<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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>
The Commonwealth Bank trimmed 30 basis points from its one-year fixed (down to 5.39%) and its four- and five-year fixed-rate loans (down to 5.69%) effective today and available to new customers, or customers looking to switch from variable to fixed-rate home loans.
The bank's benchmark three-year fixed rate and its two-year fixed rate was trimmed by 20 basis points to 5.39%.
Clive van Horen, general manager for home loans at the Commonwealth Bank, reminded borrowers that the major benefit of a fixed-rate home loan is that it "provides customers with more certainty, allowing them to lock in a great, low rate".
The bank passed on only 20 basis points of the RBA's 25-basis-point October rate cut with the reduced standard variable rate of 6.6% only taking effect today – 10 days after the RBA decision.
It said it had to balance the "needs of 1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds".
</body></html>

lschlesinger-FZcF9M3vE6

Commonwealth Bank cuts fixed rates by more than cash rate cut

<html><body>
The rise in the unemployment to a 30-month high of 5.4% in September should cause the Reserve Bank to cut the cash rate again in either November or December but then hold firm over the first six months of 2013, according to HSBC Australia chief economist Paul Bloxham.
Bloxham says the jump in unemployment combined with weak growth in employment (+0.5% year-on-year) and aggregate hours worked (+0.3% year-on-year) means it is becoming clearer that labour demand has eased more than expected.
“A looser labour market should see less pressure on locally produced inflation and leave the RBA with a bit more room to move on monetary policy.
“We now expect the RBA will cut rates by a further 25 basis points before year-end,” Bloxham says.
However, a pick-up in the housing market off the back of previous rate cuts and China reaching the bottom of its current cyclical slowdown are two factors that would encourage the RBA end its current monetary policy easing cycle, says Bloxham.
“There are also signs that previous rate cuts are starting to support the economy," says Bloxham.
“Housing prices have lifted in the past few months and business credit has started to grow.
“Concerns that low interest rates may overly stimulate the housing market and see an excessive pick up in already high Australian housing prices may constrain the RBA’s willingness of cut rates too much further.
“We still think too much is priced in over the next year (85 basis points in rate cuts).
“Globally, we expect China’s cyclical slowdown to bottom in coming months and for growth to pick up in early 2013. The recent bounce in the iron spot price from lows of $86 a tonne in early September to $117 a tonne today may be a precursor to a further recovery in Chinese economic activity,” he says.
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Only one more rate cut left as RBA wary of overstimulating housing market: HSBC’s Paul Bloxham

<html><body>
Australia should not set a cap on loan-to-value ratios (LVRs) but borrowers must raise some kind of deposit when buying a home, says Luci Ellis, head of the RBA’s Financial Stability Department.
“People need to provide some deposit when they buy a home. It protects them if something goes wrong for them, like a job loss or illness, especially if it happens at the same time that housing prices are falling,” Ellis told the Capital Market Dysfunctionality Annual Conference in Sydney today.
Banks typically require a minimum deposit of between 5% and 10% - but higher deposits are needed to qualify for lower rate mortgages.
However, Ellis cautioned against a cap on loan-to-valuation ratios (LVRs) for mortgages, which could be varied from time to time, as has been adopted in some countries.
Ellis also said that a cap would have little impact on those buyers trading up, while squeezing first-home buyers out of the market.
And she cautioned that an LVR cap would not prevent boom-bust cycles in housing prices though she said it was prudent to have “some sort of limit to the leverage in collateralised loans such as mortgages”.
“The alternative would be the situation in the United Kingdom or the Netherlands, where one could borrow as much as 125% of valuation and, more importantly, where many people actually did so, not just a small fringe.
“I don't think that is good practice.”
She said setting an LVR cap below 100% might be sensible for the jurisdictions that have adopted such a policy, but not relevant in Australia where the prudential framework already “requires higher risk weights on high LVR loans, especially those that are not insured”.
Ellis says the evidence from overseas is that setting an LVR cap limits the increase in arrears rates that occurs when the bust comes.
“That is because the borrowers who get into difficulty are more likely to have some equity, even if prices fall. They can therefore sell rather than default.
“That's not a bad thing, but in the end our responsibility for financial stability is about protecting the real economy.
"Protecting the banks from the real economy is not the ultimate goal.”
</body></html>

Borrowers must save for deposits when buying a home but loan-to-value ratios should not be capped: RBA’s Luci Ellis

