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Superannuation experts are becoming more concerned over the suite of <a target="_blank" href="https://www.smartcompany.com.au/superannuation/054951-government-announces-superannuation-changes-everything-you-need-to-know">changes announced by the federal government</a> on Friday, warning even people with a modest amount in their accounts could be caught by new taxes.

Experts have given a mixed reaction to the changes, which include placing a higher tax on earnings over $100,000. Although the government says these changes will only affect the highest income earners, experts say people with accounts as low as $500,000 could be affected.
Particularly, they say, if you sell assets which incur higher taxes, such as capital gains, which could cross the line of earning $100,000 in a year.
"This just shows when you start to tinker with the tax and superannuation system...it just leads to further complexity," Tax Institute senior tax counsel Robert Jeremenko told SmartCompany this morning.
However, CPA Australia policy head Paul Drum told SmartCompany such an event is possible, but unlikely.
"I wouldn't say it's outside the realms of possibility, but that presupposes you're getting a fantastic return on an investment. It's unlikely."
The changes have received a variety of responses. While some industry experts say some of the changes are welcome – such as easing up on some excess contributions penalties – others are more worrisome.
The Association of Superannuation Funds of Australia said it mostly welcomed the changes, although noted there is a lot of detail still to analyse.
"We will examine these proposed changes in detail to ensure they deliver the best outcomes for the sustainability of the system and a comfortable retirement for all Australians," chief executive Pauline Vamos said.
The Institute of Public Accountants was more timid, saying the reforms were "mixed" and the concept of a "council of superannuation guardians" was not necessarily convincing.
The government said a council will be established to make sure any future reforms are consistent with a charter on superannuation stability.
"There have been a large number of reviews from systemic taxation reviews to comprehensive superannuation reviews; we are unsure as to how a 'charter' will impact on better retirement savings outcomes for Australians."
Institute of Chartered Accountants head of superannuation, Liz Westover, also wrote while the changes ended speculation, they also aren't guaranteed to pass Parliament, which could lead to more uncertainty.
While commentary has been mostly negative towards some changes, such as the 15% tax to be placed on earnings over $100,000, and the move to make deeming rules apply to super pensions, others have been welcomed.
These include an increase in the contributions cap to $35,000, and new reforms to excess contributions caps which will see people be allowed to withdraw the excess deposits made into their accounts.
This has been a particular problem for some, as they are taxed at more than 47% for the excess amount.
Jeremenko says this change is welcome and is an acknowledgement from the government "most people" try to do the right thing.
However, he says other changes are problematic.
"There are already questions about whether the 15% tax on earnings over $100,000 will affect certain people. It shows the government should be viewing changes to the super system in its entirety."
Paul Drum says it's important to keep the changes in context – they haven't reached Parliament yet.
"When there is a change of government – and there will be, we just don't know to what yet – that will reveal more."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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pmcstafford-pr9eMARWoN

Experts say new super rules could affect those with more than $500,000 in accounts

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The property market has enjoyed yet another week of solid sales, with auction clearance rates and property listings remaining high in both Sydney and Melbourne.
And while the sustained market activity has led some sellers to question when they will be seeing <a target="_blank" 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=0CDwQFjAA&amp;url=http%3A%2F%2Fwww.smartcompany.com.au%2Fproperty%2F052463-modest-house-price-growth-will-underpin-housing-recovery-bis-shrapnel&amp;ei=1wxiUer8FKSXigftr4DwBA&amp;usg=AFQjCNEMgr7YEPLfht41QzaHTOGalkzH-w&amp;sig2=6E5wFp4y7Fkb-awh5eiFfg&amp;bvm=bv.44770516,d.aGc" rel="nofollow">more intense financial gains</a>, SQM Research managing director Louis Christopher says the current recovery will be much more sustainable than the last.
Properties are set to gain value over the next year, he says, but at a slower rate than the previous recovery.
"We've already seen prices have been increasing, but just not at the rate of knots we had in the last recovery in 2009," he says.
"That was really quite a surge, and the difference between then and now is the interest rates. We have generally low interest rates right now."
The latest results show Sydney <a target="_blank" href="/news">recorded a higher clearance rate this weekend</a> at 68.9%, according to Australian Property Monitors, based on 358 auctions reported out of 465 listings.
In Melbourne, <a target="_blank" href="/news">clearance rates were lower</a> due to school holidays, although the city still claimed a clearance rate of 64.2% on 168 reported sales.
REIV chief executive Enzo Raimondo said in a statement the real impact on prices will be seen next week, when March quarter median prices will be released.
Louis Christopher says owners shouldn't expect massive gains. The current market is missing two major factors from the last recovery which pushed prices upwards: high interest rates and a first home owners' grant.
Christopher says as a result, we can expect price increases for some time but they will come in smaller increments.
"Stability is good," he says. "It means this recovery will be more sustainable than just lasting 12 months, which is what happened in 2009."
"Even taking into account the unreported auctions, what we're seeing suggests we're entering a market that is returning to normal. It's not in a boom, but it's not in a cold, either."
The number of listings can be expected to decreases as winter grows closer, Christopher says, although clearance rates are expected to remain high.
"We expect the clearance rate to hold at these levels during autumn and winter," he says.
"For first home buyers, there are still challenges because pricing is still relatively expensive. But this is still a reasonable climate for first home buyers. We're not seeing a massive acceleration in prices – so if I was a first-time buyer I'd be researching."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/">SmartCompany</a>.
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Strong auction clearance rates persist in Sydney and Melbourne

