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Reduced super contributions caps for people over 50 have resulted in self-managed superannuation fund contributions falling by almost 25% in the 2012-13 financial year, according to new research.
In the past year, average contributions fell $12,300 from $47,500 to $35,200, a study by SMSF fund administrator Multiport found.
The report found the decline was most likely the result of the reduction in the concessional contribution cap, with a cap of $25,000 applying to members of all ages during the 2013 financial year, rather than just those under 50.
In the past three financial years SMSF holders over 60 years old could make a concessional contribution of $50,000 to their fund.
In the 2013-14 financial year the cap will be increased and people over 60 will be able to contribute $35,000.
“With the increase in Super Guarantee to 9.25% and the increased concessional cap of $35,000 applying to the over 60s from July 1, 2013, a small lift is expected in the contribution levels for the 2014 financial year,” the Multiport report states.
But SMSF Professionals Association of Australia chief executive Andrea Slattery said it’s not just the changes in concessional caps which are influencing the amount people contribute.
“Our research confirms people have contributed less because they were concerned by the government’s constant tinkering with super and they had less confidence in the super system for the long term.
“People are not confident in the decisions which were being made around super,” she says.
Both major parties have recently committed to a <a href="https://www.smartcompany.com.au/superannuation/056797-small-business-tax-experts-remain-unconvinced-over-canberra-s-five-year-superannuation-freeze">freeze in superannuation changes</a> for five years.
Labor has said it would make no major changes, while the Coalition committed to making no detrimental changes.
Slattery says the freeze will give Australians greater confidence in planning for their futures.
The Multiport survey of 1950 of its clients also found SMSFs are starting to favour higher risk investment options.
“A significant amount of cash holdings moved into the fixed interest sector early in the financial year, with the cash down almost 2.7% and fixed interest up 2.6%,” AMP SMSF administration head of technical services Philip La Greca said in a statement.
La Greca says the changes in these investments were influenced by the reduction in official interest rates and improving sentiment about future movements.
“The allocation to Australian shares was up 0.8% to 37.5%, slightly higher than expected from normal growth in the market. This was mostly driven by the significant weighting that direct Australian shareholders have in the top 20 stocks, which outperformed the All Ordinaries,” he says.
Slattery says SPAA research also indicates more people are investing in property and equity.
“SMSF trustees are professionally advised as well as more engaged, and that engagement means they’re making decisions that are for their benefit in retirement and SMSF trustees do perform quite well,” she says.
 
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This article was originally published on <a target="_blank" href="https://www.smartcompany.com.au/?">SmartCompany.</a>
 
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Reduced super contribution caps for people over 50 has led to 25% fall in SMSF contributions

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A Melbourne-based accountant has been sentenced to three years in prison for <a href="https://www.smartcompany.com.au/legal/32929-accountant-who-blamed--2-4-million-tax-fraud-on-autism-sentenced-to-four-years-in-jail" target="_blank">fraud</a> after dodging almost $8 million in tax in 2005.
Stephen Lynne Wharton has been found guilty by the Supreme Court of Western Australia of filing three false tax returns to the Australian Tax Office in 2005, while he was in prison for other fraud-related offences.
The fraud was uncovered by the Australian Crime Commission during an investigation of tax schemes used by wealthy businessman and entertainment figures, according to<a href="https://www.theage.com.au/national/toorak-accountant-stephen-lynne-wharton-jailed-for-tax-fraud-20140413-36let" target="_blank">The Age</a>.
The incorrect tax returns understated income earnt by Wharton’s trust accounts between 2002 and 2004.
The investigation by the ACC was part of Operation Haycastle, which saw tax schemer Gregory Dunn sentenced in February to seven years in prison.
Wharton is said to have operated as the middle man in the scheme, concealing money on behalf of Dunn in different trust accounts. Dunn then paid Wharton an 8% commission in return.
Dunn had passed Wharton more than $12 million from two of his clients in the 2002 tax year.
Warfield and Associates chief executive Brett Warfield told SmartCompany creating fraudulent tax returns is a reasonably common tax scheme.
“This has happened numerous times before where tax accountants have submitted false returns without the knowledge of their clients and then gained the profits, although this one seems to have occurred with the knowledge of the clients,” he says.
“There are two ways false returns can work, either misrepresenting the income of a trust or it would overstate the expenses. Either way, you don’t pay as much to the ATO.”
Warfield says these schemes are usually created out of greed.
“The majority of these schemes I’ve seen have been conducted by individuals, but the biggest schemes can’t be done on an individual basis, so always require collusion,” he says.
“This is a guy who has been in trouble, gone to jail and continued to be involved in schemes while in jail. He’s certainly not someone who has learnt his lessons”.
In July 2004 Wharton was jailed for five years, with a conditional release after 18 months, for attempting tax fraud of $26 million in conjunction with Perth-based accountants Walter Tieleman and Sean Pearce.
The men had promoted a tax minimisation scheme in 1998 which offered large tax deductions to miners with high incomes.
At the time Judge John McKechnie described Wharton as “a man of straw” and a “financial rogue”.
Warfield says the ATO doesn’t generally “go digging” into the activities of a specific accountant, unless it receives a tip off or discover inaccuracies as part of a broader investigation.
“In order to commence a large scale investigation they tend to need to uncover a goldmine of information,” he says.
“The ATO rely on the honesty and integrity of both lawyers and accountants, and when this is breached it can have a significant impact on the country’s financial system.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Melbourne accountant jailed for three years after orchestrating $8 million tax fraud from prison

