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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?

Rose Bay is emerging as one of Sydney’s most active suburbs for development, as developers respond to demand driven by the suburb’s ageing population.

More than 20 per cent of Rose Bay residents are aged 65 and over, according to the latest ABS census data. Combined with more favourable planning schemes introduced in recent years, new development activity in the suburb has accelerated.

Fresh off the back of a $173 million sale of what was marketed as “one of the largest sites ever amalgamated so close to Rose Bay Village,” created by 12 homeowners joining forces to combine nearly 6,000 sqm bordering Wilberforce Avenue and Dover Road, more than $200 million worth of development applications has been submitted in the suburb in the past month alone.

Aligned with the Rose Bay Place Plan 2023–2028, which identifies Wilberforce Avenue as a strategic location for new housing in response to local demographic shifts, Lewin Capital has lodged plans for a new $40 million project, also on Wilberforce. The proposal seeks to deliver 32 apartments, a mix of sizes designed to cater to a broad demographic range, including downsizers and key workers, with both smaller and family-sized units on offer.

<img alt="12 Wilberforce Avenue ROSE BAY NSW" data-entity-type="file" data-entity-uuid="e314fb24-2e53-4808-8411-d6e7c5fee2ea" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Plan%20-%20Photomontage%20-%20DA2025%20449%201%20-%2012-18%20Wilberforce%20Avenue%20ROSE%20BAY%20%281%29.JPG?VersionId=XX.AXChH4Kmv.kOB03suE8lenQ1NlqUe" />

Architecturally, the scheme adopts a measured approach to height and massing, stepping down at the rear to integrate with adjacent residential properties while forming a defined medium-density edge to the Rose Bay Centre.&nbsp;

“The proposed design for 12–18 Wilberforce Avenue, Rose Bay is a well-mannered apartment building in a mid-block position on a quiet street,” the Urban Design Report by <a href="https://www.apartments.com.au/architects/mhn-design-union">MHN Design Union</a> (MHNDU) states.&nbsp;

“It will form part of a new living environment in this highly desirable location.”

Builder-developer HSN Property Group is also bringing density to the same pocket, planning 54 two- and three-bedroom apartments that will also benefit from the recent Low and Mid-Rise Housing Reforms introduced under the NSW Housing SEPP. 14 of the apartments will be dedicated affordable under the SEPP in the $96 million proposal.

“The site’s location and context make it well suited to support a more diverse and sustainable residential offering in the area,” the developer stated in community consultation materials.

<img alt="HSN" data-entity-type="file" data-entity-uuid="2976efc3-db69-4013-84ef-5acc05bc6f66" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-08%20at%201.14.27%E2%80%AFPM.png?VersionId=A35N4_u2HA7uc_eiLAQedcHdsY_L4ywL" /> 
The plans by HSN for 2-16 Spencer St, Rose Bay

The architecture, led by&nbsp;<a href="https://www.apartments.com.au/architects/mhn-design-union">MHNDU</a>, reflects a "contemporary design approach sensitive to the character of&nbsp;<a href="https://www.apartments.com.au/new-apartments/rose-bay-nsw-2029" target="">Rose Bay</a>." Communal amenities will include a wellness area with a pool and sauna, a gym, a wine lounge, and landscaped spaces with barbecue facilities.&nbsp;

Fyve Developments is breaking into the eastern suburbs for the first time with their $32 million new development in Rose Bay. They are planning 19 apartments on Dover Lane.

Designed by PBD, the new project will comprise four two-bed apartments and 15 three-bed units.

<img alt="Fyve" data-entity-type="file" data-entity-uuid="91ec4820-1e05-4598-8d27-9df42234a52c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-08%20at%201.23.42%E2%80%AFPM.png?VersionId=VtH0oa48nJcvXGiXqjbHJvtYY6zWdIC7" /> 
Fyve's plans on Dover Lane.

