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The Brisbane franchise of Gold Coast residential property group Cavalier Homes has been placed in administration, just weeks after the owner of Cavalier Homes' Warrnambool and Gippsland franchises also collapsed.
The Gold Coast-based franchisor is not in administration.
Gippsland-based commercial builder Kirway Constructions, the owner of the Warrnambool and Gippsland franchises of Cavalier Homes, collapsed on March 8.
Gess Rambaldi, liquidator of Kirway Constructions at Pitcher Partners, says a creditors' meeting was held on March 16 in which creditors were told there were a number of projects at various stages of construction.
A tender process has started for the completion of the several projects to preserve the value of the contracts. Expressions of interest are due tomorrow.
Rambaldi says Kirwood was not able to finish these projects because it ran out of money and had sacked its 50-odd employees.
He said it was too early to comment on the causes of insolvency or whether the company had been running losses for years.
But he said directors had formed a view that the "construction industry itself had ground to a standstill, and the tender processes had dried up."
Meanwhile, franchise Cavalier Homes Brisbane Pty Ltd, and three related companies, have collapsed.
Lloyd Kerr, partner at Jirsch Sutherland, says the Brisbane business is no longer trading after “ongoing regulatory issues” but stresses that it’s “business as usual” for other Cavalier franchises.
Kerr said just days into his appointment, he’s not yet sure how long the Brisbane franchise has been in trouble, but creditors are owed north of $3 million.
They include suppliers, interests related with the company and possibly the Queensland building regulator.
The franchisor has expressed its desire to help the 30-odd customers with partially completed houses, Kerr said.
A creditors’ meeting will be held next week, and a detailed report will follow.
A spokesman for the Queensland Building Services Authority told the ABC that Cavalier Homes Brisbane did not have enough funds to continue operating.
"A number of consumers have contacted us with regards to the progress of the work – that it's very slow on site, their jobs have stopped, they haven't got the capacity to install roofs," the spokesman said.
"We're concerned about consumers, subcontractors, trade contractors and suppliers – so we've taken the step to immediately suspend [Cavalier Homes] licence."
According to its website, Cavalier Homes is one of Australasia's largest residential building entities and provides specialist construction finance advice.
It moved into franchising in 2001, one decade after setting up on the Gold Coast.
"With the move into franchising in 2001, Cavalier targeted quality driven builders in key regional locations to come on board as franchisees. This meant new home clients in regional locations could deal with a local builder supported by the design range and buying power of one of Australia's largest building companies," the company says.
Cavalier Homes was contacted for comment this morning.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>. 
 
 
 
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Brisbane and Victorian franchises of builder Cavalier Homes collapse

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The building and construction industries have had a poor start to the year, with more than 80 firms entering administration or liquidation or being hit by a winding-up notice over the past month on the east coast alone.
A review of insolvency appointments shows that companies in earthmoving, project development, kitchens, fencing, civil engineering, plumbing, electricians and plasters have recently collapsed.
Collapses this month include Royal &amp; Taricon Construction, Amorin Constructions, BQL Constructions, Bina Constructions, Simtom Constructions, Australian Property and Construction Pty Ltd.
Registered company liquidator Cliff Sanderson, of Dissolve in Sydney, says construction company collapses are "always prominent", but have become increasingly so over the past six months.
This is due to the courts opening up for 2012, the weakness in construction starts, companies getting around to unpaid tax bills, and the trickle-on effect from larger company collapses.
"There have been a few larger building companies go broke in the last six to 12 months, like Kell &amp; Rigby, and there's always flow-on from that, but most of them are actually suburban tradies [who have collapsed]," Sanderson says.
"For us, February was bigger than January, and in March there's been a noticeable uptick on last year."
According to Sanderson, part of the problem is that small construction firms are not diligent on bookwork.
"The average director doesn't want to look, and then 18 months they find they have a large tax bill."
Peter Jones, chief economist at the Master Builders of Australia, says of its 31,000 members, about 95% are classified as small business, and many are "really struggling".
"The forward orders aren't looking too flash; they're looking to lay-off staff and are concerned about their outlook."
Jones says the problems stem from flatling construction starts on the residential side, and declines on the commercial side as Government stimulus wears off.
He says there's no evidence that a Tax Office crackdown on the sector was boosting collapse numbers, although it's conceivable many companies had fallen on large tax bills.
Jones says a rate cut of 0.5% would provide a fillip to the building and construction industries.
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/index.php"> SmartCompany</a>.
 