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Australia’s budget has deteriorated faster than any other developed nation’s in the past six months, as Treasurer Joe Hockey continues to prepare Australians for a tough May budget.
Just over a month away from the budget, the International Monetary Fund’s <a href="https://www.imf.org/External/pubs/FT/GFSR/2014/01/pdf/text.pdf" target="_blank">Global Financial Stability Report</a> released yesterday suggests a need for taxation changes in order <a href="https://www.smartcompany.com.au/legal/politics/41251-hockey-claims-labor-hid-spending-tsunami-as-small-business-prepares-for-painful-budget" target="_blank">to reel in the budget deficit.</a>
According to <a href="https://www.afr.com/p/national/imf_says_budget_fall_fastest_of_nreHL5ZcDI84gjokyEAp6H" target="_blank">The Australian Financial Review</a>the budget would need to improve by at least $50 billion by 2020 to bring gross debt down to 70% (or 4.7% of GDP).
Speaking in Washington yesterday, Hockey said IMF estimates showed Australia’s increased healthcare and pension spending alone, unless changed, would cost an extra $93 billion of government spending per annum by 2030.
“That is the equivalent of an extra $61 billion a year in today’s dollars or the equivalent of an extra 4% of today’s GDP,” he says.
To pay for the ageing population, Hockey says Australia will need to raise the equivalent of the existing company tax, indicating major changes will be needed to Australia’s taxation system.
Hockey says with the current budget deficit and below trend growth, there could be budget deficits for the next decade.
“We are now grappling with growth stubbornly below trend as our economy rapidly transitions from the end of the resources investment boom, with rising unemployment and a deteriorating budget position,” he says.
The latest figures from <a href="https://www.imf.org/external/pubs/ft/weo/2014/01/pdf/text.pdf" target="_blank">the IMF’s Global Economic Outlook report</a> released earlier this month show Australia is still struggling to recover from the slowdown in mining-related investment.
The Australian economy is tipped to remain 0.5 percentage points below the trend growth rate of 3% to 3.25%. The IMF predicts Australia’s growth will remain “broadly stable” at 2.6% in 2014.
In 2015, GDP is only tipped to have increased 0.1 percentage point to 2.7%.
JP Morgan chief economist Stephen Walters told SmartCompany Australia has struggled to adjust to the post-mining boom.
“However, in context we’ve had the biggest boom we’ve seen in 120 years, so it’s not a surprise we’re having an adjustment period,” he says.
“As other economies come out of a recession, in this context we seem sluggish, but we’ve avoided having a recession for 23 years.”
Walters says JP Morgan is anticipating Australia to grow at 2.75% this year and 3% in 2015.
“Our estimates are a bit below the Reserve Bank of Australia’s estimates. We think the economy is still in an adjustment period… and when an economy goes through an adjustment, some sectors of the economy shrink by comparison. This is being seen in manufacturing and mining,” he says.
“The economy will start to pick up though, and growth numbers are expected to be higher each year. By 2016 things will be looking better. There will be boosts to exporting markets and consumer spending and construction will be strong.”
Walters says looking forward Australia’s biggest challenges will be recovering from a high exchange rate and managing the relationship with China.
“There has been a big hollowing out of the economy, with the exchange rate being too high for many businesses such as the car manufacturers and SPC Ardmona,” he says.
“[In the budget] welfare looks like an obvious target to hit. Also on the agenda will be negative gearing, the pension age and in the long term possibly GST.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Australia's budget detoriated faster than any other developed nation in past six months: IMF

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Taxpayers could be hit with an extra $32.5 billion in tax in the next decade, unless the federal government make changes to personal income tax brackets, according to a new report.
Research commissioned by The Australian and conducted by the University of Canberra found if there are no changes to the personal income tax brackets, the number of people paying the top tax rate would increase by 134% in the next 10 years to just under 900,000 people.
The number of Australians paying the second highest rate, 37 cents for the dollar, would jump by 85% to 3.7 million.
This article first appeared on <a href="https://www.SmartCompany.com.au">SmartCompany</a>.
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Millions of Australians to face higher tax brackets