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It was the year when online retailing grew up. Though the industry has had the same debate for years, the last year has seen a huge resurgence in the way companies both large and small are dealing with digital.
A decade after shutting down its original digital strategy, David Jones has come back with a vengeance. The retailer, along with department store rival Myer, has spent tens of millions of dollars in buffing up its online presence.
But it isn’t just the department stores getting their digital chops dirty. <a href="companies/woolworths" target="_blank">Woolworths</a> and Wesfarmers have started giving regular updates on online sales in their financial updates. Chains like Speciality Retail and Country Road are reporting sales increases, or actual revenue figures from digital sources.
Even though Gerry Harvey may still decry the use of the internet, <a href="https://www.propertyobserver.com.au/retail/how-gerry-harvey-plans-to-turn-harvey-norman-into-australia-s-biggest-retailer/2013020659202" target="_blank">Harvey Norman</a> is turning over several million dollars.
That’s not forgetting pure play online retailers like Kogan, Shoes of Prey, or Appliances Online. These companies, like StyleTread, are not only making a huge stamp on the retail consumer space, but they’re demonstrating retail is able to attract serious venture capital money.
As Telsyte senior research manager Sam Yip says, it’s been a “very big year of change”.
“There have been players early in the space that have dropped out, and a lot of bricks-and-mortar retailers are doing more.”
“We’re not hearing any more Gerry Harvey stories; everyone acknowledges that this is the channel to be operating in.”
The debate over the GST threshold has largely disappeared, although the industry at large is still hopeful of some government relief. At the very least, most have accepted a 10% change in price isn’t going to help much of anyone. The smarter retailers are simply getting on with the job.
If there’s any evidence the online retail revolution is taking hold, look no further than Australia Post’s reaction. It is investing more money in parcel lockers and out-of-hours delivery services to cater for the huge amount of parcels being delivered.
So much so, the majority of its revenue is now being made from these types of parcel deliveries.
Experts believe online retail in Australia has tipped over the top of the hill, so to speak. The hard work is being done already. Now, Yip argues, the next challenge is to transition that success to platforms like mobile.
“The other big challenge here is around delivery. In the past year we’ve seen horror stories of where logistics have gone wrong, with people getting wrong orders all the time.”
“There’s a need to really refine that back-end logistics functionality.”
As in previous years, we’ve created a list based on a mixture of different metrics, including traffic data from Experian, revenue, and any sort of noteworthy achievement. Local divisions of global companies, such as Apple and Amazon, are excluded, along with auction sites such as eBay and Gumtree.
The list is not presented in any particular order.
The top 20 online retailers of 2013:
<h3>1. Kogan</h3>
If not the most popular, Kogan is one of the best-known homegrown online retailers in Australia. Mostly thanks to founder and CEO Ruslan Kogan’s insistence on putting himself and his business in the news through quirky – and sometimes weird – comments and campaigns. More recently the <a target="_blank" href="https://www.smartcompany.com.au/retail/050178-kogan-slugs-customers-who-use-antiquated-internet-explorer-7-browser-with-a-6-8-tax">Internet Explorer tax</a> got a mention in several international news outlets.
It’s difficult not to be impressed by Kogan’s reach. After shipping a single container of televisions five years ago, Kogan has transformed into a $250 million business with more on the way.
Spars with Gerry Harvey aside, Kogan has maintained a solid footing with Ruslan saying he’s “happy to be everybody’s first choice for a second television”. With a view to growing into a billion-dollar business, and expansion into services like mobile, Kogan will be around for a while yet.
<h3>2. Milan Direct</h3>
The other half of Ruslan Kogan’s online empire, Milan Direct was initially an odd proposition. Selling furniture online back in 2007 wasn’t done very much in Australia, if at all. But Dean Ramler and Kogan have managed to turn the business into a $12 million powerhouse.
The company’s success has spawned some eager competitors. But with growth of 100% last year, and international expansion ahead, Milan Direct  seems set to hold on to its strong market position for a while.
<h3>3. Catch of the Day</h3>
Perhaps the largest online retail success story in Australia, Catch of the Day continues to grow from strength to strength. After starting as an eBay business, Gabby and Hezi Leibovich have managed to transform the company into a $350 million powerhouse, complete with funding from one James Packer.
Part of the success of the Catch Group can be attributed to its savvy expansion plans. Rather than start a business for every category, the team has been able to pick up start-ups and nurture success from there. After expanding into grocery and wine, it seems natural the business could continue to thrive – and all signs are pointing to an eventual float.
<h3>4. Booktopia</h3>
Given books are one of the cheapest things to buy from offshore retailers, it’s surprising any local online store has managed to create a thriving business. But Tony Nash at Booktopia has been able to do just that, on track to turn over $28 million in 2012-13.
There isn’t much complicated strategy here. A focus on clean design, good customer service management and an ever-present need to reduce shipping times has kept Booktopia at the top.
<h3>5. JB Hi-Fi</h3>
One of the larger businesses in Australia to actually understand how online retailing works; JB Hi-Fi is making a good name for itself online. With more than $37 million in digital revenue in the first half of the year alone, at 2% of total sales, the company is proving itself as a good example for dedicated bricks-and-mortar stores heading online.
In fact, JB Hi-Fi perhaps encapsulates what retailers need to be doing online. With the ability to check stock, “click and collect” and some pretty fast customer service, chief executive Terry Smart seems to be doing a good job in transforming the iconic business into a powerhouse online.
 