<html><body>
Mortgage franchise RAMS has cut its suite of fixed-rate mortgage products, joining parent bank Westpac and fellow subsidiary St.George to announce fixed-rate cuts following last week's RBA cash rate cut.
RAMS has cut its one-year fixed rate by 36 basis points to 5.39% and reduced two-, three-, four- and five-year fixed rates by 10 basis points, with the changes taking effect today.
The RAMS three-year fixed rate now stands at 5.39%, matching the lowest three-year fixed rate offering on Ratecity.com.au – 5.39% from ME Bank.
Greater Building Society offers the lowest one-year fixed rate at 5.29%, according to Ratecity.com.au
A recent RAMS survey found that around two-thirds of first-home buyers intend to take out a fixed interest rate (22%) or split home loan (43%) in the next 12 months.
Earlier this month ME Bank recorded a surge in fixed-rate mortgage applications, which now account for 45% by value of all new applications, up from 14% earlier in the year.
“Fixing your interest rate could be a smart option, allowing customers to lock in the certainty of monthly repayments,” explained RAMS chief executive Melos Sulicich.
“Another option to consider is splitting your home loan between fixed and variable interest rates to make the best of both worlds."
Westpac will also cut its packaged fixed rates from today.
The bank’s one year packaged fixed rate will reduce by 20 basis points to 5.49%, while its three-year packaged fixed rate will fall from 15 basis points to 5.39%.
St George, also a subsidiary of Westpac, cut its fixed-rate mortgage products under its Advantage Package on October 5
It offers a one-year, two-year and three-year fixed rate at 5.39% per annum.
Just before the RBA cash rate decision CUA cut its two- and three-year fixed rate home loan products by 23 basis points to 5.5%.
RAMS will offer a standard variable home loan rate of 6.55% p.a effective from Friday, October 12 – below that of the major banks.
</body></html>

RAMS joins St George and Westpac by cutting fixed rates

<html><body>
Only four out of the 13 lenders that have announced interest rate reductions since the October 2 RBA cash rate cut have passed on the full 25 basis points, according to research by mortgage comparison website Ratecity.com.au
The lenders that have passed on the full rate cut include bankmecu, which also offers the lowest standard variable rate of the 13 lenders at 5.49%.
This is 108 basis points lower than the lowest standard variable rate offered of the big four – NAB, which has a new standard variable rate of 6.58% and 121 basis points lower than Westpac, which will decrease its SVR to 6.71% from October 15.
The other lenders to have passed on the full rate cut are ING Direct (standard variable rate of 6.09%*), non-bank lender Myrate (5.92%) and Mark Bouris’s Yellow Brick Road wealth management business (6.19%).
Bankmecu is a customer-owned mutual bank based in Melbourne and is made up of conglomerate of around 50 credit unions and co-operatives.
It received its APRA banking licence in September 2011.
“By being a bank we believe we can compete with the big banks on their own turf, while retaining our unique customer ownership,” said CEO Damien Walsh at its launch.
Prior to it operating as a bank, it was called the Members and Education Credit Union (mecu).
According to the most recent APRA figures, bankmecu had a loan book of around $2 billion with around $1.9 billion in household deposits.
Apart from ING Direct, these four lenders are all tiny when compared with the major banks, which have passed on between 18 and 20 basis points and have blamed the high cost of raising deposits and need to balance the competing needs of shareholders, savers and mortgage customers for their inability to pass on the full rate cut.
ANZ will make its independent interest rate decision on Friday but is unlikely to pass on the full rate cut.
"Out of the 13 lenders that have so far announced rate drops, only four passed on the full 25 basis point cut to their standard variable rates, and Greater Building Society passed on 25 basis points to its packaged home loan as well. The movements were between 15 and 25 basis points," says Ratecity.com.au’s spokesperson Michelle Hutchison
"There is a significant difference between the amount of money borrowers will save, depending on how much their lender passes on. For instance, a 15-basis-point rate cut to a new rate of 6.25% for a $300,000 mortgage is worth about $29, while a 25-basis-point rate cut to 6.19% is about $49 per month."
*Ratecity.com.au had prevously specified ING Direct's standard variable rate as 5.73% and was the rate originally published in this story.
The rate of 5.73% is the new rate for loans under $500,000 with a max LVR of 80%. 
The 6.09% reate reflects the new rate for ING Direct's Orange Advantage &lt;$250K 95% LVR loan which is currently published on ING Direct website at 6.34% prior the rate cut.
Ratecity.com.au wishes to clarify that ING Direct’s cheapest advertised variable rate is currently 5.88% (before the rate cut) for loans over $500,000 with a maximum loan to value ratio of 80%.
"However, this rate and other home loan rates with different tiers and LVRs are not shown on the ING Direct website. The new rate of 5.73% originally referred to in the article is for loans with an LVR up to 80%. RateCity often publishes lenders’ standard variable rates because lenders use these as benchmarks and announcements for their rate decisions," explained Ratecity.com.au.
RateCity would like to clarify that the above interest rates shown in this story sourced by RateCity are accurate and RateCity prides itself in publishing factually correct and unbiased information. 
</body></html>

