<html><body>
A survey of investment sentiment shows Australians are still concerned about their debt levels, with paying off such debts being the most common destination for left-over funds.
The MLC Quarterly Australian Wealth Sentiment Survey, however, did record an increased willingness to invest in property, shares and other risky asset classes, perhaps signalling a small improvement in consumer sentiment.
“[The] survey shows consumers balance sheets remain very conservative – with a heavy emphasis on deposits and paying off debt,” the report stated.
“That said there has been a marginal increase in risk appetite – with a growing desire to put more into property and slightly less aversion to direct shares.”
The survey, based on the responses of 2062 participants polled between August 9 and August 27, did find differences across different income levels.
Higher income earners favoured superannuation and property investment, while those on lower incomes were more likely to nominate keeping their money as cash.
Regardless of the wealth category, paying down debt was the most popular ‘investment’ choice over the next three months.
People in Western Australia were the most diversified across different asset classes. Men tended to hold more diversified assets than women.
Women were more likely to be concerned about the <a target="_blank" href="https://www.smartcompany.com.au/big-money/057730-big-money-the-reason-our-superannuation-system-doesn-t-work">adequacy of their superannuation savings</a>, with those over 50 being the most concerned.
“With people living longer, having extended retirements and being much more active in their retirement, the harsh reality is most people won’t have enough savings to fund their retirement,” MLC CEO Andrew Hagger said.
“For women this especially rings true, as women retire with 40 per cent less super than men because they take time out for children, are more likely to work part time and typically earn less than men.
“While it’s not surprising to us that women are worried about funding their retirement the survey is a timely reminder to women about how they can start to bridge the gap by adopting some key measures.
Men tended to be most concerned about missing investment opportunities.
 
