-on-treasurer-s-hit-list" target="_blank">delivering its first budget on 13 May</a>, the Prime Minister has today signalled some changes to his proposed paid parental leave scheme.
The scheme, first proposed by the Coalition when it was in opposition, is expected to take a $5.5 billion chunk out of the government’s coffers each year, with the aim of encouraging more Australian women to return to work after having children.
While Abbott and Treasurer Joe Hockey have continued to defend the <a href="https://www.smartcompany.com.au/legal/33217-small-business-divided-on-coalition-s--5-5-billion-parental-leave-policy---where-s-the-money-coming-from" target="_blank">controversial policy</a>, some members of the Coalition have been <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-02-27/government-senator-warns-parental-leave-scheme-too-costly/5288208" target="_blank">signalling their unease over the policy to the media</a> and the Greens have raised concerns about the cost of the policy in light of the government’s slated plans to cut welfare payments in next month’s budget.
So what will the new scheme look like? And who will be affected by the changes? We’ve pulled together a SmartCompany Q&amp;A to provide some answers.
What has the Prime Minister actually said?
<a href="https://www.theaustralian.com.au/news/latest-news/abbott-to-reduce-parent-leave-cut-off/story-fn3dxiwe-1226900421459" target="_blank">According to The Australian</a>, the Prime Minister will cut the threshold for the scheme from $150,000 to $100,000.
The change does not introduce a means-test for the scheme, but instead caps the amount of money that women can receive at a lower level.
The $100,000 threshold is in line with <a href="https://www.theaustralian.com.au/national-affairs/tony-abbotts-100000-welfare-test-for-families/story-fn59niix-1226898879439" target="_blank">Abbott’s recent comments</a> about the income limit at which families should stop receiving welfare payments.
And how is this different to what was on the table before?
The scheme will continue to pay six months or 26 weeks parental leave based on the recipient’s full-time salary, but the maximum payouts from the scheme will now be capped at $50,000 instead of $75,000.
The government has not proposed any other changes to the scheme, with existing features such as the payment of superannuation still included.
How many new parents will be affected?
Diversity strategy and compliance consultant Prue Gilbert told SmartCompany that less than 2% of Australian women of childbearing age earn above $100,000 and so the change would only affect a small percentage of workers.
“It’s a pretty minimal change and is more symbolic than anything else,” said Gilbert.
And if the government is making the change to save money, does it mean other measures rumoured to be included in the budget such as the “debt levy” will be scrapped?
Probably not. Gilbert says the change will have a “negligible impact on the budget bottom line” and so the government will proceed with its plans to reduce the current budget deficit by dramatically reducing its spending and potentially introducing a temporary increase to personal income tax levels.
So if the change is minimal, what’s Abbott thinking?
Gilbert says the change is “aimed at getting more support” for the scheme, which is now attracting <a href="https://www.smh.com.au/federal-politics/political-news/nervous-liberal-mps-beg-prime-minister-tony-abbott-to-rethink-paid-parental-leave-scheme-20140428-zr0vo#ixzz30J8LG5iV" target="_blank">criticism from within the Coalition’s own ranks</a>.
“The Greens have previously said that they will support the scheme at $100,000,” said Gilbert, who believes the change will mean that the scheme will almost certainly gain the Senate’s tick of approval.
Would the government be better off spending more on affordable and accessible childcare?
Media reports this week have <a href="https://www.theaustralian.com.au/national-affairs/childcare-shortage-anbsphurdle-for-paid-parental-leave/story-fn59niix-1226898789564" target="_blank">focused on the paid parental leave versus childcare debate</a>: that is, that women would be more likely to return to work if they have better access to more affordable and higher quality childcare.
However, Gilbert says that on average, Australian women take a mixture of 32 weeks in paid and unpaid leave from their jobs after having a child, and a paid parental leave scheme that allows mothers to spend the first year of their child’s life at home is in the best health interests of the mother.
It’s also much more expensive for childcare centres to care for children under the age of one, says Gilbert, who will be looking at the legislative detail of the government’s policy to see if it will be possible for women to take 12 months leave at half-pay under the scheme. “It would be a very positive thing,” she says.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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What will Abbott’s scaled-back paid parental leave scheme look like?

The Victorian Government has secured the passage of the Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026, introducing a suite of reforms aimed at improving consumer protection and confidence in the apartment market.

Resilience Insurance, Australia’s leading Latent Defects Insurance (LDI) provider, has welcomed the move.

