Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

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?

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

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A continuining drop in first home buyer numbers has chief executive of the Real Estate Instute of Western Australia (REIWA), Neville Pozzi, warning the government not to introduced any stamp duty increases for first timers.
He said that this drop should come as a budget warning to the state government.
“Given that first home buyers are dropping in numbers, it’s critical that the Treasurer doesn’t bring back stamp duty for this segment of the market,” Pozzi said.
Currently, first home buyers in Western Australia are exempt from stamp duty payments for homes under $500,000.
“It’s very concerning, however, that Premier Barnett has indicated that the current tax break for first home buyers is under review and might be changed,” he said.
“The housing market is very susceptible to cost pressures and making first homes more expensive would be a terrible blow to the market just as it’s starting to stabilise,” he said.
FHOG applications for the March quarter, as recorded by the Office of State Revenue, recorded a 9% drop. This is 21% below the June 2013 peak.
This drop is across both the established and new-build sectors, with established homes dropping by 14%.
“This means that grants being paid out have now fallen below the average since the FHOG was first introduced 14 years ago,” he said.
He noted that the "last thing" the market needs at present is any added cost pressure on first time buyers.
The median purchase by first home buyers in March was $470,000 in Perth, and $350,000 in regional Western Australia.
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jduke-EHk3XBmHkn

REIWA chief executive warns against FHB stamp duty introduction

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Charter Hall’s latest Brisbane development is 100 Skyring, a $175 million A-Grade 12-storey office building in Newstead. It’s three months ahead of schedule, with announcements that the first tenants will be moving in from November.
Located in the Gasworks precinct, the building is set to be the national headquarters for the Bank of Queensland, the anchor tenant who is leasing 54% of the building.
The 2,200 square metre campus-style building with floor plates is in the fastest growing office precinct in Brisbane.
It is 1.7 kilometres from the CBD, and contains 23,759 square metres of office and retail space. The area already has companies such as Leighton Contractors, Bechtel, Virgin Airlines, Macquarie Bank, AECOM, Australian Agricultural Company and Energex in residence.
Charter Hall regional asset manager Belinda Kalinin said that it’s now three months ahead of construction schedule due to careful planning.
“This month, Hutchinson Builders has installed the final level of facade, allowing interior work to ramp up,” explained Kalinin.
Interested tenants include companies looking for flexible floor plate office spaces near to Brisbane CBD.   
“100 Skyring, jointly owned by Charter Hall’s Core Plus Office Fund and a global institutional partner, is the latest major Brisbane office property investment by Charter Hall, which already owns Brisbane Square, 175 Eagle Street and 275 George Street,” she said.
BOQ is moving the headquarters to the development to transform the way staff work, creating a more flexible and collaborative environment, according to chief executive Stuart Grimshaw.
“We are also looking forward to being part of the growing Newstead community – it is exciting to see the calibre of companies and retailers choosing to base themselves there and there is a real sense of momentum building about the precinct."
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Brisbane’s 100 Skyring, new BOQ headquarters, to see first tenants

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The median price of a house in Adelaide now sits at $410,000 on a quarterly basis.
According to RP Data, Adelaide saw a 2.4% increase in its median house price over last month. Despite recording the strongest monthly price growth of any capital city market for the month, Adelaide house values are still the second lowest in the country, after Hobart’s.
Property Observer looks to recent Adelaide sales to see just what $410,000 will buy you.
<ol>
<li>
<a href="https://www.realestate.com.au/property-house-sa-port+adelaide-115474079" target="_blank" style="line-height: 1.3em;">13 HAGEN AVENUE, PORT ADELAIDE</a><a href="https://www.realestate.com.au/property-house-sa-port+adelaide-115474079" target="_blank" style="line-height: 1.3em;"> <img src="/images/2014/05/05/1.jpg" width="800" height="600"> </a>A three bedroom home was sold in Port Adelaide for $410,000 early last month. Marketed towards first home buyers, the house was a new build in an area that’s relatively well populated with subdivisions and new developments. The home includes an open plan living and dining area and an outdoor entertaining area. Price: $410,000 Bedrooms: three Drive to CBD: 22 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-kidman+park-116221411" target="_blank">1 STEWART STREET, KIDMAN PARK <img src="/images/2014/05/05/kidman%20street.jpg" width="800" height="600"> </a>This home sold for just under the city’s median price, going for $402,000 in March. With three bedrooms and located on a cul-de-sac, the house was marketed towards young families. Sitting on a 634 square metre lot, the home includes a sizeable backyard and a two car carport. The vendors purchased the property for $178,000 in 2001. Price: $402,000 Bedrooms: three Drive to CBD: 16 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-mansfield+park-116055019" target="_blank">1A KENT STREET, MANSFIELD PARK </a><a href="https://www.realestate.com.au/property-house-sa-mansfield+park-116055019" target="_blank"> <img src="/images/2014/05/05/mansfield-may-2-breakout.jpg" alt=""> </a>This house on a subdivided plot brought in $422,000 for the vendors. Located just over 10 kilometres from the Adelaide CBD, this north facing brick veneer house was built in 2012. Inside there are four bedrooms, with floating floorboards throughout. Price: $422,000 Bedrooms: Four Drive to CBD: 20 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-clapham-115896883" target="_blank">10 MACPHERSON STREET, CLAPHAM <img src="/images/2014/05/05/claph.jpg" width="800" height="600"> </a>Located eight kilometres south of the Adelaide CBD, this two bedroom home sold for $412,500 after two weeks on the market. Vendors purchased the property in 2006 for $375,000. Price: $412,500 Bedrooms: Two Drive to CBD: 13 minutes 
</li>
<li>
<a href="https://www.realestate.com.au/property-house-sa-newton-116592771" target="_blank">12 CHATSWOOD GROVE, NEWTON </a>
<img src="/images/2014/05/05/newton.jpg" width="800" height="600">
Purchased last month for for $412,000, this three bedroom home is located in Adelaide’s north eastern suburbs. It is currently tenanted til the end of the month, with the previous owners earning $280 per week in rental income. They purchased the house in 2000 for $145,000. 
Price: $412,00 Bedrooms: Three Drive to CBD: 17 minutes
</li>
</ol>
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jrichardson-uRX5hFdKfN