<hr>
 This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

mrobin-TVRYiru7si

Paying off debt the most popular investment for all income levels: MLC

<html><body>
Last week, the US Treasury released <a target="_blank" href="https://www.treasury.gov/initiatives/Documents/POTENTIAL%20MACROECONOMIC%20IMPACT%20OF%20DEBT%20CEILING%20BRINKMANSHIP.pdf" rel="nofollow">a report</a> on the global consequences of a default. It makes for stark reading.
Its conclusion reads:
“In the event that a debt limit impasse were to lead to a default, it could have a catastrophic effect on not just financial markets but also on job creation, consumer spending and economic growth with many private sector analysts believing that it would lead to events of the magnitude of late 2008 or worse, and the result then was a recession more severe than any seen since the Great Depression.
“Considering the experience of countries around that world that have defaulted on their debt, not only might the economic consequences of default be profound, those consequences, including high interest rates, reduced investment, higher debt payments, and slow economic growth, could last for more than a generation.”
America has never defaulted on its debt. It has never had need to. It still has no need to.
But a political impasse means its $16.7 trillion debt ceiling is being used as a bargaining chip by Republicans to ensure the scrapping or delay of legislation passed by Democrats in the previous political cycle.
The American government is <a target="_blank" href="https://www.smartcompany.com.au/economy/057795-what-does-the-united-states-government-shutdown-mean-for-me-and-my-business-a-smartcompany-q-a">already shut down and has been for nine days</a>, as Congress Republicans refuse to put a budget to a vote unless it cuts funding to President Obama’s healthcare reforms.
But a bigger day is coming. On October 17, America is scheduled to breach its debt ceiling.
And while few think it’ll come to that, here’s what would happen if it did:
October 17
America will breach its debt ceiling on October 17, given current spending and taxation flows.
That means the Treasury Department would not be allowed to borrow more money to pay its expenses.
In its report, the Department says it will have $30 billion on hand, which it will use to pay what it can.  
Treasury Secretary Jacob Lew <a target="_blank" href="https://www.cnsnews.com/news/article/susan-jones/treasury-secretary-30-billion-not-responsible-amount-cash-run-government" rel="nofollow">has said</a> there will be $30 billion on hand to use on this date to pay the bills, an amount he said was “not responsible”.
All government spending goes through Treasury, so that $30 billion will be quickly eroded by scheduled payments to government programs like Social Security.
October 30
This is when Treasury says it will run out of money. This is just for domestic spending. A lot of government departments are already shut down, but this means essential services currently exempted – schools and defence contractors, for example – would begin to be affected.
October 31
This is the point of no return. America owes a $6 billion interest payment on this day, and the money to pay it would not be available.
“This is when the proverbial would hit the fan,” AMP Capital’s chief economist Shane Oliver said. “America’s never defaulted in that sense before. Greece came close a few months back, but that didn’t matter. Greece isn’t core to the global financial system.”
If America were to fail to make that repayment, credit rating agencies would have to class it as being in ‘Selective Default’.
And this would ensure the knock-on effects continue.
Global pension funds, central banks, you name it, all invest in American government debt. Many have mandates saying they can only invest in BBB-rated investments and above.
“If America downgrades, many will be forced to sell their US Bonds, and that’ll put upwards pressure on bond yields,” Oliver says. “Interest rates would quickly rise.”
There would be other effects too, some caused by the higher interest rates, and some just by the whole situation. Confidence in America would decline, sending the dollar plunging. Borrowing costs for businesses would escalate rapidly, as many global interest rates are tied to the price of US government debt.
We saw this happen in Europe, Oliver says. “When those countries had debt downgrades, their bond yields went up even before the downgrades occurred. The effect of this was that companies in those countries faced higher borrowing costs.”
Westpac economists Sean Callow and Richard Franulovich <a target="_blank" href="https://wibiq.westpac.com.au/Publications.aspx?PublicationId=5987&amp;customerid=181" rel="nofollow">wrote yesterday</a> that this’ll keep the American dollar low, which could have positive effects for the Australian dollar. However, they’re not expecting a dramatic change from where it is now.
November 15
Two weeks later, another, far larger interest repayment is due. If a deal still hasn’t been reached, America would default on $30 billion in scheduled repayments, throwing markets further into chaos.
After…
After that, it’s not really clear what would happen. While America could miss a few more payments, it’s unlikely to keep doing so indefinitely, Oliver says.
That’s because America still has trillions of dollars in tax coming in. It will breach its debt ceiling because its budget is not currently balanced. But if it were to pass a balanced budget – one that contains enough money to pay its liabilities while meeting its interest repayments by doing a mix of raising taxes or cutting government services, it could continue to make repayments.
However, this would likely choke off the global recovery, and the upheaval alone would likely be catastrophic for global economic growth.
There’ll be long-term consequences for America as well. The country currently enjoys enormous economic advantages by virtue of being the globe’s economic powerhouse, as well as its reputation for having never defaulted on its debt.
America can borrow more cheaply, it has the world’s most important currency, it’s where successful companies the world-over flock to list.
These and other advantages enjoyed by the American economy would be put at risk if the nation defaulted on some of its repayments.
“We’ve seen what happened to Argentina and Russia when they defaulted,” Oliver says. “It took them a long time to return to where they were. That stigma sticks for a while.
“America lost a lot of face through the global financial crisis. It was seen as having a strong, robust, innovative economy, and then the GFC tore holes through that concept.
“The world is increasingly starting to look towards China, and that comes as a difficult time for America. Another failure here could further accentuate perceptions of its economic decline.”
Back to reality
Ultimately, however, few expect these catastrophic events to come to pass.
“I think this is extremely unlikely,” Oliver says.
“If this does happen, it’ll be because of a miscalculation. At the moment, the main risk is that both sides assume the other will blink. Republicans think even if Obama says he won’t negotiate, he will, and Obama assumes the Republicans will cave in. If those assumptions are both wrong, we’ll have a lot to worry about.”
Overnight in America, Republicans proposed a deal where they would raise the debt ceiling for six weeks in order to negotiate a solution. However, President Obama rejected the deal as it would not re-open the government in the meantime.
Australian businesses with operations in America say the chatter is that a deal will be reached by Monday. We hope they’re right.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

What would happen if the US defaults on its debt?

<html><body>
Australians have the highest median wealth in the world, with average household wealth having grown a staggering 13% a year since 2000, Credit Suisse’s <a rel="nofollow" href="https://publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=BCDB1364-A105-0560-1332EC9100FF5C83">annual global wealth report</a>, released yesterday, shows.

The world’s done well since 2000. Total global wealth has doubled since 2000, global financial crisis notwithstanding.
This has been driven by emerging markets.
But Australia is unique among the developed nations surveyed by Credit Suisse in also having experienced staggering growth in wealth over the period.
Australia’s average wealth per adult is US$402,600 (AU$426,100), which is the second-highest in the world after Switzerland. Australia’s <a rel="nofollow" href="https://en.wikipedia.org/wiki/Median">median wealth</a>, however, is the highest in the world, at US$219,500 (AU$233,504).
Median wealth is the wealth of the middle wealthiest person in Australia, and so would be higher in a relatively equal society. When it comes to wealth distribution, most (62.6%) Australians had wealth between US$100,000 and US$1 million. Only 6.9% of Australians had a net worth of under $10,000 – a very low proportion by global standards.
Australia’s wealth is heavily skewed towards ‘real assets’ as opposed to financial ones. Australians have the second-highest real asset allocation in the world, behind only Norway, with most of our wealth being bundled up in our houses.
Australia accounts for 3.8% of the world’s richest 1%, despite accounting for only 0.4% of the world’s population.
What’s driving Australia’s extraordinary wealth growth?
Half of it, Credit Suisse writes, has been driven by the appreciation of the Australian dollar. The dollar’s extended parity with the American dollar has made Australian assets relatively more valuable compared to those of other countries when converted into a common currency.
Australia’s Higher Education Contribution Scheme (HECS) system also plays its part: Australia has relatively low student loan debt, which means people start their working lives without being thousands of dollars in the red, as happens in many other parts of the world.
Australia also has relatively low credit-card debt.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
</body></html>

