Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

Sydney’s property market is known for high prices, competitive bidding, and mounting pressure on first home buyers. But change is on the horizon.

From late 2025, eligible first home buyers in New South Wales will have access to a new federal government initiative aimed at addressing affordability: the Help to Buy Scheme.&nbsp;

<h2>What is the Help to Buy Scheme?</h2>

The program introduces a shared equity model intended to reduce the upfront cost of entering the property market, particularly in high-demand urban areas such as Sydney.

The scheme operates under a shared ownership structure in which the federal government takes an equity stake of up to 40 per cent for new homes, or 30 per cent for existing dwellings. This arrangement allows eligible buyers to significantly reduce their loan size and avoid the added cost of Lenders Mortgage Insurance (LMI).

Under this model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required. The government’s contribution is not a loan but a co-ownership stake in the property. As such, there is no interest or rent charged on its portion.

Because the government’s equity combined with the buyer’s deposit typically meets or exceeds the 20 per cent threshold, LMI does not apply. The remaining balance, generally between 60 and 70 per cent of the property’s value, is financed through a standard home loan with a participating lender.

The government's equity in the property remains in place until the buyer chooses to repay it voluntarily or until the property is sold. Buyers can buy back the government’s share over time, in increments of at least five per cent, depending on their financial situation.

There is no fixed repayment timeline, but the amount to be repaid will be based on the property's market value at the time of repayment, not the original purchase price.

<h2>How do you qualify for the&nbsp;Help to Buy Scheme?</h2>

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:

<ul>
	<li>Be an Australian citizen at least 18 years of age.</li>
	<li>Be a first-home buyer who does not currently own property.</li>
	<li>Intend to live in the property as their primary residence.</li>
	<li>Earn less than $100,000 per year for individuals, or $160,000 for couples.</li>
	<li>Purchase a property within the regional price caps, currently $950,000 in Sydney, though this is expected to rise to approximately $1.3 million ahead of the program’s launch.</li>
</ul>

While the Help to Buy Scheme does not solve affordability challenges across the board, it does offer a more accessible pathway for a defined segment of the market, particularly younger buyers with moderate incomes who have been priced out of traditional lending routes.

The scheme is expected to commence in NSW in late 2025, as part of a national rollout.

Under the new model, purchasers can enter the property market with as little as a two per cent deposit, well below the traditional 10 to 20 per cent usually required

Help to Buy Scheme: What first home buyers in NSW need to know

The First Home Owners Grant (FHOG) is a government initiative designed to help eligible first-time home buyers by offering financial assistance towards the purchase or construction of a new home.

While the FHOG is a nationwide program, it is administered separately by each state and territory, meaning the eligibility criteria, grant amounts, and property requirements can vary depending on your location. This means that the amount available and the conditions attached to the grant will differ, so it is important to check the specific guidelines for your state or territory.

It’s important to note that the FHOG is just one of several incentives available to first home buyers. In most states and territories, the grant is not linked to stamp duty exemptions or concessions, with the exception of the Australian Capital Territory (ACT). The FHOG is typically a one-off payment, reducing the overall cost of purchasing or building a new home before any stamp duty concessions are applied.

Below, we provide a breakdown of the First Home Owner Grants available across Australia, outlining the specific details for each state and territory.

<h2>New South Wales First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $600,000. For land purchases and owner-builders, the threshold extends to $750,000.

Stamp Duty Benefits: Provides full stamp duty exemption for homes valued up to $800,000, with concessions available for properties up to $1 million.

<h2>Victoria South Wales First Home Owner Grant</h2>

First Home Owner Grant: Provides a $10,000 grant for first-home buyers purchasing or building new homes valued up to $750,000.

Stamp Duty Benefits: Offers full stamp duty exemption for properties up to $600,000, with concessions available up to $750,000.

<h2>Queensland First Home Owner Grant</h2>

First Home Owner Grant: Offers $30,000 for contracts signed between 20 November 2023 and 30 June 2025. The FHOG applies to new homes valued up to $750,000.

Stamp Duty Concessions: Provides additional concessions for properties valued up to $800,000.

<h2>Western Australia First Home Owner Grant</h2>

&nbsp;

First Home Owner Grant: Offers a $10,000 grant for new homes valued up to $750,000 in the southern regions and up to $1 million in the northern regions.

Stamp Duty Concessions: Available for homes valued up to $600,000 for transactions entered into on or after 9 May 2024.

<h2>Australian Capital Territory First Home Owner Grant</h2>

First Home Owner Grant: Replaced by the Home Buyer Concession Scheme, offering full stamp duty concessions for eligible buyers.

<h2>South Australia First Home Owner Grant</h2>

First Home Owner Grant: Provides up to $15,000 for new homes, including houses, apartments, and townhouses. As of 6 June 2024, there is no property value cap for eligibility.

Stamp Duty Relief: Available for new homes and vacant land purchases.

<h2>Tasmania First Home Owner Grant</h2>

First Home Owner Grant: Offers a $10,000 grant for new homes and off the plan purchases.

