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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

Buyers considering a residence at boutique Gordon townhouse development <a href="https://www.apartments.com.au/new-townhouses/lume-gordon-43-47-dumaresq-street-gordon-nsw-2072">Lume</a>&nbsp;now have another reason to bring forward their decision.

For a limited time, purchasers of a residence at Lume will receive a BMW iX3 50 electric SUV, valued at more than $120,000, as part of their purchase. The offer is designed to add value for buyers while complementing the lifestyle envisioned for the architecturally designed Upper North Shore development.

Scott Timmins, Development Manager at <a href="https://www.apartments.com.au/developers/winim">WINIM</a>, said the partnership was created to provide buyers with a compelling reason to act.

"In today's market, buyers need a compelling reason to act now, and the BMW partnership was designed to create that catalyst. We wanted to add genuine value for our future purchasers. Choosing the all-electric BMW iX3 50 also reflects the values behind LUME, forward-thinking design, innovation and a more sustainable way of living. It's a premium incentive that complements the lifestyle our buyers aspire to and rewards those who commit early."

[smartcode_project:default project_id=7354 project_image_fid=374893]

Delivered by WINIM in partnership with Burtonwood Investment Partners, Lume comprises 14 architecturally designed two, three and four-bedroom townhomes created for families seeking the space of a freestanding house with the ease of modern, low-maintenance living.

The three-storey residences, designed by award-winning architecture practice <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, have been tailored for families and multi-generational living, featuring private internal lifts, flexible lower-level spaces, generous open-plan living and entertaining areas, media rooms, and landscaped outdoor spaces with custom outdoor kitchens.&nbsp;

Inside, engineered oak flooring, bespoke dining joinery with integrated wine fridges and backlit bars, sculptural porcelain bathrooms, Parisi freestanding baths and Astra Walker tapware create interiors that balance functionality with refined finishes.

Each townhome has been designed to combine generous internal spaces with sustainability initiatives such as EV charging infrastructure, while <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>'s landscaped communal areas, centred around a restored creek line and native planting, encourage residents to connect with nature and spend more time outdoors.

[smartcode_project:default project_id=7354 project_image_fid=269527]

Rothelowman's Gary Tsui said the architecture was conceived to respond carefully to its Upper North Shore setting.

"Our vision was to create elegant, uplifting homes that draw on and positively contribute to the local character through meticulously considered design and an interaction with the surroundings."

The communal landscape has been designed as more than an open space between homes. Arcadia's Ben Newell and Kate Phillips said the adjoining reserve provided an opportunity to create a distinctive natural retreat for residents.

"Just as waterways carve their way through Ku-ring-gai's landscape, a raised boardwalk weaves through the reserve, connecting the homes to this tranquil oasis."

[smartcode_project:default project_id=7354 project_image_fid=374892]

Located just 300 metres from <a href="https://www.apartments.com.au/developments/gordon-nsw-2072">Gordon</a> Village and Gordon railway station, Lume offers convenient access to Sydney's CBD while placing residents close to some of the North Shore's leading schools, including Ravenswood, Pymble Ladies' College and Knox Grammar. Lane Cove National Park, Gordon Golf Club and a range of cafés and restaurants further reinforce the family-focused lifestyle on offer, with the BMW iX3 50 complementing everything from local trips around Gordon to weekend drives and city commutes.

Construction is underway with completion expected in mid-2027.

[smartcode_project_cta:default project_id=7354]

Joel Robinson

Boutique Gordon townhomes now come with a BMW iX3 50

Two apartments have sold for more than $10 million at EADE Byron Bay, setting some of the highest apartment prices ever achieved in the coastal town and underlining the growing appetite for luxury beachfront apartments in Australia's most popular coastal locations.

The $210 million project by Vitale Property Group has now secured more than $70 million in sales, led by residences that changed hands for $12.75 million and $11.75 million.