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<h3>6. Officeworks</h3>
Office supplies are a boring topic, but Officeworks has at least managed to make the buying process as easy as it can. After all, office supplies are something you should be able to buy online instead of heading to a store.
The company won’t confirm how much revenue the business makes online, although reports indicate it could be anywhere up to $150 million, equivalent to 13-14% of revenue. That’s an astonishing figure for an office supplies store, but it does make sense – the company understands how people shop online.
Just like JB Hi-Fi, Officeworks shows it understands how to not only get people browsing on a site, but makes sure it knows how to capture their money.
<h3>7. Specialty Fashion</h3>
While the retail and fashion industries obviously haven’t been having the best time, Speciality Fashion has been working on its digital presence – and it’s doing very well.
The company, which operates the Millers, Katies and Crossroads brands, recorded $11.3 million in online revenue during the first half of the year, representing 3.6% of total value.
While it isn’t the biggest online retailer around, the fact the company has been so successful with its digital push – and is willing to disclose just how much money it makes online – is a good step in the right direction.
<h3>8. Big W</h3>
While the company doesn’t divulge how much of its revenue is made online, the popularity of Big W’s site indicates it could be making quite a lot of cash. In any case, Woolworths is giving DealsDirect a run for its money with the Big W online store, which doesn’t have many frills but is focused on simplicity of use and cheaper prices.
<h3>9. BrandsExclusive</h3>
BrandsExclusive has been at the forefront of the private shopping club scene in Australia. The business, which has mostly focused on fashion, quickly found a loyal user base and has been growing ever since.
Perhaps the company’s biggest success has been its ability to leverage demand for private shopping networks into cash. Even last year APN News &amp; Media announced a massive $36 million stake.
The business was aiming to turn over $70 million last year.
<h3>10. The Iconic</h3>
Although The Iconic isn’t one of the most established businesses around, and while it certainly isn’t divulging much with regard to revenue, it seems outrageous to leave the company off a list detailing the most important online retailers in Australia.
The business has made a huge splash in Australia with its bright marketing tactics, but it’s also gained a reputation for securing not only one $25 million funding round, but a second earlier this year.
The Iconic certainly has enough money to make a dent on the online retail market. It remains to be seen whether that success will continue.
<h3>11. Shoes of Prey</h3>
The customisable shoe retailer has made quite a name for itself. With plenty of attention from television shows, and some inadvertent celebrity endorsements, Shoes of Prey has ended up as one of the hottest brands in Australian retail.
Some funding hasn’t hurt, either. The company has taken money not only from Atlassian co-founder Mike Cannon-Brookes, but TechCrunch founder Mike Arrington. A partnership with David Jones is sure to increase the company’s reputation among the bricks-and-mortar elite.
Although revenue isn’t the highest in the online space, the company has definitely made an impression. It won’t be going away soon.
<h3>12. DealsDirect</h3>
The largest online department store, DealsDirect started as an eBay business. (Curiously, so did the other major retailer on the list – Catch of the Day).
The business has been expanding in recent years, buying a series of smaller retail-based businesses. Founder Paul Greenberg has a keen eye for businesses, and the people who run them. Although DealsDirect has been a success due its size, he’s been careful not to pack the operation with too much fat.
Greenberg is cagey on revenue, but the business is doing well over $100 million.
<h3>13. Get Wines Direct</h3>
The internet has triggered a boom for liquor sales, with plenty of retailers such as Woolworths, with its Dan Murphy’s brand. Get Wines Direct is topping the competition, making a name for itself as the country’s biggest online wine dealer.
Founder and chief executive Tony Sells has been busily promoting the company lately with partnerships and other deals. And it’s working – the company is turning over more than $50 million.
<h3>14. Groupon</h3>
While the group buying market has certainly fallen from its height, Groupon has kept a stronghold on the local industry. It’s the biggest player, (although Catch of the Day’s Scoopon follows closely behind), and has managed to maintain a foothold in an otherwise tumultuous market.
There’s no denying the pressure facing its parent company, but for now, at least, Groupon has shown group buying is truly well and alive in Australia.
<h3>15. Ozsale</h3>
The other half of Australia’s private shopping scene, Ozsale has been just as successful in establishing a dominant presence in the local retail sector.
Founded by Jamie Jackson, the company has succeeded in building a solid reputation. It’s been a busy year for the company, too, as it snapped up competitor BuyInvite back in June 2012.
The company isn’t slowing down plans, announcing earlier this year it’s gearing up for an IPO.
 