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Construction carnage: More than 80 firms collapse in a month as building industries suffer through 2012

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The lawyer spearheading a class action against Bankwest has welcomed the announcement of a broad-ranging parliamentary inquiry into the banking sector.
Slater &amp; Gordon commercial litigation lawyer Van Moulis, who is working on a class action on behalf of dozens of aggrieved borrowers, says he looks on with “great interest” to see what the Senate investigation uncovers.
“I’m very pleased,” Moulis said.
The inquiry, announced yesterday, will look into:
<ul>
<li>the impact of borrowing and lending practices in the banking sector both during and since the global financial crisis;</li>
<li>the need for further consideration of the state of the broader finance and banking sector;</li>
<li>the impact of international regulatory changes on the Australian banking sector;</li>
<li>the impact on relative shares of specific banking markets; and</li>
<li>the current cost of funds for lending purposes.</li>
</ul>
The Slater &amp; Gordon case is centred on the idea that Bankwest customers were victimised by "improper" lending and recovery practices in 2008.
Of particular interest is a provision that allowed buyer Commonwealth Bank to “claw back” bad and doubtful debts from vendor HBOS.
Bankwest has vehemently defended its actions, saying it had assisted many customers between 2008 and 2011.
The Senate inquiry has been spearheaded by Nationals Senator John Williams, who raised the alarm at reports that banks were pulling loans to small business clients, including farmers, leading to assets being sold at rock-bottom levels.
He said yesterday the inquiry would allow “developers and investors who have complaints about the way they have been treated a chance to have their say.”
“This inquiry will also be able to scrutinise the role of receivers and valuers to see whether they are doing the right thing when valuing and selling properties.”
“I have heard some horror stories about their actions.
“We need to know if everyone is and has been treated fairly. We need to know the vulnerable are protected.
“Ultimately we need our banking sector to be strong, but if there are concerns they need to be addressed.”
The Australian Bankers’ Association said it would “provide a submission to the Senate Inquiry and will seek to appear to give evidence."
"It will be a good opportunity for the ABA to explain why banks’ funding costs have increased relative to the Reserve Bank’s cash rate and why that has meant home loan interest rates have increased."
"Also we will be talking about why solid, reliable and profitable banks are important for the Australian economy.”
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
 
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Class action lawyer welcomes Senate inquiry into banking sector

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The Shopping Centre Council has upped its opposition to a long-awaited retail tenancy code of conduct, telling the competition regulator that it will not engage with the Franchise Council of Australia on the proposed code.
FCA executive director Steve Wright says progress has been made on the voluntary code, which is designed to stem conflict between landlords and tenants about rental increases, end-of-term arrangements, fit-out requirements, and abuse of market power where landlords offer contracts on a "take it or leave it" basis.
The code will be up for discussion at a retail forum in Sydney tomorrow, alongside other ideas such as a payroll tax freeze, government assistance for small business and occupational health and safety.
Wright says although the SCC has clearly stated its opposition to the code, the FCA remains hopeful an agreement can be reached – particularly if it helps lead to harmonisation of retail tenancy laws across the country.
The guidelines are designed to give retailers confidence about security of tenure, and are particularly relevant given poor occupancy rates in shopping centres across North America, Wright says.
The Australian Competition and Consumer Commission said this morning that it had not yet received a completed code from the FCA. The ACCC assists industries with voluntary codes to ensure they contain no anti-competitive elements, but its assistance does not amount to an endorsement of a code.
But the SCC, which represents shopping centre owners and managers, has decried the proposed code as a “media stunt” and has told the FCA and the ACCC that it will not discuss the matter.
In a letter last week to ACCC chairman Rod Sims, SCC executive director Milton Cockburn writes: "Given that Australia already has the most highly regulated retail tenancy industry in the Western world, we have no intention of adding to that already considerable volume of regulation through the adoption of a code of conduct."
The SCC also says the code would only add to existing regulations, and has called for the franchise body to look at its own backyard.
“Most sensible people would support replacing the existing state and territory regulation of retail tenancies with a single national approach but this is not what the FCA has in mind.”
“Instead the FCA is apparently proposing an additional national code of practice which would sit on top of the existing state and territory legislation.”
The SCC says retail leasing is already much better regulated than laws covering franchising.
“State and territory legislation governs every aspect of the retail tenancy relationship, beginning even before the lease is entered into. The legislation contains financial and other penalties for non-compliance,” it says.
“The FCA wants even more rules to apply to retail leasing, which, by contrast, already has far too many rules."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany.</a>
 
 
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Shopping Centre Council tells ACCC it won’t cooperate on retail tenancy code of conduct