 Bankmecu puts major banks in the shade as just four out of 13 lenders pass on full rate cut: Ratecity.com.au

<html><body>
The ATO allows two very different methods of calculating property tax depreciation deductions, the diminishing value method and the prime cost method. Most investors choose the diminishing value method as it will return the greatest amount of deductions over the first few years of ownership. However it’s worth discussing with your accountant, as maximising your claim upfront might not be beneficial if your income is likely to increase substantially down the track.
Let’s take a look at some of the key differences between the diminishing value and prime cost methods.
Diminishing value depreciation method
<ul>
<li>Returns higher deductions in the first few years of claim</li>
<li>Utilises low value and low cost pooling to increase the claim on items under $1,000</li>
<li>Allows investors to claim 100% of the value of items $300 or less</li>
<li>Decreases (diminishes) in value each year, so depreciation claims drop each year until asset values run out (or are rounded down to zero)</li>
</ul>
Prime cost depreciation method
<ul>
<li>Returns a straight line depreciation amount until the full value of assets are claimed</li>
<li>Returns greater deductions in the latter years of the depreciation schedule</li>
<li>Allows investors to rely on a more consistent depreciation claim each year</li>
<li>Suitable for investors looking to maximise their depreciation claim in later years, e.g. investors who will live in their property for the first few years</li>
</ul>
Both methods of depreciation claim the same total value over 40 years. However, they use different rules to achieve either aggressive upfront claims or a more consistent claim each year.
For example, consider an asset like carpet, worth $18,000 with an effective life of 10 years.
So for year one:
The calculation to reach the depreciation rate for the diminishing method is 200 dived by the effective life. So, 200 / 10 = 20%
The calculation to reach the depreciation rate for the prime cost method is 100 divided by the effective life. So, 100 /10 = 10%
In subsequent years, the calculation for the diminishing method becomes more complex, whereas prime cost stays the same. Prime cost will be 10% of $18,000 until all of the value is claimed after 10 years, so $1,800 every year for 10 years.
The diminishing method needs to subtract the value of the previous year(s) claim before working out the deductions for the current year. So for year two the calculation is:
Opening value ($18,000) minus year one claim ($18,000 X 20%, or $3,600) multiplied by 20%
This equates to:
$18,000 – $3,600 = $14,400, then
$14,400 X 20% = $2,880.
Year three will then be ($18,000-$3,600-$2,880) X 20%. This will give $2,304.
When represented in a line graph, you can clearly see the result of the diminishing method and its decreasing deductions, versus the constant deductions of the prime cost method.
The line graph is useful as it shows the point at which the diminishing method of claim ceases to produce higher deductions than the prime cost method. In this 10-year scenario, the diminishing method wins out each year until year five.
<img src="/images/stories/2012/10/mortlockoct9.gif">
The point at which the two methods meet is different for each property as the mix of plant and equipment assets are different. As plant and equipment items have different effective lives, their depreciation percentages will be different. For example, ceiling fans with an effective life of five years will be 40% under the diminishing method, and 20% under the prime cost method.
For information on how effective lives are calculated, <a href="https://www.mcgqs.com.au/blog/property-tax-depreciation-effective-lives/" target="_blank" title="How depreciation effective lives are calculated">you can visit here.</a> 
Property investors are usually keen to get the maximum depreciation deductions up front, and we’re often asked “why would someone choose the prime cost method?”
An investor who wants more of a guaranteed tax return amount each year would benefit from the prime cost method. As you can see from the line graph, the deductions are constant over a long period of time. Another reason might be someone purposely trying to minimise their deductions in the first few years of ownership. For example, someone with a low income who is likely to have a much higher income later on. Finally, there are property investors who occupy their property as their primary place of residence. A short six- to 12-month stay might not make much of a difference, but occupying the property for five to six years most likely would.
The purpose of putting this article together other than giving a background into how the depreciation methods work, and how they affect depreciation claims over time, is to encourage you to look at both methods and talk to your accountant to ensure that you’re working with the method that’s most suitable for your scenario.
Mike Mortlock is a director of <a href="https://www.mcgqs.com.au/">MCG Quantity Surveyors</a> specialising in tax depreciation deductions for property investors.
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How to find which property tax depreciation method is right for your investment