Luxcon is also back in the suburb, having previously delivered The Aristocrat back in 2020. They have filed plans for 17 three-bedroom apartments on <a href="https://www.apartments.com.au/new-apartments/2-8-cooper-street-double-bay-nsw-2028">Cooper Street</a>.

Fortis wants to deliver <a href="https://www.apartments.com.au/new-apartments/23-31-dover-road-rose-bay-nsw-2029">49 apartments on Dover Road</a>, an $86 million development. That adds to their <a href="https://www.apartments.com.au/new-apartments/10-12-ian-street-rose-bay-nsw-2029">Ian St, Rose Bay development</a>, which they will likely launch next year.

Joel Robinson

Rose Bay apartment market fires up with $200m in new developments filed

Leading Sydney developer <a href="https://www.apartments.com.au/developers/deicorp">Deicorp</a> has recorded a strong market response at the launch of The Avenues, its $874 million East Zetland precinct.

On its recent launch they sold close to $18 million, predominantly to owner-occupiers, more specifically to families who wanted to be closer to kids and grandkids.

&nbsp;

Apartments sold ranged from $1.8 million to $1.97 million for two bedrooms, and $2.12 million to $2.62 million for three bedrooms.

[smartcode_project:default project_id=146262 project_image_fid=357150]

Located four kilometres from the CBD, <a href="https://www.apartments.com.au/new-apartments/the-avenues-zetland-130-joynton-avenue-zetland-nsw-2017">The Avenues</a> is transforming a 2.87-hectare site into a pedestrian-friendly urban neighbourhood comprising 574 residences across nine buildings designed by <a href="https://www.apartments.com.au/architects/candalepas-associates">Candalepas Associates</a> and <a href="https://www.apartments.com.au/architects/fk-australia">FK</a>.&nbsp;

Surrounded by tree-lined, walkable “avenues”, the precinct’s more than 800 sqm of ground-floor retail brings a lively, Paris-inspired streetscape to the heart of East <a href="https://www.apartments.com.au/developments/zetland-nsw-2017">Zetland</a> and will directly service nearby amenities and the surrounding residential community. 
&nbsp; 
The Avenues will also feature build-to-rent and purpose-built student housing in partnership with Scape, supporting key workers, students and long-term renters in this high-demand corridor.&nbsp;

[smartcode_project:default project_id=146262 project_image_fid=357154]

Deicorp will also contribute more than $16 million to open space improvements, including upgrades to Woolwash and Biyanbing Parks, with The Avenues designed to strengthen pedestrian connections to Green Square Station and Gunyama Park.&nbsp;

Deicorp Founder, Fouad Deiri OAM, said a clear trend was evident, with purchasers driven by proximity to family and lifestyle essentials.&nbsp;

“We’ve seen a clear trend of parents wanting to live close to adult children and students, as well as interstate and international buyers seeking to reconnect with family in Sydney’s inner south,"&nbsp;Deiri said.

“This early sales performance reflects the strength of East Zetland as a connected, high-amenity location and the appeal of homes designed with long-term liveability in mind. Many of these early-stage buyers are repeat Deicorp purchasers, too."

[smartcode_project:default project_id=146262 project_image_fid=357165]

Zetland is one of the top suburbs in Australia to experience an increase in housing density, with its population growing by 24 per cent in as little as three years to over 15,600 residents. According to REA, 197 units were available last month, with over 2300 buyers interested, demonstrating the strong demand for this inner southern pocket of Sydney.&nbsp;

Deicorp’s strong result at The Avenues follows significant spring momentum across its portfolio, with $63 million in combined sales recorded across recent launches for Showground Pavilions in Castle Hill and Falcon &amp; Alexander in Crows Nest.&nbsp;

Construction on The Avenues commenced in June, with the construction period expected to generate 2,700 jobs. Across its portfolio, Deicorp currently has 5,102 apartments under construction, playing a leading role in shaping connected, liveable communities across Sydney.&nbsp;

Its expanding portfolio of Metro-linked developments includes Tallawong Village, Kings Bay Village in Five Dock, Hyde Metropolitan, and Showground Village, all advancing the company’s long-term commitment to creating vibrant, transit-oriented neighbourhoods.&nbsp;

Apartments start from $955k for a one-bedroom, $1.48 million for a two-bedroom, and $2.04 million for a three-bedroom, all with car parking.