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The number of dwelling approvals in February decreased by 5%, seasonally adjusted, with the number of private sector apartments approved suffering the greatest fall.
The latest figures from the Australian Bureau of Statistics showed the number of private sector houses approved also fell by 2.1%, seasonally adjusted, off the back of an 8.4% rise in January.
Private sector dwellings excluding houses had the greatest decline, falling 8.7% in the month.
However these negative numbers did little to affect the dwelling approval trend term, which rose 0.7% in February, marking its 26th consecutive rise.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Building approvals down in February

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Australia’s automotive sector has been tipped to overcome the closure of its manufacturing division and emerge stronger than ever, according to an industry expert.
A new report from Auto Skills Australia found small businesses were struggling to survive due to financial pressures. However, the ones that survive will be better, more capable businesses.
Small businesses with less than 20 staff account for 94% of the sector, and sole proprietors and partnerships have fared worst.
But chief executive of Auto Skills Australia Geoff Gwilym told SmartCompany it’s important people remember the industry is still growing, and there will continue to be work for the sector.
“The industry is growing on average by 400,000 vehicles on the road each year and the industry needs to be capable of servicing and maintaining this growing fleet,” he says.
“There won’t be a collapse of the industry. It will be leaner, but it will also be more progressive and better positioned for the future of the sector. We foresee a lean, capable and modern industry going forward.”
While tens of thousands of jobs are expected to be lost as a result of the closure of Ford, Holden and Toyota in Australia by 2017, in 2012/13 net employment actually increased in the automotive sector.
Over the entire industry there were an additional 4,132 jobs added, as car repair and wholesale retailers performed well.
The sector is also suffering from a skills shortage of 21,175 workers across key areas of the car industry.
Gwilym says the auto manufacturing segment of the sector only comprises 13% of the industry and workers who lose their jobs as a result of Ford, <a href="https://www.smartcompany.com.au/finance/cashflow/34848-if-holden-leaves-toyota-follows-the-disastrous-impact-on-small-business" target="_blank">Holden and Toyota manufacturing plants</a> closing will be able to be absorbed within the sector.
“At the moment growth in the non-manufacturing side of the industry is outpacing any decline,” he says.
“It depends where they are in the age cycle of their employment, but a number of young workers will be able to transition to other areas of the industry. Workers who are getting on in age will probably look at retirement and others will transition directly into auto-service businesses.”
The industry’s contribution to Australia’s gross domestic product remained stable at 2.6%, equating to $38.4 billion.
In the next 12 months Auto Skills Australia found most businesses were expecting mild growth, as trading conditions have been variable.
The report found subdued levels of consumer expenditure on vehicle repairs, servicing and maintenance had already resulted in considerable downsizing and leaner operations for many companies.
Gwilym says the small businesses which survive the tough economic times will have upgraded their workshops and facilities and be “quite progressive in the industry”.
“There already are many innovative small businesses in this respect and it’s the ones which don’t keep up with investment in new equipment and up-skilling requirements which will fall by the wayside,” he says.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Automotive industry tipped to emerge “lean and capable” following auto manufacturing exit

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The Australian Taxation Office is urging all taxpayers to declare their offshore income to avoid harsh penalties, as part of the ATO’s crackdown on multinational tax avoidance schemes.
The Tax Office has labelled the initiative ‘Project DO IT’, a “last chance” opportunity to come clean about tax avoidance, as it aims to bring billions of dollars back into Australia’s tax system.
In a speech to the Tax Institute of Australia’s National Convention on Wednesday, Tax Commissioner Chris Jordan said taking part in this initiative will allow people to “avoid steep penalties and the risk of criminal prosecution”.
“As governments around the world step up their data sharing and harness powerful technology to find tax cheats, the concept of the 'tax haven' is dying. It's just a matter of time before you'll be caught,” he said.
“If you’ve got international tax liabilities, act now and come forward and we’ll bring you back into the system with a heavily reduced penalty. If you don't declare your interests, you'll be caught and penalised.”
SmartCompany reported a <a href="https://www.smartcompany.com.au/finance/tax/35223-ato-considering-amnesty-for-people-with-hidden-offshore-assets" target="_blank">possible amnesty for tax dodgers</a> earlier this year when it was still being developed.
The amnesty will be open to taxpayers until December 19 this year and stipulates owed tax will be limited to offshore income and assets in the last four years.
People who come forward will also be liable for a shortfall penalty of 10% and for low-level disclosure there will only be minimal penalties, if any.
Eligible taxpayers will also be able to seek assurance regarding the ATO’s tax treatment of repatriated offshore assets and be able to enter a settlement deed to obtain additional certainty.
However, taxpayers will not be entitled to any losses that arose in years prior to the four years in which they will be assessed.
Thomson Reuters tax expert Terry Hayes previously toldSmartCompany similar amnesty initiatives have been successful.
“By and large they have been effective. They have been tried in other countries and the rationale is to get people on the books,” he says.
“People come forward and declare their hidden accounts and then the tax authority gives them a concession. They’re then back on the books and the Tax Office can keep tabs on them going forward. They don’t catch everyone, they never do, but it does give people a chance to own up.”
Hayes says amnesties have been used in the United States, Italy, Britain and other countries across Europe.
“Over time their success is quantifiable. It will bring in extra revenue and get people back on the system, although it’s never guaranteed,” he says.
“For the ATO it’s a matter of cost-benefit analysis. The cost of chasing these offshore assets is really high, both in time and cost of having investigators and lawyers chasing these people.”
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ATO asks tax dodgers to own up, declaring the ‘tax haven’ is dying