Australians' median wealth is the highest in the world, new research finds

<html><body>
After the most public Fed chair nomination battle in recent history, President Obama has finally appointed Janet Yellen to replace Ben Bernanke when he retires from his position atop America’s central bank next year.
Yellen was the frontrunner <a target="_blank" rel="nofollow" href="https://www.crikey.com.au/2013/09/18/fed-chief-form-guide-who-will-replace-ben-bernanke/">ever since Larry Summers pulled his name out of the ring</a> last month, and American markets rose on her appointment. She’s seen as a steady, safe pair of hands who will likely maintain many of the policies enacted under Bernanke.
She’s also the first woman to hold the role, and only the 17th woman to lead a central bank worldwide. Plenty of people say the American Fed is the most important economic decision-maker in the world, so that puts her in a pretty powerful position.
Here are five things you probably didn’t know about Yellen.
1. What’s she been doing lately?
Yellen’s been leading the Federal Reserve in some capacity or other since 2004. In a world with few high-ranking female economists, she’s been chair of the Council of Economic Advisers, an advisory body to the US President, and has been a professor of economics and management at Harvard University.
2. She’s one half of an economic power-couple
Yellen is married to Nobel-prize-winning economist George Akerlof, who got the award in 2001 for his work on a <a rel="nofollow" href="https://en.wikipedia.org/wiki/The_Market_for_Lemons">pretty seminal study</a> showing how markets malfunction when buyers and sellers have different, asymmetric information.
3. Her first contribution to economic theory: It doesn’t pay to pay workers peanuts
Yellen’s doctorate, earned at Yale, developed what she called the “efficiency wage” model of unemployment.
She showed that if people feel underpaid, they work less efficiently and are more likely to quit. This suggests, counter-intuitively, that paying people too little could actually undermine productivity. The employers with the highest productivity, she wrote, seek to improve morale by paying more than the minimum wage they can get away with. This can also mean their staff are less likely to be poached.
This finding came from Yellen’s own experience: when she hired a babysitter for her son, she and her husband decided to purposefully pay more than the going wage, figuring a happier babysitter would provide better care. They got plenty of great applicants, which led to Yellen’s paper.
Yellen’s done a lot more research, a lot of it with her husband.
4. She’s rich
According to her annual financial disclosures, the last of which was in August, she held investments worth at least $4.8 million in 2012.
That includes her stamp collection, which is worth at least $15,000.
Most of Yellen’s investments are in broad-based equity and bond funds.
5. Is she a dove? She hates unemployment and inflation
Many describe Yellen as a monetary ‘dove’ – someone who’s more concerned with boosting employment than combating inflation.
But her defenders say she’s been willing to raise rates to beat unemployment too.
The fact that she has grave concerns about unemployment is indisputable.
“These are not just statistics to me. We know that long-term unemployment is devastating to workers and their families,” she said <a target="_blank" rel="nofollow" href="https://federalreserve.gov/newsevents/speech/yellen20130211a.htm">in a speech</a> to an American unionist gathering in February.
But in other speeches, she’s stressed that the Fed should never repeat the experiences of the late 1960s and 1970s, when it didn’t respond quickly enough to rising inflation. She’s also long argued that the Fed should adopt a 2% inflation target.
Australia’s RBA targets inflation between 2-3% a year, but the American central bank has no explicit target. Instead, it has a ‘desirable’ target range of between 1.7%-2% inflation. Adopting a specific target would give policy makers less leeway to let inflation rise above this band.

<hr>
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
</body></html>

Five things to know about the world’s most powerful woman, new Fed chair Janet Yellen