[smartcode_project_cta:default project_id=146262]

Family proximity and connectivity fuel $18m in first-day sales at Deicorp’s East Zetland precinct, The Avenues

Leading property developer <a href="https://www.apartments.com.au/developers/abadeen-group">Abadeen</a> has officially completed ENSO, its premium boutique residential development in Neutral Bay Village.

Designed by internationally acclaimed architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a> and built by Credence Constructions, ENSO draws inspiration from the Japanese Buddhist philosophy of the same name, a symbol of elegance, strength and enlightenment.

Comprising of just nine one-, two-, and three-bedroom residences, with a full floor four-bedroom penthouse, <a href="https://www.apartments.com.au/buildings/enso-neutral-bay-34-grosvenor-street-neutral-bay-nsw-2090">ENSO</a> combines sculptural form and refined materiality with a minimalist design language that evokes calm, balance and timeless sophistication.

[smartcode_project:default project_id=109705 project_image_fid=355893]

With the occupation certificate now in hand, Abadeen will soon welcome the first residents into their new residences, perfectly timed for Christmas.

Positioned along Grosvenor Street, which has emerged as one of the North Shore’s most exciting dining and lifestyle destinations, ENSO residents will enjoy a true village experience surrounded by Sydney’s best food, retail and culture. Grosvenor Street is home to brand new restaurants including Bombay Bloomers, Pocket Pizza and Fujitori Yakitori &amp; Sake Bar.&nbsp;

Within a one-minute walk of ENSO, a new retail precinct is introducing a curated line up anchored by Dan Murphy’s, together with Bodylove Pilates and the award winning Wholegreen Bakery. Coles is also close by, adding everyday convenience just minutes from the CBD.

[smartcode_project:default project_id=109705 project_image_fid=355895]

“ENSO represents the next chapter in Neutral Bay’s evolution,” said Justin Brown, Executive Chairman and Founder of Abadeen.

“You have Koichi Takada’s architecture on one side of the street and a vibrant new village scene on the other. It is the meeting point of design, lifestyle and community. This project captures what we value on the Lower North Shore: sophistication with a genuine sense of convenience where people want to live.”

Each residence is crafted with premium finishes, generous floorplans and seamless indoor to outdoor living, embracing Takada’s philosophy of organic, nature inspired design. Interiors are composed of soft, neutral palettes and tactile materials that promote calm and connection.

“This is a proud milestone for Abadeen,” Brown added. “ENSO has been carefully designed and delivered, a true boutique project that reflects our ongoing commitment to elevating the architectural and lifestyle experience across Sydney’s Lower North Shore.”

With construction complete and final residences available, ENSO presents a rare opportunity to move into a brand-new home within an established, connected and increasingly vibrant village community.

[smartcode_project_cta:default project_id=109705]

Staff Writer

Abadeen completes ENSO in the heart of Neutral Bay’s fast-evolving village precinct

&nbsp;Developer CPDM is continuing to put its stamp on Sydney's Lower North Shore.

Just a few months after seeking to develop <a href="https://www.apartments.com.au/news/nsw/first-look-neutral-bay-transformation-continues-as-new-eight-level-building-pitched">25 apartments in Neutral Bay</a>, CPDM is now looking to deliver something similar in the neighbouring suburb of Cremorne.

They have gone through the NSW Government's Housing Delivery Authority to file a State Significant Development Application for 32 apartments across an eight-storey building at&nbsp;<a href="https://www.apartments.com.au/new-apartments/57-61-reynolds-street-cremorne-nsw-2090">57–61 Reynolds Street</a>.

Like the majority of development applications being submitted in recent months, <a href="https://www.apartments.com.au/developers/cpdm">CPDM</a> is looking to trigger the affordable housing uplift under the&nbsp;State Environmental Planning Policy (Housing) 2021 guidelines.