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The official cash rate has been tipped to rise by almost two percentage points by the end of 2015. However, most economists say a one percentage point rise is more likely.
A survey of 32 economic analysts by Bloomberg News found more than half expect interest rates to rise within a year, according to <a href="https://www.afr.com/p/national/rates_may_hit_pc_by_end_of_economists_es6vdYb4lCMRmclC9Sc92O" target="_blank">The Australian Financial Review</a>.
The analysts projected rates could hit as high as 4.25% by the end of next year, significantly higher than the current record low of 2.5%.
However, JP Morgan chief economist Stephen Walters told SmartCompany while possible, such a steep percentage point hike is “unlikely”.
“The transition from mining investment to other sources of growth is still a work in progress,” he says.
“The currency is also still quite higher, so it’s definitely a difficult case to make for the Reserve Bank to raise rates.”
Walters says there has also been speculation of a tough budget in May, which is likely to further impact rates.
“It just doesn’t make much sense… employment is going up too, so aggressive rate hikes are unlikely,” he says.
Interest rates have been <a href="https://www.smartcompany.com.au/growth/economy/33028-breaking-news-rba-cuts-interest-rate-by-25-basis-points-to-2-5" target="_blank">on hold since August last year</a>, when the official cash rate was cut by 25 basis points from 2.75% to 2.5%.
The decision was motivated by a need to boost the economy as it struggled to adjust to lower levels of mining investment.
Unemployment also began to edge higher throughout 2013, a trend which is expected to continue in 2014.
In February, Australian Bureau of Statistics figures revealed <a href="https://www.smartcompany.com.au/growth/economy/36024-more-people-in-full-time-work-but-an-extra-10-000-unemployed-what-the-unemployment-figures-really-mean" target="_blank">unemployment remained steady at 6%;</a>however, economists have predicted it could reach 6.5% by the end of the year.
CommSec economist Savanth Sebastian toldSmartCompany because unemployment is expected to rise and non-mining business investment isn’t showing significant improvement, rates are unlikely to reach 4.25% by the end of 2015.
“To reach 4.25%, this means we’re really looking at eight rate hikes between now and then which is very unlikely. The RBA aren’t expected to raise rates until well into the last quarter of this year,” he says.
“The economic environment is still very patchy… rates won’t go back to super aggressive levels any time soon.”
Sebastian says because forward indicators are improving, some movement on rates can be expected, but not until the end of the year.
“We will see steady increases next year… even if everything goes right it’s unlikely they’ll raise by that much. It would create pain in the economy, especially for first home buyers who have taken out loans with wage growth being at the second slowest rate on record,” he says.
Sebastian says the economy is establishing new norms in terms of household credit growth and consumption and this will be kept in mind by the RBA.
Both Sebastian and Walters say rates are more likely to be around 1% higher by the end of 2015.
“Rates are all super low and if the economy improves in relatively positive fashion you could see 1% worth of rate hikes next year,” Sebastian says.
“There will be about four over the year, which is more likely to take the cash rate from 2.5% to 3.5-3.75%, which is more reasonable for the economy to continue to adjust from the fall back from mining investment and allow the economy to continue to grow.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Economists predict interest rates will hit 4.25% by end of 2015 – but are these projections likely?