The record-breaking transactions reinforce the shift occurring in Byron Bay's premium property market, where affluent downsizers and lifestyle buyers are increasingly opting for high-end apartments over large beachfront homes.

<a href="https://www.apartments.com.au/new-apartments/eade-byron-bay-29-shirley-street-byron-bay-nsw-2481">EADE Byron Bay</a> occupies a rare 6,000 sqm absolute beachfront site on the corner of Shirley and Milton Streets overlooking Main Beach and The Wreck surf break, just 350 metres from Byron Bay's town centre.

The 25-residence development is the first beachfront apartment project approved in Byron Bay in more than a decade and is currently under construction, with completion expected in May 2027.

[smartcode_project:default project_id=145590 project_image_fid=359521]

The project has attracted a mix of local Byron Shire residents downsizing from larger homes, alongside interstate buyers from Sydney, Melbourne and Brisbane seeking a permanent coastal lifestyle without compromising on space.

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a> and with interiors by <a href="https://www.apartments.com.au/interior-designers/alexander-co">Alexander &amp; Co</a>, EADE comprises&nbsp;10 garden apartments ranging from 284 sqm to 622 sqm, nine with private pools, five full-floor apartments and 10 rooftop residences with private plunge pools, expansive outdoor entertaining areas and uninterrupted ocean views.

[smartcode_project:default project_id=145590 project_image_fid=359527]

<a href="https://www.apartments.com.au/developers/vitale-property-group">Vitale Property Group</a> Managing Partner Chris Vitale said the project's combination of scale, location and limited future supply was driving buyer demand.

"There isn't another beachfront holding in Byron Bay of this size and position that could be developed again," Vitale said.

"Buyers are responding to the scarcity and the irreplaceability of a site of this calibre and to floorplans they can't find elsewhere in the market.

"We are seeing buyers place significant value on quality, space, design, resort-style amenities and the rarity of the location. The sales achieved to date demonstrate that discerning purchasers recognise the long-term significance of what is being created at EADE Byron Bay.

"Many are coming from larger homes in the Byron region, or from Sydney, Melbourne and Brisbane, and are after the space, security and convenience, without the upkeep of a house."

&nbsp;

[smartcode_project:default project_id=145590 project_image_fid=359523]

The Byron Bay project follows Vitale Property Group's delivery of the Mondrian Hotel and Private Residences at Burleigh Heads, with EADE continuing the developer's focus on luxury coastal developments.

Residents will have access to a resort-style swimming pool, gymnasium, sauna, cold plunge pool, concierge services and dedicated workspaces, while the project is targeting an 8-Star Green Star rating.

EADE Byron Bay is being exclusively marketed by Projx Australia in conjunction with WHITEFOX Projects.

WHITEFOX National Projects Director Phillip Rand said demand had been driven predominantly by owner-occupiers.

"We are seeing buyers at EADE place significant value on quality, space, design, resort-style amenities and the rarity of this location," Rand says.

"The sales achieved to date demonstrate that purchasers at this level recognise the long-term significance of what is being created at EADE Byron Bay."

Residences at EADE Byron Bay are currently priced between $4.75 million and $15.95 million.

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[smartcode_project_cta:default project_id=145590]

Vitale breaks Byron Bay records with EADE sales flurry 

When buying an apartment, most people compare the big-ticket items first. Floorplans. Kitchens. Balcony size. Natural light. The view.

But there's one everyday consideration that often doesn't come up until after moving in: how parcels are delivered.

As online shopping has become part of everyday life, parcel deliveries have shifted from an occasional event to a regular occurrence. Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally.

For apartment residents, that can present a challenge.

If nobody is home to accept a delivery, parcels may be redirected to a nearby Post Office, left in a building lobby or common area, or require building management to step in. In higher-density buildings, where dozens or even hundreds of residents may receive deliveries each day, parcel management has become an increasingly important part of everyday living.

