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“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into.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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Chinese smartphone maker Xiaomi is looking to expand internationally during 2014, with the south-east Asian region a likely first growth target, according to reports.
According to <a target="_blank" href="https://www.techinasia.com/xiaomi-sets-its-sights-on-southeast-asia-with-plans-to-set-up-singapore-office-as-quickly-as-possible/">TechInAsia</a>, the Chinese tech company has revealed it is looking at south-east Asia as it next market, with its first stop “most likely” in Singapore.
Hugo Barra, who resigned in August as Google’s vice president of product management in favour of the position at Xiaomi under chief executive Lei Jun, revealed the company views Singapore as an important regional hub.
“I’ve been spending a lot of time with potential partners in other countries, in south-east Asia primarily,” Barra said.
“We just came back from a trip to Singapore a few weeks ago, and we’re trying to get our operations for south-east Asia set up as quickly as possible.
“It’s an important hub for the region. A lot of businesses start there, so that’s why we researched that area first.”
The Chinese smartphone maker first gained the attention of the tech industry after analysts noted it had beaten a range of established rivals, including ZTE, HTC and Lenovo, to claim one of the <a target="_blank" href="https://www.smartcompany.com.au/technology/information-technology/34035-xiaomi-claims-top-five-spot-in-chinese-smartphone-market">top five spots in the Chinese smartphone market</a>.
Xiaomi is estimated to now claim around 7.1% of the Chinese smartphone market, a higher share than larger rivals such as HTC (6.8%), Lenovo (6.3%) and ZTE (5.1%).
China is believed to be the world’s largest by volume.
<a target="_blank" href="https://www.smartcompany.com.au/technology/information-technology/34159-xiaomi-sells-100-000-mi3-smartphones-in-90-seconds-says-hugo-barra">In October</a>, Xiaomi made headlines after Barra claimed it had sold 100,000 of its Mi3 smartphones within just 90 seconds of its launch.
The feats were made all the more impressive by the fact the company only launched in 2010 and didn’t begin shipping smartphones until 2011.
However, the company has often been criticised as being an Apple imitator due to Jun’s preference for black mock turtleneck tops and jeans, along with the company’s use of an iOS-style user interface, called MIUI, on top of Android.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
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jake-cSmGT7VXVf

Chinese smartphone maker eyes up international expansion

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Over the last three years, the Aussie dollar has outperformed just about all other currencies.
In recent weeks, however, sentiment has turned bearish with many analysts predicting a rate closer to 80 US cents 12 months from now. The pendulum is swinging in the opposite direction now that the UK, Europe and the US economies are all showing some healthy signs of recovery.
Magnetic forces at play
Given the exchange rate is a relative value (one currency against another) it may help to think of exchange rate influences as magnetic forces where the opposites attract. So if, for example, one side of the currency (the Australian economy) is performing badly and the other side (the US) is improving or growing strongly then these opposite forces work together to move the currency quickly.
This is what we have seen drive the value of the AUD down at the same time that the USD is being pushed higher, triggering the recent move lower from 97 cents to 90 cents in two months.
It is these same forces (in the opposite direction) that drove the AUD/USD exchange rate higher between 2009 and 2011. When both forces are moving in the same direction it then becomes a game of inches and we see more stable trading ranges and a decrease in volatility.
So will these opposite forces persist in 2014?
It seems the new year will begin in the same vein with US and UK economies in particular expected to continue their recovery. The markets have been fixated by the US Federal Reserve and its quantitative easing program with a general expectation that they will begin to wind down their monthly purchases of around 85 billion USD a month. The question is not if but when.
This will serve to strengthen the USD as it will decrease the money supply. We have already seen this begin to play out in recent months and Fridays stronger than expected employment report has only increased speculation this may occur at the Fed’s next meeting on December 17.
As things stand, and if everything goes to plan (mind you it rarely does), towards the end of 2014 or early 2015 could coincide with a possible increase in US interest rates which would add to the USD strength. The market has just about priced this in already and so I expect the pace of the decline in the Aussie dollar to slow.
Losers beware
Importers, travellers and overseas property buyers are set to lose out from a lower Aussie dollar in 2014. But it doesn’t have to be this way. There are tools available to those concerned about a lower Aussie dollar in 2014 and it pays to plan ahead.
Importers and property investors can use hedging tools such as forward exchange contracts or options, while travellers can take advantage by locking in travel money in advance of an overseas trip on foreign currency debit cards.
By locking in exchange rates in advance the Australian dollar cost base is fixed, providing cash flow certainty and peace of mind.
<a href="https://www.linkedin.com/in/jimvrondas" target="_blank">
<hr>
Jim Vrondas</a> is chief currency and payment strategist, Asia-Pacific at <a href="https://www.ozforex.com.au/" target="_blank">OzForex</a>, Australia's leading international money transfer service. 
OzForex's cutting edge technology powers foreign exchange services for 100,000 private and institutional clients across six continents, and the company is a key provider of <a href="https://www.ozforex.com.au/news-commentary/daily" target="_blank">forex news</a>.
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
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The magnetic forces behind the Australian dollar in 2014

