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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?

National property developer Goldfields has secured permit approval and appointed Victorian residential builder Ironside to begin work on The Brightly, an 11-storey, wellness and lifestyle-focused mixed-use development in Richmond.

<a href="https://www.apartments.com.au/developers/goldfields-group">Goldfields</a> has partnered with Dexus Real Estate Partnership Fund 1 (DREP 1) as co-investor and delivery partner in the <a href="https://www.apartments.com.au/new-apartments/the-brightly-9-15-brighton-street-richmond-vic-3121">Brighton Street project</a>.

With architecture and interiors by design practice Cera Stribley, The Brightly will feature 100 apartments, a resident-only wellness space, elevated dining experiences including a private dining room and a rooftop garden lounge, and ground-floor retail designed to integrate with Richmond’s local character.

The wellness space will feature a hot magnesium pool, cold plunge, steam room, sauna, and a vitamin-infused drinking station for refreshment and rehydration.

The Brightly’s focus on wellness extends to the rooftop landscaped by award-winning landscape architect Jack Merlo. It will feature canopied retreats and panoramic views of the Melbourne CBD and Richmond Hill treetops. Residents can also host guests with a private bookable dining space on the rooftop garden lounge and an indoor option on the first level.

Cera Stribley’s architectural vision drew inspiration from the surrounding area, using the flowing form of the train lines to shape the façade and create a dialogue between the building and Richmond’s rich history. The design features a four-level podium lined with lush greenery, honouring the suburb’s character and streetscape through its scale and materials.

There will be a choice&nbsp;of one-, two- and three-bedroom apartments, along with 19 exclusive sub-penthouses and penthouses, for prospective purchasers.

Lachlan Thompson, Goldfields’ CEO, said The Brightly will define a new kind of urban luxury for Inner East living.

“By drawing on Richmond’s vibrant mix of culture and hospitality, we’ve combined a lifestyle centred on wellness,” Thompson said.

“Its proximity to Melbourne's sports and entertainment precinct, the CBD, parks, and public transport makes it a prime location for both young professionals and those seeking a lifestyle change. What we’ve created is something remarkable - it’s real, it's Richmond, and it’s refined."

Dexus Real Estate Partnership Fund 1 Fund Manager, Jason Howes, said the Brightly is a high-quality investment in a high demand area with limited residential stock expected to be added in the coming years.

“Partnering with Goldfields, we are delivering a project that will redefine lifestyle focused urban living, offering residents exceptional design and amenities in one of Melbourne's most vibrant suburbs,” he said.

Onsite demolition is underway, with construction set to commence in April 2026 and completion targeted for late 2027. The Brightly will launch to market in mid-2026.

[smartcode_project_cta:default project_id=146631]

Joel Robinson

Goldfields greenlit for The Brightly, Richmond apartment development

The Allan Labor Government has revealed the remaining 23&nbsp;Train and Tram Zone Activity Centres as part of their plan to try and encourage development around some of Melbourne's most connected suburbs.

The new zones includes&nbsp;four smaller ‘neighbourhood centres’ to plan for more modest growth.

<ul>
	<li>Five are connected to the new Metro Tunnel and are now experiencing more services: Caulfield, Springvale, Noble Park, Yarraman (neighbourhood centre), and Dandenong stations.</li>
	<li>Eight are along the Frankston Line, which has recently returned to the City Loop: Hawksburn, Toorak (Beatty Avenue), Armadale (High Street), Malvern (Glenferrie Road), Glen Huntly, Ormond, Bentleigh, and Mentone stations</li>
	<li>Four are along the Sandringham Line, which will see an increase in services later this year: South Yarra, Prahran, Windsor and Elsternwick stations</li>
	<li>Three are on the Belgrave/Lilydale Line and benefit from five-minute peak services on average between Ringwood and the city: Blackburn, Nunawading, and Mitcham stations</li>
	<li>Two neighbourhood centres on the Alamein Line: Ashburton Station, plus a combined centre for the two closest stations on the metropolitan network Riversdale &amp; Willison stations</li>
	<li>One neighbourhood centre, Toorak Village, is a built-up area along the Route 58 tram.</li>
</ul>

The <a href="https://spatial.planning.vic.gov.au/activitycentre/">draft maps</a> will now be subject to detailed community consultation.

A similar process occurred for the first 10 pilot Activity Centres, with clear changes made as a direct result of this community consultation.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/vic/50-new-train-and-tram-zone-activity-centres-to-encourage-new-apartment-development-across-melbourne">50 new ‘train and tram zone’ activity centres to encourage new apartment development across Melbourne</a>

The final train and tram zones will set clear expectations on where new homes can go, cutting out delays, uncertainty and red tape and getting homes off the ground. The remaining two in inner-Melbourne that cover the entire Local Government Areas of Melbourne and Yarra, will go through a separate process.

In the immediate ‘core’ the plans allow for more homes in taller apartment buildings.&nbsp;Some cores have heights of six storeys, while others have up to 20 storeys, only when it is in line with those councils’ planning work.