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We've come a long way since Kevin 07, WorkChoices and the description of climate change as the "greatest moral challenge of our time". On the flipside, with Rudd circulating for the leadership, the Fair Work Act damned daily in the press and a carbon tax on its way, maybe we're heading back to where we started – but a lot more battered and bruised.
As SmartCompany celebrates its fifth birthday, we're looking forward and backwards in a special two-part feature.
In part one, we take a <a href="https://www.smartcompany.com.au/economy/048298-the-five-trends-that-shaped-smartcompany-s-first-five-years?utm_source=SmartCompany&amp;utm_campaign=381bc631a2-Tuesday_21_February_201202_21_2012&amp;utm_medium=email">look</a> at the key trends that have shaped the last five years.
In this second part of the special, we've spoken to some of the country's great thinkers to find out what's in store for Australian businesses over the next five years.
What are the themes entrepreneurs need to be aware of? And how should SMEs prepare?
<h3>Volatility rolls on</h3>
If the average deleveraging cycle lasts about a decade, we still have a long way to go before the global financial crisis recedes – and either a bust-up of the euro or a nasty recession from strict austerity measures don't bode well for Europe, and its business partners across the world.
Shane Oliver, head of investment strategy and chief executive at AMP Capital Investors, says private-sector deleveraging among advanced companies will curb economic growth in the years to come – and the past few years' volatility will continue as central banks in Europe and the US continue with their "extreme" monetary policies; that is, holding interest rates around zero.
Lest companies think they can bow out of macro-economic concerns, Professor Kosmas Smrnios, lecturer in entrepreneurship at RMIT, says SMEs can ill-afford to put their heads in the sand by avoiding global competition.
"Organisations will need to look at the big picture," he says. "A parochial stance will be a thing of the past unless someone can deliver a niche product to suit a particular market."
<h3>Technology and structural change</h3>
RMIT's Smrnios says with technology developing in leaps and bounds, the focus is on how organisations can better use technologies to manage global competition and changes in supply. And as the shelf life for products and services shrink, Smrnios says technology will help companies stand out from a pack, be creative and innovative.
The Service 2020: Megatrends for the decade ahead report, conducted by the Economist Intelligence Unit and released last month, says firms will need to use the increased transparency brought by social media to their advantage.
"The clear trend to come out of this [social media] is that organisations understand it's here to stay and they need to harness it," says BDO Australia national chairman Tony Schifmann.
But although few would argue that companies can afford to ignore the enormous audiences of Twitter and Facebook, it'll be imperative for businesses to work out on their return on investment. Social media can go awry or soak up too much time; expect smarter methods to emerge as businesses get smarter with their social media practices.
The effect of technology will be most profoundly felt by the retail sector, says IBISWorld founder Phil Ruthven, likening its impact to the introduction of self-services decades ago. Just as self-service caused the demise of many retailers from the 1960s onwards, he argues, online is doing it all over again.
<h3>A new consumer</h3>
Demographer Bernard Salt says changing business models should be front of mind for all business-leaders.
"It's almost like in the Australian business community, the consumer market was travelling along and then ran into the GFC, and now everyone is battening down the hatches waiting for it to pass. But my view is we'll come out of the storm pointing in another direction," Salt says.
"Big picture structural shifts are afoot and business needs to be anything but complacent about strategic thinking."
"If you've invested in a business predicated on a model based on the 1970s through to 2010, and the model has genuinely shifted, then no amount of smart business practices will fix it."
So who's in line? Salt says by 2020, between 15-20% of retail sales could be competing online, having a profound impact on retailers and the traditional consumer model.
Similar change will sweep through the tourism industry, which has traditionally been predicated on mum, dad and the kids going on holiday in Queensland rather than jumping on a Jetstar flight to Bali.
And then there's manufacturing: Salt says although Germany has managed to retain its manufacturing sector, this is largely because its manufacturing is value-added, sophisticated and generally can't be replicated in China – yet. These are some weighty questions for out-of-favour sectors.
<h3>Sustainability</h3>
Smrnios says sustainability will be another key theme in business for the next five years.
With the carbon tax and associated compensation taking force later this year, and the commitment of Labor and the Greens to prepare for the "green economy", SMEs are urged to familiarise themselves with the financial incentives and government programs for greening up.
<h3>People power</h3>
An ageing population and ongoing skills shortages mean staffing will remain a key issue for entrepreneurs in the years ahead. Smrnios says the focus will be on finding and retaining people who:
<ul>
<li>have the appropriate skills;</li>
<li>fit in with the culture,</li>
<li>can work in teams;</li>
<li>solve problems; and</li>
<li>be up-to-date with technology.</li>
</ul>
Beyond the issue of Australia's ageing population – how will it be funded, how much longer people will have to work, how will the government and companies deal with foreign labour – industrial relations will likely loom as a hot-button issue for the country.
Phil Ruthven of IBISWorld says there is "some suggestion that the industrial relations legislation [Fair Work] may be a bit of time bomb for the future," particularly among mining and construction companies.
Time will tell what the Fair Work review throws up, and how the Coalition would change things if it won the next election. No doubt we'll get yet another system that will claim to get the balance right.
This article originally appeared on<a href="https://www.smartcompany.com.au/index.php" target="_blank"> SmartCompany</a>.
 
 
 
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Five key trends for the next five years

