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Mortgage holders have been warned of two illegal tax avoidance schemes being offered by unscrupulous promoters that could result in tax deductions being cancelled and penalties being imposed.
The home loan schemes are included in examples that form part of the ATO’s new guide 'Investigating tax-effective arrangements', which aims to help borrowers “recognise some of the common types of tax avoidance schemes so you can reject them and avoid the negative consequences associated with them”.
The ATO warns of a tax avoidance scheme being promoted as a<a target="_blank" href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=8&amp;H8"> 'mortgage management'</a> plan, which involves refinancing your home loan.
“In this arrangement, a tax scheme promoter offers you a means of creating deductible interest payments, equivalent to your home loan interest payments, using the existing equity in your home to obtain additional loans for the purpose of claiming investment deductions.
“This is a scheme because there is no real investment and the dominant purpose of the arrangement is to reduce your assessable income by claiming deductions you are not entitled to,” says the ATO, which warns of “significant commercial risks if you enter into these types of arrangements”.
“Shares in the promoter company may not deliver a reasonable return or be worth far less than you anticipate," says the ATO.
The second property-related tax avoidance scheme is a <a target="_blank" href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=11&amp;H11">‘home loan unit trust arrangement’.</a>
“In this arrangement, a promoter claims they can make your home loan interest payments tax deductible.
"Using a unit trust the scheme promoter sets you up to borrow funds to purchase a property. You then live in the property and pay rent to the unit trust at market rates which the trust declares as taxable income.
“The trust claims associated expenses and interest charges as deductions against the rental income and you claim a tax deduction for the interest payments on the borrowing.
“This is a scheme because it involves getting a tax benefit from borrowings for private expenses - your home.
“You would not be entitled to claim the interest payments as deductions and you risk having to pay penalties and interest,” says the ATO.
The ATO warns: “When we identify arrangements where the promised tax benefit isn't available under the law, the arrangement is deemed to be a tax avoidance scheme. As a result, tax deductions for the arrangement are disallowed and participants face potential penalties.
“Tax schemes aren't limited to the 'too good to be true' type of arrangement. They can be more sophisticated than many people realise. Schemes can be complex arrangements that are offered to you by some advisers with claims the availability of tax benefits is confirmed by genuine experts."
The ATO is also warning investors about <a target="_blank" href="/news">illegal SMSF rental property scheme</a>. The guide can be read <a target="_blank" href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=1&amp;H1">online</a> or <a href="https://www.ato.gov.au/atp/content.aspx?menuid=0&amp;doc=/content/00268505.htm&amp;page=1&amp;H1">downloaded as a PDF document</a>.</body></html>

lschlesinger-FZcF9M3vE6

ATO warns on home loan tax avoidance schemes

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NSW will be the epicentre of a housing construction recovery in 2013 following years of underperformance, according to the latest Business Outlook report from Deloitte Access Economics.

Deloitte is forecasting a 9.7% rise in private housing investment in NSW in 2013-14 followed by annual rises of 9.3%, 8.4% and 11.1% in the three subsequent years to 2016-17.
This lift in housing construction, which should “comfortably outperform the size and speed of the national recovery”, is expected to drive an overall improvement in the state’s economy.
Click to enlarge
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“New South Wales’ housing sector is expected to see some good news – which will be something of a welcome change for a perennial underperformer," says Deloitte.
“In the main that is due to lower mortgage rates, with the latter expected to work their usual magic, but it also helps that land release is expected to accelerate, and that while rental vacancy rates have increased, they are still signalling a need for new housing stock.
“Moreover, while we note the news on the population front has been less than impressive, it is still true that overall population growth in NSW is improving.
“That won’t generate a massive housing recovery, but NSW’s performance should better than in other states, if only because its housing construction sector has been so weak for so long,” says Deloitte.
Other good news includes job growth lifting from early 2012 lows, nearly full hotels due to healthy numbers of business travellers and a "pretty full" NSW Government’s capital spending agenda is pretty full with investment in roads and railway and on the commercial front, projects like Barangaroo and the redevelopment of the Sydney Convention Centre at Darling Harbour.
It isn’t all positive news in the NSW property market with Deloitte noting that rental vacancy rates are climbing, while approvals for renovation work remain in the doldrums.
The recover in housing construction in NSW is part of a national recovery sparked by lower interest rates.
Alongside housing construction, Deloitte also expects a recovery in the retail sector from the second half of 2013 onwards as the mining boom “hurtles towards a peak” in 2013.
Howerver, it says the Australian dollar is “still giving manufacturing a Chinese burn, and the news also remains modest in both tourism and international education” - all key non-mining sectorst that need to life to take up the slack from mining investment peaking.
As a result, the report anticipates that lower interest rates are set to linger.
Looking at the other states , the report has favourable economic expectations for WA, Queensland (though not completely out of the woods) and the Northern Territory, with more modest expectations for Victoria and the ACT and gloomy ones for Tasmania and South Australia.
Victoria, Deloitte says, is more dependent on the Australian dollar (where as NSW is interest rate sensitive) meaning a recovery is further off with the state's economy losing a little momentum in 2013.
And while the report says interest rates are expected to also have a positive impact on housing construction in the state, it notes that Victoria’s housing construction sector is “no longer the 400 pound gorilla that it was for some years”.
“The key albatross on the outlook is simply this state’s past successes in housing activity – which means it hasn’t got anything like the pent-up demand evident in some other key states.
“As we have often noted, that leaves the overall housing construction outlook in this state projected to be solid enough, just somewhat less impressive than it is for other parts of the country,” says Deloitte
Rate cuts and accelerating population gains are expected to spell “rather better news in the housing construction sector in Queensland” while Deloitte says in WA leading indicators of housing construction activity have been “showering sparks all over the dragway as they accelerate after a period of slowdown”.
The biggest problem facing the national economy is the “Godzilla-like “strength of Australian dollar, which Deloitte says remains a problem for job prospects in a range of sectors and which is acting against a welcome pick up in migrant numbers.
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NSW to lead national housing construction recovery: Deloitte