Eligible buildings across the core will be ‘deemed to comply’ with planning rules and be exempt from VCAT review. Applications in the core that exceed the specified height of the site are not eligible for this fast-tracked pathway.

In the walkable catchments that surround the core, the plans propose gentler height limits and more low-rise apartments and townhouses. Heritage and landscape overlays will stay in place.

Inner catchments, representing up to a five-minute walk from the station or centre, propose limits of four storeys, or six storeys on larger blocks of more than 1,000 sqm, while outer catchments, representing up to a 10-minute walk from the station or centre, propose limits of three storeys, or four storeys on larger blocks of more than 1,000 sqm.

By 2051, train and tram zones will help deliver more than 300,000 new homes, with final plans for all 50 new centres expected to be completed by mid this year.

“We want more Victorians to have the opportunity to live close to public transport, their loved ones, and the things that matter to them,"&nbsp;Minister for Planning Sonya Kilkenny said.

“Whether it’s making it easier to build homes close to public transport, townhouses in our inner suburbs, or family homes with a backyard, our planning reforms are all about giving more Victorians real housing choice.

“While we’re focused on giving more young Victorians the opportunity to have a home of their own, the Liberals are blocking them from being built. They oppose more homes near transport, jobs and services.”

Toorak and South Yarra earmarked for greater density as VIC Gov releases final Train and Tram Zone Activity Centres

Glen Waverley’s housing shortage is set to be closed by 50 per cent with the approval of 795 new apartments which will rise from a former carp park in the heart of the suburb.

The plans, lodged by <a href="https://www.apartments.com.au/developers/sunkin-property-group">Sunkin Property Group</a> and now approved by the Victorian State Government Development Facilitation Program, will transform the 6,114 sqm carpark at 281 Springvale Road, into an $800 million, mixed-use residential and commercial development in the metropolitan activity centre.&nbsp;

“281 Springvale Road has received planning approval for a mixed-use, high-density development that will provide much needed homes in Melbourne’s middle-ring suburbs, including affordable housing," Sunkin's GM of Property and Development Lloyd Collins says.

"We worked closely with key stakeholders, the Department of Transport and Planning, Suburban Rail Loop Authority and Monash City Council to achieve an integrated design with an activated retail ground level that will add to the success of Glen Waverley.

Glen Waverley’s population is projected to grow by 9 per cent by 2031, with an additional 1,600 dwellings required to &nbsp;service the area.

Around 1,000 sqm of the former carpark has been retained by Monash City Council for a new Civic Plaza, creating a central meeting point and public transport link for the local community. &nbsp;

Sunkin Property Group acquired the site from Monash City Council in 2024. The site will remain open as a public carpark until development commences.

[smartcode_project_cta:default project_id=149491]

$800 million, 800-unit development permit fast-tracked for Glen Waverley carpark

UAE developer <a href="https://www.apartments.com.au/developers/arada">Arada</a> is continuing to unveil its billions of dollars of residential development it is set to deliver in Australia.

Following on its plans for <a href="https://www.apartments.com.au/news/nsw/arada-pitches-castle-hill-apartment-plans-ahead-of-2026-launch">431 apartments in Castle Hill</a>&nbsp;and the 2025 bail-out of construction firm Roberts &amp; Co so it can build its own developments, Arada&nbsp;has sought the NSW Government's approval for three towers in the Campsie town centre.

The project, dubbed One Campsie, has been designed by Woods Bagot and will deliver 346 apartments to Beamish Street across three interconnected towers rising 24, 32, and 39 storeys.

According to the Woods Bagot Architectural Design Report, the design seeks to “redefine the urban experience of a rapidly transforming town centre,” delivering housing above an activated ground plane that integrates civic and commercial uses. The design adopts a three-part vertical composition, stepping and articulating the tower to reduce visual bulk and respond to its varied urban interfaces.

<img alt="First Look: Arada unveils 39-storey mixed-use tower for Campsie town centre in State Significant Development bid" data-entity-type="file" data-entity-uuid="f515807f-7277-4ea5-8b2b-a5718514f30a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campsie%20podium.png?VersionId=J3oSJpOvye8gpg1kjagODjdhOb0Cl28I" />

At street level, the scheme places significant emphasis on public domain upgrades. A new civic plaza is proposed opposite the Orion Theatre, alongside a landscaped pocket park and a through-site pedestrian link connecting Beamish Street to Campsie Street and Ninth Avenue. The Urban Design Justification Report states that the proposal “builds on Council’s Master Plan by applying a place-led urban design framework that responds to the site’s unique conditions and enhances pedestrian experience and public benefit.”

The documents note that the development aligns with the Master Plan’s intensification strategy for sites within walking distance of the Metro station, while seeking to retain solar access to key public spaces. As outlined in the Urban Design Report, the proposal delivers “intensification within walking distance of the Metro Station while retaining solar access to key parks."

