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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

Australia’s housing debate has rarely been more urgent. The National Housing Supply and Affordability Council forecasts the country could fall around 262,000 homes short of housing needs by 2029, underscoring the scale of the challenge facing planners, governments and developers.

In response, much of the conversation has centred on high-density towers around transport corridors and strategic centres.

Diversified developer Coronation Property, while also focused on well-located, strategic sites, is incorporating an arguably underutilised typology, the terrace.

Difficult to integrate into true high-rise developments, terraces have become a defining feature of Coronation’s lower-rise portfolio, including projects in Ashbury and Erskineville. <a href="https://www.apartments.com.au/buildings/ashbury-terraces-165-171-milton-street-ashbury-nsw-2193">Ashbury Terraces</a> places a stronger emphasis on this housing type, forming part of a broader community mix.

At its Erskineville development, <a href="https://www.apartments.com.au/new-apartments/lillian-erskineville-9-metters-street-erskineville-nsw-2043">Lillian</a>, terraces are more limited, with just a handful&nbsp;included within the wider, predominantly apartment-led precinct, one of the first developments to launch in Erskineville in several years.

[smartcode_project:default project_id=135149 project_image_fid=368392]

Terrace residents at Lillian benefit from many of the same advantages as apartment owners, the lock-up-and-leave lifestyle and access to shared amenities like the rooftop wellness space, but with significantly more space.

Spanning multiple levels, the terraces also feature front and rear courtyards, providing direct access to the central landscaped gardens within the precinct.

<h3 data-end="212" data-section-id="1n97jye" data-start="191">The terrace model</h3>

Terrace housing has long been part of Australia’s urban fabric. From Paddington and Surry Hills to Glebe and Annandale, rows of terrace homes have shaped neighbourhood streets, offering a housing form that sits between detached houses and apartments.

The contemporary terrace, however, addresses many of the limitations of older designs, where narrow staircases and constrained layouts often compromised liveability.

[smartcode_project:default project_id=135149 project_image_fid=368157]

“Terraces represent one of the city’s most intelligent housing models,” says Joe Nahas, Managing Director of Coronation Property.

“They deliver density without losing the human scale that makes neighbourhoods liveable. In many ways, they provide a bridge between the Sydney we know and the Sydney we need to build. If Sydney is going to grow well, it can’t rely on towers alone.”

<hr data-end="1090" data-start="1087" />
<h3 data-end="1124" data-section-id="1a7l0gw" data-start="1092">The evolution of the terrace</h3>

That thinking has shaped Coronation’s approach at Ashbury Terraces, where the terrace typology has been reinterpreted for modern living.

Designed by SJB, the project recently received recognition at the 2026 Better Future World Design Awards, acknowledging its architectural clarity and response to the surrounding suburban context.

SJB Director Adam Haddow says the intent was to evolve a familiar housing form rather than reinvent it.

“The terrace is one of Sydney’s most familiar housing forms, so our approach at Ashbury was to reinterpret that typology in a contemporary way,” Haddow says.

“The homes are designed to sit comfortably within the existing neighbourhood while introducing more light, landscape and shared spaces that support modern living.”

Ashbury Terraces combines terraces, apartments and penthouses across a series of low-rise buildings, integrating contemporary architecture with landscaped communal spaces and resident amenity.

That same typology is now being carried into Coronation’s Lillian development in Erskineville, where a smaller number of terraces sit within a predominantly apartment-led precinct.

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<h3 data-end="2289" data-section-id="cazuws" data-start="2271">Buyer response</h3>

Coronation’s decision to include terraces at Lillian was informed by strong buyer feedback from Ashbury Terraces, where purchasers were drawn to the flexibility and scale the housing type offers.

One resident, Sweta Pursem, purchased a terrace as a single buyer, citing its long-term versatility.

“As a single buyer, it might seem surprising that I chose a terrace over an apartment, but I was thinking long term,” Pursem says.

“The terraces are incredibly versatile, catering to a range of lifestyles while still offering the space and privacy of a house.”

For Pursem, the multi-level layout provides a level of functionality not typically found in apartment living.

“Having a separate living area from the bedroom and home office makes everyday living feel both functional and comfortable. When friends and family come to visit, the layout gives a sense of privacy while still feeling open and spacious.”

Her terrace also supports a more connected, lifestyle-driven way of living.

“I love entertaining, and the courtyard is ideal for relaxed weekend drinks with friends. I tend to use each level differently throughout the day, it creates a natural rhythm between work, downtime and entertaining, which I didn’t have in apartment living.”

Ashbury Terraces is now complete and ready to move in, while Lillian in Erskineville is under construction and expected to welcome residents in mid-2027.