The LDI elements of the Bill passed with bipartisan support and now moves to the Legislative Council where debate and passage are expected later this month. It represents a significant milestone in the national shift toward stronger, longer-term protection for apartment buyers.&nbsp;

The reform would deliver practical benefits across the housing system. Apartment owners will have stronger protection if major defects emerge, developers and builders will have a clearer quality framework to work within, and the State will reduce the risk of serious building failures becoming a long-term financial and social burden for households, communities and government.&nbsp;

LDI helps support apartment delivery while providing stronger protection for buyers and encouraging better construction outcomes.&nbsp;

Resilience LDI provides apartment owners with 10 years of insurance-backed cover for major structural defects from completion, with direct claim access to the insurer. This means owners are not required to first pursue developers or builders through costly legal action before accessing protection.&nbsp;

Resilience Insurance has been operating in Australia since 2022 and has already insured hundreds of development projects covering many thousands of apartments across Australia.&nbsp;

At approximately 1.8 per cent of build cost, it is a cost-competitive alternative to the traditional two per cent Strata Bond, bond while delivering significantly broader and longer protection.&nbsp;

“The Victorian Lower House vote shows that reforms like this succeed when they are practical, evidence-based and supported by industry," says Corey Nugent, CEO of Resilience Insurance.

"Victoria is moving quickly on a reform that will make a real difference for apartment buyers, while supporting better building outcomes and greater confidence in apartment delivery.

“This is step one. We look forward to the Bill completing its passage through the Legislative Council and to working with government and industry to implement the framework effectively.”&nbsp;

Fast Facts: What is Resilience LDI?&nbsp;

<ul>
	<li>Resilience Latent Defects Insurance (LDI): Covers major structural defects for 10 years from completion.&nbsp;</li>
	<li>Consumer-first: Direct claim access, no need for lengthy legal action.&nbsp;</li>
	<li>Cost advantage: At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.&nbsp;</li>
	<li>Market leader: Resilience Insurance is the first approved LDI provider in NSW.</li>
</ul>

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 has passed the Victorian Lower House, putting Victoria on track to become the first state to legislate an industry workable LDI framework as a formal alternative to the Strata Building bond. 

Joel Robinson

10-year Latent Defects Insurance for new apartment buyers set to land in Victoria

Just a few months after acquiring a prime Broadbeach site on the corner of First Avenue and Surf Parade, family-run developer <a href="https://www.apartments.com.au/developers/raptis">Raptis</a> has filed fresh plans for a new apartment development.

Raptis is seeking to deliver a <a href="https://www.apartments.com.au/new-apartments/17-19-first-avenue-broadbeach-qld-4217">29-storey tower with 73 apartments</a> on the 818 sqm site. It will be the developer's seventh project in the suburb, as they are approaching completion of The Sterling on George Avenue.

There will be a pool, barbecue and outdoor dining area, residents lounge and dining, sauna and steam room, gym, and a Yoga and Pilates studio.

<img alt="Raptis" data-entity-type="file" data-entity-uuid="b554da3f-7344-49aa-b1c9-44cf459af0d7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%2010.41.45%E2%80%AFAM.png?VersionId=zzjWu1iO1wnuYv4EV4fyOyf5nSXjGYut" />

Raptis Joint Managing Director, Evan Raptis, says they remain&nbsp;committed to developing quality infill sites across the Gold Coast in the lead-up to the 2032 Brisbane Olympics.

"This project continues our long track record of delivery in Broadbeach, and we look forward to bringing another premium development to this thriving precinct."

The announcement follows strong delivery momentum for Raptis, with The Sterling Broadbeach nearing completion and construction well underway on the final stage of the Waterpoint community adjacent to Harbour Town. The developer's continued investment in the Gold Coast reflects confidence in the region's apartment market fundamentals, underpinned by sustained Southeast Queensland population growth.&nbsp;

The outlook for the region is further bolstered by infrastructure investment tied to the Brisbane 2032 Olympic Games, which is expected to drive continued economic and population growth across the SEQ corridor.&nbsp;

Subject to a favourable response from Gold Coast City Council, construction on the new First Avenue tower is targeted to commence before the end of 2026.&nbsp;

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/it-s-all-in-the-family-four-decades-later-raptis-continues-to-shape-the-gold-coast-skyline">It’s all in the family: Four decades later, Raptis continues to shape the Gold Coast skyline</a>

Read more: <a href="https://www.apartments.com.au/news/qld/raptis-secures-prime-surf-parade-site-for-next-broadbeach-apartment-development">Raptis secures prime Surf Parade site for next Broadbeach apartment development</a> 
&nbsp;

Gold Coast developer brings seventh Broadbeach project to market, targeting construction commencement before year end

First look: Raptis lodges plans for new 29-storey Broadbeach tower 

Brisbane development veteran Kevin Seymour's Seymour Group is set to deepen its presence on one of Brisbane's most tightly held riverfront addresses, lodging revised plans for a luxury apartment development on Oxlade, just a few doors down from The Oxlade, which it completed in 2024.