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<h3>16. StyleTread</h3>
Another online shoe business, StyleTread is all about shipping. When the company first launched, SmartCompany spoke to the founders – who said shipping was their number one priority. The business raised $4 million back in 2011 from Nine Entertainment, and <a target="_blank" 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%2Fretail%2F048963-online-retailer-styletread-raises-12m-in-funding-round&amp;ei=9-9HUc3uOOSoiAfHjoCIBg&amp;usg=AFQjCNFOjJp47frVXS5A5HDj49Mv4YUoTA&amp;sig2=HZ_rkfrJS391matxRkQ1zw&amp;bvm=bv.43828540,d.dGY" rel="nofollow">then won $12 million</a> from more investors last year.
It’s a good strategy, given how frustrated Australian shoppers have been for some decent delivery times. As a result, StyleTread has continued to grow.
<h3>17. Dick Smith</h3>
Placing Dick Smith on a list of the country’s top retailers may be a controversial move given what’s happened to the company. But despite Dick Smith’s downfall, it still maintains an extremely popular online presence.
Why? Because it has the basics down pat. The ability to reserve products, and check individual stores for stock levels is a must. It’s simply a well-designed website, the importance of which can never be overstated.
<h3>18. Appliances Online</h3>
It was only a few years ago the retail industry felt confident in saying people would never buy large, bulky goods over the internet. The arrogance with which that statement was made has all but washed away, and John Winning’s Appliances Online is enjoying the fallout.
At $20 million a year, Appliances Online is on the smaller side but no less important. The company’s success shows Australians are willing to buy anything over the internet, as long as they’re given enough detail and enough confidence in the seller.
While it might be a while before the practice becomes mainstream, Winning and his Appliances Online team have achieved what many thought would be impossible – and have made money at the same time.
<h3>19. EB Games</h3>
Although plenty of consumers are heading offshore to source cheaper video games, EB Games has managed to maintain a strong foothold in the local sector. A solid website, a savvy social media team, and a thinning market thanks to the collapse of GAME, have all ensured the online division of EB Games is doing just fine.
<h3>20. Westfield</h3>
It’s been a couple of years now since the shopping giant announced it would create its own online hub for shopping digitally. Now, it’s one of the most popular online retail destinations in the country.
It was a smart idea. The site combines deals from various stores located in Westfield shopping centres. A savvy website, along with the ability for free delivery and returns in-store or online, has kept Westfield in a strong position online.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
 
 
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Australia's top 20 online retailers for 2013