Joel Robinson

Coronation champions terraces as a key piece of Sydney’s housing mix

Private equity real estate firm Conquest has entered into a $220 million partnership with Woolworths’ development arm, Fabcot, to deliver its long-awaited Waterloo project on Bourke Street.

The Bourke Street development was first flagged by Fabcot back in 2021 as part of its push into Sydney’s residential market. However, progress has since stalled, with no activity on site amid a number of design revisions in consultation with the City of Sydney.

<a href="https://www.apartments.com.au/developers/conquest">Conquest</a>, which is actively planning more than $6 billion worth of new developments, predominantly mixed-use precincts, is now set to move the project forward.

The current plans include between 110 and 120 apartments across two buildings designed by Bates Smart at <a href="https://www.apartments.com.au/new-apartments/923-935-bourke-street-waterloo-nsw-2017">923 Bourke Street</a>. The scheme will incorporate a portion of apartments reserved for key workers, alongside premium commercial space at ground level, including a full-line Woolworths supermarket.

Construction is expected to commence in the second half of 2026.

Michael&nbsp;Akaawi, CEO of Conquest, said the partnership reflects the firm’s commitment to "convenience-led" urban renewal."

"We are preparing to commence construction in the second half of this year," Akaawi says.

"Along with Woolworths, we look forward to delivering the first major supermarket to the growing Waterloo community, integrated with premium new apartments and specialty retail shops. Our focus is on creating a seamless lifestyle hub where essential services are at the doorstep, saving residents time and enhancing their quality of life."&nbsp;

<img alt="Conquest" data-entity-type="file" data-entity-uuid="d8beee83-ef9b-446b-a3b3-1e2fe596512b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-01%20at%2011.08.46%E2%80%AFAM.png?VersionId=raYhGepiLUJfx4InLPRRJduA3ftDJ_kS" />

The news comes just a week after Conquest went to the NSW Government to upsize its plans for Castlecrag's Quadrangle Shopping Centre.

Conquest purchased the site for just shy of $70 million last year, with existing plans in place for a mixed-use residential and retail precinct comprising 38 luxury apartments.

Those plans have now been significantly expanded, with the developer lodging a State Significant Development Application with the NSW Government’s Housing Delivery Authority for 150 apartments across two 11-storey buildings. The apartments will sit above a four-storey podium, incorporating specialty retail tenancies and five levels of basement car parking, on the 5,166 sqm site at&nbsp;<a href="https://www.apartments.com.au/new-apartments/100-edinburgh-road-castlecrag-nsw-2068">100 Edinburgh Road</a>.

Conquest has been increasingly active in the development space in recent years. The group acquired the&nbsp;<a href="https://www.apartments.com.au/developments/eastlakes-nsw-2018">Eastlakes</a>&nbsp;Shopping Centre redevelopment, where it plans to deliver more than 1,000 apartments above a new retail precinct, and has also lodged a $900 million State Significant Development Application for a&nbsp;<a href="https://www.apartments.com.au/news/nsw/conquest-unveils-900m-stanmore-village-vision-for-landmark-inner-west-site">mixed-use precinct in Stanmore</a>.

Conquest partners with Woolworths to deliver mixed-use Waterloo project

A shift away from Sydney’s industrial past has left parts of the inner south defined by contrast, brick warehouses repurposed into dining precincts, former factory streets softened by landscaping and pedestrian activity.

Rosebery is one of those suburbs. Over the past decade, it has undergone significant gentrification, anchored by The Cannery, which has helped reposition the area as one of the inner city’s most sought-after lifestyle pockets.

What hasn’t kept pace with that transformation is new residential supply, which has remained relatively limited. Builder-developer Deicorp identified that gap early, securing a site in 2019 and delivering what is now one of the suburb’s most architecturally distinctive developments.

To realise the vision, Deicorp engaged Candalepas Associates to design The Rothschild, a project that is immediately recognisable from the street.

Completed in 2025, The Rothschild comprises two buildings across Rothschild and Mentmore Avenues, delivering 176 apartments. The development replaces a former industrial site, retaining a material and structural dialogue with its past while introducing a more resolved residential framework. The scale is deliberate but not monolithic, broken into forms that engage both street frontages, with retail at ground level and two levels of basement parking below.

[smartcode_project:default project_id=106843 project_image_fid=221665]

From the street, the architectural intent is clear. Off-form concrete columns run through the façade, establishing a repeated structural rhythm that gives the building its visual weight. These are paired with deep-set arches and sections of exposed brickwork, creating a layered elevation that reads less like a typical apartment block and more like a reinterpretation of industrial architecture.