The <a href="https://www.apartments.com.au/new-apartments/70-72-oxlade-drive-new-farm-qld-4005">new project at 70-72 Oxlade Drive</a>, directly north of The Oxlade, will have 27 apartments across a seven-storey building&nbsp;overlooking the Brisbane River and Merthyr Park. It's a revision from a 2021-approved design.

Designed by bureau^proberts, the project has evolved from the previously approved 26-apartment scheme, introducing an additional penthouse level while maintaining a low-density, boutique character. The development will comprise 26 three-bedroom apartments and a single four-bedroom penthouse, supported by two basement levels with 86 car spaces and 34 bicycle spaces.

The architectural response is centred around two distinct building forms separated by a landscaped open-air atrium.&nbsp;"This dual composition captures and embraces Brisbane’s subtropical environment whilst breaking down built form and scale," the submission to the Brisbane City Council noted.

<img alt="First look: Seymour Group returns to Oxlade Drive with revised riverfront apartment plans in New Farm" data-entity-type="file" data-entity-uuid="c12d84d0-bc11-4067-b46f-5bd2d786a34d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/new%20farm%20landscape.png?VersionId=YEPc2k5CAdh6aAPlu4uVpgZadh4MEfRd" />

A defining feature of the design is a deep landscaped void running through the centre of the building, creating what bureau^proberts describes as a "natural ravine" that enhances airflow, daylight penetration and resident amenity. The design report notes that the separation of the two building volumes is intended to maximise natural light, cross-ventilation and outlook while strengthening connections to the surrounding riverfront setting.

Curved balcony edges, integrated planting and extensive landscaping throughout the façade reinforce the subtropical design approach. The building's façade is softened by elevated gardens and planter beds, creating a green edge that complements the established landscape character of Oxlade Drive and neighbouring Merthyr Park.

New Farm has become one of Brisbane's most sought-after suburbs for developers delivering premium downsizer-focused apartments.

GRAYA has been particularly active in the precinct, completing both Chalk and York in recent years, while construction of Moray House, being delivered for Spyre, is now nearing completion. Architect-turned-developer Joe Adsett recently launched <a href="https://www.apartments.com.au/new-apartments/arcilla-new-farm-by-joe-adsett-28-maxwell-street-new-farm-qld-4005">Arcilla on Maxwell Street</a>, an exclusive collection of just nine apartments.

First look: Seymour Group returns to New Farm's Oxlade Drive with riverfront apartment plans

A new residential tower will be the first piece of a broader mixed-use precinct set to reshape a prominent Newcastle West site, with local developer <a href="https://www.apartments.com.au/developers/gwh">GWH</a> bringing its <a href="https://www.apartments.com.au/new-apartments/cambridge-quarter-newcastle-west-12-denison-street-newcastle-west-nsw-2302">Cambridge Quarter</a> vision to market.

The first release, Tempo, will introduce 87 apartments across a 24-storey tower, marking Stage 1 of the residential component of a larger urban regeneration project planned for the western end of Newcastle's city centre, encompassing the former Cambridge Hotel site.

Positioned on Denison Street, Tempo has been designed as the inaugural building within Cambridge Quarter, a precinct that will ultimately combine apartments, retail activation and revitalised public spaces including the revamping of the Cambridge Hotel.

[smartcode_project:default project_id=135876 project_image_fid=368853]

The tower will comprise a mix of one, two and three-bedroom apartments, including layouts with multipurpose rooms, catering to a broad cross-section of owner-occupiers. Apartment sizes range from around 60 sqm to 192 sqm, with a number of residences oriented to capture views across Newcastle Harbour, the city skyline and coastline.

GWH has emphasised liveability in the design, with open-plan layouts extending to generous balconies and terraces. Residents will have a choice of two interior palettes, while specifications include engineered stone benchtops, SMEG appliances, full-height bathroom tiling and secure building access. Premium upgrade packages will also be available.

Multiple rooftop resident retreats will provide communal outdoor space overlooking the harbour and city, offering an elevated amenity layer above the activity of the precinct below.

[smartcode_project:default project_id=135876 project_image_fid=368851]

The broader Cambridge Quarter vision extends beyond the residential tower itself. Ground-level retail activation and landscaped public areas are planned throughout the precinct, creating a walkable neighbourhood environment connected to the surrounding renewal of Newcastle West. The Cambridge Hotel is also earmarked for future redevelopment into a family-friendly hospitality venue integrated with the new precinct.

The project is strategically positioned within walking distance of Newcastle Interchange, providing access to light rail, regional rail services and direct connections to Sydney. Residents will also be close to Honeysuckle, Newcastle Harbour and the city's beaches and coastal walkways.

[smartcode_project:default project_id=135876 project_image_fid=368852]

For GWH, Cambridge Quarter represents one of its most significant Newcastle developments to date. The locally based developer, which has operated in the Hunter region since 1995, describes the project as a new chapter in the ongoing transformation of Newcastle West.