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A former Western Sydney mortgage broker who sought to gain approvals for mortgages worth $3 million using false information and documents has been convicted of 10 offences under the National Consumer Credit Protection Act 2009 (National Credit Act).
Daniel Nguyen, of Panania, pleaded guilty to 10 offences in September 2012 including providing false information and documents to banks to secure approvals for home loans totalling more than $3 million over a five month period.
At the time of the offences Nguyen was the sole director and sole employee of M.A.I Pacific Pty Ltd (trading as MAI Home Loans) in Bankstown.
The Sydney District Court imposed a two-year good behaviour bond on Nguyen
The conviction of Nguyen is the first under new national consumer credit protection legislation.
The loans Nguyen was involved in attempting to secure ranged from $112,000 to $536,900.00, with the average being approximately $350,000. Only one loan of $532,000 was approved.
In making the order, the court, among other things, took into consideration Nguyen’s level of cooperation with ASIC’s investigation, his good character and history and his remorse for acting dishonestly in this case. ASIC Commissioner Peter Kell says brokers must familiarise themselves with their obligations under the National Credit Act. ‘They should know the law, read our guidance and seek additional or external advice if they feel they need it,’ says Kell The Commonwealth Director of Public Prosecutions prosecuted the matter. 
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Sydney mortgage broker convicted for using false documents to seek $3 million in mortgage approvals

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Queensland-based bank Suncorp financed 6.1% of all first-home buyer loans arranged by AFG mortgage brokers over December, according to new AFG figures.
It was the top-ranked lender outside the major banks with nearly 40% of all first-home buyer home loans processed in December either financed by the Commonwealth Bank or its subsidiary Bankwest, the latest AFG’s quarterly Competition Index shows.
Second on the non-major bank list was AFG’s own mortgage products, which accounted for 5% of all first-home buyer loans, up from 1.9% at the start of the year.
The other non-major bank lenders to appeal to first-home buyers were WA government-owned lender KeyStart with 4.9% of the market, recording the “most dynamic performance among non-major lenders” growing market share from just 0.1% in January.
ING Direct (2.1%) and South Australian government lender Homestart (1.1%) were the only other non-major bank lenders to pick up more than 1% of the first-home buyer market.
According to the index, the CBA accounted for 29.6% and Bankwest for 9.3% of all first home loans in December with the major banks taking 77.5% of the first-home buyer mortgage market.
The Commonwealth Bank’s success with first-home buyers has helped it pick up overall mortgage market share, which has risen from 17.4% in January to 20.7%
Despite accounting for nearly one in 10 first-home buyer home loans in December, Bankwest’s share of the total mortgage market has fallen from 7% to 4.2% over the past 12 months.
AFG bills itself as Australia’s largest mortgage broker, with its brokers writing one in 10 home loans in Australia.
NON MAJOR LENDER MARKET SHARE FIRST HOME BUYERS DECEMBER