Stamp Duty Exemption: Between 18 February 2024 and 30 June 2026, first home buyers of established homes valued up to $750,000 receive a full exemption on property transfer duty.

<h2>Northern Territory First Home Owner Grant</h2>

First Home Owner Grant: The Northern Territory provides a $10,000 grant for new homes only. Additional government grants and concessions are available for first home buyers.

Stamp Duty Exemption: The only stamp duty exemption available to property buyers is the House and Land Package Exemption (HLPE).

Eligibility criteria and application processes differ across states. Prospective buyers should refer to their respective state revenue offices for full details on grant availability, conditions, and additional concessions.

Every First Home Owner Grant for new property by state

In the ever-evolving landscape of sustainable architecture and environmentally conscious design, systems and ratings in place can help determine the energy efficiency of residential buildings in Australia.

Australia has multiple building rating systems that evaluate energy efficiency and sustainability in existing and new building designs.

Some systems assess individual building components, while others provide an overall rating for the entire structure.

A rating system ensures that homes are comfortable and energy-efficient, whether you are buying, renovating, or building.

NatHERS (Nationwide House Energy Rating Scheme) is a common way for new homes to meet energy efficiency requirements.

As new developments continue to shape the urban environment, understanding NatHERS ratings becomes essential for developers and homeowners. This article delves into the concept of NatHERS ratings, their significance, and how they contribute to creating energy-efficient homes.

<h2>What is NatHERS?</h2>

NatHERS is a national initiative implemented by the Australian government to promote energy efficiency in residential buildings. The scheme aims to provide a standardised method for assessing the thermal performance of homes, considering factors such as insulation, orientation, ventilation, and building materials.&nbsp;

NatHERS ratings are the most common way new homes meet the National Construction Code's (NCC's) minimum energy efficiency requirements.&nbsp;

NatHERS assessments provide thermal and whole-home ratings for new homes, townhouses, and apartments.

The rating helps evaluate the energy performance of buildings, guides homeowners and developers to make informed decisions about the energy efficiency of their properties, and encourages the construction of more sustainable, comfortable, and cost-effective homes.

<h2>How NatHERS Ratings Work</h2>

NatHERS ratings are determined through four accredited software tools (AccuRate, BERS Pro, FirstRate5, HERO) using a calculation engine CSIRO developed to predict building temperature based on various factors.

The tools can model complex effects of building mass, insulation, window size, and other elements.

The outcome is a star rating that reflects the building's overall thermal efficiency, indicating how well it can maintain a comfortable indoor temperature without excessive reliance on heating or cooling systems.

The star rating scale ranges from 0 to 10, with a 6-star rating being the minimum requirement for compliance with the National Construction Code (NCC).&nbsp;

Achieving a higher star rating demonstrates a commitment to energy efficiency and sustainability, as the building is better equipped to minimise its environmental impact and reduce long-term energy costs.

Anyone can use NatHERS tools, but accredited assessors can provide certified ratings and professional advice.

<h2>Benefits of Higher NatHERS Ratings</h2>

Energy Efficiency: Buildings with higher NatHERS ratings are more energy-efficient, requiring less heating and cooling energy. This reduces the structure's carbon footprint and lowers occupants' energy bills.

Cost Savings: Homes with higher NatHERS ratings are generally more energy-efficient, resulting in reduced energy consumption for heating and cooling. This translates to lower energy bills for homeowners, making sustainable living environmentally friendly and economically viable in the long run.

Environmental Impact: Lower energy consumption directly translates to a reduced environmental impact. Buildings with higher NatHERS ratings contribute to the overall goal of mitigating climate change by lowering greenhouse gas emissions associated with heating and cooling systems.

Improved Comfort: Buildings with high NatHERS ratings offer better thermal comfort to occupants. Proper insulation, well-designed ventilation, and optimal orientation maintain a consistent and comfortable indoor temperature, providing occupants with a more enjoyable and healthier space.

Market Value and Desirability: Higher NatHERS ratings can enhance the market value of a property. As energy efficiency becomes a more significant consideration for homebuyers, a well-rated building may attract a premium price and stand out in the real estate market.

Compliance with Building Codes: NatHERS ratings are a vital component of the National Construction Code (NCC), and compliance with these ratings is often a mandatory requirement for new developments. Local councils and planning authorities may set minimum energy efficiency standards that must be met to obtain development approval.

The Nationwide House Energy Rating Scheme (NatHERS) is a crucial initiative shaping the future of energy-efficient, resilient, and cost-effective homes. With its recent upgrades, NatHERS has evolved into a world-leading tool for the building sector, supporting the global commitment to achieving net-zero emissions by 2050.

Staff Writer

What is a NatHERS rating in new off the plan apartment developments?

Mixed-use developments have gained significant popularity across Australia in recent years due to their unique blend of residential, commercial, and recreational spaces.

Unlike traditional single-purpose developments, mixed-use projects offer a harmonious integration of various functions within a single locale.

Residential units seamlessly coexist with commercial establishments, retail outlets, dining venues, entertainment hubs, and recreational facilities, with the combination not only enhances convenience but also fosters a vibrant lifestyle and a sense of community.