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Australia’s unemployment rate remained steady at 6% in February, in line with economists’ predictions.
The latest figures from the Australian Bureau of Statistics show the number of people employed in February grew by 47,300 jobs to 11,530,800, with an increase in full-time positions driving the growth.
Full-time employment increased by 80,500 jobs, but was offset by a fall in part-time employment, which was down 33,300 positions.
While the number of new jobs was up overall, there was still an <a href="https://www.smartcompany.com.au/growth/economy/36017-unemployment-rate-steady-in-february-reject-shop-managing-director-resigns-shoply-acquires-wowbaby-midday-roundup" target="_blank">increase in the number of unemployed people</a>, as the number of people out of work rose by 9,800 to 742,200 in February.
The figures, however, have caused some confusion, as people question how the number of jobs could have increased at the same time as the number of unemployed people.
JP Morgan economist Tom Kennedy told SmartCompany the result is influenced by the labour force participation rate.
“It all maps back to the participation rate. Labour force participation was quite strong, increasing by 2/10, meaning there were more people employed, or more people looking for work,” he says.
“When this happens you can get an uplift in employment, a rise in unemployment or an increase in both. In this case it was the latter and while there were almost 50,000 jobs created, there were also more people out there looking for work who were reclassified to be included in the labour force.”
The labour force participation rate now stands at 64.8%, an increase of 0.2 percentage points, according to the latest figures from the ABS.
In trend terms, the less volatile unemployment figure, which eliminates month-to-month discrepancies, rose from 5.9% to 6%.
On a state basis, the Australian Capital Territory has the lowest rate of unemployment, with the percentage of people out of work dropping from 3.6% to 3.4%.
Tasmania also recorded a fall in unemployment, but it still maintains the highest level of unemployment in the country, with 7.4% of people out of work.
The highest rise in unemployment occurred in Western Australia, with unemployment jumping from 5.2% to 5.9%.
Overall, Kennedy says in February there was a slight “uptick” in the labour market.
“The growth in full-time jobs was actually the second strongest on record dating back to 1976. However there are distortions in the data,” he says.
“The jobless rate held steady at 6%, which is consistent with what we predicted and this generally gives the best indication of how unemployment is tracking.”
Toward the end of the year JP Morgan predicts unemployment will reach 6.5%.
“It won’t come as a shock to us or the Reserve Bank, which predicts it will peak around the beginning of 2015,” Kennedy says.
Kennedy says when the jobless rate increases, it has broader economic impacts.
“When the jobless rate moves higher it suggests wage growth is soft and that the economy is running sub trend,” he says.
“Consumption is likely to remain soft going forward. As income growth is low, there won’t be much discretionary spending. Consumer sentiment is also likely to be subdued and this is clear looking at the Westpac-Melbourne Institute Index of Consumer Sentiment which has dropped around 10% in the last few months.”
This article first appeared on <a href="https://wwww.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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More people in full-time work, but an extra 10,000 unemployed: What the unemployment figures really mean

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New Zealand’s central bank has raised its official cash rate by a quarter of a percentage point to 2.75% this morning, but Australian economists believe it’s unlikely the Reserve Bank will do the same.
Over the next two years the Reserve Bank of New Zealand expect the official interest rate to rise by 2%, as the <a href="https://www.smartcompany.com.au/growth/export/35355-new-zealand-smes-set-to-trump-australian-counterparts-in-2014-what-are-they-doing-right" target="_blank">New Zealand economy continues to strengthen</a>.
RBNZ governor Graeme Wheeler said in a statement there is a need to return interest rates to normal levels in New Zealand.
“It is necessary to raise interest rates toward a level at which they are no longer adding demand,” he says.
“New Zealand’s economic expansion has considerable momentum, and growth is becoming more broad-based.”
While raising interest rates was in the interest of the New Zealand economy, NAB chief economist Alan Oster told SmartCompany any move on the official cash rate in Australia is a fair way off.
“The decision in New Zealand has absolutely nothing to do with Australia,” he says.
“We’re still in the minority view, but we think the RBA is more likely to cut rates than raise them because of fears about the unemployment rate rising, but it’s not likely to happen until November.”
Oster says the New Zealand economy has shown signs of significant strengthening, unlike the Australian economy.
“In New Zealand… there has been a big increase in the value of their lamb and dairy exports and among other things they’re also in the process of rebuilding Christchurch,” he says.
“It’s also had strong consumer confidence readings, growth is expected at plus 4% and inflation numbers are going toward the top end of the band. It’s clearly in need of a rates change.”
In the year to March, New Zealand’s GDP is estimated to have grown by 3.3%.
Oster says by the year’s end construction activity is anticipated to be up by 30% in New Zealand – a stark comparison with Australia where construction figures fell further into negative territory in February.
“The question today was not whether it was going to raise rates, but whether it was by 0.25% or 0.50%,” he says.
“There will be sustained rises over the next few months and with an election coming up in September, I wouldn’t be surprised if there were two rate increases before then.”
According to Wheeler, New Zealand’s booming construction sector and high prices for export commodities have pushed the country through its economic recovery.
“A rapid increase in net immigration over the past 18 months has also boosted housing and consumer demand,” he says.
“Confidence is very high among consumers and businesses and hiring and investment intentions continue to increase.”
CommSec economist Savanth Sebastian mirrored Oster’s thoughts, saying New Zealand’s “economic makeup” is completely independent from Australia’s.
“It doesn’t have the changes going on here in terms of the mining and its reliance on China isn’t to the same degree,” he says.
“The RBA has made it clear rates are on hold, it’s all about interest rate stability and allowing the economy to improve at a modest clip.”
Sebastian says forward indicators had been upbeat for Australian until recently, but now there’s been a dial back in consumer confidence, driven by concerns over unemployment.
“It comes down to the jobs story and unemployment will continue to rise over the next few months,” he says.
“I think the RBA will raise rates toward the end of the year. We have an economy improving, solid household wealth levels and when we’ve seen the way through the structural adjustment away from mining and there are improvements in the other parts of the economy, we will see rates moving back toward a normal setting.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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New Zealand raises interest rates, but will Australia follow suit?