What can you get for Adelaide’s median house price?

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Illegal drug labs set up in rental properties can cause fear for property investors, particularly as the clean up costs can be significant, not to mention a hefty repair bill in some instances.
While it's uncommon for tenants to be engaged in this type of activity, it's worth every property manager and investor (particularly self-managing landlords) to be keeping an eye out for any suspicious activity.
Terri Scheer Insurance's executive manager Carolyn Parrella explains that whether it's cannabis, methamphetamine or ecstasy, illegal drug cultivation has specific signs that astute investors can look for.
“Temporary drug laboratories in rental properties can be difficult to detect if you do not know what to look out for,” said Parrella, even though tenants will go to significant lengths to hide this type of activity.
For those who do find evidence of a drug lab, investors should first contact their property manager, and also the police.  Obtaining insurance coverage often requires a police report. A tenant will be required to vacate, after which time insurance assessors can determine the damage.
In the meantime, here are the five things to watch out for:
<ol>
<li>
Regularly inspect  There's no way to figure out whether illegal activity is being undertaken if you are not regularly inspecting.  Detecting temporary drug labs can save you money, particularly if they're found early, as this will help mitigate loss and will allow you to lodge an insurance claim as soon as possible, said Parella.  “It takes three months to cultivate a hydroponics crop so carrying out quarterly inspections will increase the chances of detecting any illegal activity as soon as possible," she said. Ensure you undertake routine inspections. 
</li>
<li>
Neglect or lack of furnishings  The first thing you should be looking for at an inspection is a lack of furniture, and/or signs of neglect. While some certainly live with the bare minimum, it's unusual to see a rental that has a lack of personal effects.  “When conducting an inspection look for signs that the property is being lived in. Illegal drug manufacturers generally do not live at the properties they use to cultivate drugs, therefore the premises may appear under furnished or neglected," she explains.  It is always worth asking the tenant if they've been away, and looking for another reason before assuming they run a drug lab (a stretch if this is the only suggestion can see). 
</li>
<li>
Look for modifications  Creating a drug lab isn't exactly a simple task. As anyone who watched Breaking Bad can tell you, it requires some specific equipment, materials and products.  “Some hydroponic systems or temporary drug laboratories require specific modifications to the property,” she said.  You want to be on the lookout for tampering with the property. Pipes and hoses are often required in hydroponic setups, that filter through the roof or a man hole. Holes in the ceiling can be a signal of a drug lab set up.  “It is also a good idea to check whether the meter board has been tampered with or rewired. Holes in nearby walls or built-in cupboards are common in order to feed wires to a power source," she advised. 
</li>
<li>
Look for specific items  We can't all know what every item is that someone else owns, however an abundance of unusual items may suggest that something untoward is happening.  “Certain items are commonly used to manufacture illegal drugs, including glass flasks, beakers, rubber tubing, gas cylinders, chemical containers, drums, drain cleaner, acid garden fertiliser and cough, cold or allergy medicine,” Parrella said.  A portable air conditioner is also frequently a key part of kit when cultivating hydronic crops, she said. Again, don't jump to conclusions - similar items have been owned in children's chemistry sets - however, use your common sense. Some of these items in combination may set alarm bells ringing. 
</li>
<li>
Sealed/covered windows  Windows that are constantly covered or sealed during the day may also be a small suggestion that these tenants are looking for an extra level of privacy.  Windows covered in aluminium foil, in particular, however should have you concerned. 
</li>
<li>
Bills If you're seeing unusual signs in the property, then it's time to turn to the bills.  “A dramatic spike in water consumption could signal drug manufacturing as more water is generally needed to cultivate drug crops," notes Parella. 
</li>
<li>
Unusual wear and tear  Temporary drug labs can leave signs in unusual ways. Colour variations on the walls, such as behind hanging pictures or artworks, after a short-term period is worth a second look.  “If there are intense lights being used as part of a hydroponics set up it may visibly fade paintwork," notes Parella.
</li>
</ol>
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Seven ways to detect if your investment property is being used as a drug lab