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The body charged with mediating disputes on retail leases in Victoria says "financial tightness" among landlords and tenants is likely driving a surge in conflicts.
The state's Small Business Commissioner Geoff Browne says the number of complaints about retail leasing conflicts soared to 611 in the six months to December last year, from 501 the previous corresponding period.
The complaints cut both ways: landlords are often chasing rent from tenants, and tenants are seeking the return of security for the lease.
Browne says data from the Office of the Victorian Small Business Commissioner suggests that there's been growth in the number of landlords chasing tenants who may have closed up shop over the past 18 months or so.
"I've seen a number of disputes where tenants have walked away because the business is not generating sufficient revenues," he says.
Another cause of dispute is appropriate rent increases, with valuers often sought by tenants who insist that the requested rate is too high for market conditions.
Browne says it's imperative that tenants understand their obligations and honour their contracts, even in difficult economic conditions.
Conversely, landlords need to ensure they disclose all relevant information to tenants.
"And in this current economic climate, they need to engage with tenants if there are signs of distress."
"It's usually better to have a tenant rather than a vacant shop."
Brown says he's also hearing a willingness from landlords to look at contractual terms.
The office started life in 2003, and typically sees 10% growth in complaints each year.
Its annual report, released in September last year, showed that retail leasing accounted for about 70% of the 1,553 matters it tackled through 2011.
Browne says the body has a mediation success rate of more than 80%. Under the Retail Leases Act, parties cannot go to VCAT without going to the Small Business Commissioner first.
The comments come as Westfield, Australia's largest shopping centre, throws down the gauntlet at local retailers complaining about rents, tipping international retail behemoths would replace them.
Speaking after reporting that its Australian and New Zealand portfolio was more than 99.5% leased, Westfield co-CEO Peter Lowy "stronger retailer internationally [are] coming in to replace" stores that close within its shopping centres.
Co-CEO Steven Lowy added he would be "staggered" if popular international brands such as Japan's Uniqlo, Abercrombie &amp; Fitch, and H&amp;M didn't enter Australia by 2017.
This article originally appeared on<a target="_blank" href="https://www.smartcompany.com.au/retail/048245-why-retail-lease-brawls-are-increasing-the-victorian-small-business-commissioner"> SmartCompany.</a>
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Why retail lease brawls are increasing: the Victorian Small Business Commissioner

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A former Bankwest customer who says the bank's actions in calling in two loans "ruined" his family and his business has detailed his reasons for signing up to a mooted class action that accuses the bank of improper lending and recovery practices after its takeover by the Commonwealth Bank during the GFC.
Peter Randles, a property developer from Western Australia's North Fremantle, says he is signing up to a mooted class action run by the law firm Slater &amp; Gordon and funded by IMF after the bank's actions caused him to almost lose his family home. He says he is very confident the class action will proceed.
Randles says he and his wife had two accounts with Bankwest: one residential and one commercial. After working two years on an apartment development, Randles says he was told by Bankwest in 2008 that its parent HBOS had no money for development and he should refinance elsewhere.
Randles says after getting approval from the Commonwealth Bank to pay out a home loan account to the tune of $3.2 million, he was told by Bankwest that it wanted both loans paid in full.
Randles says he was informed by the bank that they were in default in July 31, 2008, and over the next two years, the interest rate on the combined loans averaged 18%, after being informed by the bank that they were in default.
The Randles lost their home in April 2010, and their properties were put up for auction by the bank in the middle of last year. ANZ then came forward with a last-minute refinance offer for the $7.5 million debt, with about one-third – $2.4 million – accumulated interest.
"The basis of our claim is by not accepting the full payout on our residential account, and we'd had that account for 20 years, we want all for our penalty interest back. The domino effect for not accepting that payment is ruinous," Randles says.
But Bankwest says it strongly denies the allegations.
"Due to the GFC and the broader economic environment property values and property development in general suffered between 2008 and 2011," a spokesperson said.
"Bankwest assisted many customers through this period and continues to do so."
"Bankwest has over a million customers and over the past 18 months has had the largest increase in customer satisfaction of all banks across Australia."
The comments follow confirmation from Van Moulis, commercial litigation lawyer at Slater &amp; Gordon, that he is working on due diligence on behalf of a group of dozens of aggrieved borrowers, primarily property developers.
Bankwest was eventually purchased by CommBank for $2.1 billion in December 2008; the complaints of the property developers centre on sudden demands for payment and excessive interest payments after that deal.
A Sydney property developer, Guy Goldrick, has argued that a provision allowing CommBank to claw back bad and doubtful debts from HBOS led the bank to make harsh decisions on loans.
In documents from IMF, managing director Hugh McLernon says while "little is known" about an agreement allowing CommBank to claw back part of the purchase price for Bankwest from the vendor, "what is clear is that CBA called upon the warranty and was paid some $200 million".
"At the same time some commercial developer clients of Bankwest believe they were hard done by when Bankwest revaluated their security and called up their loans in the period after CBA took control of Bankwest," McLernon writes.
"If there was a time limit and if CBA had to call up the loans or take some enforcement action within that limited time in order to get the advantage of the warranty and if that warranty was unlimited, then there is some risk that the CBA has been enthusiastic in its quest to have Bankwest identify and take action against commercial property developers whose loans were within the categories set out in the warranty."
He also notes that Bankwest's statement of financial position, which detailed money owed to them from the Reserve Bank, and other banks and financial institutions, shows that the amount of money pouring into Bankwest soared from zero in July 2008, to $29 million the following month, before swelling to $3.752 billion in December 2008.
The Reserve Bank has told The Age that it had $55 billion deployed helping Australian banks with liquidity by the time of CommBank's takeover of Bankwest, but declined to say whether Bankwest was one of its recipients.
The takeover of Bankwest has already been the subject of an inquiry, although Nationals Senator John Williams has recently flagged an interest in a Senate inquiry into bank practices, following complaints from constituents that loans were being pulled without warning and leading to assets being sold at fire sale prices.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
 
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WA property developer joins the Slater & Gordon class action against Bankwest

