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A Bowen, Queensland mortgagee home set on industrial land has sold for $175,000.
The three bedroom, one bathroom house went to auction without a price guide on December 14 2019.
Brian Sellars of the Professionals marketed the abode.
Situated at <a href="https://www.realestate.com.au/property-house-qld-bowen-132473494" target="_blank">5 Gregory Street</a>, the home is located on the corner with dozens of metres of street frontage on both sides of the property.
Set on 1,027 sqm the house is located near the harbour front as well as the post office and the beach.
The marketing material said it would be "Easy to establish a combined home and work depot."
Last sold in 2003, the home transacted for $142,500.
Tge property was listed as a rental seeking $295/pw in March 2016 and more recently when it sought $230/pw in January 2017.
<a href="https://www.propertyobserver.com.au/subscribe" target="_blank"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/1/Subscriber%20strip%20ad.jpg" alt=""></a>
The median price for a house in <a href="/news">Bowen</a> is $261,250 according to CoreLogic. 
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j.ballantyne1990-6AQqhLzZaK

Bowen, Queensland mortgagee home on industrial land sold

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Throughout 2019, Melbourne's house price have almost recovered what was lost during the slump, according to the latest quarterly report from Domain.
Houses have seen a 5% increase in value with median prices reaching $901,951. Units have seen even stronger growth of 5.6% with median values hovering around $549,701.
Though the year sprung off with deteriorating prices, the rest of 2019 saw growth, with the the final quarter providing the strongest quarterly gain in three years and the largest annual jump in two years.
With just under $6,800 left to regain, it appears that house prices are set for a new record high next quarter. 
However, this recovery remains uneven across the Melbourne as there are substantial price rises concentrated at the upper-end, led by the city, the inner east and inner south. 
Units in Melbourne continue to outperform houses as unit prices produced the strongest quarterly growth since mid-2009, and the biggest annual surge since mid-2010.
Unit prices are currently at a new record high that is 7.5 per cent higher than the previous peak in early 2018. 
Melbourne and Hobart units were the only cities to record a new high. Meanwhile, other cities remain below previous peaks in unit prices. 
Melbourne is the second most unaffordable city for units, with its price being higher than the median house prices in Adelaide, Perth, Darwin and Hobart. 
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Melbourne's property prices look set for a new record high: Domain

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Future Fund chairman and former Treasurer Peter Costello has urged the Reserve Bank to refrain from cutting official interest rates to a new record low out of fear it could reignite a housing price bubble in Sydney and Melbourne following a “welcome correction” in home values over the past year.
As the RBA board prepares to meet next week for the first time since ­December, Mr Costello told The Australian, the central bank had to be “very careful” it did not risk further pumping up house prices by cutting official interest rates, which he said were failing to stimulate the economy."
He made the comments ahead of the latest Consumer Price Index – the main measure of inflation in Australia – which rose by 0.7 per cent in the December quarter, slightly above expectations. In seasonally adjusted terms the CPI rose by 0.6 per cent. The annual rate of headline inflation lifted from 1.7 per cent to 1.8 per cent. The Aussie dollar rose slightly against the greenback in response.
His comments echoed what Mr Costello said late last year, that interest rate cuts would have a limited impact on the economy.
"What will a rate cut do for the economy? In my view, not much," he said.
“We’ve already got a cash rate of 1 per cent, suppose it goes to 0.75 per cent, suppose it goes to 0.5 per cent. Áll these people who are holding off spending or borrowing or investing are going to say ‘I wouldn’t have done it at 1 per cent, but I’m going out there now that it’s 0.75 per cent?’ I don’t think that’s going to happen,” Mr Costello emphasized.
Peter Costello who was Treasurer for nearly 12 years during the Howard government, said he thought a "very big part" of the RBA's thinking was the prospect that if other countries cut interest rates, Australia would lose the stimulatory impact of having a lower exchange rate.
He described RBA governor Philip Lowe’s speech earlier this week, in which he said the RBA did not want Australia’s exchange rate to go up, as “very interesting”.
Image ABC
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Peter Costello says 2020 rate cuts won't do much