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Westpac, Commonwealth Bank and NAB have asked for understanding following their decision not to pass on the full October 2 rate cut to borrowers.
Sympathy they are unlikely to get.
They three banks have asked borrowers to consider the higher cost of raising deposits, retirees dependent on their savings accounts and the many Australians who hold bank shares in their super funds.
However, sympathy will be in short supply with smaller lenders offering standard variable rates in some cases 100 basis points below the major banks, despite not having the multibillion-dollar pockets, enormous numbers of customers and distribution networks.
The cheapest standard variable rates: where the major banks rank
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="205">
 
</td>
<td valign="top" width="205">
Standard variable rate
</td>
</tr>
<tr>
<td valign="top" width="205">
Pacific Mortgage Corp
</td>
<td valign="top" width="205">
5.72%
</td>
</tr>
<tr>
<td valign="top" width="205">
State Custodians
</td>
<td valign="top" width="205">
5.82%
</td>
</tr>
<tr>
<td valign="top" width="205">
Family First Credit Union
</td>
<td valign="top" width="205">
5.95%
</td>
</tr>
<tr>
<td valign="top" width="205">
CUA
</td>
<td valign="top" width="205">
6.05% (October 12)
</td>
</tr>
<tr>
<td valign="top" width="205">
ING Direct
</td>
<td valign="top" width="205">
5.97%  (October 12)
</td>
</tr>
<tr>
<td valign="top" width="205">
Greater Building Society
</td>
<td valign="top" width="205">
6.25% (October 15)
</td>
</tr>
<tr>
<td valign="top" width="205">
NAB
</td>
<td valign="top" width="205">
6.58% 
</td>
</tr>
<tr>
<td valign="top" width="205">
Commonwealth Bank
</td>
<td valign="top" width="205">
6.6% (October 12)
</td>
</tr>
<tr>
<td valign="top" width="205">
Westpac
</td>
<td valign="top" width="205">
6.71% (October 15)
</td>
</tr>
<tr>
<td valign="top" width="205">
ANZ
</td>
<td valign="top" width="205">
6.8% 
</td>
</tr>
</tbody></table>
Source: major banks, Infochoice.com.au, RateCity.com.au
The decisions of the <a href="/news">Commonwealth Bank</a> (20 basis points), <a href="/news">Westpac </a>(18 basis points) and <a href="/news">NAB </a>(20 basis points) mark the 21st time the major banks have cut by less than the official RBA cash rate reduction.
Westpac subsidiary St George today said it would reduce its standard variable home loan rate by 0.17 percentage points  to 6.69% per annum (effective from October 15).
On average the major banks have passed just 115 basis points of the 150 basis points in cash rate cuts introduced by the Reserve Bank since November 2011.
 
<hr class="system-pagebreak">
 
All banks stuck to form when it came to the time they will take to pass on the rate cut – earning an estimated $6 million every day they withhold relief for borrowers.
Westpac remains the worst offender, taking nearly two weeks to pass on the rate cut and earning the bank an extra $20 million into its already swollen coffers.
Westpac is drifting further from the big four on variable rates, offering a standard variable rate of 6.71% from October 15.
Commonwealth Bank will take 10 days to pass on its rate cut (6.6%), with NAB’s new standard variable rate of 6.58% in effect from today, six days after the RBA announcement.
In previous statements following partial rate cuts, the major banks highlighted the growing cost of wholesale funding.
However, with wholesale funding now cheaper, the major banks focused on their rising reliance on deposits to fund their mortgage lending and the fact that savers would lose out if they passed on the full rate cut.
Westpac tried to tug at the heart strings with its statement that it needed to balance the needs of “our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts”.
The Commonwealth Bank told borrowers that “one significant factor” impacting its balancing of borrower, depositors and shareholder need was the “increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review”.
If borrowers weren’t happy about the decision, the Commonwealth Bank tried one further tactic, reminding customers that “millions more Australians own Commonwealth Bank shares through pension funds.
NAB’s head of personal banking, Lisa Gray, steered clear of mentioning pensioners or shareholders but did highlight that “banks obtain funds for lending from deposits and from wholesale funding markets.
“Around the world, banking regulators require banks to hold more stable forms of funding, like deposits, to reduce risk in the banking sector. "The increased competition for deposits is pushing up costs, making it more expensive to fund our lending," said Gray.
However, disgruntled borrowers who have standard variable loans dated from July 1, 2011, can switch lenders without having to pay any mortgage discharge fees (exit fees), with many smaller lenders offering substantially lower offerings.
Non-bank lender Pacific Mortgage Corporation is offering an SVR of 5.72% – 86 basis points below the lowest of the big four, NAB at 6.58%.
ING Direct, the nation’s fifth biggest lending brand, passed on the full rate cut to its borrowers with a standard variable rate of 5.97%.
Another lender, non-bank State Custodians is offering an SVR of 5.82%.
Mutual lender CUA, Australia’s largest customer-owned financial institution, said it would cut its standard variable rate by 20 basis points to 6.05% from October 12.
CUA points out that its SVR has continuously remaining over 50 basis points cheaper than the average standard variable rate offered by the big four over two years.
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Smaller lenders offer borrower satisfaction as major banks withhold part of rate cut