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The 102-year-old construction company Kell &amp; Rigby has stopped work at its sites across the eastern seaboard and is reportedly scrambling for a solution to stave off collapse, after losses from apartment projects weighed on the family-run business.
The board's decision to stop work across New South Wales, Canberra and Queensland follows the collapse of talks with a potential partner about a company restructure and refinance.
Construction, Forestry, Mining and Energy Union NSW state secretary Brian Parker is quoted saying that a Chinese investors and property company FKP were the parties that walked away.
<img style="float: left; margin: 5px;" src="/images/stories/kellandrigby.jpg">
James Kell, the managing director whose great-grandfather founded the business, says that two apartment projects – one ahead of the Sydney Olympics, and another in Sydney's Rushcutters Bay – had damaged the company. "The traditional builder contract model for apartments does not work," the Australian Financial Review quoted him saying.
Kell <a href="https://www.propertyobserver.com.au/news/kell-rigby-one-of-australia-s-oldest-most-respected-building-companies-set-for-voluntary-administration/2012020853012" target="_blank">also told Macquarie Radio yesterday</a> that the company is "still talking about a way out of this, about a solution".
But the news puts hundreds of jobs at risk, with the CFMEU's Brian Parker tipping contractors and more than 50 businesses will also be hit by a collapse.
Brian Seidler, of the Master Builders Association in NSW, says it's a "sad day for the building community in NSW".
"These companies played a substantial role in what the city [Sydney] looks like, and there's not many left."
He says that the building industry in the state is not good at the moment, but companies need to take steps to ensure they were not taking work that costs them money.
"The environment is it's a client's market."
According to the Australian Financial Review, the company had annual turnover of $150 million, and says the CFMEU and its lender, Commonwealth Bank of Australia, had been fair to the company.
Although there were predictions the company would enter collapse today, there were no listed changes for the company on the Australian Securities and Investments Commission website this morning.
The company's website was not online this morning. Kell and Parker were contacted for comment.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany.</a>
 
 
 
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Construction company Kell & Rigby stops work as financial talks collapse

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The listed law firm Slater &amp; Gordon has confirmed it is working on a class action against Bankwest, alleging improper lending practices after its takeover by Commonwealth Bank of Australia during the global financial crisis.
Van Moulis, commercial litigation lawyer at Slater &amp; Gordon, says he's working on due diligence on behalf of a group of more than 27 aggrieved borrowers. Slater &amp; Gordon is working in tandem with the litigation funder IMF.
Moulis says the borrowers are primarily property developers, including co-ordinator Guy Goldrick, a Sydney property developer who has accused Bankwest of pulling loans at short notice and for insufficient reason.
Moulis says he's "reasonably confident" the case will proceed, calling on property developers who believe they were victimised by "improper" lending practices and recovery practices around 2008 to contact the law firm.
A Bankwest spokesperson says the bank will "always consider and respond to any legitimate query raised by a customer."
The confirmation comes as Nationals Senator John Williams speaks to fellow Senators about the prospect of a Senate inquiry into whether banks are pulling loans to small business clients, including farmers, leading to assets being sold at rock-bottom levels.
Williams told SmartCompany earlier this week there are "appalling" examples of asset being sold far below their value.
Moulis says a class action would likely complement a Senate inquiry.
"Whatever comes first," he says. "We'll probably end up with both."
Property developer Guy Goldrick told SmartCompany that he had received hundreds of calls from Bankwest customers complaining about the bank's behaviour since its takeover by CommBank.
Goldrick is the owner of Mortgage Wise Australia, and says he was involved in a development that was funded by Bankwest.
The thrust of Goldrick's argument is that a provision allowing CommBank to claw back bad and doubtful debts from vendor HBOS has led to the bank "making harsh decisions".
"It started as soon as it was taken over; people put to the sword by the stroke of a pen," he said.
"We're alleging that most of these loans would have never been considered to be bad or in default, and that all of a sudden the loans were bad.
"The question mark is how they changed in one day."
But a Bankwest spokesperson says Goldrick has no claim against the bank.
"Guy Goldrick is not a customer of Bankwest and he has no claim against the Bank. His allegations concerning Bankwest have no merit."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany.</a>
 
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Slater & Gordon considers class action against Bankwest over claims of 'improper' lending practices

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A federal government plan to offer HECS-style loans to students studying a trade or technical skill has been welcomed by building groups.
Writing in The Australian, Prime Minister Julia Gillard notes that although university students can study now and pay back their course costs when they get a well-paying job, students getting high-level vocational skills, including trade and technical skills, cannot.
"We will ensure that students have the same right to borrow so they can study, to get a loan they can pay back from increased earnings," Gillard says.
"The most determined have always made their way. Now we're going to make it easier for them, and for others who have been put off by upfront costs."
According to the report, the plan will be put to the Council of Australian Governments meeting in March.
Master Builders Australia national director of training Alex Maroya says the plan would increase training opportunities for the sector, which is welcomed, but the devil will be in the detail.
"The main pathway into the industry is still the apprenticeship system, so this will largely target people in the industry who are better established," Maroya says.
He says the proposal is an expansion of existing program that provide a range of subsidies for higher-level staff.
The plan would likely get through COAG, he adds.
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany.</a>
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Builders welcome proposal for trade students to be offered HECS-style loans

<a href="https://www.apartments.com.au/developments/city-beach-wa-6015">City Beach</a>’s tightly held coastline is preparing for one of Western Australia’s most closely watched apartment launches, with <a href="https://www.apartments.com.au/developers/blackburne">Blackburne</a> set to launch Ocean Grand on the weekend.