ASX-listed developer Cedar Woods is progressing its plans for its Southbank arts precinct site.&nbsp;

The developer has filed plans, which are now with the&nbsp;Department of Transport and Planning, for a new 20-level tower at&nbsp;<a href="https://www.apartments.com.au/new-apartments/141-151-sturt-street-southbank-vic-3006">141–151 Sturt Street</a>, a 2,718 sqm block opposite the Habitat Filter sculpture.

The proposal seeks to demolish the two-level&nbsp;commercial building, including a small supermarket and medical tenancies, and create a new building with 180 apartments and a focus on an&nbsp;active public realm and arts integration.

&nbsp;

<img alt="Southbank site" data-entity-type="file" data-entity-uuid="76a72db6-91ef-43ae-827d-a9cfa72893d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Site.png?VersionId=DZgtB4K6BswVh0QtCs3iLjXaLp0CbcEb" />

&nbsp;

There will be a full mix of apartment configurations, including 28 studio apartments, 16 one-bedroom, 104 two-bedroom, and 32 three-bedroom units.

Retail, creative arts, and residential amenity functions are integrated across the lower levels. A food and drink tenancy is planned to front Dodds Street, while a retail tenancy fronting Sturt Street will be accessed via an elevated walkway. The first floor includes a substantial 734 sqm creative arts space, envisioned to support Melbourne’s growing cultural and digital industries.

Architecture firm <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> has put together the plans. In their&nbsp;Urban Design Report they highlighted the project’s ambition to embed itself within Southbank’s evolving cultural fabric.

A central feature of the design is a through-block link connecting Sturt and Dodds Streets, landscaped with native plantings and embedded with universal access ramps.

“The ramp has been thoughtfully integrated as the primary access point, ensuring universal accessibility for all users,” the report noted, with the link offering “a direct response to the urban planning scheme of creating more green spaces within our communities”.

<img alt="Southbank podium" data-entity-type="file" data-entity-uuid="4d24b1b2-d69c-4a11-a11d-ec6df432221c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium.png?VersionId=geWoJyZDmPSLODZ_.PNJ0LvpOmyyCdpo" />

The building’s podium form responds to the mandatory height limits along Dodds Street and maintains a fine-grain interface to adjoining developments. Above the podium, the tower is articulated with recessed balconies and a focus on views toward the CBD and surrounding arts institutions. A communal rooftop recreation deck and indoor lounge are positioned on level four, adjoining seven apartments and providing over 900 sqm of resident amenity space.

Vehicle access and loading will be provided via Dodds Street, with 155 resident car spaces located across two basement levels and the first three above-ground floors. Bicycle storage is more generous, with 226 spaces distributed across resident, staff and visitor needs.

Rothelowman describes the architecture as “humanist,” with ground-level interfaces designed to encourage social interaction and provide a dignified entry for both residents and passers-by. “All street interfaces are crafted to invite and nurture human connections,” the design report states. “The façade transitions to a human scale, providing an approachable and engaging streetscape”.

Cedar Woods, while well-known for its large communities it develops outside of Australia's capital cities, they have recently developed in Melbourne's inner-ring before. They are approaching completion at <a href="https://www.apartments.com.au/new-townhouses/88-leveson-north-melbourne-88-leveson-street-north-melbourne-vic-3051">88 Leveson</a>, just 15 townhouses in the heart of North Melbourne.

Joel Robinson

Cedar Woods progresses with new apartment plans in Southbank arts precinct

Brisbane developers Core Property Partners and Vector Property Australia has teamed up for Brisbane's newest apartment development.

The duo identified <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as their preferred suburb, on the fringe of the Gabba Precinct, where they've just revealed BANKSII, 72 apartments opposite Raymond Park.

[smartcode_project:default project_id=136432 project_image_fid=5481]

The one-, two-, and three-bedroom apartments will sit in a glass-wrapped building that will also feature a rooftop with an&nbsp;infinity-edge pool, a BBQ area and alfresco dining spaces, sun lounges, and a sauna, as well as a resident-only gym and a ground-floor cafe.