<a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a>, who have worked on the project since its inception. They noted in their design statement that the Reynolds Street frontage more closely resembles the scale of multi-residential buildings in the area, while Gerard Lane has a smaller scale to match the presentation of the existing buildings on that lane.

<img alt="First look: CPDM plans eight-storey affordable apartment project in Cremorne" data-entity-type="file" data-entity-uuid="7ecfa010-8db9-42de-9b8e-0e52d46fe708" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Cremorne%20podium.png?VersionId=EajgchvITAagKkiAksQYy3SAIVpI.i.t" />

The majority of the 32 apartments will be three-bedrooms (27), with the remaining five two-bedroom units.

The building will include two rooftop communal spaces and two basement levels with 51 car parking spaces allocated for residents, visitors, motorcycles, and bicycles.

PBD noted that the project’s “density is thoughtfully planned to be sustainable, capitalising on existing and future infrastructure, access to public transport, the site’s cultural and community value, and its environmental attributes”.

CPDM has been steadily growing its development footprint across Sydney’s North Shore, with previous and current projects in Lindfield, Gordon, and Neutral Bay. Their recent application in Neutral Bay, also designed by PBD Architects, similarly leveraged the Housing SEPP bonus provisions to deliver a mid-rise apartment building with affordable housing units.

First look: Developer CPDM doubles down on Sydney's Lower North Shore

The first new apartment development in Gladesville to offer 10-year Latent Defects Insurance (LDI) protection is soon to welcome its residents.

Respected boutique developer Geron Property has partnered with the Gladesville RSL to deliver Jordan Hall Residences, named after the historic Jordan Hall building on Western Crescent, on the edge of the town centre.

The façade of the original 1938 building has been kept intact by the development team. The Inter-War Free Classical community venue is known for its Art Deco parapet, dual-tone brickwork, and decades of RSL Youth Club activity. The building once anchored the view down Jordan Street, and its façade will continue to do so as the hall becomes the architectural centrepiece of the new residential project.

Innovate Architects has designed a new structure that rises behind Jordan Hall, featuring 29 large-scale apartments that are setting new benchmarks in the suburb.

Local construction company Gauge is putting the finishing touches on the apartments, which are designed primarily for local downsizers. Each apartment features three bedrooms, kitchens with integrated Miele appliances, generous natural light through strategically placed windows, and private outdoor areas.

Beyond the private spaces, the project includes communal areas on the first and seventh levels, positioned to take advantage of Gladesville’s elevated outlook.

<img alt="Jordan Hall" data-entity-type="file" data-entity-uuid="f696a00e-e624-4af7-809c-e10cbf5fb051" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-04%20at%2012.17.43%E2%80%AFPM.png?VersionId=AwWxRbU92OMu0kMwFzaTbFO3qtwEr7go" />

Jordan Hall will be the first new apartment development in Gladesville with Latent Defects Insurance, a new insurance policy that gives peace of mind for off the plan buyers when it is secured by the builder or developer of the new building.

Offered by Resilience Insurance, LDI is a first-right insurance product that protects purchasers from structural or waterproofing defects within the first 10 years after completion. Geron Property's adoption of the policy aligns with broader industry movement toward more rigorous assurances and supports buyer expectations around long-term asset performance.

Geron Property, led by Tom Zarimis, is intending on taking out the policy on its next project, a luxury development on Cronulla's Gerrale Street.

Zarimis appointed&nbsp;Adobe Property Agents to sell Jordan Hall Residences. There are just a handful of apartments remaining.

Read more: <a href="https://www.apartments.com.au/news/what-is-latent-defects-insurance-and-is-it-bringing-confidence-to-the-off-the-plan-apartment-market">What is Latent Defects Insurance and is it bringing confidence to the off the plan apartment market?</a>

Geron Property, Gladesville RSL, approach completion of Jordan Hall Residences, Gladesville's first new apartment building with Latent Defects Insurance

Yolanda Redrup

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