<html><body>
Bank of America Merrill Lynch economist Saul Eslake says the Australian economy is likely to face reduced growth over the next 18 months, as local and international economic risks make it unlikely things will get better soon.
In a wide-ranging interview conducted over an Australian Institute of Company Directors lunch in Melbourne, the high-profile economist had few positive things to say about the coming economic conditions.
In his estimation, these are the four biggest risks to the Australian economy
Gas prices
Nominating this as his number one risk, Eslake said a rapid increase in gas prices could have far more disruptive effect than the carbon tax, and would be delivered with no compensation.
Global demand is why Eslake reckons prices are set to rise.
“In a couple of years, we could face a substantial increase in gas prices as Australia’s gas companies have signed contracts to export all of their gas,” he said.
Gas is expensive to transport and import, so prices could rapidly rise as a result.
This could have a large impact, particularly in New South Wales, where government policy prevents further gas exploration.
Gas is used in electricity generation, food processing and the making of construction materials, Eslake said.
Crazy politicians at home
Eslake took a shot at politics, particularly the Nationals, saying they could hamper the Abbott Government’s ability to undertake productivity-enhancing reforms.
“John Howard was lucky in that when he was prime minister, the National Party was led by Tim Fisher, John Anderson and Mark Vaile, all of whom were by Nationals standards very rational people,” he said.
“They were trade ministers who saw it as part of their job to sell free-market policies to an often sceptical, sometimes hostile constituency.
“That wing of the National Party is all but extinct.
“Now, we’ve got a situation where our country may be run by Barnaby Joyce while Abbott is out of the country. That’s frankly a quite frightening prospect.” Joyce has said he will run for deputy prime minister when current leader Warren Truss retires.
And politicians abroad…
But perhaps this is not as frightening as <a href="https://www.smartcompany.com.au/economy/057795-what-does-the-united-states-government-shutdown-mean-for-me-and-my-business-a-smartcompany-q-a" target="_blank">what is going on in America</a>. The American Government is currently closed after the failure of its legislature to pass a budget bill. On October 17, however, the American government will hit its debt limit, and unless its politicians manage to compromise this time, the American government will default on its debts.
An American government default of even “half a day” would have “catastrophic” consequences, potentially leading to a “cold-war-life” situation in the global economy, Eslake said.
“Until about ten days ago, the conventional wisdom of financial markets was that the Republicans wouldn’t go down this road.
“But to hear the way they’re talking now, well, you have to wonder what planet they’re living on. One can only hope enough Republicans come to their senses.”
The persistently high Australian dollar
The Australian dollar is still too high, and this hinders Australia’s adjustment to the period after the mining investment boom, Eslake said.
“The dollar is just too high to encourage investment outside of mining, and we need that investment in places like New South Wales.”
 

<hr>
This article originally appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
</body></html>

Gas prices and crazy politicians: Saul Eslake's four biggest risks to the Australian economy

<html><body>
It now appears almost certain that United States government departments will be on shutdown from tomorrow, with Congress Republicans holding firm in their attempts to use a budget bill to defund President Obama’s universal healthcare law.
The American Senate and the House of Representatives must reach agreement by midnight tonight in order to pass the funding necessary for government departments to keep operational.
Already, international markets are viewing a shutdown as a near certainty. The Dow Futures markets opened 101 points lower: traders are pricing in a shutdown.
While an 11th-hour deal is a possibility, it’s made less likely by the fact that any compromise by Republicans from their hard-line position is likely to result in Republican Speaker John Boehner being ousted by Tea Party conservatives in his own party. They are even less likely to compromise than he is.
Any shutdown – even if it only lasts a day or two – will push the Australian dollar higher, says Evan Lucas, a market strategist at IG Markets. .
“There’s a very real possibility of reaching parity by Christmas,” he said. “It’s out of our control.
“Overnight, a government shutdown would mean 800,000 federal government employees don’t get paid. That’s going to drive up unemployment, and it’ll impact confidence in the American economy. That’ll push their currency lower, and the Australian dollar higher.”
This might encourage some shoppers to doing their Christmas shopping on American websites.
Economists expect a government shutdown to shave 1.4% off fourth-quarter economic growth in America. Lucas thinks, because of the lower dollar, that’ll likely have some impact here, too.
“Imagine two or three days of a relatively high Australian dollar,” Lucas says. “That’ll distort fourth-quarter trading heading into Christmas, which is the worst time for it. Retailers need a strong quarter. But if you have confidence falling and a high Australian dollar, it’ll get back to the SME community.”
However Shane Oliver, the chief economist at AMP, said the effect will really depend on how long the shutdown lasts for. "If it's a prolonged shutdown, then that obviously would have global implications for growth, including in Australia.
"At this stage though, it's still early days.
Consumer confidence in Australia is highly tied to events in America, Lucas says. Confidence has been on the mend of late, but concerns over debt ceilings and government shutdowns aren’t going to help.
"We've seen this movie before," Oliver adds. "There have been four threatened shutdowns in the past few years. We've often gone to the brink, only to fall back in at the last minute.
"I expect if there is a shutdown, it'll be a brief one. Politicians don't want to get blamed for the crisis. But then again, US politics is more dysfunctional than it used to be."
If American politicians avert a shutdown, they'll likely to have the discussion again in October. The United States is scheduled to breach its debt ceiling on October 17. This will require further cuts to government spending, and if the two sides don't agree, this could trigger an American default on its deb.
"We're in for a fairly uncertain few weeks," Oliver says. "Even if there's good news late tonight, the markets will worry about the next thing. It'll be a fairly volatile couple of weeks."
"But I think it'll probably be resolved in a way that doesn't cause major harm."
It’s been 17 years since the American government shutdown after failed budget negotiations. In 1995, House Republicans, led by Newt Gingrich, refused to pass a budget over concerns about spending on education, public health and the environment.
For 28 days the federal government shutdown, which turned public opinion against the Republicans and is credited with having helped president Clinton’s re-election campaign a year later.
The American federal government has shut down 17 times since 1976.

