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Australia's corporate watchdog has issued a warning to the self-managed superannuation market, saying the industry often fell short of the mark with its risk advice to consumers.
Commissioner Peter Kell from the Australian Securities and Investments Commission said in a speech yesterday the organisation will release a report in the next few weeks detailing its findings into problematic advice.
The SMSF industry has been under the spotlight recently, with the government eyeing off the large number of funds with assets of more than $1 million as a potential <a rel="nofollow" href="https://www.google.com.au/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=1&amp;cad=rja&amp;ved=0CDEQFjAA&amp;url=http%3A%2F%2Fwww.smartcompany.com.au%2Fsuperannuation%2F052307-government-warned-to-back-off-on-proposed-changes-to-smsfs&amp;ei=WgVmUaSOCKiRigfmqoH4Ag&amp;usg=AFQjCNGKfd8UlCY1gWo3zlgRWeCKkgkllg&amp;sig2=sIu8s6HOE5MfJ2spzJp75w&amp;bvm=bv.45107431,d.dGI" target="_blank">source of revenue</a> in the May budget.
Kell said in some cases investors were given advice which was not tailored to their specific situation, or recommendations for insurance were "absent or inadequate".
"Notably, we also found that investors were not warned about the very real risk of not having access to a statutory compensation scheme in the event of theft of fraud," he said at the CPA Australia SMSF Conference yesterday.
"Going forward, this will be an area of focus for us. We expect to see advice providers warning investors about this risk."
Kell said SMSF providers always need to provide advice regarding the roles and responsibilities of being a trustee in an SMSF, the time, cost and resources required to run one and the risks associated with the SMSF structure.
DBA Lawyers partner and SMSF expert Bryce Figot said this morning that while the majority of the SMSF industry is fine – a point which Peter Kell himself emphasised – there are "pockets of bad advice".
"There are plenty of people out there who claim to be experts, and are not experts. It's hard for the average consumer to know what they're getting is the real thing, or the accuracy of the advice."
Figot says he hears stories nearly every day from clients who have received poor, or incomplete, advice. Thankfully, he says, they are sophisticated enough to seek a second opinion.
"While the industry is getting better, there are still people who are not on top of the rules."
"So the benchmark is improving, but there are gaps in knowledge there."
Kell also said yesterday if there are widespread losses in the SMSF system, it is likely investor confidence will be eroded – an outcome everyone wants to avoid.
In the next 12 months, ASIC will continue to focus on unlicensed advice and misleading SMSF advertising.
"In the past year, we have seen an increase in the number of advertisements pushing property purchases through SMSFs," he said.
"We do not want to see SMSFs become the vehicle of choice for property spruikers. Where we see examples of unlicensed SMSF advice, we will be taking regulatory action."
This story originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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SMSF industry needs to improve the risk advice it offers to consumers: ASIC

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Data released by the Australian Tax Office shows more taxpayers are avoiding the pitfalls of excess superannuation contributions, with fewer falling victim to paying more than the legal caps allow in any one year.
The statistics, released last week, show the number of excess contributions tax assessments issued by the ATO fell from 50,049 in 2009-10, to just 35,999 in 2010-11. There are so far no statistics released for the 2011-12 year.
The issue of excess contributions has come under scrutiny in recent years. The <a target="_blank" href="tags/superannuation">superannuation</a> industry has continued to argue being forced to pay a 47.5% tax on excess contributions, when made accidentally, is unfair.
However, Graeme Colley, technical director for the Self-Managed Superannuation Fund Professionals’ Association of Australia, says the decline may not continue.
He points out in the 2012-13 financial year, the concessional contributions cap was reduced to $25,000. This change, he says, could have caught out people who were unaware of the change.
“I do think it will have improved, and that there could be a decrease, but there is a possibility that it may increase as well.”
The controversy over excess contributions has been a sore point in the superannuation industry for some time. Experts have long been critical of the excess contributions tax of 47.5% to be paid on earnings made over the contributions limit.
Cases heard before the ATO have shown many of these excess contributions to be accidents, although they still attract the higher tax. In one particular case, a company director contributed an extra $90,000 and <a target="_blank" href="https://www.smartcompany.com.au/tax/053833-the-red-mist-has-descended-something-has-to-give">was charged an effective tax rate</a> of 93% on the excess.
This is why Colley says the industry was relieved to see the government introduce new initiatives for excess contributions in the recent wave of superannuation reforms. Now, taxpayers <a target="_blank" href="https://www.smartcompany.com.au/superannuation/054951-government-announces-superannuation-changes-everything-you-need-to-know">will be able to withdraw excess funds</a> and escape paying the tax.
The contributions cap will also be raised to $35,000.
Colley says he believes the extra noise around excess contributions has resulted in fewer cases, even though the release of the 2012-13 figures could still yet reveal more have fallen victim.
“If there is a rise, there are other factors, such as the government’s announcement, which will dampen that effect.”
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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ATO reports a drop in the number of taxpayers caught contributing extra superannuation