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Cbus Property has received approval from the Department of Environment, Land, Water and Planning (DELWP) for a $1 billion office tower in Melbourne’s CBD.
The permit-approved Bates Smart-designed development, to be known as 435 Bourke Street, will comprise 59,000 square metres of office space across 49 storeys, encompassing four addresses on the corner of Bourke and Queen streets.
The commercial precinct will amalgamate the existing 140 and 150 Queen Street and 27 McKillop Street sites and is anticipated to serve as a vertical village for more than 5,500 city workers.
Cbus Property’s Chief Executive Officer, Adrian Pozzo said, “office vacancy rates in Melbourne’s CBD are at decade lows and there is little to no office space in the pipeline beyond 2023 so we are looking forward to sating some of this appetite with 435 Bourke Street.”
"The approved tower will form part of a new centre point in the Hoddle Grid and will feature multiple landscaped terraces providing an outlook across the Yarra River and iconic CBD landmarks, such as the MCG and Port Phillip Bay," he added
The diverse space will include a retail offering, double-height multi-function space for active wellness, flexible studio spaces and consulting rooms for passive wellness, as well as a rooftop garden retail offering. There will also be premium end-of-trip facilities, with accommodation for 600 bikes and associated amenities.
435 Bourke Street is targeting a 6-star Green Star rating, 5.5-star NABERS Energy rating and a Platinum WELL rating.
Demolition of the site’s existing infrastructure has commenced, with construction completion slated for 2023.
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CBUS receives planning approval for $1 billion Melbourne office tower

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Big four bank standard savings accounts
These accounts have no ongoing terms and conditions. They typically include an introductory period which offers bonus interest for several months, before dropping to a low ongoing rate.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="81">
Bank
</td>
<td valign="bottom" nowrap width="110">
Product Name
</td>
<td valign="bottom" nowrap width="81">
Base Rate
</td>
<td valign="bottom" nowrap width="81">
Intro Rate 
</td>
<td valign="bottom" nowrap width="81">
Max Rate
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
CBA
</td>
<td valign="bottom" nowrap width="110">
Net Bank Saver
</td>
<td valign="bottom" nowrap width="81">
0.10%
</td>
<td valign="bottom" nowrap width="81">
1.55%
</td>
<td valign="bottom" nowrap width="81">
1.65%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
Westpac
</td>
<td valign="bottom" nowrap width="110">
eSaver
</td>
<td valign="bottom" nowrap width="81">
0.10%
</td>
<td valign="bottom" nowrap width="81">
1.56%
</td>
<td valign="bottom" nowrap width="81">
1.66%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
NAB
</td>
<td valign="bottom" nowrap width="110">
iSaver
</td>
<td valign="bottom" nowrap width="81">
0.11%
</td>
<td valign="bottom" nowrap width="81">
1.44%
</td>
<td valign="bottom" nowrap width="81">
1.55%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="81">
ANZ
</td>
<td valign="bottom" nowrap width="110">
Online Saver
</td>
<td valign="bottom" nowrap width="81">
0.10%
</td>
<td valign="bottom" nowrap width="81">
1.50%
</td>
<td valign="bottom" nowrap width="81">
1.60%
</td>
<td valign="bottom" nowrap width="83">
 
</td>
</tr>
</tbody></table>
Note: Max rate is the base and bonus added together 
Big four bank conditional savings accounts
These accounts require you to meet certain terms and conditions, such as one deposit a month and no withdrawals, in order to qualify for the bonus interest that month.
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap>
Bank
</td>
<td valign="bottom" nowrap>
Product
</td>
<td valign="bottom" nowrap>
Base Rate 
</td>
<td valign="bottom" nowrap>
Bonus Rate 
</td>
<td valign="bottom" nowrap>
Max Rate
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
CBA
</td>
<td valign="bottom" nowrap>
Goal Saver
</td>
<td valign="bottom" nowrap>
0.01%
</td>
<td valign="bottom" nowrap>
0.89%
</td>
<td valign="bottom" nowrap>
0.90%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
Westpac
</td>
<td valign="bottom" nowrap>
Life
</td>
<td valign="bottom" nowrap>
0.45%
</td>
<td valign="bottom" nowrap>
1.20%
</td>
<td valign="bottom" nowrap>
1.65%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
NAB
</td>
<td valign="bottom" nowrap>
Reward Saver
</td>
<td valign="bottom" nowrap>
0.11%
</td>
<td valign="bottom" nowrap>
1.39%
</td>
<td valign="bottom" nowrap>
1.50%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
<tr>
<td valign="bottom" nowrap>
ANZ
</td>
<td valign="bottom" nowrap>
Progress Saver
</td>
<td valign="bottom" nowrap>
0.01%
</td>
<td valign="bottom" nowrap>
1.59%
</td>
<td valign="bottom" nowrap>
1.60%
</td>
<td valign="bottom" nowrap>
 