The material palette is intentionally restrained, with concrete left exposed and brick used to define mass rather than decoration. The result is a building that stands out through proportion and repetition, rather than height or glazing.

This approach continues internally. A central landscaped courtyard sits between the two buildings, anchored by an olive grove that acts as both a visual and spatial focal point. Rather than functioning as residual space, the courtyard is designed as a shared ground plane, where circulation paths, seating areas and planting come together to create a usable communal environment. Its positioning allows natural light to penetrate deep into the site while maintaining separation between residences.

[smartcode_project:default project_id=106843 project_image_fid=221666]

Within the apartments, the planning follows a clear and functional logic. Entry points lead directly into open-plan living areas, with kitchens positioned as central elements alongside dining and lounge spaces. These zones extend to balconies or external openings, maintaining a visual connection to either the courtyard or the street.

Kitchens prioritise practicality, with generous bench space, ample storage and European appliances configured for everyday use. Bedrooms are typically set back from the main living areas, creating quieter zones within each residence, with separation achieved through layout rather than material change. Bathrooms are compact but efficient, incorporating mirrored cabinetry and integrated storage to maximise space. Across all residences, the emphasis is on clarity of movement and functional planning.

[smartcode_project:default project_id=106843 project_image_fid=221669]

At ground level, retail and hospitality uses extend the building’s presence beyond its residential function. A café or restaurant space, alongside communal amenities such as a music room and rooftop areas, positions the development as part of a broader urban network rather than a standalone project. These shared spaces reinforce a lifestyle where the building operates as an extension of the surrounding neighbourhood.

Rosebery’s proximity to Green Square, The Cannery and nearby parklands supports this model of living, where much of daily life is within walking distance. The Rothschild sits comfortably within that network, contributing to the streetscape through its distinctive architecture, while internally organising space around light, structure and communal use.

The Rothschild is now complete and ready to move in, with limited residences remaining.

[smartcode_project_cta:default project_id=106843]

The Rothschild reinterprets Rosebery’s industrial DNA into residential form

KTQ has unveiled&nbsp;<a href="https://www.apartments.com.au/new-apartments/casilia-16-marine-parade-coolangatta-qld-4225">Casilia</a>, the final residential release within the Kirra Point precinct which really kicked off the boom in the area back in 2019.

The final stage comprises&nbsp;87 residences and marks the culmination of a long-term, family-led vision for Kirra Point, as the precinct moves toward completion in tandem with the development.

Around $100 million in sales have been achieved already, close to 35 per cent of the residences secured ahead of launch. There have been a significant number of buyers returning from the first stage of the development, Miles Residences, securing another property within Kirra Point.

[smartcode_project:default project_id=152295 project_image_fid=368410]

Selling agent Tim Keenan from Keenan Byrne said the response reflects both the scarcity of the offering and Kirra’s growing reputation as a premium coastal market.

“This is effectively Kirra’s final act, the last release within what has become one of the Southern Gold Coast’s most tightly held beachfront precincts,” Keenan said.

“We’ve seen exceptionally strong pre-sale interest, from VIP waitlists through to off-market enquiry, which speaks to both the quality of the product and the confidence buyers have in the precinct. What’s particularly compelling is the number of buyers returning from Miles, either upgrading or investing again, which is a strong signal of how the precinct has been received."

Keenan adds that at the same time, north-facing beachfront remains exceptionally rare in Australia, limited to places like Noosa, Byron and Kirra, which is underpinning long-term value.

[smartcode_project:default project_id=152295 project_image_fid=368415]

Positioned along one of Australia’s few true north-facing beaches, Casilia offers a mix of two and three-bedroom residences with pricing ranging from $1.87 million to $7.15 million and two exclusive penthouses. Residences are oriented to capture varying outlooks, from uninterrupted Pacific Ocean views across Kirra Beach to hinterland vistas, with upper levels and shared amenity taking in sweeping perspectives along the Gold Coast coastline.

At rooftop level, a north-facing pool deck captures expansive, uninterrupted views over Kirra Beach and north towards Surface Paradise. The space incorporates a heated resort-style pool, mineral spa, sun lounges and a covered BBQ cantina.

Buyer profiles are broad, typically aged between 40 and 70, with a strong skew toward second-home ownership, drawn by a combination of lifestyle, relative value, proximity to Gold Coast Airport and lower congestion compared to more established markets such as Byron Bay and Noosa.

[smartcode_project:default project_id=152295 project_image_fid=368414]

The project is being delivered by <a href="https://www.apartments.com.au/developers/ktq-group">KTQ Group</a>, a family-owned Australian property group with a diverse portfolio spanning residential, hospitality and commercial developments. The group has delivered a number of notable projects across sectors, including the award-winning Elements of Byron resort, demonstrating its depth of experience across both hospitality and residential development.