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The great divide facing Australia CBD office markets deepened in the third quarter of this year.
While office investment activity soared in the three months to September, CBRE's latest Q3 Australia Office MarketView report showed that weakening business investment across the board had prompted occupiers to increase their focus on preserving margins.
Click to enlarge
<a rel="shadowbox" href="/images/stories/2013/12/11/chart-of-the-week-dec-11-big.gif" title="Click to enlarge"><img src="/images/stories/2013/12/11/chart-of-the-week-dec-101-small.gif"></a>
"As a result of occupiers adopting cost saving measures, employment growth in the office market has slowed markedly, while a number of CBD tenants are also consolidating or contracting operations and therefore, space requirements," the report said.
CBRE Senior Research Manager Claire Cupitt said that had led to negative net absorption in all markets so far this year.
CBRE is forecasting that in 2013, a total of 170,000 square metres of negative net absorption is due to be recorded in all major CBD's  nationally – 30,000 square metres more than in 2009 during the depths of the Global Financial Crisis.
Hardest hit has been the Brisbane office market, with the CBD recording about 90,000 square metres of negative net absorption.
Ms Cupitt said it was anticipating demand for space over the next few years would be largely driven by the business service sector in line with broad sector based economic improvement.
The report also highlighted the rise in sublease availability across Sydney, Melbourne, Brisbane and Perth, pointing out that in some cases it was at historic highs.
"Space consolidation and contraction accounts for approximately 80% of sublease availability in the Sydney CBD," it noted.
CBRE regional director of office services Andrew Tracey said in line with the shift in sublease availability, incentives had increased in most markets.
Melbourne and Brisbane CBD incentives are currently around 30%, while Perth CBD incentives also continue their upward momentum, with expectations of 14% by the end of the year.
The national vacancy rate stood at about 10.1%, but CBRE pointed out that several capital city markets experienced record high availability. Melbourne vacancy rates have peaked at 9.8% - up from 7.0% in July and Brisbane’s CBD has reached an unprecedented 14.1%.
Rents remained unchanged in the quarter.
Despite those weakening fundamentals, investment activity remained strong in the third quarter, with domestic and offshore investors outlaying $3 billion purchasing office assets around the country.
The Sydney CBD accounted for $785 million worth of sales during the quarter.
CBRE is tipping prime yields in Sydney to hover at 7.20% by the end of 2013 – down 30 basis points from December 2012, while Melbourne prime yields are expected to average 6.8% at the end of the year.
Brisbane prime yields are forecast to average around current levels of 7.70% at year end and Perth yields are also expected to remain steady at 8.00% into early 2014.
<a target="_blank" href="mailto:news@propertyobserver.com.au">news@propertyobserver.com.au</a> 
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kjiminez-eaYKfU7qd2