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Both the Reserve Bank and the government have hinted at a crackdown on the self-managed superannuation sector, with both entities saying they are concerned about the number of property investments being made in the industry.
<a href="https://www.smartcompany.com.au/superannuation/055187-asic-issues-warning-on-property-advisors-dabbling-in-smsfs">Corporate regulator ASIC has been worried</a> about the same thing for months – but the industry says there’s no reason to panic.
SMSF Professionals’ Association of Australia (SPAA) chief executive Andrea Slattery said the “problem” is slightly overblown.
“The numbers show investments in property within SMSFs break down to about 80% in commercial and 20% in residential,” she says.
“From the SPAA’s point of view we think the position has been overstated that SMSFs may be supporting growth there … those numbers are so small to have any ability to influence prices.”
In its latest Financial Stability Review, the RBA said legislative changes have meant SMSFs can borrow money to invest in property – which has led to an increase in this type of activity being spruiked by advisors.
“The sector therefore represents a vehicle for potentially speculative demand for property that did not exist in the past.”
The risk, it said, is that these investments could influence property prices.
“One risk of the increase in property investment by SMSFs is that at least some of it is a new source of demand that could potentially exacerbate property price cycles,” it said.
The warning is timely – it comes as property investors and analysts across the country are speculating about the prospects of a property bubble, given relaxed lending standards and historically low interest rates.
SMSFs have been permitted to borrow money to invest in property for the last six years.
Meanwhile, Assistant Treasurer Arthur Sinodinos has told the Australian Financial Review the new government wants to keep track of SMSFs to ensure they don’t have advantages over other funds.
“In the super space we need to make sure it’s a level playing field and that you get appropriate competition between the different funds, the industry funds, the self-managed super funds, and that’s the starting point,” he said.
SMSFs have become increasingly popular since the global financial crisis, as they’ve grown a reputation for being safer investments. SMSFs are widely used by business owners.
But Andrea Slattery says there isn’t much to worry about, emphasising the government is simply conducting a review it pledged before the election.
“The SPAA is not worried the government is concerned about a level playing field … they are interested in reviewing the financial services system in general.”
However, there has been some concern over property investments. The Australian Securities and Investments Commission has consistently said over the past year it will continue cracking down on dodgy SMSF advisors who promise returns in property.
Slattery says she is also concerned – but that the overall ratio of property investments doesn’t warrant panic.
“It’s important for people to be cautionary, but it’s only a small number of SMSFs which are taking out loans for property.
“We’ve been concerned about spruikers … but we note there has also been little take-up of all the hype around the spruikers, and so we encourage consumers to seek professional advice on any matters.”
 
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This article originally appeared on <a href="https://www.smartcompany.com.au">SmartCompany</a>.
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Reserve Bank, government crackdown on self-managed super funds

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The auctions market has ended the financial year on a solid note, with first-home buyers rushing to take advantage of federal and state-based grants before they are downgraded.
But one expert says the next financial year may not differ so much from the last, in that investors and buyers should expect a slow, drawn-out recovery rather than any short, frantic bursts of improvement.
"We're not expecting any major recovery for the Melbourne market," SQM Research managing director Louis Christopher said.
As for the rest of the country, Christopher's opinion was unwavering – most capital cities will perform over the next 12 months as they have in the past year, assuming interest rates and the dollar remain relatively stable.
"We're still expecting any recovery to be modest and moderate," he says.
According to the Real Estate Industry of Victoria, Melbourne recorded a clearance rate of 73%, compared to 69% last weekend and 55% during this weekend last year.
"The slight increase in the clearance rate this week may be due to the first-home owners grant for established dwellings coming to an end on the 30th, June 2013," chief executive Enzo Raimondo said in a statement.
Various changes are being made to state-based first home owners' grants, including in Victoria and Queensland.
Such changes mean the first home owners' market is likely to taper off over the next few months, Christopher says.
"Melbourne is likely to track Sydney's changes in that regard, meaning there was a drop off in first-home buying over the few months after those changes came into effect.
"There was also a slow and gradual build up after that period."
As for the rest of the year, Christopher says there isn't much reason to expect anything other than what we've seen in 2012-13. Melbourne is tipped to record 2-5% capital growth during this calendar year, while Sydney "is the market we're most bullish about".
"We're seeing fairly strong pricing action now," he says, with more expected in the next few months.
Canberra, however, is expected to remain under pressure, while Christopher says Brisbane is simply "treading water".
"There is no major recovery with lots of stock in the market...and that's likely to continue in the remaining half of the year."
This article first appeared on<a target="_blank" href="https://www.smartcompany.com.au/property/056271-auctions-strong-as-first-time-buyers-spend-big-for-last-minute-grants"> Smart Company</a>.
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Victorian first home buyer's market set to taper off: SQM

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The self-managed superannuation industry has welcomed the government's decision to abandon amendments that would have introduced new regulations on off-market transfers between related parties.
The decision to abandon the amendment comes as the government passed its superannuation reforms – including the passage of the long-awaited loss-carry back scheme for small businesses, first announced last year.
Small business and tax industry officials have been worried the government won't be able to pass many of its scheduled reforms by the time Parliament ends its current session, which is the last before the September election.
Andrea Slattery, chief executive of the Self-Managed Superannuation Fund Professionals Association of Australia, said the organisation was "very pleased" by the move to abandon the regulation of off-market transfers.
"We've always had the feeling this was something that if people understood what it was, then there wouldn't be such an interest in actually introducing the legislation," she says.
"We're very pleased this piece of legislation has been removed," she says, although adds the government should still examine what would be best practice in this area.
Dan Butler, principal at DBA Lawyers says the removal of the amendment is a positive given <a href="https://www.smartcompany.com.au/superannuation/050719-relief-for-diy-super-funds-off-market-transfers-ban-delayed-by-a-year-2">there were still unknowns</a> about how the transactions would work.
"It's probably been pulled for matters of expediency, the government wants to put other matters forward too and they just haven't been able to work out an amendment that could work here."
"There were a lot of unknown issues in this. For example, with regard to real estate transfers, did you need two independent valuers, or just one? That was still unknown."
The original amendment would have banned off-market transfers between self-managed super funds and related parties.
However, analysts quickly raised problems with the amendment. The new law would mean transactions would have to be conducted on-market, such as through the Australian Securities Exchange, but the law currently restricts those types of arrangements.
Butler says dropping the amendment provides much more certainty to the industry.
"We were sitting in the dark as to how these things would work," he says, but also comments the government needs to "get its act into gear", citing a history of proposing tax changes without fully explaining them.
In the past month tax experts have warned the government still has over 100 proposed changes which haven't been legislated yet. With only a handful of sitting days left until the election, it is unlikely anything except the most important amendments will be passed.
"The government has been very poor for legislative agenda," he says. "It's quite remarkable."
Meanwhile, the government has also finally passed the loss carry-back regime, which was announced last year but until now has not been legislated.
The scheme allows businesses to claim losses of up to $1 million against tax they had already paid during the previous two years. Two new amendments have also removed the possibility a business could claim the loss carry-back during the same year it comes into existence.
The loss carry-back scheme is part of a package of tax amendments which has now been sent to the Senate for approval.
This article originally appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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SMSF industry welcomes abandoning of proposed off-market transfer amendment smsf superannuation