Suncorp 6.1%

AFG 5.0%

ING 2.1%

Citibank 0.7% -

Macquarie 0.2%

Circle 0.2%

AMP 0.4% -

ME Bank 0.8%

Liberty 0.4%

Pepper 0.1%

Homestart 1.1%

Wide Bay 0.8%

Adelaide 0.1%

Heritage 0.3%

Rock 0.1%

Keystart 4.9%

Other 0.3%

All Non 22.5%

 
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Suncorp ranks as top non-major bank first-home buyer lender as Commonwealth Bank grabs lion’s share of market: AFG

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Residential land sales fell 17.8% over the September quarter of 2012 following three successive quarters of rising sales.
The latest HIA-RP Data Residential Land Report records around 12,000 residential lots sold over the quarter.
Putting this in to context, this is less than half the peak in lot sales achieved three years ago when there were just under 25,000 lot sales recorded over the September 2009 quarter.
Despite the fall, the weighted median residential land value in Australia increased by 3.8% over the quarter to $197,807. This value was 4.2% higher when compared to the same period in 2011
HIA chief economist Harley Dale says despite the fall in the September quarter, the volume of sales was still 14.9% higher than the record low set a year earlier.
The median value of residential land in capital cities increased by 5.1% in the September 2012 quarter to $225,795 - 6% higher than in the September 2011 quarter.
The median value for regional Australia was $155,214 in the September 2012 quarter. This represents a quarterly rise of 0.8% and a 0.2% increase compared with the same period in 2011.
“It is encouraging that land sales in a majority of markets have lifted off the depths plunged in 2011. However, this latest update highlights the uncertainty around whether the new home building sector can mount a recovery that is both sustainable and of the magnitude Australia’s population and economy require,” says Dale.
“Overall, residential land sales, a key leading indicator of housing starts, signal a rocky road for any new home building recovery in 2013.”
“One catalyst for the emergence of a strong new home building recovery would be the reduction in the cost of new housing, including serviceable land, which is brought about by disproportionately high and inefficient levels of taxation.
“This requires bold and decisive policy reform across all levels of government, action which consistently fails to occur to the detriment of a more productive and efficient economy,” he says.
According to RP Data’s research director Tim Lawless, the September results highlight the recovery in the vacant land market remains a fragile one.
“After consistent increases in the number of vacant land sales over the past three quarters, the lower September result is a stark reminder that consumers remain very price sensitive and cautious about their household finances,” says Lawless.
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Residential land sales fall 17.8% in fragile September quarter but values hold firm: HIA/RP Data

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Adelaide-based mortgage fund and lender Angas Securities has revealed that a third of its loans are now in arrears.
It comes just days after Brisbane mortgage lender Wickham Securities collapsed with $30 million of retiree funds at risk and following the high-profile collapses of debenture-funded mortgage lenders Banksia and Provident Capital last year.
Around 2500 small investors have invested in Angas Securities' debenture fund, which offers returns from 7.5% to 8% and principally lends the money on at high interest rates as commercial property loans.
Angas heavily advertised its debenture products on the radio.
Its latest fixed interest prospectus issued in December, which offers 350 million first ranking securities at $1 each and an annual rate of return of 7.5%, reveals that as of December 2012 it had a loan book worth $229 million with the proportion of loans 90 days in arrears or more tripling in the past six months to $72.3 million.
Around $33 million of these loans are more than a year in arrears.
Loans range in size from $2 million to a $9 million loan, which defaulted in June last year.
The company recently broadcast advertisements on Alan Jones’ 2GB show seeking new investors, reported The Australian.
Angus executive chairman Andrew Luckhurst-Smith told the paper the company was comfortable with its arrears levels due to its conservative lending criteria and had no concerns about recoverability and neither would its auditors, Deloitte Touche Tohmatsu, listed on the prospectus.
The largest loan in the Angas portfolio comprises three mortgages totalling $25.25 million over a “prestigious rural/residential property along with collateral security over harbourside apartments in Sydney”.
Angas says the loan is paid up in terms of interest until December 31, 2012
The second biggest loan is a $21.4 million loan to a “Perth based builder and property developer, with a range of distinct residential, commercial and retail properties providing security”
“The principal activity of Angas is to provide short term loan finance fully secured by registered first mortgages over real property,” reads the prospectus.
First mortgage advances do not exceed maximum loan to valuation ratios of 70% for residential, industrial and commercial loans and 50% for rural loans.
The minimum investment is $10,000 with a maximum of $5 million.
The prospectus warns that “investors may not be able to recover all or part of the principal funds invested in the issue or any fixed interest attaching to these”.
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Adelaide mortgage fund Angas Securities reports a third of loans more than three months in arrears