<img alt="First Look: Arada unveils 39-storey mixed-use tower for Campsie town centre in State Significant Development bid" data-entity-type="file" data-entity-uuid="586ad606-a84f-49cc-b715-fc3ecb731205" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Campsie%20podium%20a.png?VersionId=gNHaD.Os8yW4LVOdsJIdmmhlgQArs0Gm" />

Woods Bagot’s design narrative also draws on local history and Aboriginal cultural context. The Architectural Design Report references engagement with Wangal Country and the Cooks River landscape, seeking to embed a connection to Country through material selection, planting, and public art integration. The broader vision, as described in the report, is to create a building that functions as a “community catalyst, not only as a place to live, but as a vibrant destination for work and play that brings people together, supports local culture, and contributes meaningfully to the civic identity of Campsie.”

<img alt="First Look: Arada unveils 39-storey mixed-use tower for Campsie town centre in State Significant Development bid" data-entity-type="file" data-entity-uuid="f1bc9a44-0c1a-4e3f-8b27-38070b0d2744" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_2.png?VersionId=1JmMWg6jOU1rPpS9hCxy8s8H48xc0EiM" />

Located at 124–142 Beamish Street and 16–18 Ninth Avenue, the site occupies a key stretch of Beamish Street, Campsie’s traditional high street, characterised by fine-grain retail, multicultural dining, and proximity to civic infrastructure including the Orion Theatre and Canterbury Civic Centre. The proposed civic plaza and pocket park aim to strengthen this interface, formalising connections between retail frontages, public transport, and community facilities.

If approved, One Campsie would mark one of the tallest and most ambitious additions to the suburb’s skyline, reflecting the broader shift toward higher-density living around transport nodes in Sydney’s middle-ring centres.

First Look: Arada files for trio of apartment towers in Campsie town centre

Syd​ney builder-developer Scion has lodged a State Significant Development Application (SSDA) for a 22-storey mixed-use tower at <a href="https://www.apartments.com.au/new-apartments/96-anzac-avenue-west-ryde-nsw-2114">96 Anzac Avenue, West Ryde</a>, marking a significant step in the transformation of the Victoria Road gateway precinct.

Designed by Turner, the proposal would replace an ageing two-storey commercial building with 145 apartments and 29 co-living rooms, above ground-floor retail and three basement levels of parking.

The 3,149 sqm site sits just 150 metres from West Ryde train station, at the edge of the suburb’s retail core and diagonally opposite Anzac Park. It occupies a prominent corner with frontages to both Anzac Avenue and Victoria Road, positioning it as a key transition point between established residential neighbourhoods and the commercial centre.

The scheme is being advanced under the Housing Delivery Authority pathway as a State Significant Development, alongside a concurrent rezoning to lift the site’s height and floor space ratio controls.

Turner says in the Architectural Design Report that the proposal "responds to a unique opportunity to support the revitalisation of West Ryde through the delivery of a landmark development that combines high-quality residential offerings with enhanced public realm and active ground plane uses.”

Scion will be pushing height almost five times higher than what had been pitched for the site before.

Turner says the increased scale aligns with Council’s strategic direction for the precinct, including the West Ryde Town Centre Revitalisation Strategy (2019), the Draft Masterplan (2021), and the West Ryde–Meadowbank Renewal Strategy (2023).

“The increased height and density proposed aligns with Council’s evolving strategic direction for the precinct, as outlined in the Draft Revitalisation Strategy (2019), the 2021 Draft Masterplan, and the broader West Ryde–Meadowbank Renewal Strategy (2023), which collectively call for higher density, transit-oriented development and design excellence."

Turner describes the vision as establishing “a contemporary, mixed-use development that contributes positively to the West Ryde town centre.”

<img alt="West Ryde" data-entity-type="file" data-entity-uuid="c5c22c11-92b8-4ca6-b77b-b5848ae0176d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-02-12%20at%202.41.34%E2%80%AFPM.png?VersionId=aom0z8azYDw7Hl6.A6vDbCom5ozZICn5" />

The architectural response has been shaped by the site’s gateway role along Victoria Road and its proximity to Anzac Park and surrounding heritage elements, including the Sydney Water pumping station opposite the site.

The design process also incorporated consultation around Connecting with Country principles. The design report outlines engagement with Cultural Heritage Consultants Artefact and Aunty Julie, a Burruberongal woman of the Darug Nation, informing planting selection, materiality and potential public art opportunities.

Turner says the scheme aims to optimise the site’s capacity while balancing yield and amenity.

“The proposed scheme seeks to optimise the site’s potential by balancing yield, amenity, and urban integration. It will deliver a high-quality, mixed-use precinct that supports West Ryde’s ongoing transformation into a connected, accessible, and liveable centre."

Scion recently completed the build of its own development, The Sterling in Lane Cove. They are currently building Chatham in West Ryde, just 500m from the new proposal. Those 62 apartments will complete later this year.

Yolanda Redrup

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