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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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Commercial property group Becton has been placed in limited receivership as the company struggles to survive under the weight of about $250 million in debt.
The collapse comes as a number of development and construction companies have been placed in either administration or receivership over the past few years, with the industry making up a sizeable percentage of the total number of insolvencies recorded last year.
The impact of Becton’s limited receivership has spread across the construction industry. Shares in Mariner Corporation fell 40% yesterday after the company confirmed it was Becton’s largest shareholder with an 18% holding.
Becton was placed in limited receivership yesterday, with Mark Korda and Janna Robertson of KordaMentha appointed.
The structure of a limited receivership means a small number of holding companies are now placed in receivership, but according to KordaMentha, “there is no impact on the Becton operating companies involved in construction, development and retirement businesses”.
The company manages a large number of projects, including the Sydney Dee Why Gardens retirement village, along with the massive $733 million Newleaf social housing project in western Sydney.
A spokesperson for the receivers said: "Like many companies, Becton was affected by the global financial crisis and had to refinance.”
“The industry as a whole has had problems.”
SQM Research managing director Louis Christopher also said Becton was highly exposed to the fallout in the financial sector in 2008 and has struggled in the subsequent years of trading.
“Becton took a big hit back in 2008, and they were highly geared at that time,” he says.
However, there is some hope. Christopher says although there has been a worrying number of collapses in the construction industry, Becton’s problems are not reflective of the industry as a whole.
And he says it’s even likely the company will survive.
“The receivers have come in early, and I think they should be able to trade its way out of the situation once the debt is restructured.”
The company recorded a statutory loss of $17.9 million in its latest annual results, released last September. Becton blamed the result on impairments and non-operating costs and losses of $24.3 million.
The company also said its high amount of debt would be a key challenge for the business going forward.
''Having exhausted all alternatives available to it, the Board therefore has no reasonable basis for believing [Becton] will be in a position to pay its debts as and when they fall due,'' the business said in an ASX statement yesterday.
Receivers have confirmed the debt level for the holding companies impacted by the receivership is around $95.5 million, with construction debt of around $155 million, although these figures exclude the aged care business which is not in receivership. The company’s main lenders are Goldman Sachs and Fortress.
The receivers have gone out of their way to emphasise the construction part of the business is still operational.
“The Becton entities responsible for the operations of the business are not in receivership and continue to trade on a “business as usual” basis under the control of their existing officers,” they said in a letter sent to stakeholders.
The entities in receivership include Becton Property Group Limited and some non-trading corporate subsidiaries such as Becton Group Holdings and Becton construction nominees.
The company was founded in 1976 by Rich Lister Michael Buxton, although he and co-founder Max Beck have stopped their day-to-day involvement with the business.
Beck said he “cannot understand what has happened to the company since I ceased to be involved it”.
"It's just so tragic that a company that took 30 years to build has been allowed by others to collapse in just a few short years."
Becton was founded by Rich 200 member Max Beck, who retired in 2007 but remains a shareholder in the group.
He told BRW it was disappointing to see the company go under.
“I think everyone had seen it coming but it’s a sad day for the company and all the employees and shareholders.”
Beck noted that for more than 30 years, Becton had created a fantastic reputation for the highest quality development and I cannot understand what has happened to the company since I ceased to be involved with it”.
“I cannot comment on why Becton has fallen into administration, all I can tell you is that when I ended my role with the company I believed it still had a very strong future, with good projects and a dedicated team.
“My thoughts are with all the wonderful people and [the] chairman that work for Becton today and contributed so much to the company in the past.
“It’s just so tragic that a company that took 30 years to build has been allowed, by others, to collapse in just a few short years."Reports indicate the business had attempted to restructure its debt with both Goldman Sachs and Fortress, but the attempts were unsuccessful. However, the two entities are said to have preferred a limited receivership so construction projects can continue.
Some of the biggest collapses in the past year have been in the construction industry, including the collapse of Hastie Group in May 2012 due to a $20 million fraud.
This article first appeared on<a target="_blank" href="https://www.smartcompany.com.au/information-technology/054381-construction-pain-continues-as-becton-companies-placed-in-limited-receivership-with-250-million-in-debt"> Smart Company</a>.
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Max Beck says he “cannot understand what has happened" to Becton since he ceased to be involved

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The official launch of the year in property sales has begun, with both Melbourne and Sydney recording some of the best auction clearance rates seen in years – leading some experts to believe the market is on the turnaround.
Property analysts say not only have auction clearance rates continued to exceed those of last year, but better results are starting to be seen across the board. While most of the market has been contained to prestige sales in Melbourne and lower-cost markets in Sydney, that trend is moving into other market segments.
“There are the first signs of a revival in the middle market in Melbourne,” says Australian Property Monitors chief economist Andrew Wilson.
“The auction activity has been skewed to the top market there and the bottom end in Sydney but we’re drifting into either end of the sector now.”
The latest figures from the Real Estate Institute of Victoria show the city recorded a massive 903 auctions with a 73% clearance rate, compared to 70% last weekend and 57% this weekend last year – the REIV pointed out it was the strongest result in over two years.
“There can be no doubt the improving trend that started last year has continued this year and it reflects improved consumer confidence,” chief executive Enzo Raimondo said in a statement.
APM’s own data shows Sydney recorded a clearance rate of 76%, up from 69.3% last week and 55% last year, with the organisation recording 316 reported auctions.
While SQM Research managing director Louis Christopher tells SmartCompany he believes the Sydney result is lower based on the fewer number of reported auctions, the results are nonetheless a positive sign.
However, he says the market is still fragmented, with “some areas doing quite well…and others where values are falling”.
Wilson says the results could be attributed to some other aspects of a strengthening economy, but says it’s more likely several interest rate cuts have finally had an impact.
“It’s an extraordinary weekend, really,” he says. “You can’t use any contingency to explain them away other than the fact this is a rising market.”
“The first couple of weeks of this year were quite good, but with low listings. This is a high listing weekend, and we’re seeing a rise in seller numbers in line with these strong clearance rates.”
Next week is expected to be another strong weekend in Melbourne, with nearly 1,000 auction slated. Wilson says the success of the past few weekends will bleed into the next few months.
“Its own success will build momentum, and now I think this becomes an issue for policymakers,” he says.
“Is it really a surprise we have a rising housing market with historically low interest rates? History tells us low interest rates will fuel activity, and we’re seeing that now.”
Wilson says the prestige market in Melbourne has historically been the saviour of the auction-hungry city, but that success is now bleeding into the mid-range market, a good sign the market in general is improving.
“We didn’t really see this momentum building last year. So it looks like buyers and sellers have just been waiting.”
This article first appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">Smart Company</a>.
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Bumper weekend auctions record highest clearance results in two years