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The huge competitive advantage the four major banks already enjoy in the mortgage market is being boosted by borrowers getting ahead on their mortgage repayments.
On average more than one in two (56%) borrowers who have their loan with a major bank are ahead on their mortgage repayments, according to research by Morningstar.
A large proportion of these would be variable-rate mortgage holders who have continued to pay off their loan at the same amount, despite interest rates falling since November 2011.
The Commonwealth Bank, Australia’s largest mortgage lender, has the most diligent borrowers with more than two-thirds (69%) ahead on their mortgage repayments.
Second best is Westpac (59%) followed by ANZ (49%) with NAB the laggard at 45%.
“Recent interest rate cuts will increase home loan prepayment rates and provide the banks with an even stronger buffer against future loan loss risks,” says Morningstar financial services and property market analyst David Ellis, who compiled the report.
The latest quarterly ING Direct Financial Wellbeing index also found around one in two households (49%) are ahead on mortgage repayments - the highest proportion since the bank began tracking this figure in mid-2010.
The proportion of households ahead with their repayments is highest in Queensland (58%) and Victoria (57%).
The survey, based on an early January Galaxy Research online survey of over a 1,000 households, also found that 93% of home owners are ‘comfortable’ with their loan, with 64% saying they are ‘very’ comfortable - the highest level since tracking began.
The Morningstar report also looked at loan to value (LVR) ratios of the major banks, which are in a range from 44% to 56%, indicating most borrowers have built up strong financial buffers.
The Commonwealth Bank again rates highest on this measure with an impressive loan to value (LVR) ratio of just 44% with NAB the highest at 56%.
In addition, Morningstar found that the mortgage books of the major banks are also being boosted by improving arrears rates.
“Arrears rates continue to improve with home loan 90-plus day arrears trending down from a four bank average of 0.61% of the total loans outstanding at September 2011 to 0.52% at September 2012,” says Ellis.
All of these factors – borrowers’ propensity to get ahead on mortgage repayments, low LVRs and declining arrears – will provide insulation in the unlikely event of a significant financial shock.
Ellis says a sharp deterioration in credit quality is the major risk to earnings growth, particularly if the economy slides into recession, but ranks as a low possibility.
“Tight credit risk standards limit potential damage, but a sharp increase in business loan losses similar to GFC highs in 2009 will damage earnings, dividends and investor confidence.
“We do not see any material loan loss risks in the residential portfolios of the major banks and at this early stage of the 2013 financial year and overall credit quality remains sound,” says Ellis.
He also says the housing market has stabilised following moderate house price declines in 2011 and early 2012, though “we still expect a slow grind down till 2015”.
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Half of borrowers ahead on mortgage payments: Morningstar and ING Direct

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ME Bank has cut its one-year fixed rate home loan to 4.99% per annum, joining a number of other lenders who offer a one-year rate below 5%.
Other lenders to offer this rate include Newcastle Permanent , Hunter United and the Greater Building Society.
The 4.99% rate is applies to its Super Member Home Loan (SMHL) Standard Home Loan with a member package.
The member package is only available to members of eligible super funds and unions
The Bank also cut its three-year fixed rate to 5.19% p.a. for its SMHL Standard Home Loan with a Member Package.
“Fixed rates are at lows rarely seen in the home loan market and present a unique opportunity for customers seeking to lock in lower repayments," says ME Bank CEO, Jamie McPhee.
 “The average standard variable rate for the big four banks is currently 6.42% p.a., which is 1.43% higher than our new one-year fixed rate.”
 “A borrower could save themselves more than $3,200 over 12 months by borrowing at 4.99%p.a. instead of 6.42%p.a. on a 25-year, $300,000 loan,” he said.
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ME Bank cuts fixed rates