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If there’s one thing entrepreneurs hate, it’s a run-in with the tax man.
And while the nation’s keeper of the coffers may play nice most of the time, make no mistake – the ATO can be ruthless in clawing back money.
With a budget coming up short, the government is looking to some new places to find some cash – like self-managed superannuation funds.
It’s no wonder – about half of all funds have more than $1 million dollars. It’s a gold mine.
As a result, it’s a good idea to keep an eye on your fund and its tax activities. After all, with the government looking for extra cash, you can expect the ATO to ramp up its scrutiny – and you don’t want to be in the firing line.
While there are no new laws specifically targeting SMSFs (yet), now isn’t a good time to draw the attention of the ATO.
A tax disaster could have a big impact on your retirement plans – now is the time to be vigilant.
At the recent Self-Managed Superannuation Professionals’ Association annual conference in Melbourne, Small Myers Hughes partner David Hughes outlined a number of methods to avoid tax disaster.
“It’s important to look at recent ATO activity,” he said at the conference.
“There is a fairly interesting and significant involvement in the ATO of hands-on regulation of the self-managed super sector.
“In 2011-12 there were a larger number of excess contribution cases…raising approximately $175 million in assessments.”
Pay attention – here are five key things you need to know to avoid disaster if you find yourself in trouble with the ATO.
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<h3>1. The way you present evidence is just as important as the evidence itself</h3>
It’s clear the ATO is a pretty mean machine. During the 2011-12 year, the taxpayer only won one ruling.
But there is some relief. Hughes says if you run into trouble with the ATO, the way you present yourself can help your case.
“This seems to be a common thread in these decisions, in that how you present your evidence can very much dictate the outcome of a case,” he says.
“You can have cases that are similar but one will win, and the other will lose, and I would suggest it’s the evidence that is presented and how it’s accepted that is key to how that case is determined.”
Don’t believe it? Check out some rulings.
The Dowling AATA49 case this year contains a comment from the tribunal member hearing the case that two specific witnesses were in fact “witnesses of truth” – a phrase Hughes says is important to note.
Another case, which involved a fund making a loan to a related company which represented more than 5% of the market value of the assets, also came with some commentary.
Hughes says in the ruling – which was positive – the fund in question had “no history of non-compliance”.
“…and there is evidence, which has not been contradicted, that the Fund was made compliant in June 2010”.
Hughes says both these phrases are significant, as they indicate the tribunal took into account the method by which evidence was presented.
“Evidence, evidence, evidence,” he says. “How you present your evidence to the court is critical.”
“I’ve seen so many cases that could have been won with better presentation.”
<h3>2. Get some answers</h3>
Similar to the last tip, the ATO doesn’t particularly like it when you haven’t got an excuse for something – small slip-up or not, the tax man wants to see an answer.
A good example: In the Dowling case, a Dymocks executive moved $91,000 to her superannuation account. But due to some mix-ups with the payroll officer, the money didn’t go into her account until July.
There were plenty of problems with the case. But one involved the fact someone had logged into Dowling’s superannuation account between when she had moved the money, and when it was finally cleared – and no one could explain why. Not even Dowling.
The ATO didn’t like this, and Hughes suggests it may have contributed to the outcome of the case.
“How you explain a particular piece of evidence that may be bad for you is critical to the impression the tribunal forms,” he says.
“If the evidence had played differently, she might have had a different outcome.”
 