<hr>
This article originally appeared on <a target="_parent" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

Why we should be worried about the US government shutdown: Analyst warns of dollar parity “by Christmas”

<html><body>
Australia’s superannuation system, the fourth largest in the world, is huge and growing.
The total assets held in superannuation accounts in Australia are currently worth 100% of annual GDP. By 2033, Deloitte reports that will grow to 180% of GDP – an extraordinary savings pool for a country with historically low savings rates.
Accountancy Deloitte has, for the past six years, been conducting an annual overview of the sector, and how it is meeting Australia’s retirement needs.
The latest report, <a rel="nofollow" href="https://www.deloitte.com/assets/Dcom-Australia/Local%20Assets/Documents/Industries/Financial%20services/Deloitte_Dynamics_of_Superannuation_2013_report.pdf">released yesterday</a>, is a fascinating glimpse into how the money that leaves our weekly pay cheque will end up serving us. Here are four gems from Deloitte’s report.
How much you need to retire comfortably
Going on current life expectancy rates, Deloitte has calculated how much super you need to retire with a ‘modest’ or ‘comfortable’ lifestyle.
For men aged 65 today, they need $330,000 in superannuation to fund themselves to the tune of a ‘modest’  $22,654 every year. For women, who generally live slightly longer, they need $360,000 in superannuation assets to pay out the same amount every year.
For those who want a ‘comfortable’ lifestyle in retirement, the figures are nearly double. A man requires $590,000 to pay themselves $41,197 a year, while women need to have $660,000 in superannuation assets for the same.
But most people don’t have anywhere near that
For most Australians nearing retirement, these figures are far, far more than they currently have in their superannuation balances.
According to the Association of Superannuation Funds of Australia, the average male 60-64 year old has $85,000 in superannuation assets. For women, who on average live longer, the disparity is even more stark – most have just $59,000 in superannuation assets.
For those slightly older – the 65-69 year olds, some of whom are already in retirement – the figures are worse. Men in that age group have, on average, $77,000 in superannuation assets while women have $55,000.
For those who have lived only a few decades under the current superannuation regime, there is no way they will have enough in their balances to fund their retirement, Deloitte notes. They will have to rely on the aged pension instead.
As the report’s author, Deloitte partner Wayne Walker, puts it, “despite the $7.6 trillion asset pool we project for 2033, [the potential of superannuation] to generate wealth and prosperity may well bat risk for the average Australian”.
“Many Australians now approaching retirement have only received super for a limited portion of their working lives as our system is still maturing.”
“The concern is that current policy settings, including changes to caps and drawdowns, and the SG 12% increase, will not deliver the lifestyle that the majority of those retiring in the next 20 years are seeking. The reality is that many Australians will need to work longer and where possible contribute more.
“To that end our report projects the possibility of Australians deferring retirement by two and five years respectively. The results are significant.”
 For Gen X, the situation is better
For those who’ve worked most of their life paying money into superannuation, the system is working, but not perfectly.
For a statistically average 30 year old working currently on $60,000 a year (the average income for people of that age), Deloitte estimates they’ll retire with $1.1 million in superannuation.
Given rising inflation, Deloitte thinks this’ll be enough to support themselves until they’re 94, but only on a ‘modest’ retirement. If this worker choses a ‘comfortable’ retirement, the $1.1 million will last them only until they’re 77. To have a comfortable retirement that doesn’t run out, Deloitte thinks that worker will need $1.6 million in superannuation assets if male, or $1.8 million if female.
Superannuation hasn’t recovered from the GFC
The financial crisis, which began in 2009, had a huge impact on Australia’s superannuation assets, eclipsing that of recent economic crises such as the dot-com crash.
Deloitte sees the superannuation asset pool remaining below GFC levels until 2016 (see graph), highlighting how much of a setback it was to the balances of millions of Australians, particularly those about to retire.
<img style="max-width: 540px; max-height: 480px;" width="470" height="355" src="https://www.smartcompany.com.au/images/stories/news/super-picture-540-408.jpg" alt="super-picture-540-408">
Industry funds as popular as SMSF
For much of the past few years, self-managed superannuation funds have <a href="https://www.smartcompany.com.au/finance/057570-asic-warns-smsf-trustees-when-it-comes-to-fraud-you-re-on-your-own">grown strongly in numbers</a>. But in the years to 2033, Deloitte expects industry funds to grow just as fast. Ultimately, most people move from industry funds to SMSFs as they retire.
Over the past year, growth in SMSFs has slowed, Deloitte notes. This reflects the reduction in concessional contribution limits and product innovation in industry and retail funds, which have blunted the advantages of SMSFs.
 