<h3>Convenience and accessibility</h3>

Mixed-use developments are designed with convenience in mind. They often integrate residential units with commercial spaces, retail outlets, restaurants, and recreational facilities, creating a self-contained community.

[smartcode_project:default project_id=114215 project_image_fid=204874]

The proximity allows residents to enjoy the convenience of having essential amenities and services within walking distance. Whether it's grabbing a cup of coffee, going grocery shopping, or accessing healthcare services, everything is conveniently located, saving residents time and effort.

<h3>Vibrant lifestyle and community</h3>

One of the major advantages of mixed-use developments is the vibrant lifestyle they offer. With a diverse range of amenities and communal spaces, residents have ample opportunities to interact, socialise, and build a sense of community.

[smartcode_project:default project_id=107714 project_image_fid=214122]

The presence of parks, community centres, and shared spaces fosters a lively atmosphere, encouraging residents to engage in various activities and events. The vibrant lifestyle within these developments creates a unique sense of belonging and camaraderie among the residents.

<h3>Potential for higher rental yields and property value appreciation</h3>

Mixed-use developments tend to attract a broad range of tenants and buyers due to their versatile nature. This high demand can result in higher rental yields for investors and potentially lead to property value appreciation over time.

[smartcode_project:default project_id=139989 project_image_fid=212887]

The integration of commercial and retail spaces attracts businesses, which can provide a stable rental income stream. Additionally, the popularity of mixed-use developments often drives up property values, making them a potentially lucrative investment in the long term.

<h3>Enhanced security and maintenance</h3>

Mixed-use developments typically have comprehensive security measures in place. With controlled access points, CCTV surveillance, and professional security staff, residents can enjoy enhanced safety and peace of mind.

[smartcode_project:default project_id=108019 project_image_fid=212658]

Additionally, these developments often have dedicated maintenance teams responsible for the upkeep of common areas, landscaping, and infrastructure. This ensures that the overall appearance and functionality of the development are well-maintained, creating a pleasant living environment for residents.

<h3>Live-work-play balance</h3>

One of the key attractions of mixed-use developments is the ability to achieve a desirable live-work-play balance. The integration of residential and commercial spaces allows residents to live closer to their workplaces, reducing commuting time and improving work-life balance.

The proximity to various amenities and recreational facilities encourages an active and healthy lifestyle. Residents can easily access fitness centres, parks, restaurants, and entertainment options, all within the same development, leading to a more fulfilling and convenient way of life.

alisonwarters@gmail.com

The top five reasons to buy in a mixed-use development

When buying a property, everyone needs to be aware of the additional costs that come as part of the buying process.

Often the largest outlay, after the deposit which goes to the bank, is stamp duty.

<h2 style="line-height: 1.38;">What is Stamp Duty?</h2>

Stamp duty is an extra tax to pay the government when you buy land, a property, and other certain assets.

It happens when the legal ownership is transferred. It can also be known as property transfer duty or transfer duty.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="415" src="https://www.youtube.com/embed/C32BWkB5--c" title="YouTube video player" width="660"></iframe>

<h2>Who pays Stamp Duty?</h2>

In some circumstances, you may get an exemption. For some states, you won’t have to pay for stamp duty if you are a first home buyer or a pensioner for houses under a particular price. There are also stamp duty concessions, where you may be entitled to a discount.

<h2>How much does Stamp Duty cost?</h2>

Each state has different rules which affect how much you need to pay. These rules can affect the rate you pay, and the timeframe you will need to pay in. Before you buy land or a property, make sure you check the up-to-date information for your state’s stamp duty.

You can use a free stamp duty calculator online to see approximately how much you’ll need to pay. Find out if you’re eligible for an exemption by enquiring on a project via Urban!

Overall, the stamp duty you need to pay will depend on:

<ul>
	<li aria-level="1">How much your land/property is worth</li>
	<li aria-level="1">Where your land/property is located</li>
	<li aria-level="1">What type of land/property it is</li>
</ul>

Want to find out more? <a href="https://www.youtube.com/@UrbanAustralia?utm_source=YouTube&amp;utm_medium=Video&amp;utm_campaign=Subscribe&amp;utm_id=Subscribe">Subscribe to our YouTube channel</a> for more property videos.

Ellen Walker

Off-the-plan property explained: What is stamp duty?