Located at 3 Kilpa Court, overlooking Ocean Village Park and just a short walk from the beach, <a href="https://www.apartments.com.au/new-apartments/ocean-grand-city-beach-3-5-kilpa-court-city-beach-wa-6015">Ocean Grand</a> is a 264-apartment development that signals a new scale of apartment living for Perth’s western suburbs. The project arrives at a time when City Beach has cemented itself among Perth’s most expensive postcodes, underlining the depth of demand for high-end housing in established coastal neighbourhoods.

[smartcode_project:default project_id=150184 project_image_fid=360599]

Ahead of the public launch, Ocean Grand has already recorded more than $200 million in sales, with 57 apartments secured prior to release. The early sales performance places the project among the highest-value residential developments ever undertaken in Western Australia and marks a clear shift in Blackburne’s product mix towards the upper end of the market.

Ocean Grand comprises a mix of large-format apartments and penthouses, with pricing spanning from around $2 million through to $10 million. Many of the buyers to date are understood to be long-term City Beach residents and coastal homeowners seeking to downsize locally while retaining space, privacy and proximity to familiar amenities.

The development includes an extensive suite of resident-only facilities more commonly associated with large resort-style projects. These include a pool with cabanas, alfresco dining areas with barbecues and a pizza oven, multiple private dining rooms and lounges, a fully equipped gym and yoga studio, and a comprehensive wellness offering with sauna, steam room, spa and cold plunge. A concierge service and golf simulator further reinforce the project’s positioning at the top end of the market.

[smartcode_project:default project_id=150184 project_image_fid=360604]

At ground level, Ocean Grand will introduce a new retail and dining precinct designed to integrate with Ocean Village Park. Plans include a boutique supermarket, cafés, restaurants, a wine bar, health and medical services, retail spaces and a new playground, aimed at activating the street edge and reinforcing a village-style centre for the broader neighbourhood.

Blackburne Founder and Managing Director Paul Blackburne has described the project as a response to changing housing preferences in established suburbs, where larger homes are increasingly giving way to well-designed apartments that allow residents to remain connected to their community.

[smartcode_project_cta:default project_id=150184]

Joel Robinson

Blackburne to launch Ocean Grand, City Beach amid strong early demand

Sydney developer Podia has finalised what it intends to do with its prominent undeveloped parcel at the northern gateway to Kingscliff's well-known Salt precinct, where it is planning a mix of land, townhouses, and now apartments.

<a href="https://www.apartments.com.au/developers/podia">Podia</a>, the developer behind Bonobo by Raes in Byron Bay and Wirra in Neutral Bay, has filed a State Significant Development Application to the NSW Government for the final 4,455 sqm of the 1.59-hectare <a href="https://www.apartments.com.au/new-townhouses/4-8-bells-boulevard-kingscliff-nsw-2487">Bells Boulevard block</a>, at the entry to Salt Village between Cudgen Creek and South Kingscliff Beach.&nbsp;

Having already secured approval for a mix of 14 land lots and 12 terrace-style homes, Podia is now seeking to complete the community with a five-storey, 69-apartment building with&nbsp;ground-floor retail designed by&nbsp;<a href="https://www.apartments.com.au/architects/sjb-architects">SJB Architecture</a>.

<img alt="First look: Podia plans mixed-use gateway project at Bells Boulevard, Kingscliff" data-entity-type="file" data-entity-uuid="c15e9c34-7b1d-4b61-bf79-4b8e41272c18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Appendix%20G%20-%20Architectural%20Perspectives%2002.jpg?VersionId=.R2FZakx.eEVaQy4dV4rzr9x_W5FQmPQ" />

SJB noted in its Urban Design and Architecture Report that the area is dominated by low-density residential and significant natural features, however a small mixed-use area is clustered around the Salt Precinct, creating a destination for the precinct.

"The site’s location at the heart of the precinct offers the opportunity for future development to complement existing mixed-use, to form a genuine town centre that enhances the experience for local residents and visitors. At the site scale, the opportunity to create a distinct marker and entry point for the town centre becomes apparent, assisting with legibility for people arriving by car, bike or on foot."

The architecture draws inspiration from coastal Kingscliff using natural, durable materials that echo the textures and tones of local landmarks like Salt Surf Life Saving Club and Peppers Resort. The building will wrap around a central courtyard for the wider community, while residents will have access to private facilities like&nbsp;indoor communal areas and a rooftop swimming pool.

<img alt="Podia" data-entity-type="file" data-entity-uuid="aec0a8ba-2e05-483d-abea-2c08f78fee46" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-02-05%20at%209.57.03%E2%80%AFAM.png?VersionId=e5oQvwUcOJ1bBOGTThjORTLXY5yEaqyg" />

"For some time now, we have been looking to work with the Tweed community so we were thrilled to secure a unique site where we can make a positive contribution to the Salt Village town centre," Podia noted on the project website.