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Eling Forest Vineyard, the Southern Highlands of NSW boutique winery, has been sold.
Located just west of Sutton Forest village, the 73 hectare property has been bought by the Wang family for $5.8 million.
<a href="https://www.andrewhearn.com.au/listings/rural_sale-93411-sutton-forest/" target="_blank">It had been listed</a> by interests associated with Warwick Wainberg through Andrew Hearn at the Berrima based Andrew Hearn Real Estate.
The buyers were Wei Guo Wang, Wei Min Wang, Chen Yang Wang and Pei Hong Cao.
It last traded in 2005 at $600,000.
It highlights the Southern Highlands stature as one of Australia's most exciting new wine regions, though still not a patch on the Hunter Valley which has been attracting strong Chinese buying interest in recent years.
The Southern Highlands' first wine producer in recent times was Kim Mogine at Joadja in 1983. There were about 50 vineyards in the region by 2000 that spanned 145 hectares within Australia's newest wine region better known for its tulips.
Cool climate vineyards were first planted at Joadja Creek in the 1870s, supplying Sydney with table grapes.
Established in 1990, Eling Forest was the second modern winery to be established in the cool climate area, with its first wines produced in 1993. 
Its first vines were planted by Leslie Fritz, who was then 80, and came from a long line of winemakers in Hungary. The then 157 hectare holding had cost $1.9 million in 1989.
The grapes are handpicked and vines hand pruned in the traditional manner at the Hume Highway property, with the wine fermented in stainless steel vats, then aged in American and French oak barrels. 
<a href="https://www.elingforest.com.au/cafe-a-cellar-door/gallery" target="_blank">About 120,000 bottles are currently produced plus "Apple Thief" ciders.</a>
The cool climate vineyard produces white and red wine varieties and blends sold through is cellar door which is open seven days a week.
There is an 1840 colonial homestead - restored in 2005 during the ownership of Ron Fryer - and other living quarters that provides accommodation in picturesque gardens tendered to at one point by Clause Crowe. 
It comes with function centre that caters for up to 200.
The former boxer Fortunato "Lucky" Gattellari and his brother Frank briefly bought into Eling Forest Winery, initially securing a small stake around 2003. Their venture, which soon soured, <a href="https://articles.chicagotribune.com/2003-01-22/entertainment/0301220080_1_winemaking-wine-bottle-australian" target="_blank">attracted international media interest</a>.
Other major vineyards in the highlands include the Centennial Vineyards at Bowral, established by the co-founders of Cellarmasters, John Piven Large and his partner, Mark Dowling.
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jchancellor-FAypfDUnLy