 
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3. The court doesn’t care about your excuses
It shouldn’t need repeating, and this goes for every type of ATO case and not just self-managed super funds, but the tax man just doesn’t care about your excuses.
The ATO will allow some things like excessive contribution to fall by the wayside if you can explain you fall into “special circumstances”.
But those instances are far and few between. Look at some of the excuses people have used to try and get out of excess contribution taxes:
<ul>
<li>“I made a mistake” – Rinaldo [AATA 839]</li>
<li>“I told the bank to make the transfer, it’s not my fault” – Colless [AATA 441]</li>
<li>“Because I changed jobs” – Naude [AATA 130]</li>
<li>“I didn’t know my employer had already contributed” – Paget [AATA 334]</li>
</ul>
There is one particularly sad case, [Tran AATA 123], in which someone put $450,000 in their superannuation fund.
The ATO replied by saying the person should have obtained financial advice. “I’d prefer not to be in court, I’d rather be giving you financial advice up front. If you’re a financial planner you should know what you’re talking about. Quite often these cases come about because people are ignorant,” Hughes says.
<h3>4. You have to actually make an effort</h3>
If you’ve made a mistake but then haven’t tried to correct that mistake, the ATO is going to become very annoyed.
In the Bornstein AATA 424 case, a taxpayer spent a substantial amount of time overseas during the 2006-07 financial years.
He was the employee and sole director of a company, and made regulator contributions into his super account.
He emailed his accountant while overseas, but received no response.
After checking the ATO website, he saw that he was able to pay himself within 28 days into the new year under the superannuation guarantee.
However, that rule related to a completely different set of circumstances, and his contributions resulted in a tax charge.
But the case didn’t end there. Because the person in question was able to show the ATO he had tried to contact his accountant, and had relied on instructions provided by the ATO website, he was able to get off the hook.
“While I would not ordinarily accept a mere misunderstanding of one’s obligations is enough to constitute special circumstances, there was what might be described as a ‘perfect storm’ of events, miscommunications and misunderstandings that combined to leave the taxpayer in an unusual and unfortunate position,” the judgment read.
Hughes says this is a significant case – the fact Bornstein actually went out of his way to find instructions and didn’t just do whatever he wanted is a key point.
“If he hadn’t checked the website, he may not have won,” says Hughes.
<h3>5. Ignorance is no excuse!</h3>
Here’s an interesting one. In a 2008 case, a lawyer operating an SMSF fund used superannuation money to prop up his law firm, which is using the super fund as a type of “last resort”.
Obviously, the ATO doesn’t like this very much and moved to find the fund non-compliant.
However, the case is interesting because a trustee said she had no idea what was going on.
Therefore, the trustee argued, there should be some leniency.
But Hughes says the ATO was “particularly scathing” of that approach.
“Directors must make their own enquiries and independent assessment of that information or advice,” it said in the ruling.
“As acknowledged by the Commissioner, the ATO does have a role in educating taxpayers and trustees of self-managed superannuation funds about taxation and superannuation laws, but does not have an obligation, as submitted by the applicant, to ensure trustees understand and comply with the law.”
“In my view, the primary responsibility for this obligation resides with trustees and if the trustee is a corporate trustee, those who manage them.”
The message is clear: ignorance is no excuse.
This article originally appeared on <a rel="nofollow" href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
 
 
 
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Be prepared or risk SMSF tax trouble

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One of the most successful construction firms in the country has collapsed, in yet another sign this aspect of the economy continues to do it tough.
The 20-year-old Walton Construction business, whose clients include a $100 million refurbishment of the Melbourne David Jones store, has been placed in administration.
Founder and chief executive Craig Walton was contacted on Friday, but no response was available prior to publication.
The company was also contacted, but all offices appeared to be unstaffed.
The business was founded in 1993 by Craig Walton, and has since expanded across the country with offices in Brisbane, Sydney and Melbourne. Major works have been undertaken in most capital cities, along with Newcastle, Wollongong and the Gold Coast.
The company has had a successful run, with revenue in the hundreds of millions and an employee count of more than 300 at its top.
However, Walton has now said up to 30 jobs may go due to the administration.
“It is also the saddest day because of the impact on our employees and their families who have been so loyal and outstandingly professional over the whole journey,” he has <a target="_blank" href="https://www.smh.com.au/business/walton-construction-goes-into-adminstration-20131003-2uwxw" rel="nofollow">told Fairfax</a>.
Walton also said wages and superannuation are up to date, and other entitlements will be paid.
“Six months ago we were looking at a disaster scenario. Today is not good, but most of our people have a good future,” he said.
Some of the company’s projects have been sold to competitors. The list of current work on the Walton website shows various projects, including an apartment building worth $13 million in Melbourne, a $2.9 million project for the Defence Force and a $25 million hospital upgrade.
The construction industry has been one of the most affected by the slowdown in the economy. The latest results from the Australian Industry Group-Housing Industry Association Performance of Construction Index showed the industry slowed during August.
Even though interest rates are at a record low, businesses are still experiencing the slowdown – business owners say they’ve been forced to reduce their margins or even take losses to generate work.
The industry has been affected by a wave of smaller collapses, but also larger businesses: last year <a target="_blank" href="https://www.smartcompany.com.au/buy-or-sell-a-business/056163-fallout-from-reed-construction-folding-continues-with-collapse-of-air-conditioning-company">Reed Constructions collapsed</a> with debts of $182 million, affecting hundreds of businesses working as subcontractors.

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This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
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Major construction business behind David Jones refurbishment collapses into administration

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The Asia-Pacific region is booming and will have the world’s largest number of millionaires within the next year – and property investment is at the heart of the Australian surge.
These are the findings of the latest Asia-Pacific Wealth Report, conducted by the Royal Bank of Canada and Capgemini – and it places Australia among the top growth areas for the rich.
The report shows the number of millionaires grew by 15% during 2011-12, and the overall number of millionaires in the Asia-Pacific grew at three times the rate of the rest of the world.
Lower global volatility and “strong actions” by both the European Central Bank and the US Federal Reserve helped keep the region strong.
“Combined with positive developments in the region, lower global risk and the effect of reducing volatility in Asia-Pacific during the second half of the year,” it said.
“As a result, Asia-Pacific’s equity markets surged starting mid-year, making up for the moribund first half.”
We’re also a positive bunch, the report claims. Australia had the closest average to the rest of the world in terms of trust of all elements of wealth management.
High net worth individuals (HNWI) here had more confidence than the rest of the world in industry infrastructure, at 45% compared to 40%. As a result, confidence in the ability to generate wealth in the next 12 months was higher than the rest of the world – at 81.9%.
“This positive outlook could be partly a function of Australia’s positive GDP growth rate in 2012 of 3.6%, which was the highest of industrialised Asia and greater than the global GDP growth rate of 2.2%,” the report said.
So where is this growth coming from?
Mostly, real estate. The report shows 40.6% of Australian wealth is tied up in property, which is far more than the next highest figure of 26.5% in India.
Millionaires in the Asia-Pacific are also big art lovers, and in particular, Australians love a good painting. Local wealthy individuals have an allocation of art worth 20.8%, higher than any other nation.
Australia’s wealthy are also more likely to focus on growing their wealth rather than simply preserving it, the report says.
“HNWIs in the country consider their needs to be more straightforward, encompassing the management of cash, credit and growing investments (48.3%), and this sentiment was particularly strong in the higher age and wealth band,” the report says.