<hr>
 This artcile originally appeared on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
</body></html>

How much superannuation do you need to retire comfortably?

<html><body>
The Australian Securities and Investments Commission wants to beef up the mandatory disclosures advisers give to people setting up a self-managed super fund, saying in many cases the advice given doesn’t reflect the risks.
In a <a rel="nofollow" href="https://www.asic.gov.au/asic/asic.nsf/byHeadline/13-243MR%20ASIC%20consults%20on%20the%20quality%20of%20SMSF%20advice?opendocument" target="_blank">report released yesterday</a>, the regulator flagged it wants to make SMSF advisers warn clients that if they set up a SMSF, they do not have access to compensation in the event of fraud or theft.
It also wants advisers to give more information about the roles and responsibilities of trustees, the costs of setting up a SMSF, as well as more information about other types of superannuation products that might be more suited to someone’s particular situation.
“When it comes to planning your retirement, establishing an SMSF is a very significant decision,” said ASIC deputy chairman Peter Kell.
“We want to help ensure that the SMSF sector is healthy, and that investors make informed decisions about SMSFs.
“Our recent surveillance of the sector found that advice was not up to a standard we would like.”
The warning comes after the Trio Capital affair, which saw the company collapse in 2009 after directors and executives stole $176 million from SMSF investors in<a href="https://www.smartcompany.com.au/economy/056372-trio-capital-directors-accept-enforceable-undertakings-from-apra-construction-sector-contracts-for-34th-consecutive-month-midday-roundup" target="_blank">what was called “the biggest superannuation fraud in Australian history”</a> by a joint parliamentary committee. More than 6000 investors lost money after placing it into two offshore hedge funds through Trio Capital.
However, Graeme Colley, the director of technical and professional standards at the SMSF Professionals’ Association of Australia, says ASIC’s concerns about poor quality advice may be overblown.
“Last year, ASIC decided to have a look at advice on a very select part of the superannuation industry, which was self-managed super funds with less than $150,000 in them that had received advice on property investments where the property was mortgaged. Looking at those, they concluded that the advice being given wasn’t adequate.
“But it was a very selective sample.
“Unfortunately, ASIC hasn’t provided examples of the poor or inadequate advice it saw.”
ASIC also released a report yesterday by actuaries Rice Warner, which looked at the minimum balances needed before SMSFs become cost-effective relative to other superannuation arrangements.
“Through our consultation we are looking to encourage further discussion and explore the issues relating to SMSF costs with industry and consumer stakeholders,” Kell said. “We think that understanding the costs associated with having an SMSF will help advisers and their clients consider whether a SMSF is a cost-effective option when compared with an APRA-regulated fund.
“ASIC does not want to see an influx of trustees who are ill-equipped to cope with the responsibilities and obligations of running a SMSF.”
The report found that when the maximum level of compliance administration is assumed, SMSFs do not become cost-effective when they have balances of less than $500,000.
However, many trustees do their own administration and compliance, which means the costs of maintaining a SMSF would be lower, Peter Burgess, the head of policy and technical at AMP SMSF said.
“This is in line with what we already knew – you need a reasonable amount in your SMSF for it to be cost-effective.
“But cost isn’t the only consideration here. There are other reasons to manage your own super – you might have specific estate-planning needs, or want to take advantage of specific investment opportunities and so on.
“And while it’s not cost-effective for very low balances, when you have more than $100,000 in your fund, it does depend on how much work you’re doing yourself. It’s hard to get data on this, but a significant amount of trustees do their administration work and so forth themselves. This can make it cost-effective below the $500,000 threshold.”
Colley was also reluctant to accept the higher threshold, saying that in his experience most trustees contribute to the operation of their fund.
“Much of the work with these funds is done by the trustees, so the expense is exaggerated. The Rice Warner report does say that where trustees do contribute, the running cost is around 1.5% of assets. In my view, that’s at the upper end, but probably more realistic.
“We think the $200,000 threshold mentioned by both ASIC and the ATO many years ago is still valid when it comes to cost-effectiveness.”
Recently, ASIC has flagged its <a href="https://www.smartcompany.com.au/superannuation/054815-asic-sounds-warning-bell-on-smsfs-2">concerns about the growth of the self-managed superannuation industry</a>, saying the increasing amount of money being held in SMSFs could prompt newcomers who are far less financially sophisticated to set up their own funds.
The self-managed superannuation industry now holds just under a third of all the money held by Australians in superannuation, having grown around 20% per annum in recent years. There is now $439 billion in assets held by SMSFs. There are over a million SMSF trustees who together manage half a million SMSFs.
Colley does not believe SMSFs are necessarily more risky than investing through a major fund.
“There are two persistent criticisms around SMSFs. One is that trustees don’t know what they’re doing, and the other is that SMSFs are being used by property spruikers to invest in property.
“I was at a major super fund conference earlier this year when one of the speakers got up and said: ‘If you think SMSFs are jokes, who don’t do as well, you need to think again’. They do, roughly, 1% better, on average, than bigger super funds.
“And there’s a huge amount of noise around property, but if you look at the statistics, less than half of 1% of SMSFs invest in property loans.”
Burgess believes there’s still further growth to be had for the industry. “There’s still significant room to grow. There’s a lot of research and statistics out there that shows there are plenty of people with tendencies that could benefit from a self-managed super fund, but who don’t currently have one.”
 