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A clear majority of economists expect the Reserve Bank to reduce the cash rate by a further 25 basis points on Melbourne Cup Day (November 6), according to the latest survey by Bloomberg.
Out of 24 economists polled today, 17 expect the cash rate to fall to 3% in November. This would be the lowest the cash rate has ever been, equal to the rate in 2009 during the GFC.
All the big four banks are in agreement on a rate cut in November.
Interestingly, St George Bank chief economist Besa Deda is tipping the cash rate to remain on hold in November, while Bill Evans, chief economist at parent bank Westpac, expects a rate cut.
Another notable economist not tipping a rate cut in November is HSBC Australia chief economist Paul Bloxham, who had favoured November over October – but not a rate cut in both months.
“The [earlier October] cut reflected concerns about weaker global conditions, particularly slower growth in China,” said Bloxham in his weekly RBA update.
“With activity in China showing some signs of bottoming we think the RBA's easing cycle may be nearing its end.”
Only one brave economist (Michael Knox from RBS Equities) is tipping a rate cut in December on top of a November rate cut, which would take the cash rate to 2.75%.
Ten out of 24 economists tip another rate cut in the first quarter of 2013.
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Majority of economists punt on Melbourne Cup Day RBA cash rate cut: Bloomberg

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Westpac will pass on just 18 basis points to variable mortgage holders following NAB and the Commonwealth Bank announcing earlier today they would pass on 20 basis points.
The reduction, which takes effect on October 15, will cut Westpac's standard variable mortgage rate to 6.71%.
The<a target="_blank" href="/news"> Commonwealth Bank</a> will offer a standard variable rate of 6.6% from October 12 and <a target="_blank" href="/news">NAB</a> a standard variable rate of 6.58% from October 8 – a full week ahead of Westpac.
ANZ will make its decision next Friday and currently offers a standard variable rate of 6.8%.
The reduction in home loan rates will save homeowners $36 a month or $432 a year in total monthlyrepayments on an average mortgage of $300,000.
Since October 2011, Westpac has cut its variable mortgage rates by 1.15%, equating to an annual saving of $2,820 on an average home loan.
Westpac Group executive of retail and business banking Jason Yetton said: “In coming to this decision we have sought to balance the needs of our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts.
“At the same time we continue to offer package discounts on our headline mortgage rate which will seethe majority of our home loan customers pay no more than 6.01%. And for those borrowers who are looking for security and peace of mind over a longer period we are pleased to make further reductions to our fixed rate homes loans that are now at new three year lows and are very competitively priced.”
Yetton said Westpac’s decision was based on a range of factors including the price of deposits, which remain at very competitive and attractive rates for savers but when combined with the cost of wholesale funding continue to put pressure on bank finances.
"While we have seen some easing in the wholesale market in recent months, our overall costs including the price of deposits remain historically very high,” he added.
Westpac also cut its fixed rate offers for its one year, two year, three year, four year and five year rates.
The new rates include the 0.2% discount offered under the Premium Advantage Package.
They are effective from 10 October 2012.
<ul>
<li>One year packaged fixed rate – down 0.20% to 5.49%</li>
<li>Two year packaged fixed rate – down 0.15% to 5.39%</li>
<li>Three year packaged fixed rate – down 0.15% to 5.39%</li>
<li>Four year packaged fixed rate - down 0.20% to 5.69%</li>
<li>Five year packaged fixed rate - down 0.20% to 5.69%</li>
</ul>
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Westpac passes on just 18 basis points to bring standard variable rate to 6.71% and cuts fixed rates

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The Commonwealth Bank has followed NAB by announcing that it will reduce interest rates on its standard variable home loan account by 0.2 percentage points from October 12.  
The new standard variable rate is 6.6% per annum.  
The CBA said it continued to balance the needs of "1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds".  
"One significant factor impacting this balancing of needs has been the increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review.
"This increase, benefitting depositors, has resulted from increased competition for deposits, as Australian banks reduce their reliance on wholesale funding," says the CBA.
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