Eling Forest, Sutton Forest vineyard sold to Chinese interests

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Take a cursory look through the international press and reports on housing related matters, and it could be merged it into one text as property cycles become increasingly interrelated and investors search for ‘safe havens’ off-shore.
Overwhelmingly, affordability, bubbles, the rise of Asian investors, and fears of a new breed of non-home owning ‘renters’ dominates, and although headline chasing would place any sensationalist report front of line, the reader comments and related dialogue that follow present a familiar picture for the ordinary home buyer – no matter what reforms are taken, it never seems to get any easier. 
You could be forgiven in thinking it’s by some abject force of nature, bustled in at the time of the ‘big bang’ that property (or as I pointed out <a href="https://catherinecashmore.com.au/wp/?p=494" target="_blank">here</a>, ‘land’) is deemed unaffordable. Outpacing wage growth and inflation through the course of a cycle, subject to the whims of a bank’s propensity to lend - burdening buyers with one of the most stressful experiences they’ll go through in life. 
Or in the bleak words of the eminent poet <a href="https://www.youtube.com/watch?v=Lin-a2lTelg&amp;feature=kp" target="_blank">Leonard Cohen</a>:
“Everybody knows… That’s just the way it goes.”
This is what the real estate and finance industry would have you believe as they navigate through the fluctuations of the property cycle with authoritative analysis, on what and where to buy.  And no doubt, it’s been a prosperous affair.
The number of property investment <a href="https://www.propertybooks.com.au/">books</a> written by the ‘<a href="https://www.propertybooks.com.au/">I Did It - And You Can Too!</a>’ experts, belies belief. And yet, becoming successful in the game isn’t incredibly hard for anyone with an ounce of locational common sense. The authors are simply singing their own interpretation of an age-old song titled ‘Monopoly’. 
Over the course of a business cycle, which is both lead by, and correlated to the housing cycle, the gains – more correctly termed economic rent or “earnings from land,” alone - by far and away surpass those that can be gleaned from other more productive investments.
This was stressed in a recent submission by <a href="https://www.earthsharing.org.au/" target="_blank">Earthshare Australia</a> to the upcoming Senate enquiry into housing affordability:
“Unearned incomes in land increased a whopping $187 billion in the December 2013 quarter alone (<a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0" target="_blank">ABS 6416</a>). Total yearly dividends (2013), for investors engaged in risk, was recently reported at $84 billion – $103 billion less for an entire year.
(Leading them to question) “Why invest in small business or the ASX when one can earn more for less risk at a lower tax rate as a land speculator?”
These gains occur primarily because we choose to leave the larger proportion of ‘economic rent’ (mistakenly termed, ‘capital growth’ – however in this context, we are talking about the unimproved value of the site) locked in the land, rather than recycled back into community – from where it evolved.
Hence why housing is so expensive – the financial benefit derived from improving the surrounding facilities, is not effectively utilised – and our tax and supply policies do little to assist.
The Henry Tax review was not slow to <a href="https://taxreview.treasury.gov.au/content/finalreport.aspx?doc=html/publications/papers/final_report_part_1/chapter_12.htm" target="_blank">point this out</a>, when it suggested progressively scrapping a vast array of ‘bad taxes’ (payroll, insurance, vehicle registration, stamp duty, and forth, as well as reducing those that reward speculation) and instead, collecting more of the economic rent of natural resources - significantly land. (Notwithstanding, it was another government review which fell largely on deaf ears.)
Yet, historically, the capture of economic rent (through land tax and to some extent ‘betterment’ taxes) financed some of the most remarkable infrastructure we have. Sydney Harbour Bridge being a case in point.
The tale of a bridge and our accumulated wealth
It was <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/radionational/programs/rearvision/tony-abbotts-big-plans-at-odds-with-infrastructure-history/5404212" target="_blank">acknowledged</a> at the time, that residents on the north shore would benefit significantly from an increase in their property values as a result of this essential piece of infrastructure.  Therefore, a framework was set in place to capture a proportion of the uplift – approximately one third – to assist with funding. 
This was in no way detrimental to the property owners. 
The increased advantage of economic activity coupled with the rise in prices resulting from the enterprise, more than compensated. A win-win if you like – and readily accepted by the public as fair.
Over time, changes in the way both state and federal government collected tax moved focus away from land values, onto productivity, effectively, placing a fine on labour and doing a good job of keeping us asset rich and income poor.
It’s great for the haves – but not the ‘have-nots’ (our growing pool of tenants.)
Consequently, the wealth locked in our residential land market, through the process of this accrued speculation – sits at post $4 trillion (add the buildings on top, and it’s an estimated $5.02 trillion).
It’s so large a number; it’s almost meaningless in real terms.
In comparison, the UK housing market is assessed to be $5.2 trillion with a population of around 60 million, so the distribution across a population of 23 million, is telling.
It’s this, that enables publications, such as the <a href="https://www.credit-suisse.com/ch/en/news-and-expertise/topics/wealth.article/article/pwp/news-and-expertise/2012/10/en/global-wealth-report-locating-the-super-rich.html" target="_blank">Global Wealth Report</a> produced annually by Credit Suisse, to assess Australian’s to be the ‘richest in the world’ in median terms. 
In other words – if you stand everyone in a long line, richest to poorest, the middleman has more asset wealth than any other country assessed.
It should therefore come as no surprise that our wealthy know where to bank their dollars - and it’s not down the high street.
As economist <a href="https://www.project-syndicate.org/commentary/adair-turner-explains-how-a-fresh-wave-of-automation-is-transforming-employment-and-much-else" target="_blank">Adair Turner</a> and others have pointed out in response to a recent report by Oxfam, which demonstrates how Britain’s five richest families are wealthier than the poorest 20% of the population.  The riches are only in part derived through productive activity – the vast ‘wealth’ however, has been derived through ‘rents’ (unearned gains) in land.
If you thought wars were about religion – think again.
The compounded rent is effectively what we pay for when acquiring real estate – a calculation that takes into account expectations of future growth, minus expenses for the time held – along with a range of other variables such as wages and borrowing rates.
Yet capturing a greater percentage of annual land values, whilst at the same time reducing those on productivity holds much in its favour.
<ul>
<li>It reduces the propensity of boom/bust housing cycles. 
</li>
<li>Encourages timely construction and effective utilisation (good for both the economy, employment and consequently, our welfare state). 
</li>
<li>Aids infrastructure financing. 
</li>
<li>Supports decentralisation. 
</li>
<li>Assists in keeping the cost of shelter affordable – levelling to some degree, the playing field between non-owners and owners. 
</li>
<li>And importantly, in regions where it’s been implemented with <a href="https://catherinecashmore.com.au/wp/?p=414" target="_blank">success</a> - Pittsburgh and Pennsylvania being examples - most owners pay less tax when there’s a shift from productivity onto land, than would be the case otherwise.</li>
</ul>
Article continues on next page. Please click below. 
<hr class="system-pagebreak">
Change ahead?
Of course, to change the mindset of any nation that has been encouraged to use their housing investments as leverage for economic activity, a welfare fund for retirement, collateral for the advancement of business and commerce, and an ATM for family emergencies, is no easy task. 