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The property market has started 2013 <a target="_blank" href="https://www.smartcompany.com.au/property/053104-residential-land-market-to-pick-up-in-2013-as-property-recovers-bis-shrapnel-report-predicts">on a good note</a>, with experts saying strong clearance rates are a good sign the market is beginning to respond to last year's series of interest rate cuts.
Strengthened property sales also serves as another reason to believe the Australian economy is improving, with economists also pointing to strong corporate retail results, steady employment, rising consumer sentiment and the highest sharemarket results in years.
"I think we're all a little seduced into expecting an instant reaction from the market from interest rate falls," says Australian Property Monitors chief economist Andrew Wilson.
"But what we're seeing right now is perhaps the real impact of those historically low interest rates."
"Jet-fuelled low interest rates kicking in?" <a target="_blank" href="https://twitter.com/DocAndrewWilson">Dr Wilson tweeted on the weekend</a>.
Last weekend was the second reporting weekend for the property year so far, and it's already shaping up to be a strong one.
According to the Real Estate Institute of Victoria, Melbourne – the city where most auctions are held – recorded a 70% clearance rate compared to 67% last weekend, and 64% during this same weekend in 2012.
"The reported lift in consumer confidence last week will be a positive influence on the residential market over the remainder of summer and autumn," chief executive Enzo Raimondo said in a statement.
"The improved confidence is also evident in this weekend's results, which are an improvement on last year's trend."
The city recorded 437 auctions, with 306 sold. Next week is where the selling really begins, however, with the city expecting a massive 950 auctions to go ahead.
Results were similarly positive in Sydney, with the city recording a clearance rate of 71% from 204 reported auctions, compared to last year's result of just 54.5%
Property analysts have been waiting to see whether lower interest rates would actually flow through to the residential property market, as the spring selling season in 2012 finished with a huge boost to sales.
But now, Wilson says, the number of auction sales is actually quite surprising.
"Sales are tracking ahead of the same time last year in Sydney and Melbourne, and listings numbers are quite sharply increasing over the next few weeks."
"That's a sign things are becoming much more confident in the market – one of the things that characterised the market last year was that the number of listings was low."
Wilson says the rising listings figure is a good sign sellers are becoming more confident, which should give the market a good boost before the colder weather sets in during May and June.
"It's still early in the season and we'll need higher numbers to fully get the picture, but based on the evidence so far the market looks like it's lifted off fairly early."
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
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Jet-fuelled low interest rates seemingly kicking in: APM's Dr Andrew Wilson on strong auction clearances