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

<html><body>
GUEST OBSERVER
Not since 1998 have banks charged a higher rate for investment property loan as compared to owner-occupiers. You may have seen the news that ANZ have decided to slug heaps of their mortgage clients. Independent of any RBA movement, they are increasing the standard variable rate by 0.27% for investment home loans.
Unfortunately, CBA today announced the same thing. The interest rate for existing variable investment CBA home loans will rise by 0.27% from August 10th. 
The stance of iChoice is that these tactics are opportunistic, and ANZ &amp; CBA clients should think again. 
The APRA directive is for investment lending growth to be limited by 10%. So the unpublished interest rate discounts offered to us high-end brokers will be stronger for those taking a loan against their home. We have accepted this, in fact since some banks are much more flexible than others (some not discounting at all) the importance of a knowledgeable broker is becoming more apparent.
So why are ANZ &amp; CBA slugging EXISTING clients, if the APRA directive related only to growth? These questions should be asked. The beauty of some banks is that their home loans, whether for a home or an investment, is actually the same product, so they wont have the ability to pinpoint the investors to discriminately slug them. maybe check your statement and see if the name of your product includes the word ’investment’.
So will this intervention in market forces negatively affect the run of the property market? Will cashed-up foreigners be laughing as local investors get further priced out? What we do know immediately, is that CBA clients with an Investment Home Loan will be fuming as they watch the news tonight, like ANZ customers were last night!
iChoice will be emailing our client base with facilities at ANZ and CBA this weekend with our recommendation for next steps.
Off-the plan buyers know that some banks lend against the valuation at completion (not the LOWER of purchase price and valuation like the nasty banks). I say this because I have heard of many people getting slugged with thousands of dollars of LMI because they just don’t know (do they know that us mortgage advisors are free??). 
Also, Westpac for a limited time are lending 85% with no LMI, for purchases OR refinances but applications must be in by the end of August.
As usual, Citibank have an 85% no-LMI as their standard, and great fixed rates too.
As an acclaimed Flame broker, I can often lend 90% with no LMI to doctors, pharmacists, dentists, vets, accountants, barristers and solicitors.
Jason Khoury is principal, iChoice Mortgage Brokers and can be contacted <a href="mailto:jason=ichoice.com.au@mercurymail.connective.com.au" target="_blank">here</a>. 
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jchancellor-FAypfDUnLy

ANZ and CBA slug their property investor customers: Jason Khoury

<html><body>
AFG’s latest Mortgage Index shows that of new borrowers, just 14.2% opted for a fixed rate mortgage during June 2015, compared to 15.2% in May, with 76% of borrowers choosing a standard or basic variable home loan.
A year ago it was at 17.2%.
The March 2013 AFG Mortgage Index had 29.6% of all new home loans fixed. 
The March figure was billed the highest proportion ever recorded by AFG, which ranks as Australia's largest mortgage broker. 
Historically AFG has released the AFG Mortgage Index on a monthly basis, but following AFG’s listing on the ASX, AFG has determined that the AFG Mortgage Index will be published on a quarterly basis from July 2015 (ie the first quarter will reflect the 3 months ending 30 September 2015).
Established in 1994, AFG now provides more than 20% of brokers nationwide with access to Australia’s leading lending institutions, and has a loan book in excess of $100 billion. 
 
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Fixed or variable? AFG's new borrower numbers

<html><body>
<div>
ANZ Banking Group is raising interest rates on home loans held by property investors. 
The rate change will add $48 to the monthly repayments on a $300,000 mortgage, up by 0.27 percentage points, the most dramatic decision of the current clampdown on lending to restrain the current investor frenzy.
ANZ on Thursday said its index rate for investor property loans would rise to 5.65%, as part of a move to shift the mix in its loan book towards owner-occupiers. 
ANZ's changes come seven months after the Australian Prudential Regulation Authority forced the big banks to cap their loan growth among housing investors to less than 10% growth a year.
</div>
<div>
Chief executive of ANZ's Australian operations, Mark Whelan said the bank was trying to reach an "appropriate" mix between its investor and owner-occupied loan book, which with around $65 billion of housing investor loans is the smallest of the big four banks.
"It is very hot," was how Mark Whelan described the investor market when speaking with Ross Greenwood's 2GB Money News today.
The decision re-instated differential price which had existed pre-1998, he advised.
"It's a bit back-to-the-future for the current hot market."
He said it was not related to the <a href="/expert-insights/finance/home-loan-borrowing-rates-set-to-rise-in-2016-after-apras-latest-decision">recent risk adverse requirements sought by APRA</a>, announced earlier this week to take effect mid-2016 .
He described recent investor loans as "very good risk." 
ANZ cut various fixed rates for owner-occupiers by between 0.10 and 0.4 percentage points.
Effective Monday, 10 August 2015, ANZ’s variable Residential Investment Property Loan (RIPL) Index Rate will rise by 0.27% to 5.65%pa (5.76%pa comparison rate).
Fixed rates for new Residential Investment Lending will also increase by up to 0.30%.
Mark Whelan said although interest rates for residential property investors are at very low levels historically, "the decision to raise interest rates for residential investment lending has been difficult but necessary in the current environment.
“It allows us to balance the mix of our lending between owner-occupied and investment lending as well as the impact of changing market conditions.
"This includes a decision to cut fixed rates for new owner-occupied home lending.
“This is a considered decision that takes into account our customers’ position and the criteria we look at when setting rates including our competitive position, our regulatory obligations and the state of the residential property market,” Mr Whelan said.
</div>
</body></html>