Not to mention the many vested interests in both government and the property industry, all of which derive their income from the promotion of it.
However, it’s vitally important we do so – because it sits at the very base of everyconversation government is current having regarding the welfare state, cutting pensions, and increasing the working age until retirement.
Even in our technological age of driverless cars, lasers that can change the weather, 3D printers that can produce substitute body parts, and solar farms that can produce enough energy to run a small city, nothing is possible without the land which gives us the food we eat, the water we drink, the air we breathe, and a rich array of commodities to fuel our appetite for ‘growth.’
There is nothing to be gleaned in from the hording of land, and whilst secure private tenure of property is vital in so much as land needs to be cared for, cultivated, and effectively utilised, a proportion of unearned economic gains that come from the locational rent of the unimproved value alone – should not be privatised to the extent that prices escalate through the inducement of speculative gain.
Can supply policy solve it alone?
We talk a lot about supply, but whilst the status quo exists - rising land values being used as the primary driver for economic growth – high prices ensure land will only developed for profit, timed to capture the upward wave of a cycle, rather than developed to meet the immediate needs of a home buyer, which does little to deter the wasteful process of <a href="https://au.news.yahoo.com/thewest/business/wa/a/22865421/developers-choking-land-supply/" target="_blank">land banking</a>.
It is not insignificant that the burdens to supply policy, which we consistently criticise – the structural impediments to development - were implemented along side a gradual shift of the rental capture of land, onto productivity.
As <a href="https://www.bobday.com.au/PDF/Home-Truths-Revisited-May-2013.pdf" target="_blank">Bob Day asserts in his submission</a> to the Senate debate on housing affordability:
“The regulatory seeds of the housing affordability crisis were sown in the 1970s. Until then land was abundant and affordable, and the development of new suburbs was largely left to the private sector.”
The 1970s was not only the point at which urban zoning (a process of false scarcity) was imposed by state governments – it also came at a time at which any hope of tax capturing the fair uplift in land values to keep construction timely and offset soaring costs, had been truly eroded.
This, coupled with a shift in infrastructure financing – as private enterprise played an ever-increasing role and projects were no longer provided with capacity ahead of time, but required to prove revenue – ‘user pays’ whilst home owner benefits – was the beginning of the end.  
A Glance Back At Policy
Early settlers had rejected the British system of taxing both land and buildings, in favour of the methods advocated by the classical economist <a href="https://www.prosper.org.au/about/henry-george/" target="_blank">Henry George</a>, who had previously presented his ‘single tax' theory in Australia to thunderous success. 
However, over time, the government’s inept and poor administration in the regularity and standard of valuations, the creeping in of exemptions (including the family home) coupled with lobbying from large landholders - a group which have historically maintained the greatest political clout – significantly eroded the system, and by the 1950s an array of taxes were falling increasingly on productivity, rather than land. 
In 1953 when the Menzies government abolished the <a href="https://www.prosper.org.au/about/geoists-in-history/clyde-cameron/" target="_blank">Federal Land Tax</a>, rapid post war population growth had firmly laid the foundations for a thirst to profit through capital gain (mounting land values.
The then Labour party – which had historically always rallied in favour of raising revenue from the economic rent of land rather than productivity, were up in arms, prompting <a href="https://en.wikipedia.org/wiki/Arthur_Calwell" target="_blank">Arthur Calwell</a> to speak in opposition of the plan, passionately declaring:
“We have always believed in the land tax…The land belongs to the people, and its use must be safeguarded and protected at all times!” (Hansard, Vol 221, pp 165-170 passim)
However, it was the beginning of the end. Up until 1961 it was an integral part of the Labour platform. By 1963 however, the commitment had been omitted all together, apparently, <a href="https://www.cooperativeindividualism.org/cameron-clyde_how-labor-lost-its-way-2005" target="_blank">without conference approval</a>.
When Whitlam came to power in 1972 (see Bob Day’s comment above) he ignored any call to bring in legislation to collect the economic rent of land, instead of levying heavy direct and indirect taxes on income, and in so doing, a politically fabricated boom in land values was underway.
In the decades that followed, the promotion of negative gearing (1985), halving of the capital gains on investors (1999), onerous levies on development and upfront infrastructure costs passed onto buyers - grants, incentives and so forth, had little to do with the delivery of affordable housing, and everything to do with escalating land prices.
It should come as no surprise then, that large landowners and the commission side of the real estate industry, shy away from any changes to the tax system. The smoke screen debates on affordability and scrapping negative gearing are just that.
So what now?
Due to China-led resilience and economic stimulus Australia, although in no way unscathed, avoided the disastrous consequences of 2008, resulting in thousands of foreclosures across the US and Europe, whilst banks were bailed and families <a href="https://stephendonnelly.ie/betrayed-by-victorian-era-debtors-prison-mentality/" target="_blank">continue</a> to be evicted.
Not so the recession that marked the early 1990s.  
Affecting 17 out of 18 comparable OECD countries, high unemployment, a large current account deficit and elevated level of foreign debt left many economists gloomy Australia would ever achieve long lasting economic recovery.
Endless debate was given to the causes and consequence, which left policy makers reassuring the community that lessons’, would be learnt! However, as the then Governor of the RBA, <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/radionational/programs/saturdayextra/ian-macfarlane/3378434" target="_blank">Ian McFarlane, later summed up in his 2006 Boyer lecture</a>:
“Any boom built on rising asset prices financed by increased borrowing has to end.”
And considering the date this lecture was given (2006), the following comment was insightful:
“No-one though has a clear mandate at the moment to deal with the threat of major financial instability associated with an asset price boom and bust.”
It’s unfortunate that “no-one” happens to be our most influential political and economic policy makers – and indeed, we’re not alone. 
After every economic crisis, there is always the promise that events will never happen again – safe guards are put in place and eventually the wreckage is cleared. however happen they do, and reforms that promise otherwise repeatedly fail.
Significantly, globalisation, the interrelating of major economies, is adding to the volatile nature of each economic downturn.  As Wayne Swan asserted in his speech <a href="https://ministers.treasury.gov.au/DisplayDocs.aspx?doc=speeches/2009/006.htm&amp;pageID=005&amp;min=wms&amp;Year=&amp;DocType=" target="_blank">“A Future Of Promise”</a> given at The Sydney institute in 2007:
“It is, truly, the sharpest synchronised global downturn in living memory… And it's being inflicted on good Australians through no fault of their own.”
No cycle is exactly the same, but while history may not exactly mirror the past, patterns do emerge. 
There’s only one reason we have devastating house price booms and busts –  and that is speculation induced, in this case, through the privatisation of unearned gains.  And whilst some continue to reap a windfall from exploiting the process, we really need to pause and ask – Who is it really benefitting?
It’s time for change. 
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catherinecashmore-6LXia3pPQj