Divide within CBD office markets deepens: CBRE

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Median house prices are a useful tool for analysing growth in the property market and looking at which suburbs are doing well. However, it is important to remember that median house prices can be skewed by a few particularly low or particularly high sales in an area.  So breaking down the prices within a suburb according to whether the property sold was a house or unit and how many bedrooms it had can give a more detailed and useful snapshot of what is happening.  
For example, while the median price of a one-bedroom unit in Melbourne was $340,000 in September, it was $355,500 in inner Melbourne and only $240,000 in outer Melbourne.  
Checking out particular suburbs shows even more variation.  For example, a one-bedroom unit in Collingwood had a median price of $335,500 in September – $20,000 below the overall inner Melbourne price.  But just across the street in neighbouring Fitzroy, a one-bedroom unit had a median price of $390,000 and a one-bedroom unit in nearby Abbotsford's median was $370,000.  
Research is essential for investors looking for the highest rental yields or capital growth, for downsizers wanting to free up home equity but stay in the same neighbourhood and for those feeling squeezed out of their preferred suburbs.  
Suburb-by-suburb information about median prices according to property type and number of bedrooms for the 12 months to September is now available free on the REIV website at <a href="https://reiv.com.au/BedroomMedians" target="_blank">reiv.com.au/BedroomMedians</a>.
Investors will be particularly interested to know that this also includes weekly median rents, gross rental yield and five-year annual capital growth.  Simply click on a suburb and all the information about it will appear.

<hr>
Enzo Raimondo is CEO of the <a rel="nofollow" href="https://www.reiv.com.au/" target="_blank">Real Estate Institute of Victoria</a>.
 
 
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enzoraimond-7fvRFHPR52

The limits to median house price data

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Online shopping for Christmas gifts is becoming the norm for shoppers, with 65% planning to buy a gift via local websites this year, new research shows.
A survey of more than 1000 shoppers conducted by financial services group Aussie found that 47.7% of shoppers plan to buy a gift from overseas retailers.
However 4.4% confessed they stop at a service station on Christmas Day to buy a last-minute gift, while 24.3% do their shopping at a local shopping centre on Christmas Eve.
Aussie chief executive Ian Corfield said that local and online retailers are making a “real dent” in Australian’s gift spending habits.
One quarter of shoppers plan to spend between $250 to $499 on gifts, while almost 19% intend to spend between $1000 and $1999.
Just over 15% responded that they will spend between $750 to $999 on spoiling friends and family.
The remaining 5.7% intend to spend under $249 in total on gifts.
Cash looks set to be the number one method of payment for gifts, at 67.6%, followed by credit cards at 54.3% and debit cards at 48.8%.
PayPal and other online purchasing tools will get a solid workout, 32.4% of respondents intending to use them.
“It looks like Australians will be racking up many millions of dollars in credit card fees again this Christmas,” Corfield said.
The survey also found that 70% of shoppers do their shopping at a steady pace leading up to Christmas, while 60% dedicated a full day to get it done before December 25.
Handmade gifts still got a look-in, with just over a 25% intending to give things they had created themselves. And 8.3% said they will re-gift last year’s presents.
The results come as Australian Christmas shoppers are forecast to spend $7.07 billion this week, up $490 million from last week, in the second-biggest shopping week of the year, according to the Australian National Retailers Association Christmas Retail Index.
This is part of a <a target="_blank" href="https://www.smartcompany.com.au/marketing/sales/34545-pre-christmas-spending-tipped-to-rise-to-42-1-billion-but-it-s-not-the-whole-picture">$42.1 billion expected spend on Christmas</a> from November 14 until Christmas Eve.
ANRA chief executive officer Margy Osmond said the next two weeks will see the bulk of Christmas shopping occur.
“We’ve reached the serious end of the shopping calendar and Australian shoppers are expected to spend almost $16 billion over the next fortnight in what will be the two biggest shopping weeks of the entire year,” she said.
“Bricks-and-mortar stores will experience a sizeable increase in sales at the till, with spending expected to hit $5.5 billion – an increase of 32% since last week.
“Domestic online retailers will have their biggest week of the year where sales will reach $1.55 billion – up 23% on last week’s figure.
“Overseas online purchases will begin to peter off as the delivery deadline closes in and shoppers look for other alternatives to ensure they’ve crossed everyone off the Christmas shopping list.
Ormond said that shoppers in NSW will make the biggest contribution to sales, spending about $2.15 billion, while in Queensland they will spend $1.49 billion.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
 
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moliver-7qYWqnHmyR

Online retail a priority for buying Christmas gifts, but some still dash into the servo