That can create a range of frustrations. A missed delivery often means making time to collect a parcel elsewhere, while packages left unattended in foyers or mail areas can create clutter and increase the risk of theft. What seems like a minor inconvenience can quickly become a recurring issue for residents who shop online regularly.

It's one of those details that rarely features in a display suite but can have a noticeable impact once residents move in.

As a result, buyers are beginning to look beyond traditional apartment features and consider how a building supports day-to-day convenience, including whether there are secure options for receiving deliveries.

Australia Post's Parcel Lockers provide one solution.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/CkF2oKmlACg?si=C50sDaoUUn2nuLmq" title="YouTube video player" width="560"></iframe>

Rather than having a parcel delivered directly to an apartment, eligible deliveries can be sent to a nominated Parcel Locker. Once the parcel arrives, residents receive a notification through the AusPost app or SMS and can collect it using a QR code or one-time PIN at a time that suits them.

The Parcel Locker network now includes more than 1,500 locations nationwide, with installations at Post Offices, shopping centres, transport hubs and an increasing number of residential developments. By providing a secure collection point, Parcel Lockers help reduce missed deliveries and avoid parcels being left unattended in common areas.

For developers, parcel infrastructure is becoming another way to improve the resident experience. Rather than relying on concierge staff or leaving parcels in communal spaces, secure collection points help streamline deliveries while preserving the presentation and functionality of shared areas.

For buyers, it's a reminder that the best apartment features aren't always the most obvious.

A generous floorplan or quality finishes might help narrow the shortlist, but the conveniences that simplify everyday life, whether that's EV charging, secure bike storage or reliable parcel delivery, often become the features residents appreciate most once they're living there.

The apartment feature many buyers don't think about, until their first missed delivery

<a href="https://www.apartments.com.au/developers/hg-developments">HG Developments</a> is doubling down on Maud Street in Newstead, filing plans for a new apartment tower just a few doors down from its under-construction Aire Newstead development.

Recently submitted to Brisbane City Council, the proposal is for an 18-storey building designed by bureau^proberts, which has drawn heavily on Brisbane's subtropical design principles while referencing the suburb's industrial heritage.

A total of 64 apartments are planned for the amalgamated 1,518 sqm site at <a href="https://www.apartments.com.au/new-apartments/17-21-maud-street-newstead-qld-4006">17–21 Maud Street</a>, a short walk from the Brisbane River and Newstead Riverwalk.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="a400c7fd-bd15-48f8-a63b-10ede92efe00" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20bldg.png?VersionId=.0vPmjpbC7CNP7kqGWa6L7rGIwsNExaw" />

"The building is defined by a series of vaulted motifs that reinterpret the arches, colonnades and layered facades evident throughout Newstead's historic built fabric," the Urban Design Report states.

"Combined with recessed glazing and generous balconies, these elements create a layered building envelope that provides shade, weather protection and opportunities for natural ventilation whilst establishing a distinctive architectural identity."

The proposal comprises 64 two, three and four-bedroom apartments across 18 residential levels, positioning it alongside a growing number of taller residential projects transforming Newstead's northern precinct. The tower incorporates extensive subtropical landscaping, with cascading planter boxes, deep planting at street level and a landscaped rooftop recreation area.

<img alt="First look: HG Developments plans 18-storey subtropical apartment tower for Newstead" data-entity-type="file" data-entity-uuid="1d8140f4-8b98-45cd-b1b8-1efe8c8e266b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Maud%20st%20podium.png?VersionId=VAZtbCoD44YCJ57N99fQCAKeSJx7ldZs" />

Bureau Proberts has prioritised passive environmental design throughout the project, with generous balconies, recessed glazing and operable façades helping reduce solar heat gain while maximising natural ventilation. River views become available from the upper levels, while the building has been orientated to capture prevailing breezes from both the Brisbane River and the west.

The architects say landscape is intended to be integral to the building rather than an applied element.

"Vertical greenery, cascading planter boxes and elevated gardens are woven throughout the architecture, softening the built form and strengthening the connection between residents and the subtropical environment."