Who is really benefiting from the property cycle, and at what cost?

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Month end - again
Been blinkin' busy of late, and yesterday I was appalled to discover that according to my calendar it's already the start of a new month!
That being the case, with all the usual caveats about why spending too much time looking at monthly and quarterly dwelling price data might not be a smart idea, we can run a few calculations to show what RP Data will report in a few days time as their dwelling price movements for the month, quarter and year to date.
<div>
<a href="https://1.bp.blogspot.com/-yDRXr-mmbhI/U2A20wikabI/AAAAAAAAM1U/wtIDKYYc5eM/s1600/RPDq12014.jpg"><img src="https://1.bp.blogspot.com/-yDRXr-mmbhI/U2A20wikabI/AAAAAAAAM1U/wtIDKYYc5eM/s1600/RPDq12014.jpg"></a>
</div>
So, nationally dwelling prices were recorded as being +0.3% for the month, +2.6% for the quarter and an extremely strong +3.9% for the 2014 year to date, with the national figures being skewed by exceptionally strong growth in Sydney.
The strongest gains in 2014 have been in Sydney (+5.0%) as we <a href="/expert-insights/buying/crystal-ball-gazing-property-market-predictions-for-2014">confidently predicted</a> in our 2014 forecasts, with Melbourne just a tick behind (+4.9%).
Forecasting
I also explained in the same article why I'm not a big believer in property price forecasts...particularly those which claim to forecast to one decimal place!
Anyone who tells you that they have a model to predict prices to that level of accuracy is either (a) lying or (b) delusional.
It doesn't matter what econometric model you choose to build, eventually it will blow up due to an unforeseen X factor.
All you can really do is start with borrowing rates, household debt levels, market sentiment and fundamentals, economic and employment forecasts etc. and then build a base case from there.
But think of all the unpredictable events we've seen in recent years - the US sequester and fiscal cliff, the US debt ceiling crisis, Cyprus debt crisis, changes in monetary and fiscal policy...you just can't predict and factor in all that stuff.
So you either make a forecasts with a huge range (e.g. 12% to 30% growth in 2014) or you make a weighted average forecast, accept you'll probably be wrong and risk ending up looking like a total doofus (e.g. our own <a href="/expert-insights/buying/crystal-ball-gazing-property-market-predictions-for-2014">6% to 9%</a> in 2014 for Sydney).
As to whether or not Sydney overshoots the top of our expectations? Well, we're only a third of the way through the year, and that remains to be seen.
This all rather contrary to my investment philosophy in any case, which is that property should be seen as a 20-30 year investment decision, and ideally much longer still.
If you're banking on market price movements within a few years, then you're probably in the wrong game.
Other cities
You'll note from the <a href="/expert-insights/buying/crystal-ball-gazing-property-market-predictions-for-2014">same article</a> that we were generally less optimistic than almost everyone else about property prices in 2014, since we felt that houeshold debt levels were generally too high and annualised wages growth tracking too low to facilitate anything like the levels of nationwide dwelling price growth we've seen in cycles past.
Anyways, back to RP Data's figures.
Melbourne was next up for the year to date (+4.9%), though there's been plenty of chatter around easing auction clearance rates, and RP Data recorded a small fall for the month of April itself (-0.5%).
Some signs of life in Adelaide at last too! - although year-on-year the South Australian capital has still been the worst performing major capital city by a wide margin.
Still, prices have under-performed in Adelaide for so many years that some level of catch-up at last now appears due.
Other providers 
<div>Incidentally, I don't have any allegiance to particular data providers.</div>
<div> </div>
<div>And since I have no barrow to push on that front and have even less interest in the bickering between them (just look at all of them is my reckoning, and if necessary, give any outlying results the flick) below is what Australian Property Monitors recorded for the first quarter for houses and units.</div>
 
<a href="https://1.bp.blogspot.com/-_oT6dawPwtU/U2A4GLzG3aI/AAAAAAAAM1g/gHePLGV-THQ/s1600/APM+Q1.jpg"><img src="https://1.bp.blogspot.com/-_oT6dawPwtU/U2A4GLzG3aI/AAAAAAAAM1g/gHePLGV-THQ/s1600/APM+Q1.jpg"></a>
Sydney still clearly leading the recovery, both in terms of houses and apartments. Note, however, that these figures have been impacted by revisions to the December quarter figures. Without the revisions, Melbourne would have recorded extremely strong house price growth of more than 6% in the first quarter.
SQM Forecasts
<div>Our forecast for Sydney was 6% to 9% growth in 2014, taking the broad view that price growth could eventually be derailed as the year draws to a close and yields begin to sag, just as they did in 2003.</div>
<div> </div>
<div>At this stage that looks like that forecast be a touch under-cooked since prices are growing strongly, the market is tight and as yet there is no sign of interest rate hikes on the horizon to dampen sentiment.</div>
<a href="https://www.sqmresearch.com.au/NationalOutlookReport2014MediaRelease.pdf" target="_blank" style="line-height: 1.3em;">SQM Research forecast</a> very strong growth of 15-20% in Sydney in 2014. 
Natch these forecasts will be benchmarked against a different price series from the Australian Bureau of Statistics (ABS) at the end of the year, but for a bit of light interest as much as anything else, I've been tracking their annual forecasts against RP Data's Daily Home Value Index. A bit of mental gymnastics tells me that since a third of the year has gone and Sydney's dwelling price index has been humming along at 5% YTD price growth, then prices should be tracking right at the bottom end of SQM's forecast range:
<div>
<div class="separator"><a href="https://4.bp.blogspot.com/-VCZ8faEN_uE/U2A6l_2ELbI/AAAAAAAAM14/gDX2r-x_Ym4/s1600/SQM2014SYD.jpg"><img src="https://4.bp.blogspot.com/-VCZ8faEN_uE/U2A6l_2ELbI/AAAAAAAAM14/gDX2r-x_Ym4/s1600/SQM2014SYD.jpg"></a></div>
And indeed, so they are.
</div>
<div>
And below are SQM's national forecasts benchmarked against RP Data's index for the first four months of the year.
<a href="https://2.bp.blogspot.com/-5v6TwFilem0/U2A65csTnZI/AAAAAAAAM2A/nbrhiJzcs-A/s1600/SQM2014AUS.jpg"><img src="https://2.bp.blogspot.com/-5v6TwFilem0/U2A65csTnZI/AAAAAAAAM2A/nbrhiJzcs-A/s1600/SQM2014AUS.jpg"></a>
Only a third of the year gone, but at this stage I'd take a bet that their national dwelling price forecast could prove to be bang on the money when benchmarked against the ABS series.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His new book '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' is out now.
</div>
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pwargent-M4siyDbqQY