</td>
<td valign="bottom" nowrap> </td>
</tr>
</tbody></table>
Note: Note: Max rate is base and bonus added together
Rates based on balances less than $50,000. The Commonwealth Bank of Australia offers higher rates for larger deposits.
Highest ongoing savings rates on <a href="http://ratecity.com.au/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">RateCity.com.au</a>
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="195">
Bank
</td>
<td nowrap width="91">
Max rate
</td>
<td nowrap width="251">
Conditions
</td>
</tr>
<tr>
<td nowrap width="195">
Xinja
</td>
<td valign="bottom" nowrap width="91">
2.25%
</td>
<td valign="bottom" nowrap width="251">
Must have linked bank account
</td>
</tr>
<tr>
<td nowrap width="195">
Up
</td>
<td valign="bottom" nowrap width="91">
2.25%
</td>
<td valign="bottom" nowrap width="251">
4 card purchases from everyday acct
</td>
</tr>
<tr>
<td nowrap width="195">
86 400
</td>
<td valign="bottom" nowrap width="91">
2.25%
</td>
<td valign="bottom" nowrap width="251">
Deposit of $1000 in everyday acct
</td>
</tr>
<tr>
<td nowrap width="195">
BOQ
</td>
<td valign="bottom" nowrap width="91">
2.15%
</td>
<td valign="bottom" nowrap width="251">
Deposit of $1000 in everyday acct
</td>
</tr>
<tr>
<td nowrap width="195">
UBank
</td>
<td valign="bottom" nowrap width="91">
2.10%
</td>
<td valign="bottom" nowrap width="251">
Deposit of $250 in transaction acct
</td>
</tr>
</tbody></table>
Note: excludes kids savers and introductory rates.
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Best saving rates amongst Australian banks, RateCity reveals 

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The National Bank of Australia (NAB), third largest bank in Australia has dropped interest rates on its savings accounts today. It has only been three months since it last cut rates for the same customers.
NAB’s iSaver account rate has been cut by 0.15 per cent to a maximum introductory rate of 1.55 per cent for four months.
While the maximum rate on NAB’s Reward Saver has dropped by 0.11 per cent to 1.50 per cent, if all conditions are met.
NAB has chosen not to reduce the base rate on either of its savings accounts.
NAB savings rate changes
<table style="width: 464px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap width="204">
NAB iSaver
</td>
<td nowrap width="87">
Old
</td>
<td nowrap width="87">
New
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Base rate
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Intro rate (4 mths)
</td>
<td nowrap width="87">
1.70%
</td>
<td nowrap width="87">
1.55%
</td>
<td nowrap width="87">
 
</td>
</tr>
</tbody></table>
Source: RateCity.com.au 
<table style="width: 372px; height: 47px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap width="204">
NAB Reward Saver
</td>
<td nowrap width="87">
Old
</td>
<td nowrap width="87">
New
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Base rate
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Max rate (if conditions are met)
</td>
<td nowrap width="87">
1.61%
</td>
<td nowrap width="87">
1.50%
</td>
<td nowrap width="87">
 
</td>
</tr>
</tbody></table>
Source: RateCity.com.au 
Chief executive of <a href="http://ratecity.com.au/" target="_blank" data-auth="NotApplicable">RateCity.com.au</a>, Paul Marshall said, “NAB will stir the market with today’s decision to cut rates when the cash rate hasn’t budged”. 
“It’s a disappointing move from NAB to drop savings rates out of cycle, especially since the bank cut rates on these accounts by a quarter of a percent in October.
“For savers, this will be a bitter pill to swallow and many will be left wondering why they’ve had to endure yet another cut when rates were already close to zero. 
“Regular savers who strive for those maximum returns by meeting all the conditions will be the ones most impacted by these cuts, losing 0.11 per cent ongoing interest. 
“But ardent savers can find competitive rates if they are willing to look beyond the big banks, with neo banks 86 400, Up and Xinja leading the way with conditional rates of 2.25 per cent.”
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NAB slashes saving rates again