ANZ raises property investor loan interest rate by 0.27 percentage points

<html><body>
The removal of the carbon tax was meant to save the average household about A$550 per year.
So a year after the repeal of the tax, have we got our savings?
An analysis by the Herald Sun newspaper says no.
It claims that (Victorian) “households saved less than A$300” over the course of the year. This was made up of about A$112 in reduced electricity prices and A$98 in cheaper gas. The Herald Sun was unable to find anything else, so the amount of concrete savings they tracked down is certainly well under A$300.
This is not surprising. Even if they had looked much harder, the journalists would have failed to measure the household savings. A moment of reflection will tell you that trying to isolate any effect of the carbon tax outside the regulated energy sectors is a pretty silly task.
Why? Well, let’s think about what else has buffeted household budgets and general prices over the past year.
A big factor has been the exchange rate. The <a href="https://www.rba.gov.au/chart-pack/exchange-rates" target="_blank">trade-weighted index</a> of the Australian dollar has dropped about 10% in the past year.
Of course, this reflects a range of changes in exports, imports and exchange rates. But if we pick a currency that matters to import prices (and therefore to households) like the <a href="https://www.xe.com/currencycharts/?from=AUD&amp;to=CNY&amp;view=2Y" target="_blank">Chinese Yuan</a>, the Aussie dollar has fallen about 20% in the past year.
Against the <a href="https://www.xe.com/currencycharts/?from=AUD&amp;to=USD&amp;view=2Y" target="_blank">US dollar</a> the fall is even bigger: almost 22% over the past year.
Despite a bumpy ride, the Aussie dollar has ended up <a href="https://www.xe.com/currencycharts/?from=AUD&amp;to=USD&amp;view=2Y" target="_blank">pretty constant</a> against the euro (in case you’re planning a holiday in the Greek islands). But the dollar’s weak performance against other major currencies will undoubtedly have pushed up pretty much all import prices for households.
Imported goods account for <a href="https://data.worldbank.org/indicator/NE.IMP.GNFS.ZS" target="_blank">about 20% of Australian household expenditure</a>, which means that a household on an after-tax income of A$45,000 per year (roughly middle income) has faced a rise in the cost of imports of about A$900 over the past 12 months.
So the exchange rate changes alone have probably eaten up the carbon tax savings, and then some. If you wanted to isolate the carbon tax effect on prices, you would first need to pull out all of the exchange-rate effects from those same prices.
Issue of interest
Of course, not everything has run against households, and the carbon tax savings have not been the only windfall. The Reserve Bank of Australia has <a href="https://www.rba.gov.au/statistics/cash-rate/" target="_blank">lowered the cash rate</a> by 0.5% over the past year. If your household has an “average” home loan of A$300,000 and your bank has passed on half of the cut in the RBA’s interest rate, this should be saving you about A$750 per year.
Of course, interest rate changes affect business costs and prices in all sorts of ways. So if you want to work out the effect of removing the carbon tax, you’ll also need to pull out all interest-rate effects on prices.
These are just a few of the big changes. There are many more little changes that push prices up or down every day. Trying to separate out the effect of the carbon price repeal from all these other effects is either a mug’s game, or a year-long project for a PhD student!
So what about the Herald Sun’s effort? The article doesn’t contain too much serious analysis. It mainly looks at how energy prices have changed, energy being the main sector that paid a direct price under the carbon tax. Yet even here, the story is confusing.
In its <a href="https://www.aemc.gov.au/Major-Pages/Price-trends" target="_blank">2014 price trends review</a>, the Australian Energy Market Commission noted that:
…residential electricity prices are generally flat or falling around the country and we expect that to continue due to a combination of falling demand, increased competition and tighter rules on network costs.
In other words, even without the removal of the carbon tax, there were already significant pressures pushing electricity prices down. These will continue over the next few years.
So, where’s my $550 then?
Does this mean that the claimed savings due to the removal of the carbon tax were hokum?
No, just impossible to prove. Holding everything else constant, the carbon tax pushed up prices to households. That was the point of the carbon tax.
Unfortunately, the government at the time didn’t do a great job of selling the scheme and, unlike British Columbia in Canada, didn’t bring the public along to support the scheme.
The change in government in 2013 and subsequent removal of the carbon tax last year undoubtedly brought prices back down. The “rockets and feathers” phenomenon means that prices probably went up faster when the tax was introduced than they fell when it was removed. But over a 12-month period, prices will have fallen, holding everything else constant.
But the point is we can never hold everything else constant, and so we will never be able to show exactly how much households have saved through the removal of the carbon tax. We may get empirical analysis over time but until someone gets down and dirty with the household pricing data (dirtier, ironically, than a tabloid newspaper), we will not be able to separate out the carbon tax from the huge range of other factors that have affected the spending power of Australian households over the past year.
So if you can’t find your A$550, don’t worry. No one else can find it either. It might be there somewhere, or it might not.
But if you’re going to worry about it, you should probably be worrying about interest rates, currency markets, electricity demand, and a heap of other things too.
Stephen King is professor, department of economics, Monash University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/stephen-king-1374" target="_blank">here</a>.
<a href="https://theconversation.com/profiles/stephen-king-1374" rel="author"></a>
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po-LsXgBTHBmX