<hr>
 This article was originally publsihed on <a href="https://www.smartcompany.com.au" target="_blank">SmartCompany</a>.
 
</body></html>

ASIC warns that when it comes to fraud, SMSF trustees are on their own

<html><body>
James Packer has become the second-largest shareholder of Zillow, plunging $330 million into the Seattle-based real estate website.
A 9.3% stake was bought yesterday by Packer-controlled Cavalane Holdings, which bought 3 million shares for Packer’s Consolidated Press International Holdings yesterday.
It’s <a href="https://www.smartcompany.com.au/information-technology/056658-the-best-australian-dot-com-investments-ever-made">not the first time</a> Packer has ploughed money into online marketplaces.
Packer, along with close friend Lachlan Murdoch, has been arguably the greatest single beneficiary of the Australian dot.com boom.
He was one of the earliest investors of SEEK, having bought a 25% stake in 2003 for $33 million in 2003. When the business listed, Packer’s stake was worth $150 million. By the time he sold out, he had made $440 million from his investment.
He was also an early investor in Carsales.com.au, putting $100 million for a stake in the company that sold for $500 million a few years later.
In buying a stake in Zillow, Packer could be hoping to replicate the success of Murdoch, who invested nearly $10 million into RealEastate.com.au for a 66% stake in the company. That stake went on to be worth $2 billion.
Zillow already has a market capitalisation of $US3.5 billion, and its stock price has increased three-fold since the start of 2013. This suggests Packer isn’t getting in on the ground floor this time.
Last month, Zillow’s founders and executives sold off $205 million worth of stock, leading some to suggest <a href="https://news.morningstar.com/all/ViewNews.aspx?article=/MW/TDJNMW2013082166_univ.xml" rel="nofollow">the stock’s golden run could be ending</a>.
According <a href="https://www.afr.com/p/opinion/caledonia_gives_packer_helping_hand_SRPpjcDD1m1XAnvBW14JvK" rel="nofollow">the Australian Financial Review’s ‘Street Talk’ column</a>, Packer was convinced on the investment by Caledonia’s chief investment officer Will Vicars, who said Zillow had potential to dominate the market in America in the same way that RealEstate.com.au (owned by REA group) has done in Australia.
Compared to Australia, Vicars reportedly argued, American real estate was far less likely to be sold online, suggesting future growth in the sector.
 
<hr>
 This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
</body></html>

Packer plunges $330 million into American real estate portal Zillow: Has he found the next REA?