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Westpac has made interest rate cuts of between 0.19% and 0.50% to its package fixed rate investment loans across all terms for both interest only and principal and interest repayments.
Westpac’s 0.50% interest rate cut puts its 5-year fixed rate loan for investment lending with principal and interest payments at 3.19%.
It is now the lowest rate of its kind, according to Canstar.com.au and Westpac has positioned itself in the lowest priced 10 loans in the market in all fixed investment loan categories.
<img src="https://www.urban.com.au/images/2020/1/22/Westpac%20rate%20cuts%201.JPG" alt="">
Canstar finance expert, Steve Mickenbecker said, "you know the home loan market has become competitive when a loan from a major bank has the top rate in its category."
“The investment lending market has remained sluggish, as lending to owner occupiers has shown recovery, and Westpac is clearly working to lift its share of that market.
“While Westpac’s new rates are competitive, the comparison rates are much higher, incorporating the $395 package fee and with a higher rate attaching when the loan moves to variable interest after the fixed rate period," he said.
<img src="https://www.urban.com.au/images/2020/1/22/Westpac%20rate%20cuts%202.JPG" alt="">
"Investors will have to be on their toes at the end of the fixed rate period to assure a competitive rate, he warned.
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Westpac makes big cuts to fixed rate loans

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GUEST OBSERVATION
Only a small fraction of engineers are women. Shutterstock <a href="https://theconversation.com/profiles/lisa-harvey-smith-6452" target="_blank">Lisa Harvey-Smith</a>, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
Engineering skills underpin the functioning of our societies and economies. As we face the global challenges presented by a changing climate, food and water scarcity, loss of biodiversity and globalisation, these skills will only become more important.
In Australia, we have a high demand for qualified engineers but we train <a href="https://data.oecd.org/students/tertiary-graduates-by-field.htm" target="_blank">relatively few</a> compared with similar industrialised nations.
As a consequence, about half of Australia’s engineers come from other countries. While skilled migration is an important and largely positive element of our economy, relying on skilled workers from overseas could leave us vulnerable to factors outside our control.
Extending the talent pool
One part of the engineering pipeline problem is the lack of diversity in those who engage with the subject.
Industry values diversity because it boosts innovation and improves financial performance. Despite numerous outreach and engagement programs and initiatives, however, only a small fraction of undergraduate engineering students are women.
In vocational training, the number is less than one in ten; at universities it’s around one in six.
This enormous disparity means women are missing out on designing the future. It also means that engineering challenges are being tackled from a narrow set of perspectives.
A search for new ideas
In 2019 the deans of engineering at Monash University, the Australian National University and the University of New South Wales created the Engineering for Australia Taskforce. The goal of the taskforce is to find ways to boost the numbers of women applying for university engineering programs.
The taskforce has two major concerns. First, engineering enrolments do not reflect the diversity of the Australian population, particularly gender diversity. Second, engineering has a low visibility in schools and society in general.
Today, the taskforce launched <a href="http://educationfutures.monash.edu/barriers-to-participation-in-engineering" target="_blank">a new report</a> that explores what factors affect girls’ participation in engineering.
The report is authored by Professor Deborah Corrigan and Dr Kathleen Aikens from Monash University. Based on a review of international peer-reviewed research, they argue that engineering urgently needs to rebrand itself.
What can be done
The report identifies three key actions:
1. Create an inclusive vision for STEM and engineering to address stereotypes. This vision will invite and welcome excluded groups to see engineering careers as a real possibility
2. Work with the education sector to create a STEM and engineering identity in schools, by making engineering activities prominent, positive and relevant
3. Evaluate engineering intervention programs to find out what works.
Potential interventions could involve changes to the school curriculum, adding extracurricular activities or through media campaigns, or something else.
Engineering identity
The lack of an “engineering identity” in schools is a persistent problem and one that resonates particularly strongly with me.
As Australia’s Women in STEM Ambassador, I have visited schools and observed science classes in every state and territory of Australia. I have seen students carrying out sophisticated engineering projects that tackle important societal and environmental challenges.
Often, students don’t recognise that what they are doing is engineering. Students either don’t understand what engineering is, or they don’t see engineering as an attractive career.
Ask a year 9 student if she wants to design a system for rare pygmy possums to safely cross a highway, and you will probably get an enthusiastic yes.
Ask the same student if she wants to be a mechanical engineer, and the response may be lukewarm at best.
So identifying engineering by name where it happens in schools, emphasising the social context of engineering and socialising female role models in engineering are all important steps.
Plan and evaluate
As with all educational interventions, it is vital to plan carefully based on specific desired outcomes and evaluate how effective the program has been.
This will ensure dollars are well spent, and also provide a framework for future educational programs. Evaluation lets us learn the best ways to engage target groups in strategically important areas of training or study for Australia’s economy.
The Engineering for Australia Taskforce report provides important engineering-specific information. Its recommendations are consistent with those of the Australian Academy of Science’s broader <a href="https://www.science.org.au/support/analysis/decadal-plans-science/women-in-stem-decadal-plan" target="_blank">Women in STEM Decadal Plan</a>, which aims to guide interventions to boost STEM engagement.
The taskforce, my office (the Office of the Women in STEM Ambassador) and the broader STEM sector will be working hard to implement these recommendations across Australia. Together, we can achieve a more inclusive, creative innovation sector and a more resilient economy.<img src="https://counter.theconversation.com/content/130282/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/lisa-harvey-smith-6452" target="_blank">Lisa Harvey-Smith</a>, Professor and Australian Government’s Women in STEM Ambassador, <a href="http://theconversation.com/institutions/unsw-1414" target="_blank">UNSW</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/australia-needs-more-engineers-and-more-of-them-need-to-be-women-130282" target="_blank">original article</a>.
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Australia needs more engineers, especially more female ones