"On this last consolidated lot of undeveloped Salt Village land, we have the opportunity to deliver a mix of housing types, retail and services in a vibrant village atmosphere. [The building]&nbsp;will offer diverse, comfortable living choices. Thoughtfully designed to blend with the natural surroundings, the project will support local businesses, enhance community connection and leave a lasting legacy for Kingscliff."

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Podia is approaching completion of its luxury Neutral Bay apartment development Wirra, just 20 high-end apartments that start from over $5 million. Their Bonobo by Raes development, a joint venture with luxury hotel operator Raes, will comprise 41 hotel-apartments on Jonson Street.
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First look: Podia pitches final stage of new Kingscliff community

South East Queensland developer <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a> has commenced construction on its $240 million Flourish <a href="https://www.apartments.com.au/new-apartments/symphony-south-brisbane-21-23-cordelia-street-south-brisbane-qld-4101">Symphony</a>, its debut Brisbane apartment development.

They've already sold 86 of the 134 apartments, around $134 million worth of sales.&nbsp;

Sherpa Group, headed by property industry veteran Christie Leet, has tapped into the much-needed affordable residential model at a time when apartment prices have grown exponentially across the region.

[smartcode_project:default project_id=7574 project_image_fid=353550]

“We are so pleased to officially be breaking ground at Symphony after such an extraordinary run of sales, demonstrating the demand for high-quality, affordable apartments in the southeast Queensland apartment sector,” Leet said.&nbsp;

Symphony will deliver 138 apartments across 27 levels, offering a vast array of spacious one-, two- and three-bedroom residences.

Sales were largely driven by local Brisbane buyers who accounted for 45 per cent of the purchases, SEQ buyers made up a further 35 per cent, as well as first home buyers who made up 12 per cent of the total.

“It’s been fantastic to see so many locals and first-home buyers at Symphony – that’s what Flourish is about, giving the community a real opportunity to secure a home," Leet added.

[smartcode_project:default project_id=7574 project_image_fid=3770]

Residents will have access to the renowned Flourish rooftop, which showcases a wellness and recreation area spanning more than 1,400 sqm across two levels, with all amenities designed to foster community, connection and wellbeing among residents.

The rooftop will showcase a heated pool, steam room, saunas, and hot and cold plunge pools; work from home spaces, private treatment room, pool deck cabanas and private outdoor BBQ areas.

There will also be a private dining room and residents’ lounge, a fully equipped gym and yoga studio, and panoramic views of the Brisbane skyline and Mt Coot-tha.

The start of construction follows closely behind Sherpa’s successful run in Palm Beach, with Flourish Amargo 85% sold, and Flourish Oasis now launched to market.&nbsp;

[smartcode_project:default project_id=7574 project_image_fid=351653]

“We hope to carry the strong momentum from our Flourish Palm Beach projects, as we step into our Brisbane chapter,” Leet said

“Flourish is truly about delivering attainable, lifestyle-focused apartments, and we are thrilled to Symphony resonate with so many buyers in Brisbane.”

Located at 21–23 Cordelia Street, Symphony is strategically positioned at the junction of South Bank, West End, and Fish Lane, at the heart of Brisbane’s entertainment, dining and leisure precinct. The location also offers exceptional walkability to QPAC, galleries, riverside parklands, the CBD, major universities, hospitals, and transport hubs.

[smartcode_project:default project_id=7574 project_image_fid=5155]

Sherpa have teamed up with <a href="https://www.apartments.com.au/builders/lps-group">LPS Group</a> to deliver Symphony, which is expected to be completed in Q3 2028.

Sherpa Group has been among the most prolific developers on the Gold Coast in recent years, undertaking 15 projects since 2018. The company now has seven projects in Palm Beach, with four of them under the Flourish brand that is delivering affordable beachside luxury for one of the most undersupplied markets on the Gold Coast.

[smartcode_project_cta:default project_id=7574]

Sherpa Group breaks ground on $240 million Symphony apartment development in Brisbane

Construction is underway at <a href="https://www.apartments.com.au/new-townhouses/kings-lane-south-kingsville-50-58-new-street-south-kingsville-vic-3015">Kings Lane</a>, a boutique townhouse development by local developer <a href="https://www.apartments.com.au/developers/blue-run">Blue Run</a> in Melbourne’s inner-west suburb of South Kingsville, with completion targeted for Q3 2026.

The 25-residence project is taking shape at 56 New Street, responding to sustained demand for low-density, family-oriented housing in established inner-urban locations where standalone homes have increasingly moved out of reach.

[smartcode_project:default project_id=145042 project_image_fid=355141]

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, Kings Lane comprises a mix of three and four-bedroom townhouses, all-electric and arranged to prioritise privacy, internal space, and long-term liveability. The homes are priced from $995,000, positioning the project among a shrinking cohort of new-build townhouses within eight kilometres of the Melbourne CBD.&nbsp;

The architecture and interiors reflect Rothelowman’s focus on practical, enduring design. Kitchens are configured as central living spaces with porcelain benchtops, Fisher &amp; Paykel appliances, and generous island benches, while bathrooms and ensuites incorporate skylights, double vanities, and full-sized baths. Across the homes, layouts emphasise efficient circulation and clearly defined living and sleeping zones.