<hr>
This article was originally published on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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Asia-Pacific millionaires will take over the world’s rich by 2014, and Australians are among them

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The government has confirmed it will continue with its plans to re-establish the controversial Australian Building and Construction Commission, in yet another sign the Coalition is moving to rapidly implement several key election policies.
The Coalition had previously said it would restore the ABCC, with a report prepared by Liberal MPs showing it <a href="https://www.smartcompany.com.au/construction-and-engineering/057293-coalition-could-resurrect-building-and-construction-commission-within-100-days-but-experts-aren-t-too-keen">could be done within 100 days</a>.
A spokesperson for Employment Minister Eric Abetz said this morning the plan is a priority, and the Coalition is committed to writing legislation in the first sitting week.
“This is a priority,” he said.
The industrial relations industry is mixed regarding the reintroduction of the ABCC. While some say it would be better to leave the industry’s authority to Fair Work, others believe the construction industry is so large it demands a body of its own.
Industrial relations lawyer Peter Vitale said this morning while it’s unhelpful to have so much “chopping and changing”, the reintroduction of a dedicated body could have benefits.
“The reality is that governments of both colours have recognised the need for a separate arm of government to deal with the building and construction industry,” he says.
“That being the case, it seems to me the most effective way to address an industry that requires that much attention is to have its own body.”
The government is considering several options contained within a report compiled by several Liberal MPs. Some include dividing up responsibilities between the ABCC and Fair Work, while others would include hiring police or ex-police.
The original ABCC attracted controversy for some decisions, and was ultimately disbanded by the Gillard government in 2012.
The new ABCC would be given several million dollars in order to reverse cuts made under the Labor government, Fairfax reports, while other changes include the possibility of reinstating powers of the old ABCC – such as requiring witnesses to give testimony.
The reintroduction of the ABCC sits alongside other Coalition workplace relations promises, including a pledge to change bargaining rules and allow more movement in flexibility agreements.

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This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au">SmartCompany</a>.
 
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Coalition moving ahead with plans to reinstate Australian Building and Construction Commission in first sitting

Less than two years after breaking ground, Gardner Vaughan Group is celebrating the topping out of Bask, its second development in the exclusive coastal enclave of Bokarina on Queensland’s Sunshine Coast.&nbsp;

Located only minutes from the beachfront, the two seven-storey luxury apartment towers, known individually as Mydas and Caretta, offer a selection of one-to-four-bedroom residences with views of Lake Kawana, the Glasshouse Mountains, and Bokarina Beach.&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=333359]

Gardner Vaughan Group Commercial Director Sam Gardner said the milestone marks the home stretch for construction, with first residents expected to be able to move in from Spring 2026.&nbsp;

“This is a significant milestone in bringing this development to life and represents our confidence in this region’s long-term growth and appeal,” Gardner said.&nbsp;

“With 85 per cent of apartments already sold, buyers are joining an established, coastal village that offers the very best of the Sunshine Coast – seasonally patrolled surf beaches, renowned restaurants, and links to established health and retail.&nbsp;

“The final collection of three- and four- bedroom apartments range in size from 127sqm to 300sqm, each with two or three secure car parks and storage, and with construction fast approaching completion we don’t expect the last few apartments to remain on the market for long.”&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=333362]

Local restaurateur Luke Stringer, who co-owns and manages the award-winning Bocca Italian and Playa Mexican restaurants in Bokarina, has lived in the beachside suburb for 18 months and worked there for more than three years, and said the beachside suburb was thriving.&nbsp;

“It’s fair to say Bokarina is finally stepping into the sun and there’s a lot to love about the place,"&nbsp;Stringer said.

"It’s such a great community, where you see the same smiling faces every morning and everything’s within easy reach – it’s the perfect hub in the middle of the Sunshine Coast.

“When we first opened Bocca Italian, we were the lone restaurant, but it’s been amazing to see how the area has grown. The more venues that open, the busier it gets for everyone. When Playa Mexican opened its first Saturday night, Bocca had a record night and Playa was packed too, which blew us away how everyone is thriving.&nbsp;

“There’s a great energy around the place now, and people are really embracing Bokarina as a food and lifestyle destination.”&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=363368]

Stringer joined other buyers at Bask Bokarina and the Gardner Vaughan Group team to celebrate the topping out at a special event in February.&nbsp;

Located in Kawana Waters, midway between Caloundra and Maroochydore, Bokarina locals enjoy scenic walking paths around Lake Kawana, playgrounds, beachfront boardwalk and parklands, alongside all the convenience of a masterplanned beachside community.&nbsp;

“You see people jogging or swimming in the morning, then grabbing coffee at the cafes, people are really embracing the area and all this growth is bringing more people to Bokarina,” Stringer added.&nbsp;

To take advantage of the vistas, each of the 135 apartments at Bask is designed with full size windows and high ceilings that provide an abundance of natural light.&nbsp;

Prices for the remaining three-bedroom apartments start at $1,599,000 and four-bedroom apartments start at $3,149,000.&nbsp;

[smartcode_project:default project_id=141609 project_image_fid=363369]

The mixed-use development also features ground-level retail space for cafés, dining options and boutiques, including the soon-to-be-opened ‘Corner Shop’, by the team behind Noosa’s well known ‘Organika’.