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“It is potentially the biggest economic and social challenge we face. Yet, it hardly registers in the popular debates. Within the lifetime of the typical Australian the number of people living here is expected to jump 60% from 23.3 million today to 37.6 million by 2050.” <a target="_blank" href="https://www.afr.com/p/national/why_australia_needs_to_get_real_7hEC3IX0RZWitSkELPcJEI" title="Why Australia needs to get real on population growth">Why Australia needs to get real on population growth</a> by Christopher Joye in the Australian Financial Review shows exactly why the modern day politicians are more concerned about re-election over strategic policy making.
Just this week we saw <a target="_blank" href="https://www.dailytelegraph.com.au/news/nsw/sydneys-weekend-traffic-not-only-rivals-weekday-peak-hour-but-also-lasts-through-most-of-the-day/story-fni0cx12-1226766853634" title="Sydney’s weekend traffic not only rivals weekday peak hour but also lasts through most of the day ">Sydney’s weekend traffic not only rivals weekday peak hour but also lasts through most of the day </a>where traffic at 11am on a weekend is now the same as at 5pm on a weekday, where there are close to 500,000 travelers on Sydney roads, according to the state government’s Household Travel Survey 2011–12. The problem is now that bad that the state government is now introducing permanent weekend clearways which will definitely enrage local businesses that rely on this parking for passing trade. As they roll out more and more permanent weekend clearways local councils will be forced to provide more community parking facilities – but where?
The only intelligent alternative that I can see is under existing playing fields – for example a super car park built under Alan Border Oval would be a perfect example. Councils could then charge for all day parking which would see less cars going to the city with direct bus and ferry transport packages sold to those using the car park.
Even if many see such a proposal to be farfetched, we approximately know what the population will be in 2050 but have absolutely no idea what needs to be done to meet this surge in population.
It is just as interesting to note that car ownership is up 24% over the past decade to 2.6 million vehicles whilst the city’s population has grown by 12% to 4.5 million people. There are now 1.54 vehicles for every Sydney household. About 42% of households own two or more cars.
Today, we see the state government investing robustly in future road projects like WestConnex and the M2 to M1 link, however there needs to be much more. The only problem as to why there is not more is simply due to governments having insufficient funds, which paints a very sad long term view of where we will be in 37 years’ time.
<img src="/images/stories/2013/12/09/abs-dec-9-two.gif" width="470" height="292" alt="abs-dec-9-two">
<img src="/images/stories/2013/12/09/abs-dec-9-one.gif" width="470" height="174" alt="abs-dec-9-one">
Source: ABS
Interestingly HIA chief economist, Harley Dale, commented that these updated projections represent a “massive shift” and “it is now clear that the Australian Bureau of Statistics (ABS) has been materially underestimating real population growth rates for some time.”
Christopher Joye for years has criticised ABS projections for being too conservative. In a speech to the Housing Industry Association in July he posited that the nation faced a “population planning crisis” that could precede an equally serious housing and infrastructure catastrophe.
CommSec’s Craig James said: “Who would have thought 10 years ago that we would be building more apartments than free-standing homes today.
“At the end of the day somebody has to take a stand and drive this agenda.”
I would have thought a Housing Minister would be a great start and Malcolm Turnbull would be the ideal candidate. Makes one find it hard to comprehend the reasons why, Prime Minister Tony Abbott does not see a need for a Housing Minister in his government.
We observed this week a rapid decline in the number of houses on the market as vendors conclude negotiations for 2013. Surprisingly our peak selling season this year (spring/summer) failed to break the 100 mark although on November 21 it did reach 99.
I was scanning through Twitter (at home) this week and I came across an interesting conversation about property auction statistics <a target="_blank" href="https://www.afr.com/p/business/property/auctions_missing_sydney_impossible_o3CDeT026j6UhTA4ZvgJ5N" title="1438 auctions missing: Sydney’s Impossible Property Search">1,438 auctions missing: Sydney’s Impossible Property Search</a>. “Looking back at the data for Sydney from APM, only 510 (483 auctions + 27 withdrawn) actually got reported. So an incredible 392 (902 – 510) auctions went missing. Of those 510 auctions that did get reported, there were 410 that sold, giving a reported auction clearance rate of 80.4% (410/510).”
“Using APM’s data: my transparent calculations show the real clearance rate was a decidedly chilly 45.5% (410/902); the lowest clearance rate since 13 April 2013.
“Once again there is a huge difference between the reported rate and the real rate. This week it was 34.9 percentage points; the biggest difference since I started collating the data in March 2013.”
This has been going on for years and these figures have been fudged by agents to prop-up clearance rates, and APM is after all owned by Fairfax Media whose very own print media revenues are struggling.