"Through the integration of landscape, high-quality materials and passive design principles, the development delivers a refined residential address that celebrates Newstead's heritage character while contributing positively to Brisbane's evolving subtropical identity."

Newstead has remained one of Brisbane's most active apartment markets in recent years, with a number of developers continuing to back the inner-city suburb.

HG Developments is currently delivering the 40-apartment Aire Newstead at 25 Maud Street. Fortis recently launched the 65-apartment <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> on Kyabra Street, while builder-developer BPG and Don O'Rorke's Consolidated Properties are both expected to launch their respective Newstead projects before the end of the year.

HG Developments doubles down in Newstead with second Maud Street apartment development

Walk past a new apartment development promoting its sustainability credentials and it's easy to picture rooftop gardens, mature trees, landscaped courtyards and residents surrounded by nature.

But in many cases, that's not actually what those sustainability ratings guarantee.

Australia's leading environmental rating tools have played a significant role in improving the energy efficiency and environmental performance of buildings. Yet despite their focus on reducing emissions, many don't require developers to include trees, biodiversity or meaningful green space.

In other words, a building can achieve one of the country's highest sustainability ratings while containing little more than concrete, glass and hard landscaping.

That disconnect has led to the emergence of a new movement across Australia's property industry: nature-based cities.

The concept goes beyond designing buildings that consume less energy. Instead, it encourages developers to treat nature as essential infrastructure, integrating biodiversity, tree canopy, living landscapes and green spaces into projects from the earliest stages of planning.

Research has consistently linked access to nature with better physical and mental health, cooler neighbourhoods, improved biodiversity, stronger climate resilience and more connected communities. As Australia's cities continue to become denser, advocates say those outcomes should be considered just as important as energy efficiency.

Nature Based Cities (NBC) was established in 2022 to help accelerate that shift.

Founded by Hamton Executive Chairman Paul Hameister OAM, the not-for-profit was created after research highlighted a significant gap in Australia's sustainability framework. While existing environmental rating tools rewarded energy performance and emissions reductions, they placed little emphasis on the inclusion of living landscapes.

"We've always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren't there," Hameister says.

"In Australia, you can have a five-green-star rated building that's concrete and glass with not a blade of grass.

"The focus is on reducing emissions, which is laudable, but there hasn't been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities."

Since its launch, NBC has developed independent design guidelines and accreditation frameworks that encourage developers to prioritise ecology, biodiversity, tree canopy, walkability and living landscapes alongside traditional sustainability measures. The organisation first focused on medium and high-density residential developments before recently expanding into precinct-scale communities and masterplanned neighbourhoods.

Jan Talacko, founder of sustainability consultancy Ark Resources and a member of the Nature Based Cities Advisory Council, says the initiative addresses an area that has largely been overlooked by the property industry.

"Throughout my 25 years of working collaboratively with all stakeholders in the property sector, I've always favoured a pragmatic approach to sustainable design which encourages initiatives that not only meet environmental expectations but also improve amenity," Talacko says.

"Whilst we are making steady progress in relation to energy and carbon emissions from buildings, there has been much less emphasis on encouraging biodiversity and tackling the urban heat island effect.

"The Nature Based Cities initiative responds to a gap in the suite of tools currently used by the property development sector, which don't provide sufficient incentive, or recognition, for the integration of landscaping and greenery."

For apartment buyers, the shift is also changing the questions worth asking.

Rather than assuming a sustainable building will naturally include abundant green space, buyers are increasingly being encouraged to look beyond environmental ratings and ask what nature is actually being delivered. How much tree canopy will the development create? Has biodiversity been considered? Are landscaped spaces designed for people as well as appearance?

As Australia's cities continue to grow upwards and outwards, the next generation of sustainability may not simply be measured by lower emissions, but by how successfully developments bring nature back into everyday urban life.

Patrick Stafford

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