Dwelling prices rise further in April

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The release of the Commission of Audit yesterday has recommended the federal government abolish support for funding through the <a href="https://www.propertyobserver.com.au/https://www.startupsmart.com.au/financing-a-business/commission-says-startups-should-not-receive-government-help/2014050112201" target="_blank">Commercialisation Australia and Innovation Investment Fund</a>.
The commission believes the government should stop providing assistance to startups as there was no greater public benefit, with benefits only for the companies.
“The intellectual property, and any profits arising from these new ideas remains with the business, and there are no clear public benefits arising,” the report says.
“The process of commercialising new products can often be a difficult one.
“However, skills and finance can be acquired from the private sector, and there is no clear reason for the Commonwealth to provide this assistance in competition with private sector providers.”
We spoke to a number of investors about their reaction to the recommendation and what impact, if any, it would have on the community.
Rui Rodrigues, investment manager, <a href="https://www.tankstream.vc/" target="_blank">Tank Stream Ventures</a>:
Rodrigues says that while the tech sector is not reliant on these grants, and nor should they be, there will be an impact in the industry should the recommendations be approved by the government.
“There grants are important in early stage startups and there will be consequences for the sector if they are abolished,” Rodrigues says.
He points out that Commercialisation Australia was responsible for commercialising Wi-Fi (a method was developed and patented by Australian CSIRO researchers to "unsmear" radio waves that echo off indoor surfaces making Wi-Fi possible) something the government was still reaping rewards from through licensing.
He says the audit was not well executed and there were no ideas on how to support innovation and no recommendations on how things could be done better.
“Companies will continue with these grants or not, it’s not critical, but they will be impacted,” Rodrigues says.  
Governments should not be responsible for investment in startups, but they do need to put incentives in place to facilitate it from the private sector.”
Adrian Stone, chairman, <a href="https://www.investorsorg.com/" target="_blank">Investor’s Org</a> and early stage investor:
Stone says his concern is for early stage startups, which were never well-supported by their Commercialisation Australia or the Innovation Investment Fund.
“They were relics of the old days developed along a manufacturing model that did not support startups well,” he says.
The crucial factor here, according to Stone, is that early stage investment represents better “bang for your buck.” Using government money to get in early would represent a greater reward to the economy in the long-run with smaller amounts of money needed.
“The Commercialisation Grant should stay, but it needs to be simplified,” Stone says. “Governments should be co-investing with investors and accelerators that know and understand the market.”
He says IIR was never relevant and in setting up accelerator Inspire 9, of which he is a partner, there was no government support available.
He says a new process that was quicker and simpler was needed by the industry and the current commercialisation grant, which insisted on startups being “pre-revenue”, went against lean startup best principles, forcing startups to apply at a stage where they hadn’t proven their viability as a business.
Clearly the government had a mandate to save money without giving much thought to the longer term impact beyond two years, he adds.
This article first appeared on <a href="https://www.startupsmart.com.au/" target="_blank">StartUpSmart</a>.
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jake-cSmGT7VXVf