<hr>
Robert Simeon is a director of <a style="font-size: 14px;" title="RWM" href="https://www.rwm.com.au/" target="_blank" rel="nofollow">Richardson  Wrench Mosman and Neutral Bay </a>and has been selling residential real estate in Sydney since 1985. 
He has also been writing real estate blog <a title="Virtual Realty News" href="https://www.rwm.com.au/news/" target="_blank" rel="nofollow">Virtual Realty News</a> since 2000. 
The RWM real estate model has sold in excess of $1 billion in database sales globally.
 
 
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Our politicians are ignoring the realities of population growth

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Australia is fast becoming a mecca for international retail brands.  What’s behind this modern-day gold rush and what do landlords need to do to attract these iconic global brands?
The retail landscape in Australia has changed forever.  With the rise of online retailing, Australian consumers suddenly realised there was more out there – greater range, greater variety and faster access to the latest fashions, electronics and a whole host of consumer goods.  And of course there’s the value question – the economies of scale available to those brands that started out in Europe and the US, meant that they could offer their products at far more competitive prices.  All these factors meant that Australian consumer started demanding change.  They wanted more variety and they were seeking value.
In response, we saw an initial wave of truly international brands coming to our shores.  Fashion brand Zara was one of the first, along with iconic technology brands Apple and Samsung.  These three brands have been highly successful in Australia.  Their global counterparts watched closely and they were keen to get a slice of the action when they saw what a successful move it was for these pioneers.
The second round of international retailers is starting to migrate to our shores.  Brands like Gap, H&amp;M, Uniqlo, River Island, Mango, Pottery Barn and Williams Sonoma have either recently opened their doors or have announced their intention to do so shortly.
So what is it that differentiates these brands from a landlord’s perspective?  As a landlord, you’re probably used to the demand for 125 square metre ground floor retail spaces from Australian retailers.  With these international brands it’s time to think again.  These retailers are looking for spaces of 600 square metres and upwards, and they’re not afraid to take on multi-level spaces.  Just look at the Zara shop in Westfield Sydney, which is over three floors.  They’ve cleverly designed it to draw the consumer in on the ground floor with women’s fashion, but once you’re in your drawn to the other levels, which offer their entire range of products from men’s wear to kids, tweens and so on.  This is another differentiator.  Few Australian brands offer the variety that these international brands offer.
It’s also important for landlords to be sympathetic towards the international brand itself.  These brands have a proven concept that is tried and tested across the globe.  They don’t compromise on their look and feel and it’s important that local landlords respect this and work with them.  Be it floor space, layout, street frontage or a myriad of other complexities, it’s important to realise they do things differently and there are certain brand attributes that they simply won’t be flexible with.
For most international brands their first site is generally the CBD flagship brand awareness store – their greatest tool in launching the brand into the country, and then they’ll look at super regional centres.  For landlords wanting to attract these tenants, the key is to demonstrate they have the customer base who will be attracted to this brand.  It’s all about having a strong market share, the right customer base and ultimately volume of sales.  Hollster moving into Bondi Junction is a great example of this.  Chadstone has also done a phenomenal job of positioning themselves for these retailers, and with such a stable of international brands already in residence they are the natural choice for the second wave coming in.
The outlook for these international brands coming to our shores is positive.  With a number of significant new CBD projects launching in the next two years, we’re estimating there will be more than 30 new stores launched to host a range of international retailers including many premium and luxury brands.  The time is right for local retail landlords to change the way they think to accommodate these new players.

<hr>
Michael Bate is head of retail at <a target="_blank" href="https://www.colliers.com.au">Colliers International</a>.
 
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How can landlords attract top-tier international retail brands?