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Rising house buying activity in the last 12 months and greater enthusiasm from buyers suggests Demographia’s has overstated the severity of housing affordability in Australia, says Australian Property Monitors chief economist Andrew Wilson.
The hotly-debated Demographia survey ranked Australia as the third least affordable housing market in Australia behind Hong Kong and Canada.
Sydney ranked as the third most expensive major housing market in the world - with a median multiple of 8.3 topped by Vancouver in Canada at a multiple of 9.5, and, most expensive, Hong Kong where the multiple sits at 13.5.
Wilson says that any measures of unaffordability are certainly not affecting the market place in terms of buyer activity and prices growth.
“So we need to look very carefully at the concept of what is unaffordable,” he says.
“Does unaffordable mean inability to buy, because in Sydney buyers are up and about?”
Wilson warns that it is “always dangerous” to aggregate market not even Australia wide but capital city wide and characterise them as unaffordable.
He says buyers are “still very enthusiastic about purchasing properties in Australia”
“We are definitely seeing a better period of housing market activity over the last 12 months than we did for the previous 12 months,” he says.
“That means that affordability, if it means the capacity to buy houses, has improved,” he says.
The Demographia survey finds that Australian housing affordability improved marginally from 6.7 to 6.5, with anything under a score of three deemed affordable.
Demographia measures affordability by dividing the median house price with the median household gross annual income before tax.
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Australian housing market not as unaffordable as Demographia claims: Andrew Wilson 

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Self-funded retirees lured by the promise of high returns have again been caught out following the collapse of Brisbane-based specialist lender Wickham Securities. The lender provided property loans.
It’s an all too familiar story –following a similar plot line that led to the demise of Victorian rural lender Banksia and Sydney-based sub-prime lender Provident Capital last year.
Wickham Securities raised money from SMSF investors through $1 unsecured deposit notes promising returns of 9.25%.
The money was then lent the money to what appears to be borrowers of last resort to fund commercial property acquisitions or refinance existing loans, at interest rates in excess of 20%.
A spokesperson for ASIC told Property Observer, that the collapse of Wickham Securities would be included in its internal taskforce investigation into the debenture sector.
“ASIC will be investigating and understanding the circumstances surrounding its failure. ASIC will work with the administrators to maximise the best possible return for debenture holders,” said the spokesperson.
The collapse of Wickham came just a day before Bill Shorten, the minister for financial services and superannuation announced on December 22, that there would be public consultation about possible changes to strengthen the regulation of finance companies that issue debentures to retail investors.
Grant Sparks and David Leigh of corporate recovery firm PPB Advisory in Brisbane were appointed as administrators of Wickham Securities by its board of directors on December 21.
The consultation will likely come too late for Wickham’s unsecured noteholders who received no warning from the directors of the company that it may be facing any financial problems.
While the most recent September quarterly report to trustees of noteholders does not indicate that any loans financed from deposit notes were in arrears, initial investigations by administrators PPB Advisory indicate that some loans have gone bad.
Wickham attracted around 300 investors who invested in $1 deposit notes.
They are being represented by Sandhurst Trustees Limited, who will vote on their behalf alongside secured creditors on the future of Wickham at a creditors meeting to be held on February 6.
Prior to the meeting Sandhurst is seeking direction from noteholders as to how it should vote.
A December 24 update from PPB Advisory, disclosing possible conflicts of interest, suggest recent problems were flagged at the start of December, with the firm asked by Sandhurst to undertaken an independent review of certain aspects of the Wickham loan portfolio.
The review was not completed and PPB Advisory have not been paid Wickham.
However, problems for Wickham appear to date back much further.
In 2009, Wickham Securities along with Bankwest, as secured creditors, appointed Ferrier Hodgson as receiver-managers of Plantation Rise residential development at Woombye on the Sunshine Coast hinterland.
The appointment came just days after Brisbane-based McLeod and Partners was appointed voluntary administrator with Wickham reported owed several millions of dollars.
It’s most recent September quarterly report to trustees stated that it should have enough property "to repay the amount of each debenture when it becomes due and payable" but also warned that they had invested in unsecured deposit notes not bank deposits and risked "losing some or all" of their investment.
Wickham had loaned out $27 million out of but none of the 20 loans were in arrears, and they were secured by $145 million worth of property, the accounts said.
The report stated that Wickham should have enough property "to repay the amount of each debenture when it becomes due and payable".
Annual accounts to the end of June show that Wickham reported a profit of $396,000 following a loss of $839,000 in the previous year and report no significant change to the nature of the company’s activities.
The company earned $5.17 million in interest payments
The directors are listed as Bradley Sherwin (chairman), Peter Siemons, Ian Montgomery and Garth Robertson.
Sherwin, also the company secretary, received a salary of $117,500 and is the only shareholder with 644,556 shares.
The annual report shows that Sherwin’s financial planning business, Sherwin Financial Planners provided consultancy services to Wickham, which along with administration costs totalled $222,954. In the previous financial year, the financial planning business was paid $767,812.
It says the Bradley Sherwin specialised in providing financial advice to high-net worth individuals, private businesses and self-funded retirees.
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Self-funded retirees facing $30 million loss following collapse of lender Wickham Securities

<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Larry Schlesinger

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