Sam Gardner said Gardner Vaughan Group’s 37-year history building and developing across South East Queensland has contributed to the success of its second development in Bokarina, which follows the recently completed Zinc Apartments.&nbsp;

“We care how people live and this is reflected in the way we approach the design and delivery of every development,” he said. “Furthermore, as a builder-developer we have full control over the construction program and our 100 per cent completion rate is something people can draw confidence from.”&nbsp;

Founded by civil engineers Guy Gardner and Darryl Vaughan in 1989, the family-owned business has evolved from a consultancy firm to an award-winning builder-developer, with projects across the Sunshine Coast, Moreton Bay, Brisbane and the Gold Coast.

[smartcode_project_cta:default project_id=141609]

Joel Robinson

Gardner Vaughan Group tops out Bask Bokarina apartments

Prolific Melbourne developer <a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a> has launched its fourth new Gold Coast development in as many years.

<a href="https://www.apartments.com.au/developers/hirsch-faigen">Hirsch &amp; Faigen</a>, led by Daniel Faigen and backed by Eddie Hirsch, co-founder of United Petroleum, has unveiled The Eveleigh, on a prime 1,100 sqm site at 7-9 Surf Parade in the heart of Broadbeach.

<a href="https://www.apartments.com.au/new-apartments/the-eveleigh-broadbeach-7-9-surf-parade-broadbeach-qld-4218">The Eveleigh</a> will deliver 100 apartments across 31 levels, making it the company’s largest Gold Coast project to date. It builds on the success of its three earlier developments, <a href="https://www.apartments.com.au/buildings/hemingway-1267-1273-gold-coast-highway-palm-beach">The Hemingway in Palm Beach</a> and <a href="https://www.apartments.com.au/buildings/emerson-kirra-100-musgrave-street-coolangatta">The Emerson at Kirra</a>, both completed, and <a href="https://www.apartments.com.au/new-apartments/yves-mermaid-beach-7-9-mermaid-avenue-mermaid-beach">Yves Mermaid Beach</a>, which is nearing completion.

[smartcode_project:default project_id=149670 project_image_fid=360966]

The announcement of The Eveleigh affirms the company’s sustained confidence in the Gold Coast market which continues to remain undersupplied. It also increases the value of Hirsch &amp; Fa​igen’s Gold Coast development portfolio to more than $700 million since the company first entered the market in 2021 with Hemingway.

The company has enlisted its preferred architecture firm Rothelowman to design The Eveleigh, which will offer a thoughtfully curated lifestyle, including a substantial wellness precinct, communal recreation areas, children’s play spaces, work-from-home facilities, and shared lounge and dining areas.

[smartcode_project:default project_id=149670 project_image_fid=360965]

Designed for the prime market demographic of downsizers and interstate lifestyle investors in mind, The Eveleigh has been crafted to offer an increasingly rare blend of affordable luxury in a tightly held market. Uniquely positioned in the heart of the Gold Coast’s most sought-after lifestyle suburb of Broadbeach, the project will also boast uninterrupted beach and hinterland views.

The Surf Parade site is just a short walk to the bustling Broadbeach dining and retail precinct, Pacific Fair, The Star Gold Coast and convention centre, and an easy stroll to Kurrawa Beach and the recreational amenity of Pratten Park on the Broadbeach foreshore.

[smartcode_project:default project_id=149670 project_image_fid=360975]

“We’re excited to be proceeding with our fourth project on the Gold Coast in what is certain to become the new luxury precinct in Broadbeach,” says Anthony Bueti, the CFO of Hirsch &amp;a​mp; Faigen and a shareholder of the group.

“With the likes of Mosa​ic and Abedian &amp;a​mp; Co also launching quality projects in the area, the transformation will cement Broadbeach as the premier lifestyle and amenity suburb on the Gold Coast.

"After four years in the Gold Coast market, and with three successful projects completed, The Eveleigh is the product of everything we have learned to love about the Gold Coast and it will be an incredible addition to our growing portfolio in one of the most vibrant property markets in the country. We continue to remain very confident in the high-end Gold Coast property market.”

Urban Activation Director Matt George is handling sales for The Eveleigh, having sold out The Emerson, The Hemingway, and Yves, all before construction was completed.

Melbourne builder MAXCON has already commenced construction on The Eveleigh. They are forecasting a mid-2028 completion.

[smartcode_project_cta:default project_id=149670]

Hirsch & Faigen unveils The Eveleigh in Broadbeach

Two years after securing development approval for the final stage of its award-winning Thornton Precinct on the doorstep of Penrith Station, Urban Property Group is set to launch <a href="https://www.apartments.com.au/new-apartments/mayfair-on-penrith-172-lord-sheffield-circuit-penrith-nsw-2750">Mayfair on Penrith</a>, around 400 apartments designed to reflect two of Sydney’s most iconic structures.

The builder-developer has continued refining the design plans for the two-building development on a significant 8,280 sqm site on Sheffield Circuit, recognising the importance of the prime parcel as one of the closest developable sites to the station.