Known for its long-term approach to place-making, KTQ Group retains a vested interest in its projects, often holding assets within its portfolio, which has also helped build trust among buyers and reinforced confidence in both the vision and delivery certainty of the precinct.

“Casilia represents the final opportunity to secure a residence within Kirra Point and brings to market the last release within our long-term vision for the precinct," KTQ Group's Jeremy Holmes said.

"Kirra Point has been more than a decade in the making, and that timeframe reflects the care behind each decision, it takes listening, balance and vision to arrive at something that feels right for the location.

“Our approach has always been to deliver Kirra Point as a destination in its own right, a connected coastal neighbourhood integrating residential, hospitality and wellness, rather than a standalone project. It’s a vision that respects place, pace and permanence, and contributes to a sense of community that feels authentic to Kirra.”

[smartcode_project:default project_id=152295 project_image_fid=368411]

Once complete, the Kirra Point masterplan will incorporate a mix of dining establishments, bars and cafés, alongside the Kirra Point Health Club and a future 91-room independent resort hotel, creating a walkable, integrated lifestyle precinct.

Architecutue and interiors at Casilia have been designed by the experienced design houses of <a href="https://www.apartments.com.au/architects/little-boat-projects">Little Boat Projects</a> and O’Neil Architecture &amp; Interior Design, The design moves beyond the conventional coastal apartments, instead taking cues &nbsp;from the surrounding landscape - layering natural materials, soft curves and warm textures to create spaces that respond to light, airflow and the rhythms of coastal living.

Residences are designed with an array of floorplates, generous proportions and intuitive flow, while at ground level Casilia connects into the broader precinct, where future laneways, retail and hospitality offerings will contribute to a neighbourhood defined as much by how people live day-to-day as its beachfront position.

[smartcode_project_cta:default project_id=152295]

The final residential release within the Kirra Point masterplan is set to launch, as strong pre-sales signal sustained demand for the Southern Gold Coast

A decade in the making: KTQ launches Casilia at Kirra Point

South East Queensland developer&nbsp;<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a>’s entry into the Gold Coast apartment market has progressed from pipeline to market, with its Chevron Island project Bronze on Chevron now formally available to purchase ahead of a planned 2029 completion.

The 119-apartment development on Mawarra Street marks the Brisbane-headquartered builder-developer’s first residential play in the Gold Coast, following its expansion south from Brisbane and the Sunshine Coast.

<a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-surfers-paradise-qld-4217">Bronze on Chevron</a> comprises a mix of two-, three- and four-bedroom residences, with pricing starting from just over $1.5 million. The project is being delivered under Gardner Vaughan’s fully integrated model, with the group acting as both developer and builder, a structure it has consistently applied across its South East Queensland portfolio.

[smartcode_project:default project_id=107520 project_image_fid=367182]

Architecture has been designed by <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/jeremy-ferrier-landscape-design">Jeremy Ferrier</a>. The building presents as a single-tower scheme, with a focus on maximising outlook across both the Surfers Paradise skyline and the Nerang River.

Apartments have been planned with open-plan living zones extending to generous balconies, a response to the site’s dual-aspect positioning between river and ocean. Interiors follow a restrained coastal palette, with two colour schemes offered, and an emphasis on natural light and cross-ventilation.

[smartcode_project:default project_id=107520 project_image_fid=367181]

Resident amenity is concentrated across more than 1,250 sqm and includes a resort-style pool, gym, yoga lawn and rooftop entertaining areas. A function space with catering facilities forms part of the upper-level offering, alongside north- and south-facing outdoor areas.

Ground level will incorporate two retail tenancies, intended to extend the existing village character of the surrounding streets.

&nbsp;

[smartcode_project:default project_id=107520 project_image_fid=367200]

The project sits within walking distance of Thomas Drive’s established dining strip, while maintaining proximity to <a href="https://www.apartments.com.au/developments/surfers-paradise-qld-4217">Surfers Paradise</a> beach and broader Gold Coast amenity. The location, positioned on Chevron Island between the river and coastline, has increasingly attracted mid- to high-density development in recent years as the precinct evolves beyond its low-rise origins.

Gardner Vaughan’s move into the Gold Coast was first signalled in 2025, with the group identifying the region as a natural extension of its operations. Chief Executive Officer Simon Betteridge described the expansion as both “strategic and natural”, citing demand for well-designed apartments in lifestyle-driven markets.

Construction is expected to complete in early 2029.

[smartcode_project_cta:default project_id=107520]

Madeleine Heffernan

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