Measuring savings from the carbon tax is a mug’s game

<html><body>
GUEST OBSERVER
Even before the government’s options paper on tax reform is released later this year, many reforms have been taken off the table, at least before the next election. Here’s the expert view on six.
Broadening or increasing the GST
Some experts say expanding the GST, which is a regressive tax, would unfairly hit middle-income earners and women.
Others say a broader base, not higher rate, would be the best approach.
<a href="/images/2015/07/23/Screen%20Shot%202015-07-23%20at%208.11.45%20AM.png" target="_blank">Click to enlarge</a><img src="/images/2015/07/23/Screen%20Shot%202015-07-23%20at%208.11.45%20AM.png" alt="" style="line-height: 1.3em;"> 
 
If done as part of a package of tax reforms, John Freebairn argues increasing the GST could actually boost our standard of living.
Prime Minister Tony Abbott and Treasurer Joe Hockey have said they will not make changes to the GST before the next election, and want the states to take responsibility for reform in this area. This is despite the fact that they could increase the GST without the support of the states.
<a href="/images/2015/07/23/Screen%20Shot%202015-07-23%20at%208.13.45%20AM.png">Click to enlarge</a>
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Fixing the asymmetry between negative gearing and capital gains tax
As Helen Hodgson has explained, negative gearing would be less attractive if the capital gain on the sale of an investment was taxed in full.
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The Henry Review recommended reducing the benefit of negative gearing by allowing only a 40% capital gains discount, but this was rejected by then Prime Minister Kevin Rudd.
Antony Ting says negative gearing is not a fair tax policy - particularly when considering the way investment properties are treated.
Dale Boccabella says the best solution would be to quarantine negative gearing so that losses on investment properties couldn’t be used as deductions against other income. But he also thinks abolishing it is preferable.
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<img src="/images/2015/07/23/Screen%20Shot%202015-07-23%20at%208.18.13%20AM.png" alt="">
Prime Minister Tony Abbott has ruled out any changes to negative gearing, arguing to do so would be akin to increasing taxes.
Adopting global measures to prevent tax avoidance by multinationals
When Australia hosted the G20 leaders summit in November last year, it agreed to a number of actions to ensure fairness in the international tax system. The OECD is leading global reforms, arguing unilateral action could harm the global agreement that is required to stop multinationals shifting profits to reduce their tax burden.
Since then, Treasurer Joe Hockey has announced new measures specifically designed to target multinationals using complex schemes to escape paying tax. Experts say the measures lack teeth since they only apply to foreign and not Australian multinationals.
The next set of OECD-led measures to address global tax avoidance are due to be released at this year’s G20 summit in Turkey. The OECD recommendations will be finalised by December.
Taxing trusts as if they were companies
In 1999 the Ralph Review of Business Taxation recommended that<a href="https://theconversation.com/shock-hockey-was-right-on-taxing-trusts-757"> </a>trusts be taxed as companies, a move that originally got the support of Treasurer Peter Costello. Political pressure soon saw the government back away from this plan, and despite Joe Hockey showing support for the idea back in 2011, it is not one that has the support of the government.
Dale Boccabella says the taxing of trusts is another anomaly in Australia’s tax system that is unfair. Trusts are commonly used by families with a high income to distribute funds to low-earning family members in order to minimise tax.
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Removing concessions on the taxation of super
Most experts agree superannuation tax concessions are unevenly distributed and are in need of reform<a href="https://theconversation.com/superannuation%20tax%20concessions%20are%20growing%20rapidly,%20are%20unevenly%20distributed%20and%20are%20in%20need%20of%20reform.">.</a>
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<img src="/images/2015/07/23/Screen%20Shot%202015-07-23%20at%208.20.59%20AM.png" alt="">
The Financial System Inquiry suggests super tax breaks shouldn’t exceed what someone would get from the age pension.
The Labor Party wants to remove the tax-free concession available to people with annual superannuation incomes from earnings of more than A$75,000, a move it says would raise more than $14 billion over 10 years.
Prime Minister Tony Abbott has ruled out any “adverse changes” to superannuation, including changes to super tax concessions.
Expanding land tax over stamp duty
The Henry tax review argued stamp duties are a highly inefficient tax on land, and that land tax could provide an alternative and more stable source of revenue for the states.
Miranda Stewart says stamp duty is volatile<a href="https://theconversation.com/housing-and-tax-why-is-reform-so-hard-3300">,</a> feeds into house prices (contributing to lack of affordability) and taxes more heavily those people who purchase new housing more often, than those people who don’t.
Unfortunately, says Danika Wright, some states are addicted to stamp duty, making reform in this area highly unlikely.
Charis Palmer is deputy business editor at The Conversation and Emil Jeyaratnam is multimedia editor. Both can be contacted <a href="https://theconversation.com/au/team" target="_blank">here</a>.
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Six simple tax reforms plagued by politics