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The tax industry has welcomed a clarification from the federal government it won't begin taxing super holders aged over 60, but says it needs more clarification over what exactly Labor has planned in order to scrape more savings for the May budget.
Prime Minister Julia Gillard <a target="_blank" href="https://www.propertyobserver.com.au/news/tax-free-superannuation-payments-for-the-over-60s-to-remain-julia-gillard/2013020759211?utm_source=po&amp;utm_medium=aida&amp;utm_campaign=news">confirmed with Parliament yesterday</a> the government "will never remove tax-free superannuation payments for the over-60s", including super lump sums and pensions.
The statement was a rare clarification of what Gillard actually plans to do as part of a campaign to rein in tax concessions. Having thrown away its promise of a surplus, Labor is attempting to shrink the deficit as much as possible.
CPA Australia policy head Paul Drum told SmartCompany this morning while the clarification is welcome, more information is needed about the government's plans – early reports suggest it will focus on curbing tax concessions for the wealthy.
"We actually need some clarity here," he says. "We need bipartisan support on having a review of the retirement savings system, and what should be done there."
"CPA's view is that we want both major parties to come clean and clarify what their views are in respect of having a grand vision for retirement savings policy in Australia."
Reports in both the <a target="_blank" href="https://www.theaustralian.com.au/national-affairs/treasury/wealthy-in-wayne-swans-sights-on-superannuation/story-fn59nsif-1226572182403" rel="nofollow">The Australian</a> and <a target="_blank" href="https://www.theage.com.au/opinion/political-news/labor-mulls-rise-in-superannuation-tax-for-rich-20130206-2dyw5" rel="nofollow">Fairfax</a> suggest the government is considering increasing the tax rate on superannuation for the wealthy. One plan under consideration could see the wealthiest 1% charged a higher rate when super is being accumulated, instead of a tax on withdrawing funds. The change would affect as many as 100,000 people, the report claims.
The consideration comes despite a number of changes to the super system over the past few years, including lifting tax on contributions for those earning over $300,000.
Superannuation is usually taxed through contributions, money earned through the fund itself, and withdrawals during retirement. If the government is ruling out tax withdrawals, it means it will focus on money earned in the fund or contributions.
But Drum says the notion of clawing out savings from the superannuation system is faulty and isn't sustainable in the long run.
"One the one hand, you have a system that is meandering along and is not delivering on its promise, nor is it reducing the future burden on the public purse."
"We're opposed to governments coming in to home in on the super honey pot, as it were, and treating it as just another source of revenue. But notwithstanding that, it does need an overhaul."
Drum says CPA Australia wants the government to announce a full Productivity Commission review of the super system and then work from there.
"This would consider whether big changes are needed, such as whether we should have progressive rates on contributions."
"Australian confidence in superannuation is at an all-time low, and it's partly because the rules keep changing."
The super system has been in the public eye over the past few years due to both the changing laws and also a greater public awareness of massive tax bills which can occur if something goes wrong. Superannuation Minister Bill Shorten was even caught out by the rules and was stung with a tax bill for contributing too much money in the one financial year.
Drum urged the government to clarify its plans.
"But we would discourage making any announcements about the super system without having a review."
This article first appeared on<a href="https://www.smartcompany.com.au/index.php" target="_blank"> Smart Company</a>.
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Tax industry welcomes over 60s superannuation clarification 

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Gerry Harvey has been one of the most divisive figures in Australian online retail, and he’s not going away.
It was way back in 2008 when he first told SmartCompany <a target="_blank" href="https://www.smartcompany.com.au/retail/why-online-retailing-is-a-dead-end-gerry-harvey" rel="nofollow">online retailing was a “dead end”,</a> (a story mentioned in <a target="_blank" href="https://ten.com.au/ten-late-news.htm" rel="nofollow">last night’s interview</a>). Yet last night the industry veteran spoke to Network Ten about his online plans, and even claimed the company could be the biggest online retailer in the country.
“I think one day you’ll find that Harvey Norman is the biggest online retailer in Australia,” he said. “But it’s not going to happen overnight.”
It was two years ago Gerry Harvey started work on the company’s online retail venture, and even managed to put together a good-looking site. But the business is a fair way off from making a significant impact on the Australian online retail scene.
It’s been a while since Harvey has put his name in lights given the backlash from his campaign to charge GST for offshore purposes. Last night’s interview is a media comeback for the veteran who’s known for making outrageous statements.
Here are five of the best gems from Gerry Harvey’s latest interview on online retailing:
1. Harvey Norman will be the biggest online retailer
It’s hard to imagine Harvey Norman being the largest player in Australian online retail, but that’s what Gerry thinks will happen. As he said last night: “I think one day you’ll find that Harvey Norman is the biggest online retailer in Australia. But it’s not going to happen overnight.”
He’s definitely right there. In fact, the most recent numbers from Harvey himself suggest the company is earning only 1% of its money from the online store, or roughly $18.2 million based <a href="https://www.smartcompany.com.au/retail/052012-the-2012-retail-online-sales-report-card-part-2-what-the-big-boys-aren-t-telling-us" rel="nofollow">on our own estimates</a>.
Compared to a company like Kogan, or Catch of the Day, that means Gerry is a long way off.
2. He only Googles something every few days
Harvey is famous for not using a computer in his office, but this comment from last night’s interview is a whopper: not only does Gerry not shop online, but he only Googles something “every few days”.
For an entrepreneur who says online retailing is the future, admitting you don’t shop online isn’t necessarily a good look.
3. He still wants that online shopping tax
Many of the retailers campaigning for a GST on online sales have backed down due to customer backlash, but not Harvey. Last night he admitted he still wants that tax to change: “If you buy online in Australia you pay GST. If you buy online you don’t pay GST, clearly unfair, clearly the law has to change.”
He’s not alone. The Australian Retailers Association along with other lobby groups have been calling for a change to the law. It seems this fight isn’t over yet.
4. The company is simply treading water
It’s no secret Harvey Norman hasn’t been doing very well lately. But this admission is a frank look at how badly it is doing. Harvey said last night the company is being affected by the fact it’s simply not expanding.
“We’re not opening shops, we’re treading water; we’re not expanding.”
Retail has shifted fundamentally, and it seems Harvey Norman is at a crossroads. With shares at just $2, it seems Gerry Harvey is being forced to consider online retailing as a method of growth.
5. Get rid of leisure computers
This gem is just weird. In December 2011 Gerry Harvey launched a new online store for console and computer games, saying it would be one of the best sources for imported cheap games. (A small industry of importers has arisen to offer cheaper prices).
But last night, Harvey said he’d get rid of all “leisure computers” if he could: “They [youth] spend their time on crap like games. If I could get rid of computers – leisure computers – then I probably would.”
That’s a shocking admission for an entrepreneur who runs a company selling video games, along with a website dedicated to selling them.
But maybe he has a point – he said in the interview he’d rather spend time outside than “sitting on a computer for days”.
Patrick Stafford is deputy editor of <a href="https://www.smartcompany.com.au/" rel="nofollow" target="_blank">SmartCompany</a>.
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How Gerry Harvey plans to turn Harvey Norman into Australia's biggest retailer