UPG enlisted architecture firm SJB to design the project. The team said they drew inspiration from both the General Post Office in Martin Place and East Circular Quay to help shape the design. The two-level colonnade, in particular, reflects the famous GPO building, which dates back to the 1860s.

[smartcode_project:default project_id=136726 project_image_fid=362014]

There will be one-, two-, and three-bedroom apartments on offer, with interiors by Cox Architecture. Residences will sit above a retail podium featuring hospitality and lifestyle operators such as One Playground and Volcano’s Steakhouse, contributing to an activated ground plane within the broader Thornton precinct.

A communal rooftop with a pool and views towards the Blue Mountains will provide shared open space for residents. The development is positioned between Ron Mulock Oval and Westfield Penrith, with the Nepean River and Great River Walk also nearby, placing daily amenity and green space within walking distance.

&nbsp;

[smartcode_project:default project_id=136726 project_image_fid=362015]

Mayfair is being delivered by Urban Property Group, a family-owned developer and builder with nearly 40 years’ experience across Sydney. The project will be the first in Penrith to be offered with Resilience Insurance’s 10-year Latent Defects Insurance (LDI) policy, which Urban Property Group has adopted across a number of its recent developments. The developer also has a 4.5-star iCIRT rating, one of the best ratings in market providing further confidence to buyers.

Urban Property Group CEO Patrick Elias said providing additional assurance to off-the-plan buyers has become increasingly important.

“Anything we can do to give confidence in our product is a plus,” Elias told Apartments.com.au.

“Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. They’re making their single large investment, which is their home, and providing confidence is something that we feel is paramount.”

[smartcode_project:default project_id=136726 project_image_fid=362020]

The LDI policy provides a 10-year warranty covering structural defects, with independent inspections carried out during construction and protection for owners if defects arise post-completion.

Mayfair represents Urban Property Group’s sixth and final development within Thornton, consolidating the masterplanned precinct immediately east of the station.

The developer, which builds its own projects, has already commenced construction. SRM Residential is handling the sales campaign.

[smartcode_project_cta:default project_id=136726]

Urban Property Group to close the curtain on award-winning Thornton precinct with Mayfair on Penrith release

Investor appetite for Queenstown apartments is strengthening as supply constraints and four-season tourism continue to underpin demand across the alpine region.

In Frankton’s masterplanned Remarkables Park precinct,&nbsp;<a href="https://www.apartments.com.au/developers/safari-group">Safari Group</a>’s 141-apartment Mountain Oak development is attracting repeat and yield-focused buyers seeking exposure to that market dynamic.

Brandon, who specifically targeted Queenstown as an investment location, said the combination of price point and limited new supply made Mountain Oak stand out.

“It is a quality product in a location that struggles to densify,” he said, referencing Queenstown’s land-locked geography and development limitations.

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/658d4f_48c3ec1ae5df4a2cab7d23c07c7f51b3~mv2.jpg?VersionId=27K8oQ4ExDN8Yu70VHDa9Olq59XU36m3" />

Having spent significant time in the region, Brandon pointed to its global reputation and consistent visitation as key fundamentals.

“Queenstown is a known destination from people all over the world. The place is land locked and there are issues building there. It’s also busy all year round.”

That four-season economy, driven by skiing and snowboarding in winter and hiking, cycling and water-based tourism in summer, was also central to Sherry’s decision to invest.

“I believe the four-season tourism has major appeal as it would ensure that the property will not remain empty, unlike other areas in NZ,” she said.

<img alt="From slopes to markets: Mountain Oak connects residents to the best of Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Living_WEB.jpg?VersionId=3LglY20Jp_MAzQYdvwODRWvtjL.cZcqI" />

Mountain Oak has been structured to respond to that sustained demand, with 365-day visitor accommodation consent underpinning a mix of one-bedroom, flexi, two-bedroom and dual-key configurations that can operate as either short-term visitor accommodation or long-term rental housing. Dual-key apartments comprise two self-contained residences on one title, allowing owners to generate dual income streams or occupy one side while leasing the other.&nbsp;

Under Safari Group’s optional visitor accommodation management model, owners receive 60 per cent of the annual income generated by their apartment, with 24/7 on-site management, guest services and listing exposure included. Independent appraisal modelling suggests gross yields of up to 15 per cent for certain two-bedroom configurations, based on estimated nightly rates and occupancy assumptions.

For Brandon, that flexibility aligned with his broader investment strategy.

“It helps to know that I can have it managed either way,” he said. “My focus is on purchasing high yield cashflow properties.”

<img alt="Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand" data-entity-type="file" data-entity-uuid="c786ba7f-f974-4ce3-9833-1bcd9f2938d6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_ae3c049f388f4c13bf801649d91cbb4a~mv2%20%281%29.jpg?VersionId=J25uvzGdvtFaXGzuwz28ewJ9wWzbtvur" />

He selected a one-bedroom flexi configuration, citing both yield and adaptability.

“I work remotely and can travel to most places and work. I enjoy making spaces that work for the lifestyle that I live and it seems that others also enjoy it.”

Ranging from 54 to 57 square metres, the one-bedroom flexi incorporates a separate multipurpose room suited to a home office, additional storage, or accommodation for ski gear and seasonal equipment, an increasingly relevant inclusion for buyers balancing remote work and alpine travel.

Interiors feature underfloor heating in bathrooms and a heat pump in the main living area, supporting year-round comfort. Upper-level apartments are positioned to maximise natural light, with sliding windows and balustrades in select residences enhancing outlook and ventilation. Units are available in both light and dark interior schemes.