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The Minutes from the RBA’s July board meeting contained little new indication on the evolution of monetary policy, although they suggest that the Bank continues to holds a mild easing bias.
The points of interest in the Minutes were around Q2 growth and the labour market:
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<li>On the labour market, the Board noted the recent improvement in the data. They did, however, note that softer population growth had helped to keep a lid on the unemployment rate despite below-average growth in GDP, with workers leaving the mining states of Queensland and Western Australia where growth is weakest. They also noted the mixed outlook for labour demand indicated by the various forward indicators. These comments suggest to us that while the Bank would clearly be pleased if the peak in the unemployment rate does not prove to be as high as previously thought, it seems unlikely to change its view that the unemployment rate is likely to stay elevated for some time.</li>
<li>On growth, the Minutes noted that the strength in Q1 (when GDP rose a solid 0.9% q/q) had not carried through to Q2. The monthly trade data suggest resources exports declined in the quarter (our preliminary calculations point to a small net exports subtraction) while non-mining business investment remains subdued. They did, however, point out the improvement in recent months in business conditions (note that conditions have improved further since this meeting).</li>
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The comments on the currency were broadly unchanged with members noting that “further depreciation seemed both likely and necessary”.
Of more interest will be Governor Glenn Stevens’ speech tomorrow which is on the topic of ‘Issues in economic policy’. Given his recent rhetoric, we think he is likely to reiterate or expand on issues on monetary policy transmission and the government’s role in infrastructure spending.
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The full text of the Minutes can be found <a href="https://www.rba.gov.au/monetary-policy/rba-board-minutes/2015/2015-07-07">here</a>. 
Felicity Emmett is co-head of Australian economics, ANZ Research and can be contacted <a href="https://www.propertyobserver.com.au/https://au.linkedin.com/pub/felicity-emmett/5a/3ba/256">here</a>.
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July 2015 RBA minutes – still dovish: ANZ

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<img src="/images/2015/07/21/Holdencapital_banner.jpg" alt="" width="788" height="166">
 
SPONSORED POST
“A clear and concise marketing plan that will deliver the projected return”
Sounds simple…. yet we see so few doing it well and most don’t do it at all! For the most part, the key elements of a loan application are well understood by most developers and don’t vary much. Fundamentally they comprise: 
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Your financial position and credit worthiness: these are what they are and you can’t gild the lily trying to make them appear better than they are (although some try and fail);</li>
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Gross realisation values and project expenses: completed product prices, land value and associated build costs are all fairly defined values. They will be determined by the market (via pre-sales and tenders on the build job) and certified by the relevant market experts (valuers and QS/engineers);</li>
<li>
The project team and past experience: again, these are relatively pre-defined components of your finance application and while you can enhance them with the introduction of appropriate expertise and testimonials, for the most part the key components have been locked in by the time the application is submitted;</li>
<li>
The capital structure and project feasibility: the combination of debt, junior debt and equity is generally driven by how much equity you have or choose to contribute to the transaction, and the project feasibility draws on the known elements of costs and end values and the time required to undertake the process. While many try and rush this part of the process, the one thing you can’t buy is time, but if you understand the market you are operating in, you can use it to your advantage!</li>
</ul>
As lenders/investors contemplating financing and/or investing in your next project, we would argue that the key element most often missing from applications we see, and the one that you should arguably have the most influence over, is explaining to us how and to whom you are going to sell the product. 
And it is not just your ability to sell the first 60% of the project in order to repay our funds that is critical, but how you will sell the last unit of stock, which represents your profit because that is what will convince us that you fully understand the deal you want us to invest in. So let’s look at what we actually want to hear/read about:
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Where will the demand for your product come from? Too many developers fail to understand the market dynamics of supply and demand and who will be the buyers; 
</li>
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The second part to who, is “why” will they buy it? Why does your product meet the identified demand and how have you gone about satisfying yourself this is so? Again, too many developers follow the herd. What we as financiers/investors want to see is a considered approach based on an understanding of the market and economic factors driving the product decisions. This doesn’t have to be a costly exercise with massive reports. Quite simply, we want to see that the developer understands the markets dynamics at play in the area he is choosing to develop, and that he has created a product designed to meet the relevant drivers;
</li>
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Why is yours better than the one down the road? Again, this is simply another way for you to demonstrate that you understand what the market wants and what the competition is doing. Frankly, if you don’t know the answer to these questions you should be seriously reconsidering why you are a developer.
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What will they be willing to pay for it? And can you show evidence of similar product being purchased for that dollar value. Often the formal valuation report will be a precondition to settlement, and an approval will be required before it is produced. In its absence, we are looking for evidence to support the proposed Gross Realisation values in your feasibility. An ability to point to recent and relevant market sales in support of your assumptions is another way of demonstrating your professionalism;
</li>
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How much will it cost to secure the sales and how will they be funded? In order to attract these buyers, marketing collateral, and an on-site sales office, sales agents salaries, marketeers fees up front and back end are all important considerations which many developers pay minimal consideration to, often because they do not fully understand the issues involved. We cannot stress enough just how important these elements of the deal are, and how your understanding of them influences credit and equity investment decisions. In particular, how you propose to fund them before and during the project construction phases are key to us fully understanding the real profitability of the project. 
</li>
</ul>
Simply put, more than anything else, if you can demonstrate a clear understanding of these marketing and sales related processes (and they are two very different beasts) you will get the attention of a lender or equity investor. Once you have our attention, it’s a much easier process to gain the approvals you are seeking. 
To find out more about which option best suits your next project, contact Dan Holden at HoldenCAPITAL on 0401 669 502 or visit HoldenCAPITAL <a href="https://www.holdencapital.com.au/" target="_blank">here</a>.
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The one simple trick to make your property project finance application stand out: Holden CAPITAL