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GUEST OBSERVATION
In public, the government is crab-walking away from its commitment to a budget surplus, saying since the bushfires that other things have become more important.
Asked directly on Tuesday whether he was prepared to sacrifice this year’s projected surplus to help the bushfire recovery effort, Treasurer Josh Frydenberg said:
Our focus is on delivering the services and support to people in need. That’s what we’ve been doing.
But less-publicly, and little noticed in the pre-Christmas release of the mid-year economic and fiscal outlook, the government has quietly buried long-standing targets for restraining spending.
Jettisoning these targets provides it with more wriggle room to increase spending to respond to things such as the bushfires and to boost the economy should it need to in 2020 and beyond.
Under the Charter of Budget Honesty Act 1998 every government must release a fiscal strategy statement alongside the Budget.
The statement is a list of the government’s budget targets. One long-standing target is “to achieve surpluses on average over the economic cycle”. Others relate to spending, tax collections, and public debt.
They are not binding but they provide a useful guide to the government’s thinking.
A looser straitjacket
Revisions to these targets can signal changes to the government’s approach.
In the pre-Christmas Mid-Year Economic and Fiscal Outlook (MYEFO), the government significantly scaled back its targets – both in number and ambition.
For example, the budget repair strategy it adopted in 2014 committed it to “deliver budget surpluses building to at least 1% of GDP by 2023-24”.
The strategy has been reproduced in every budget since then, although in 2017 the 2023-24 deadline was extended to “as soon as possible”.
In December’s MYEFO more wriggle room was added, with the surpluses of at least 1% of GDP to be reached only “when economic circumstances permit”.
<hr>
Spot the difference
<a href="https://images.theconversation.com/files/311051/original/file-20200121-187130-1h42ojy.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/311051/original/file-20200121-187130-1h42ojy.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> <a href="https://budget.gov.au/2019-20/content/bp1/download/bp1_bs3.pdf">2019 Budget</a> <a href="https://images.theconversation.com/files/311072/original/file-20200121-117917-jev67o.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/311072/original/file-20200121-117917-jev67o.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> <a href="https://budget.gov.au/2019-20/content/myefo/download/MYEFO_2019-20.pdf">2019 MYEFO</a>
<hr>
Another component of the original repair strategy was that “new spending initiatives will be more than offset by reductions in spending elsewhere in the budget”.
In other words: if the government wanted to announce a new spending policy, it had to find savings elsewhere to cover the cost.
Targets missing
This target does not appear in MYEFO. A softer replacement says the government intends to “pursue budget savings to make room for spending priorities”.
This relaxing of the purse strings is already evident: the new spending measures in MYEFO on aged-care home packages, bringing forward infrastructure spending, and drought assistance are significant costs that were not paid for by spending reductions elsewhere.
Nor has the government provided any indication that its bushfire relief measures will be funded through savings.
<hr>
Gone: the commitment to cut the government’s share of the economy over time
<a href="https://images.theconversation.com/files/311074/original/file-20200121-117962-1swvsvs.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/311074/original/file-20200121-117962-1swvsvs.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> <a href="https://budget.gov.au/2019-20/content/bp1/download/bp1_bs3.pdf">2019 Budget</a>
<hr>
The budget repair strategy also required improvements in the budget position due to favourable economic circumstances to be “banked to the bottom line”. That target has now been removed all together.
The medium-term (10-year) fiscal strategy has also been amended to remove some of the more ambitious spending-control targets.