<img alt="Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand" data-entity-type="file" data-entity-uuid="8f9492e9-8ee0-4aae-856c-8996ed9d9a06" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/658d4f_7d066f5200024c1aa472d01e2dc776ed~mv2.jpg?VersionId=MLR5xn6fLqPdBi7vxyRT.1zhQX3Ln0Ev" />

Sherry, a repeat Safari Group buyer, said her previous experience with the developer provided confidence to secure another apartment.

“Their developments have always finished on time, the quality has been high, and I didn't feel that my investment may be at risk,” she said. “Knowledge of the developer and our two existing Safari apartments gave us the confidence to proceed with this one.”

Safari Group has delivered more than 2,000 hotel units and residential apartments nationally and is now undertaking its fifth Queenstown development, reinforcing buyer confidence in delivery capability.

Although Sherry was not initially targeting Queenstown due to its price profile, prior visits reshaped her view of the market.

“I absolutely love this region and believe it is a major tourist attraction, which led me to the decision to invest.”

<img alt="How Mountain Oak Apartments draws holiday home buyers to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Construction commenced in June 2025, with completion anticipated by mid-2027. Apartments are priced from NZ$639,000, and the development carries Overseas Investment Office exemption approval, allowing non-residents to purchase.

For both investors, the purchase represents a balance of income generation and long-term portfolio positioning in a tightly held alpine market.

“I firmly believe my investments in Safari developments are a combination of all these elements,” Sherry said. “The location of this project enabled me to diversify.”

As Queenstown continues to attract year-round visitation alongside constrained housing supply, Mountain Oak’s dual-key flexibility, optional on-site management structure and established developer track record are resonating with investors seeking exposure to the region’s resilient tourism economy.

Investors back Safari Group’s Mountain Oak Apartments as Queenstown’s four-season economy drives demand

The Minns Labor Government is today unveiling a game-changing new precinct at Bays West – delivering up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes - directly above the new Bays West Metro Station currently under construction.

The landmark transformation will convert underutilised government-owned port land on the Harbour into Sydney’s newest suburb, while retaining important deep-water port facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

<img alt="Bays West" data-entity-type="file" data-entity-uuid="c5f01d10-0b6b-49de-8033-d3ef2728cb6d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.06.12%E2%80%AFPM.png?VersionId=UA6_r._1jYROJ5tFNXMHqjNYLKYWIN.Y" />

Affordable housing will be embedded from the outset, including dedicated homes for essential workers such as nurses, teachers, paramedics, firefighters and police so they can live closer to the communities they serve.

The precinct will combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years.

Night-time entertainment and creative industries will be anchored by the revitalisation of the historic White Bay Power Station as a cultural and community destination, connected to the harbour across a new expansive public forecourt.

Planning of the area will prioritise connectivity, including active transport links to neighbouring communities such as Rozelle, Balmain and Glebe, improved pedestrian access to the waterfront, and connections to the CBD, including an active transport link across the Glebe Island Bridge.

The Government will lead a master planning process that will include an international design competition to guide development across the precinct, ensuring homes, essential infrastructure, jobs, public spaces and transport links are delivered together.

It will be led by a new delivery agency to be established over the coming weeks, which will report to Minister Kamper who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo. Once established, the publicly owned land in the precinct will be transferred to the new agency.

This is the first new suburb that has been built in inner Sydney in decades, it will see homes built alongside the Bays West Metro Station ensuring young people, families and downsizers are only minutes away from the CBD. As part of the transformation of the Bays West precinct, bulk port operations – including cement, gypsum and sugar handling – will cease on Glebe Island by no later than 2030.

<img alt="Glebe" data-entity-type="file" data-entity-uuid="46ef3c23-2ce1-4912-b8ba-5247de19d7b9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.02.15%E2%80%AFPM.png?VersionId=I5xKa7hLNlsueMsltA2dsYrRYtZCKvZz" />

The Government will work closely with industry to minimise impacts and ensure the continuity of supply. This includes a commitment of $270 million to improve road connections around the port at Port Kembla and to investigate increased rail freight capacity.

Working harbour operations across the precinct will be consolidated, mostly into White Bay, ensuring the precinct will continue to provide critical services for the harbour, including boat maintenance and marine construction and as a base for tug boats and for emergency services.

A new staging area will be established in White Bay, securing the future of the New Year’s Eve fireworks, Vivid and other major events for decades to come.

<img alt="Glebe island" data-entity-type="file" data-entity-uuid="0554b153-b225-445b-a633-75aecea7dec9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-03-04%20at%204.06.17%E2%80%AFPM.png?VersionId=P45ABy8KLuwjzVf04APWfeC4aOMA1Ngx" />

The cruise terminal will be retained in its current location, meaning tourists arriving in Sydney will be welcomed by the new precinct, with new shore-power facilities currently being installed that will reduce noise and emissions. The Sydney Heritage Fleet will also be offered new premises in White Bay.

Deep-water berths will be retained to preserve Sydney Harbour’s strategic operational capability, and the removal of the existing 1970s industrial silos, currently used as a billboard, as well as to store cement and sugar, will unlock new opportunities for public space and future housing.

“Right above a new metro station and minutes from the CBD, we’re delivering thousands of homes where people actually need them - close to work, close to services and close to transport,"&nbsp;Premier of New South Wales Chris Minns said.

“Importantly, this precinct will include affordable and essential worker housing from day one, so nurses, teachers, paramedics and police can live closer to the communities they serve.

“We understand that not everyone will welcome change, but cities don’t stand still. If Sydney is going to remain a place young people and families can afford to live in, we have to use well-located land better and plan for the future.”

Patrick Stafford

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