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Deposits held by the major banks will be safer following APRA's latest move to strengthen capital held against mortgages, but borrowers can expect higher rates for their home loans.
The Australian Prudential Regulation Authority (APRA) today announced an increase in the amount of capital required for Australian residential mortgage exposures by authorised deposit-taking institutions (ADIs) accredited to use the internal ratings-based (IRB) approach to credit risk. The change applies only to the four major banks - ANZ, CBA, NAB and Westpac - and Macquarie Bank, which are the five institutions currently allowed to set their own mortgage risk weights.
The much anticipated 2016 implementation will mean that, for ADIs accredited to use the IRB approach, the average risk weight on Australian residential mortgage exposures will increase from approximately 16% to at least 25%. 
The increase in IRB mortgage risk weights addresses a recommendation of the Financial System Inquiry (FSI) that APRA ‘raise the average IRB mortgage risk weight to narrow the difference between average mortgage risk weights for ADIs using IRB risk weight models and those using standardised risk weights’.
The increase is also consistent with the direction of work being undertaken by the Basel Committee on Banking Supervision (Basel Committee) on changes to the global capital adequacy framework for banks. 
The increased IRB risk weights will apply to all Australian residential mortgages, other than lending to small businesses secured by residential mortgage.
In order to provide these five ADIs sufficient time to prepare for the change, the higher risk weights will come into effect from 1 July 2016. All other lenders regulated by APRA currently use a standard 35 per cent risk weight on residential mortgages, meaning that even after mid-2016 these major banks will retain a cost advantage.
APRA noted the residential mortgage portfolio is the largest credit portfolio for ADIs and, in aggregate, IRB accredited ADIs hold the material share of these exposures.
"Therefore, strengthening the capital adequacy requirement for residential mortgage exposures under the IRB approach will enhance the resilience of IRB-accredited ADIs and the broader financial system," it said.
It is expected that the major banks will be quite differently affected by APRA's policy announcement.
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Home loan borrowing rates set to rise in 2016 after APRA's latest decision  

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The former federal treasurer Peter Costello has said negative gearing isn’t causing property prices to go up; "what is causing that is interest rates,” he told a Women in Banking and ­Finance luncheon in Melbourne last week.
“When interest rates fall, property prices have to go up ... The quickest way to bring down property prices is to double the interest rate. I don’t think we should change the rule that allows you to deduct borrowing costs for any business, including the business of rentals if you want to go into that business.
“And I don’t think that is the answer to property ­prices if you think there is a ­problem.’’
Mr Costello also said he remained comfortable with the local banks’ exposure to the property market, The Australian reported.
“The default rate in Australia is very low by international standards,” he said.
“The one thing your little Aussie battler will do is hold onto their house. Sell the dog, the kids, but hold onto the house, which means the banks have not been the subject of big defaults.
“Do I see waves of household defaults? No I don’t actually. The banks are probably going to be asked to put in more capital and their risk weighting will be increased. That won’t turn the banks from being big profit-makers to loss-makers.’’
Mr Costello said he continued to support a broadening of the base of the GST. 
“The bigger question to me is: don’t ask me about broadening the base, tell me where you are going to spend the money."
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Don't blame negative gearing for price spurt: Peter Costello

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The Federal Treasurer Joe Hockey has shrugged off the Reserve Bank call for a review of the negative gearing-capital gains tax regime.
"More policemen negatively gear than specialised tax accountants, management consultants or university lecturers," Mr Hockey told 2UE radio.
"This is a way for people on medium incomes, or even lower incomes, to be able to get into the property market in a way that they may not be able to."
The bank joined the debate over how negative gearing and the 50% capital gains tax discount are making housing less affordable.
"The bank believes there is a case for reviewing negative gearing but not in isolation," the RBA said in its submission to a House of Representative's parliamentary inquiry into home ownership.
Limiting negative gearing to new houses or a certain number of investment properties are among the changes Labor is reportedly considering.
The treasurers comments stem from analysis showng the vast majority of property investors taking advantage of negative gearing are “mum and dads” earning less than $80,000 a year, countering the long-held view that the property investment measure was a tax lurk for the rich.
Australian Taxation Office data shows that of the 1.266 million Australians who declared that the rental on their investment properties didn’t meet the interest repayment in 2011-12, 883,325 earned less than $80,000.
More than 70 per cent of people who accessed negative-gearing benefits only owned one investment property. 
About 60,000 clerical staff earning less than $80,000 benefited from negative gearing, as did 54,000 teachers, 46,000 sales staff and 35,590 nurses and midwives, the data showed as reported by The Australian. 
Nick Proud, the executive ­director of the Residential Development Council, which provided the statistics suggested investors incentivised by negative gearing would reduce the future reliance on the pension.
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