One was to reduce the government’s share of the economy over time.
That target has now gone, even though shrinking government spending as a share of the economy is crucial to the budget projections of growing surpluses and declining net debt over the decade.
The obvious question is – why?
The government is making big spending easier
The government might argue that it no longer needs a budget repair strategy because it expects to a deliver a surplus this year.
But its strategy was always more ambitious than a single surplus.
It wanted to reach continuing surpluses of 1% of GDP. Surplus forecasts of between 0.2% and 0.4% of GDP over the next four years indicate it is still well short of achieving them.
More likely is that it recognises that some of its targets were going to be difficult to meet.
It has already failed on <a href="https://theconversation.com/more-mirage-than-good-management-myefo-fails-to-hit-its-own-targets-108830" target="_blank">a number of occasions</a> to offset new spending with savings. Around <a href="https://theconversation.com/5-things-myefo-tells-us-about-the-economy-and-the-nations-finances-128843" target="_blank">half</a> of this year’s upside from stronger-than-expected commodity prices and employment growth was used to fund tax cuts and extra spending rather than banked to the budget bottom line.
As the <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Budget_Office/Publications/Research_reports/Medium-term_budget_projections" target="_blank">Parliamentary Budget Office</a> has pointed out, it becomes even harder to hold down spending as the budget improves.
This is all the truer amid the need for bushfire reconstruction.
It’s better to shift goal posts than repeatedly fail to score
Another possible explanation is that the government is clearing the way for fiscal stimulus. To date it has relied on the efforts of the Reserve Bank and state governments to boost lacklustre economic growth.
Reserve Bank governor Phil Lowe, <a href="https://theconversation.com/we-asked-13-economists-how-to-fix-things-all-back-the-rba-governor-over-the-treasurer-126283" target="_blank">along with many economists</a>, has argued that it should do more.
In taking off its self-imposed spending straitjacket, it is giving itself room to heed the governor’s call.
<a href="https://theconversation.com/profiles/danielle-wood-147710" target="_blank">Danielle Wood</a>, Program Director, Budget Policy and Institutional Reform, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>; <a href="https://theconversation.com/profiles/nathan-blane-934089" target="_blank">Nathan Blane</a>, Analyst, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>, and <a href="https://theconversation.com/profiles/shelby-so-934091" target="_blank">Shelby So</a>, Researcher, <a href="http://theconversation.com/institutions/grattan-institute-1168" target="_blank">Grattan Institute</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/new-year-new-strategy-unheralded-change-to-budget-targets-creates-space-for-stimulus-129690" target="_blank">original article</a>.
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New year, new strategy? Change to budget targets creates space for stimulus

<html><body>
ING Australia has announced the appointment of Dr John Laker to the position of Chair of ING Australia, effective January 2020.
Dr Laker has served on the ING board since January 2019.
Dr Laker’s career in finance spans more than 45 years and includes roles in the Commonwealth Treasury, the International Monetary Fund (Washington), the Reserve Bank of Australia (Assistant Governor Financial System) and the Australian Prudential Regulation Authority (Chair).
Dr Laker is currently Chair of the Board of the Banking and Finance Oath, Deputy Chancellor of the University of Technology Sydney, member of the Experts Panel of the International Monetary Fund (IMF) and Director of Cancer Council NSW and Cancer Council Australia.
He was appointed an Officer of the Order of Australia in 2008.
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Dr John Laker appointed as chair of ING Australia

For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

Staff reporter

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