GWH Executive Director Jonathan Craig said the project had been shaped by a focus on creating lasting community connections.

"We take pride in creating places that last. Spaces where people feel connected, comfortable and a genuine sense of belonging," Craig said.

"Cambridge Quarter is something we are truly proud of, a place shaped by local knowledge, built with care and designed to be part of Newcastle's next chapter."

[smartcode_project_cta:default project_id=135876]

GWH unveils first release at landmark Cambridge Quarter precinct in Newcastle West

<a href="https://www.apartments.com.au/developers/ss-projects">S&amp;S Projects</a>,&nbsp;Rainbow Bay's busiest developer,&nbsp;has officially lodged plans for the largest development in its booming local portfolio, seeking approval for a further 88 apartments on Boundary Street.

The proposal&nbsp;at <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">209–213 Boundary Street, Coolangatta</a>,&nbsp;marks the next chapter in the developer's transformation of the southern Gold Coast beachside precinct. It will be its fifth in the area, having already delivered Flow, Awaken and Esprit, while construction continues on the 38-apartment Radia. The new project would rise 57 metres above a consolidated 1,518 sqm site, on the same street as Radia and Esprit.

&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, the proposed development comprises 88 two and three-bedroom apartments across a contemporary podium-and-tower form that integrates extensive landscaping from street level through to the rooftop.

The tower would be delivered above a basement and multi-level podium accommodating resident and visitor parking, with the residential component commencing from level three. The design incorporates cascading planting throughout the façade, landscaped podium edges, and deep planting zones along the Boundary Street frontage.

<img alt="First look: S&amp;S Projects lodges plans for 88-apartment wellness tower at Coolangatta's Boundary Street" data-entity-type="file" data-entity-uuid="677e6615-b5c0-4b6c-b4f9-efb14fcde1a6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ss%20da%20pers.png?VersionId=YOnPKQm7IFXv0M5H326djEpxk80500Hi" />

A key feature of the development is its expansive rooftop wellness and recreation precinct. Plans reveal a resort-style pool deck, gymnasium, sauna, steam room, hot and cold plunge pools, rooftop terraces, barbecue areas and landscaped relaxation spaces positioned to capture views across the southern Gold Coast coastline.

The rooftop wellness focus builds on the vision S&amp;S Projects first outlined when it acquired the site for $20.25 million last year.

"We are taking every advantage to create a truly unique rooftop wellness experience with a natural feel for residents, offering stone features throughout and an underlying theme that emulates a botanical garden," S&amp;S Projects founder and director Paul Gedoun said at the time.

The proposal seeks a 57-metre building height, representing a 50 per cent uplift on the site's mapped 38-metre height limit. Planning documents argue the additional height is consistent with recently approved and emerging towers in the immediate Boundary Street and Rainbow Bay precinct.

Urbis, acting as planning consultant, said the development would provide "88 dwellings, comprising a mix of two and three-bedroom apartments, contributing to housing choice and supply within an established medium to high-rise coastal urban neighbourhood."

The scheme has undergone extensive pre-lodgement consultation with the City of Gold Coast, with the design refined following feedback relating to architectural expression, landscaping, traffic access and podium treatment.

<img alt="S&amp;S" data-entity-type="file" data-entity-uuid="0a2d70fd-62ac-4b83-97c6-b798fc1243dd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-05%20at%209.16.31%E2%80%AFAM.png?VersionId=yHmghUwKM3IVGpBktQU1mE.0Lpf3WimG" />

The architectural team is led by Brisbane-based Cottee Parker, one of Australia's most active residential design studios, with landscape architecture by Dunn + Moran. The consultant team also includes ADG Engineers, Windtech and Acoustic Works.

S&amp;S Projects has become one of the most influential private developers operating on the southern Gold Coast. Since entering Rainbow Bay in 2022, the company has assembled a portfolio exceeding $1 billion in end value, establishing itself as a key player in the area's evolution into a premium apartment destination. Pezet Matheson will again handle the sales for S&amp;S.

Coolangatta is entering another wave of apartment development, following the delivery of several prominent residential projects in recent years.

John Kearney's Immerse Projects will launch&nbsp;<a href="https://www.apartments.com.au/new-apartments/kaiya-kirra-beach-5-haig-street-coolangatta-qld-4225">Kaiya on Haig Street</a>&nbsp;soon, meanwhile, Palm Beach-based Sherpa Property Group is preparing to bring its debut Coolangatta development, <a href="https://www.apartments.com.au/new-apartments/flourish-viver-87-griffith-street-coolangatta-qld-4225">Flourish Viveré</a>, to market later this year, subject to approvals.

Eloise Keating

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