Rhett Williams, Director of Vector Property Australia, said the project will lift the quality of the East Brisbane community and set a new benchmark.

"In Brisbane’s current property landscape, <a href="https://www.apartments.com.au/new-apartments/banksii-east-brisbane-169-wellington-road-east-brisbane-qld-4169">BANKSII</a> stands out through its emphasis on lifestyle-oriented living, connectivity and sophisticated design," Williams says.

[smartcode_project:default project_id=136432 project_image_fid=5479]

The 10-level building has been designed by MAS Architecture. Their designs were inspired by the native Banksia flower, with the architecture and interiors reflecting the organic symmetry of its namesake flora. MAS has interpreted this throughout the building’s curved form, façade detailing and interior palette.&nbsp;

The building’s flowing geometry and natural tones are complemented by large balconies and floor-to-ceiling glazing, maximising cross-breezes, daylight and views over the city, parklands and river.

“Having a strong narrative for a building helps us architecturally,” MAS noted. "We can choose colours that come off that species of flowers. The trunk and the trees and the flower elements all are now visible in our joinery on the inside and in our architectural finishes on the outside."

[smartcode_project:default project_id=136432 project_image_fid=5485]

Apartments will feature timber floors, soft porcelain tiles, brushed bronze fittings, and stone benchtops with warm veining.&nbsp;

Kitchens feature premium SMEG appliances and generous storage, while bathrooms have been designed as calming retreats with curved cabinetry and twin sinks in the master ensuites.

The building will feature a suite of rooftop and wellness amenities. Residents will have access to an infinity-edge pool, BBQ and alfresco dining areas, sun lounges and a rooftop sauna.&nbsp;

A residents-only gym will be located on the podium level, while a ground-floor café and landscaped laneway will further activate the site and improve neighbourhood connectivity.

[smartcode_project:default project_id=136432 project_image_fid=5488]

BANKSII will rise from a prime Wellington Road site, with the building oriented to overlook the adjacent Raymond Park and take in extensive city views. It is also on the doorstep of key&nbsp;lifestyle infrastructure, including the future Kangaroo Point Green Bridge, The Gabba stadium, and the planned Brisbane Live arena.&nbsp;

Public transport options, including ferry, bus and rail - including the future Cross River Rail Woolloongabba station - are all nearby, supporting a car-optional lifestyle just minutes from the CBD.

Williams said the team spent over a year searching for the ideal site before securing this location.

"We were attracted to <a href="https://www.apartments.com.au/developments/east-brisbane-qld-4169">East Brisbane</a> as it is a vibrant and growing community that offers a perfect balance of urban convenience and natural beauty with the parklands and river on our doorstep.”

The project is part of the broader Woolloongabba Games precinct, which is undergoing significant investment in the lead-up to the 2032 Brisbane Olympics. This urban renewal, coupled with infrastructure upgrades, is expected to enhance long-term liveability and capital growth in the area.

Given the wide max of configurations, BANKSII is expected to suit everyone from first home buyers and investors to families and downsizers.

[smartcode_project_cta:default project_id=136432]

BANKSII sales launch in booming East Brisbane apartment market

The Minns Labor Government will deliver Sydney’s first new heavy rail station in more than a decade – enabling up to 10,000 new homes by rezoning land around Woollahra and Edgecliff stations, right next to the CBD, to tackle the housing crisis and rebalance growth across the city.

Recent reports by the NSW Productivity Commission have warned that Sydney is losing twice as many young people as it is gaining, while also finding that Woollahra is the most feasible Local Government Area (LGA) in New South Wales to build new housing.

Despite this, housing approvals in Woollahra consistently lag well behind other LGAs, and the population has declined by 11 per cent over the past 50 years while Greater Sydney as a whole has grown by 74 per cent.

The new station that will be an eight-minute trip from Sydney CBD, will be located on the Eastern Suburbs train line in Woollahra, where a station build was started in the 1970s but never completed.

To enable the delivery of new homes the NSW Government will lead a rezoning of Woollahra and Edgecliff stations similar to other state led rezonings to allow additional homes to be built around the stations.

Affordable housing will also make up a proportion of development on the site with the final amount of affordable housing required, to be determined as part of the rezoning process.

The area surrounding the new station is within walking distance of major green and recreational space including Cooper, Trumper, Rushcutters Bay and Centennial Parks.

The Eastern Suburbs train line between Bondi Junction and Sydney CBD also has the lowest passenger usage rates during the AM peak of any line on the Sydney network, with only 43 per cent of operating capacity during the AM peak currently being utilised by passengers.

Sydney Water and Infrastructure NSW have confirmed there is capacity in the water and wastewater systems to accommodate the proposed 10,000 dwellings without major upgrades.

The rezoning is expected to take around two years and will further support the Government’s housing targets that rebalance the delivery of new homes around existing infrastructure.