<html><body>
It might have been the most expensive pub ever bought in Brisbane, but it doesn’t look like millionaires John Singleton, Mark Carnegie and Geoff Dixon plan on slowing down the growth of their burgeoning pub empire anytime soon.
Earlier this week, the three bought Brisbane’s Exchange Hotel. The price wasn’t disclosed, but <a rel="nofollow" href="https://www.afr.com/p/business/property/singo_splurge_on_queensland_pub_oD2H90AS74fFKBcZ2PmzGM" target="_blank">newspaper reports</a> peg it at having sold for between $35 million and $40 million. If this is on the mark, it would be the most expensive pub ever purchased in Brisbane.
It’s been <a href="https://www.smartcompany.com.au/finance/047062-20111128-john-singleton-and-geoff-dixon-to-establish-200-million-pub-fund-2" target="_blank">less than two years</a> since Rich Lister and ad man Singleton, investment banker Carnegie and Tourism Australia chief Dixon established the Australian Pub Fund, but it’s already bought 11 pubs.
These include the landmark Marlborough Hotel in Sydney (<a href="https://www.smartcompany.com.au/property/051647-john-singleton-s-pub-group-buys-iconic-sydney-hotel-2" target="_blank">bought for $12 million at auction</a>), the Elephant Arms Hotel in Brisbane and Sydney’s Bristol Arms Hotel.
It might seem like a passion business for the three millionaires, but no doubt they would describe it more as a savvy business investment.
In the years leading up to 2008, pub values soared. Owners took on heavy debt to finance new renovations and pub purchases, but then the market crashed, and prices kept falling. By late 2011,<a href="https://www.smartcompany.com.au/finance/047062-20111128-john-singleton-and-geoff-dixon-to-establish-200-million-pub-fund-2" target="_blank">values were at rock bottom</a>. And so, Singleton and his mates went on a pub crawl.
There was, quite literally, a pub crawl, but given the <a rel="nofollow" href="https://www.dailytelegraph.com.au/singos-15-hour-pub-crawl-that-clinched/story-e6freuy9-1225886895424" target="_blank">15 hours of business meetings the trio took</a>, I’m sure they weren’t too sloshed.
Singleton booked in 15 hours of meetings with pub owners all across Sydney. And he liked what he saw.
The strategy, going by Singleton’s public statements, was simple but ambitious.
He, Carnegie and Dixon would tip in $100 million of their own money, along with some bank debt and other funding, and use it to buy distressed pubs, whose owners were keen to get out.
They would then turn these pubs into balanced cash cows, with food, drinks and poker machines contributing roughly one third of revenue each.
Once the pubs are fully up and running the way they should, the plan is to eventually list the pub fund on the stock market, hopefully netting the three founders of the Australian Pub Fund a handy profit for their trouble.
When news of the pub fund first broke, Singleton said it could buy “three or 33” pubs, depending on whether or not the opportunities were there.
Two years later, it seems there’s been plenty of undervalued real estate on the market. The fund has flagged its intentions to buy more pubs in Brisbane, and it’d be unwise to dismiss further purchases in the founders’ home city of Sydney.
Neither Singleton, Carnegie nor Dixon made their fortunes in hotels or property. But, when you’ve got the money, I guess the opportunity is there for the taking. Cheers to that.
<hr>
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
</body></html>

No last calls for John Singleton and co's burgeoning pub empire

Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Developer <a href="https://www.apartments.com.au/developers/drew-group">Drew Group</a> is wasting little time following the completion of Lagoon Main Beach, lodging plans for another high-rise apartment development less than two kilometres away at the northern end of Surfers Paradise.

Drew Group, led by local developer Jon Drew, is pitching for a 32-storey residential tower at 180–184 Ferny Avenue, replacing three low-rise buildings on a prominent 1,055 sqm corner site just 150 metres from the beach.

Drew called on architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/bda-architecture">BDA</a>&nbsp;to design the new slender tower, which will have 130 apartments. BDA drew on the inspiration of legendary architect Frank Lloyd Wright's philosophy of organic architecture, which seeks "a superior sense of use and a finer sense of comfort, expressed in organic simplicity."

"The design creates a seamless dialogue between built form, natural elements, and the iconic Surfers Paradise context," BDA wrote in the application recently submitted to the Gold Coast City Council.<img alt="First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach" data-entity-type="file" data-entity-uuid="5dcaa84d-67ba-4e22-b8f1-208ca5056b05" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/surfers%20paradise%20da.png?VersionId=Ah9oBOlL0ofC5eboXSI.dEq9VRfEnFaT" />

BDA also drew inspiration from New York's iconic Flatiron Building, with softened curved corners responding to the geometry of the triangular site. While referencing the 1902 Manhattan landmark, the design reinterprets its distinctive form through a contemporary coastal lens.

Drew is targeting the Gold Coast's "missing middle" market, a segment that has arguably been underserved in recent years. The project is weighted towards owner-occupiers, with 104 two-bedroom apartments complemented by a further 26 one-bedroom residences.

Resident amenity will be centred on the level five podium, featuring a resident lounge, gym, yoga room, steam room, sauna, lap pool with a lagoon area, spa, cold plunge and magnesium plunge.&nbsp;

Additional resident facilities will occupy the rooftop, including work-from-home spaces, a meeting room, resident lounge with a full kitchen, bar and dining area, as well as a dedicated wellness zone with additional plunge pools, steam rooms and saunas.

<img alt="First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach" data-entity-type="file" data-entity-uuid="a1392ad9-620b-41f9-957d-b1fcec13613f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/surfers%20da%20podium.png?VersionId=9kDudIwvCaZFW6F8IyXGP6wQg0B_VS3E" />

The application follows the completion of Drew Group's Lagoon Main Beach, which only has around four apartments left to sell after a successful sales and marketing campaign.

Built by Hutchinson Builders, Lagoon comprises 248 apartments and was popular with local owner-occupiers and interstate buyers.

First look: Drew Group eyes next Gold Coast tower after completing Lagoon Main Beach

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

Myriam Robin

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News