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Big-box retailing is in full swing in Australia, with the local arm of bulk buying group Costco receiving yet another $50 million from its parent company in order to fund further expansion after reporting its first profit.
The move comes as the bulk buying industry <a href="https://www.smartcompany.com.au/advertising-and-marketing/048283-costco-gets-140-million-from-parent-to-fuel-expansion" target="_blank">continues to expand</a> in Australia, with Costco planning an expansion which will bring <a href="https://www.smartcompany.com.au/retail/050601-costco-to-announce-new-store-within-weeks-aims-at-three-stores-in-sydney-and-melbourne" target="_blank">multiple stores</a> in capital cities across the country. The business received $140 million in 2012 to help open new stores.
But while Costco has made an impressive stamp on the food and grocery market in Australia, some analysts believe it isn't the supermarkets which should be scared. Instead, as companies such as Costco and Aldi expand, experts say it's the wholesale market that should be worried.
"The biggest losers here are the wholesalers," says City Markets analyst Peter Esho. "Costco is a wholesale model rather than a mainstream supermarket."
"It's going to nibble into Coles and Woolworths, and IGA, but I don't think at this stage there is going to be too much impact."
Esho points to Coles' own financial results, released today, which show food and liquor sales increased 3.9% in the second quarter on a like-for-like basis.
New figures lodged with the Australian Securities and Investments Commission show Costco turned a profit of $9.73 million during the year to September 2012, while revenue also doubled to over $609.5 million. According to Fairfax, the Melbourne and Sydney stores generated most of that revenue, a large portion of which comes from membership sales.
Costco Australia managing director Patrick Noone told SmartCompany the business is continuing its expansion plans, and is constantly looking for new locations.
"We're always searching," he says. "Always looking at ways to do things better."
However, he did say the lack of property available for big-box sites has been a challenge. "The lack of availability has been a problem," he says.
The business plans on opening locations across the country, including two or three locations in some cities. Adelaide is a possibility soon, although Noone said a Perth location may not arrive for a while.
The introduction of Costco into the Australian market has signalled a surge of big-box retailing. The local big-box industry has pushed for new laws to help businesses find suitable land more easily, as they require larger than normal sites.
Noone said Costco usually puts its case forward regarding zoning laws - its Auburn location in Sydney suffered some delays due to zoning disputes.
But the expansion of Costco shouldn't make supermarkets feel uneasy, says Esho. He argues the company is playing on a different field.
"I think ALDI is very well placed to defend itself, it has its own brands, exclusive brands, that run on a low cost model and are competitive. I think the impact on ALDI would be minimal."
ALDI has expanded to nearly 300 stores since opening here in 2001. Esho says the main impact will be directed at the German company, along with other wholesalers.
"There might be an impact if wholesaling draws people away from the main supermarkets, where that migration sees people buying at Costco and ALDI for main products instead of Coles and Woolworths."
Wholesalers will feel the pinch, he says. <a href="https://www.smartcompany.com.au/retail/053438-metcash-takes-on-costco-with-launch-of-value-depot-warehouse-stores" target="_blank">Metcash was in a position to be hurt</a>, but the company has already restructured itself in anticipation of Costco's expansion.
Costco Australia managing director Patrick Noone has previously said the business wants to expand with two more stores in 2013. A second Melbourne store in the eastern suburb of Ringwood is currently being constructed.
Esho says despite the expansion plan, the existing grocery market doesn't have a lot to be worried about.
"I don't think at this stage there'll be too much of an impact, at least not at this stage – and it won't for at least a decade."
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>.
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Australian Costco gets $50 million boost and turns its first profit

An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Patrick Stafford

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