&nbsp;

&nbsp;

Next stop Woollahra train station - delivering up to 10,000 new homes in the heart of Sydney

<section data-element_type="section" data-id="b086848">
Fresh off completing its mixed-use Malvern project Malvern Collective, Kokoda Property Group has acquired a prime site on Richmond's Bridge Road.

They are planning a mid-rise residential development with&nbsp;integrated wellness amenities and a vibrant ground-floor retail and dining offering.

The site, at&nbsp;487–495 Bridge Road, spans&nbsp;1,650 sqm with 50 metres of dual frontage across Bridge Road and Palmer Street. It is currently leased to Adairs, and has a large retail building and 20 onsite car parks.
</section>

<section data-element_type="section" data-id="534a164">
Kokoda Property Group’s acquisition forms part of a broader phase of growth in Melbourne, building on momentum from the completion of Malvern Collective and the recent purchase of a Burnley Street site for the developer’s first commercial project.&nbsp;

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating.

“Melbourne is regaining momentum,"&nbsp;Stevens said.

"After a cautious period post-COVID, we’re seeing buyer sentiment stabilise and capital leaning back into well-located, quality projects. Victoria now benefits from deep builder capacity and competitive delivery pricing, creating a rare opportunity to bring design-led inner-city developments to market without compromising on craftsmanship.

“Richmond ticks all the boxes for us – connectivity, culture and everyday amenity – making Bridge Road the perfect address for an amenity-rich, multi-use development."

<img alt="Kokoda" data-entity-type="file" data-entity-uuid="9a8de51d-8092-480a-8b7e-e081816692c2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-08-29%20at%208.54.27%E2%80%AFAM.png?VersionId=VRHpV5.6beOu2cieKHWrw3ErMPuVOAuj" />

Envisioned as an “urban lantern” the building will bring a distinctive new presence to Bridge Road with a sculptural retail frontage, designed to honour the street’s heritage character while contributing to its renewal.

Stevens said the acquisition reflects the developer’s commitment to design-led addresses in Melbourne’s inner city.

“Drawing on Richmond’s rich heritage and dynamic character, we’ve envisioned a contemporary building that respects the past while elevating the way people live today. With dual frontages, curated ground-floor spaces, and a focus on wellness, this project will contribute to the neighbourhood’s evolution, appealing to both downsizers and a new generation of professionals.”

Kokoda Property will now progress concept design ahead of a future planning process.
</section>

Mark Stevens, Kokoda Property Group’s Founder and Managing Director, said that the company’s Bridge Road site acquisition signals confidence in a city that is re-accelerating

First look: Kokoda secures Richmond site for new apartment development

Gold Coast developer Drew Group is fast approaching sell-out at its Main Beach apartment development, Lagoon Main Beach.

In the last nine months, Drew Group and sales partner Pezet Matheson have secured 31 sales totalling over $75 million, as the two-tower development advances towards completion under the expert eye of Hutchinson Builders.

“Today's buyers are more discerning than ever," Drew Group Managing Director Jon Drew says.

"It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

[smartcode_project:default project_id=108747 project_image_fid=193023]

Just over 50 per cent of recent&nbsp;sales have been to local buyers, reflecting the deep trust and connection within the Gold Coast community that Drew Group has developed over the years.

Demand has been particularly robust at the top end, with two of the three exclusive penthouses already sold, alongside five sub-penthouses. Only seven apartments remain in Lagoon's Signature Series — one&nbsp;penthouse and six sub-penthouses.

[smartcode_project:default project_id=108747 project_image_fid=284864]

Drew Group has also removed the much-maligned sunset clause from all contracts at Lagoon. The sunset clause — although rarely invoked, yet on occasion known to have been — allows developers to take back contracts on apartments should the building not be completed within the timeframe specified in the contract.

Pezet Matheson Co-Director Jayde Pezet says the fact Lagoon is&nbsp;within a year of completion, and has no sunset clause in contracts, provides certainty to buyers.

"This is paramount in the current market," Pezet says.

Drew Group has committed to providing the highest level of security inclusions — none more impressive than the Ubiquity Access Control System, a cutting-edge facial recognition technology that is one of the most state-of-the-art keyless entry systems on the market.

[smartcode_project:default project_id=108747 project_image_fid=190743]

One of the biggest drawcards to Lagoon has been the size of the apartments.

"It is unlikely that any future new development in Main Beach will be able to offer such spacious living at this price point," Drew says.

"Today's buyers are more discerning than ever, carefully evaluating amenities like gyms, spas, workspaces, and beach lockers, along with quality finishes. It's essential to provide something truly unique that sets a development apart, and we believe Lagoon has achieved just that."

Lagoon is set to complete construction in mid-2026.

[smartcode_project_cta:default project_id=108747]

Yolanda Redrup

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