Investors react to Commission of Audit recommendations

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International cosmetics retailer Sephora will arrive in Australia in time for Christmas, with the retailer confirming on Thursday that it will open a stand-alone store in Sydney’s CBD in December.
After <a href="https://www.smartcompany.com.au/marketing/sales/41469-sephora-tipped-to-open-in-australia" target="_blank">reports earlier this year</a> that the retailer would enter the Australian market in the first half of 2015, <a href="https://www.afr.com/p/business/companies/sephora_to_open_first_australian_PzbdFGr3eLfG9vgtnaKtUN" target="_blank">Fairfax reports</a> Sephora has secured a three-level 800 square metres store in Pitt Street Mall which is currently occupied by clothing retailer Esprit.
It’s just the first step in the retailer’s ambitious plans to shake up the local beauty and cosmetics market, with Ravi Thakran, group president for Asia and the Middle East for parent company LVMH, telling Fairfax there is room for around 20 Sephora stores to launch in Australia in coming years.
Sephora is the fastest growing brand within the LVMH group, which includes other brands such as Louis Vuitton, Givenchy and Bulgari.
The retailer will be hoping to secure a share of Australia’s cosmetic and toiletry sector, which according to the latest figures from IBISWorld generates annual revenues of $5.5 billion, and is projected to grow at an annual rate of 3% over the next five years.
Senior IBISWorld analyst Caroline Finch told SmartCompany the local cosmetics market is “big bikkies”, with local shoppers choosing to spend their cash with a variety of retailers, including David Jones and Myer, Priceline, and speciality retailers such as Aesop and the Body Shop.
As the latest <a href="https://www.smartcompany.com.au/growth/economy/33935-uniqlo-to-open-first-australian-store-in-melbourne" target="_blank">international retailer to set its sights on the Australian market</a>, we’ve pulled together three quick pieces of information you probably didn’t know about Sephora.
1. European market leader
Sephora has a long history in the European beauty and cosmetics market, having been founded in in 1969. The retailer is now the market leader in Europe, as well as holding a large portion of the United States cosmetics market.
The business was acquired by LVMH in 1997 and now operates more than 1,400 stores in 30 countries.
2. A wide range of premium products
According to Finch, Sephora will opt for a “targeted approach” to the Australian market that will be based on offering an extensive range of premium beauty products, including high-end brands such as Marc Jacobs not currently distributed locally.
For this reason, Finch believes the retailer will pose the biggest threat to DJs and Myer, rather than Priceline, which competes on everyday low prices. In fact, Finch says Sephora may complement Priceline’s strategy, with customers choosing to buy high-end products from Sephora but continuing to visit Priceline for basics.
3. More bang for your buck
Finch says the biggest challenge for the department stores will come from Sephora’s customer service strategy, with the retailer’s sales staff able to sell across brands.
While sales staff at DJs and Myer work on commissions, customers visiting Sephora stores will be shown products from more than one retailer at a time. Finch says this is likely to please shoppers, who will see value in the approach.
Internationally, Sephora is also known for providing free samples to its customers, another feature of the retailer’s strategy likely to impress local shoppers.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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ekeating-PWvazjYE25

International cosmetics giant Sephora to open first Australian store in December

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GUEST OBSERVATION
If you own a rental property you could be one of the 110,000 investors who will be getting a letter from the Australian Tax Office (ATO) about your tax liabilities.
The ATO has announced that it will be writing to a sample of rental property owners about their tax obligations and entitlements, after new data mining technology identified that property investors may have submitted incorrect tax claims in prior tax years.
The ATO are targeting aggressive expense deductions and particularly the estimated two thirds of property investors who are negatively gearing their investments and claiming losses on their investment properties to offset their tax bills.
If you fall into this category, the following tips might be worth considering when you are completing your tax return.
What’s the status of the property?
Firstly, it’s vital that, if you’re claiming deductions, your rental property needs to be rented or available for rent. If a property is not available for rent, then expenses incurred by a taxpayer are not deductible.
This would seem an obvious point, but it’s worth remembering particularly if your property – as a holiday home or other part-time accommodation - is not rented out across the entire year. If that’s the case, remember that you can only claim deductions for the period that the property is rented or available for rent.
Who’s the owner?
It’s also worth remembering that the legal ownership of the rental property determines the proportion of ownership and entitlement to deductions on your individual tax return. This means that if a husband and wife purchase a rental property in joint names, then their levels of ownership will be 50/50 unless stated otherwise in the purchase contract.
Categories of deduction
Generally, the ATO specifies three types of rental property expenses:
<ul>
<li>Those which you cannot claim a deduction. 
</li>
<li>Those which can be claimed as an immediate deduction in the financial year in which they were incurred. 
</li>
<li>Those that can be deducted over a number of years.</li>
</ul>
Capital or personal expenses aren’t deductible, although you may be able to claim decline in value deductions (depreciation) or capital works deductions, or include certain capital costs in the cost base of the property for capital gains tax purposes. Other examples across each of the three categories are outlined in the sidebar alongside this article.
The picture also gets a bit more complicated when other considerations are factored in. For example, if you take out a loan to purchase a rental property, you can claim the interest charged on that loan as a deduction. However, if the loan is taken out for more than one purpose, you can only claim the interest relevant to the amount borrowed for the rental property. Depending on your circumstances, there may also be potential to claim prepaid interest to maximise your deductions.
Another factor which often confuses owners is the area of repairs and improvements to the property. Spending on repairs and maintenance is tax deductible, but you can’t immediately deduct costs on improvements and total replacements of items, as these are considered capital in nature. However, you might be able to claim depreciation and capital allowances on some improvements.
And, if you’re looking to fix something straight after buying the property, remember that you cannot claim initial repair costs for deterioration and damage already there when you bought the property until at least 12 months after purchase
You should consider getting a quantity surveyor’s depreciation report to ensure you can claim the maximum depreciation and capital allowances deductions. A specialist quantity surveyor can visit your property and prepare a depreciation report that will cover the actual building and the items within it (such as air-conditioner, stove, hot water service, etc).
It’s also worth consulting your accountant before you leap into the property investment space. Given the issues outlined above, tax time can be complex for property investors. When it comes to completing your tax return, working with your accountant to get it right can save a great deal of paperwork – and cost – down the track.
Daniel Deutsch is a partner at <a href="https://www.marinaccountants.com.au/" target="_blank">Marin Accountants</a>, a firm specialising in advice for individuals, investors and family businesses. 
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