[smartcode_project:default project_id=145042 project_image_fid=355144]

Sustainability has been embedded into the project’s construction and performance profile. Each residence is fully electric, supported by rooftop solar, double glazing, and water-sensitive urban design measures. The development will achieve a 7-Star NatHERS rating, with EV charging provisions included to support future household needs.

Landscape design by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick Landscape Architects</a> introduces private courtyards and shared green spaces, using layered planting and native species to enhance privacy while reinforcing a sense of neighbourhood connection.

[smartcode_project:default project_id=145042 project_image_fid=355140]

Kings Lane is located just off Blackshaws Road, within walking distance of the Vernon Street shopping strip and the emerging Union Quarter retail precinct. Broader amenity is provided by nearby centres including Altona Gate, Yarraville Square, and Williamstown’s retail strip, while Edwards Reserve and Newport Lakes offer accessible green space.

Transport connectivity remains a key drawcard, with Spotswood Station within walking distance and the West Gate Freeway only a short drive away. Recent major infrastructure upgrades associated with the West Gate Tunnel project have further improved access to the CBD and Melbourne Airport.&nbsp;

With construction now underway and delivery forecast for Q3 2026, Kings Lane adds to a limited pipeline of new townhouse supply in the inner-west.

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Construction underway at Blue Run’s Kings Lane townhouse project in South Kingsville

Developer Polycell has commenced the sales campaign for its highly-anticipated redevelopment of the Sandpiper Resort in Broadbeach.

<a href="https://www.apartments.com.au/new-apartments/sandpiper-broadbeach-155-old-burleigh-road-broadbeach-qld-4218">Sandpiper</a>, a new 51-storey tower on Old Burleigh Road, is yet to officially launch to the public, but&nbsp;<a href="https://www.apartments.com.au/project-marketer/motiv">MOTIV</a>&nbsp;have already secured over $300 million in sales through its pre-market coming soon campaign.

Nearly 100 of the 204 apartments have been snapped up in the space of four weeks.&nbsp;

[smartcode_project:default project_id=149910 project_image_fid=360186]

“We’ve seen strong early momentum for Sandpiper through a highly curated, VIP-only campaign, well ahead of the full public launch,” said Carly Cottam, Director at MOTIV.

“That response speaks to the depth of demand we’re seeing from design-literate buyers who are actively seeking a more refined coastal lifestyle in Broadbeach.”&nbsp;

The interest to date has come from a mix of downsizers, interstate lifestyle buyers from NSW and Victoria, and short-term investors seeking flexible, well-appointed holiday homes.

[smartcode_project:default project_id=149910 project_image_fid=360185]

Rising just shy of 200 metres above Old Burleigh Road, Sandpiper comprises 204 two-, three-, and four-bedroom apartments, as well as an exclusive range of half and full floor residences from levels 42 and above.

Residences are offered across two distinct tiers: the Classic Residences, which deliver resort-style living with curated services and Level 4 amenity access; and the Private Residences, located from Level 26 upward, offering elevated finishes and exclusive access to two more levels of wellness retreat.&nbsp;

Buyers will have the option of&nbsp;two light palettes (white or green stone) and one dark palette (black stone), along with premium inclusions such as optional ZipTap systems and timber flooring upgrades. Upper level residences benefit from full stone benchtops and enhanced detailing, reinforcing the project’s commitment to understated elegance.&nbsp;

[smartcode_project:default project_id=149910 project_image_fid=360200]

A major point of difference for Sandpiper lies in its wellness and lifestyle amenity, designed to rival top-tier branded residences, without the hotel badge. All residents will have access to the Level 4 retreat, which includes a magnesium lagoon pool, gym, yoga room, steam and sauna, hot and cold plunge pools, treatment suites, BBQ areas, indoor and outdoor lounges, private dining and games rooms.

Above, the Residents’ Club, exclusive to Private Residence owners, spans two entire levels and features another pool, further wellness zones, a zen garden, personal training gym, office suites, cinema, music studio, library, club lounge and multiple entertaining spaces.

Further reinforcing this sense of exclusivity, Sandpiper has been thoughtfully designed with separate entrances, lobbies and lift cores for the Classic and Private Residences, ensuring privacy for the upper residence-only levels and a seamless arrival experience.&nbsp;

[smartcode_project:default project_id=149910 project_image_fid=360190]

“This momentum builds on the proven success of The Rochester Broadbeach, which continues to progress ahead of programme,” Cottam added.

“That delivery performance has been critical in reinforcing buyer confidence and further cements Polycell’s strength as both developer and builder in this market.”&nbsp;

With demolition underway and development approval secured, Sandpiper is on track to commence main construction in late July 2026, following the completion of demolition. Final completion of the project is forecast for July 2030.

[smartcode_project_cta:default project_id=149910]

Madeleine Heffernan

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