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The latest affordability index by the Adelaide Bank and Real Estate Institute of Australia has once again flooded the real estate headlines with the jolly news that housing is growing ever more affordable.  
This pre Christmas gift of optimism from the newly updated affordability studies commissioned by the financial and real estate sectors, comes with a host of commentary – usually from those with a vested interest – who happily advise aspiring home owners that ‘they’ve never had it so good’ – in other words, to paraphrase Terry Ryder’s thoughts, first home buyers should <a href="/news">‘put up, or shut up.’</a>  
Of course, it wouldn’t be half as palatable if it didn’t come accompanied with the seeming contradiction that not only is it more affordable than it’s been in the last decade (according to the HIA-Commonwealth Bank affordability index), it’s also substantially more expensive than its ever been. Yes, housing is only item than can be both affordable and unaffordable at the same time.  Work that one out Einstein.  
In fact, according to <a href="#more-3603" target="_blank">Residex</a>, median prices in both Sydney and Melbourne have already exceeded their historical highs, ‘nudging’ $750,000 in Sydney and $600,000 in Melbourne - additionally, Perth has also reached its previous peak of 2008, with a median price of $521,000.  
<a href="https://www.rpdata.com/" target="_blank">RP Data’s</a> dwelling price index shows a year to date increase of 14.3% in Sydney, 6.4% in Melbourne and 9.7% in Perth.  For home buyers, the benefit derived from lower lending rates has been all but offset by the inflationary pressure placed on prices.  
Rarely is it mentioned that housing affordability and the cost of servicing a mortgage are two separate entities.  
Mortgage rates are set up with different structures dependant on circumstance, and subject to interest rate changes influenced by the macro environment.  
To take out a 25 year mortgage requires the expectation of secure employment in a terrain where frequent job changes or part time work are becoming a norm.  
They may influence house prices through a cycle, but they do not take away the fact that home prices now – even with lower lending rates – require longer terms to pay down, with the interest over the duration of that period adding considerably to the capital cost.  
In fact I couldn’t put it any better than current governor of the Bank of England - <a href="https://www.theguardian.com/business/2013/nov/29/mark-carney-bank-of-england-home-buyer-warning" target="_blank">Mark Carney</a>, when he warns;  
“Think about the mortgage you are taking on, the debts you are taking on…You are taking at least a 25-year mortgage, maybe a 30-year mortgage.  Are you going to be able to service that mortgage five years from now, 10 years from now, if interest rates are higher? Or are you counting, even subconsciously, on the price of your house keeping going up and if something happens an ability to sell it quickly and not facing the consequences of not being able to pay?"
Carney’s cautionary words pre-empt the Bank of England’s decision to scale back its inflationary Funding for Lending Scheme amidst fears of a rapid escalation of house prices in the south-eastern regions of the country.  
From next year funding for lending will only be available for business loans -not mortgages – and if the banking sector’s concerned about signs of frothiness in an industry in which it’s heavily invested, so should we also be.  
The Bank of England governor is not alone. Central banks in Sweden, Hong Kong, Norway, New Zealand, Canada and Switzerland (to name but a few) have all adopted macro prudential measures to buffer against the associated risks of a boom/bust investor lead recovery in a post GFC environment - highlighting the importance of keeping lending standards robust – all, that is,  except Australia.  
Having weathered the impact of the GFC a little more effectively than others – the RBA seem to think we live in some magic faraway tree, effectively doing little more than wagging a cautionary finger to a sector which for the duration of the year, have outstripped owner-occupier lending with well over a third of all new loans on interest only terms and roughly the same proportion with LVRs of over 8%.  
In other words, there are still over a third of all loans in which the principle is not being reduced – with 37.3% lent on these terms for the September quarter alone.  
In NSW, investment lending is at record highs, making up over 50% of the market and although many use the well worn argument that the unwanted boom is predominant ‘only in Sydney’ – let’s not forget, Sydney is not some nether land off the coast of Tasmania. What happens in our biggest capital, with the largest and most diverse economy in Australia, inevitably impacts us all.  
Historically, this sector is more sensitive to interest rate changes with a tendency to wax and wain pro cyclically with market movements, exaggerating both gains and falls.  A housing recovery built on the back of small mum and dad investors pouring their money predominantly into negatively geared established dwellings – especially considering our current levels of private debt to income ratios - is not ideal for the long term the stability of our housing market, or house prices.  
The common Aussie term ‘spruiking’ - which APRA warns against in the self-managed super sector, is not only a contributing aspect of what inspires our culture to see property as the undiversified road map for building wealth for retirement – it is also part and parcel of what has kept our property prices high by both local and international standards.  Yet the risks associated with spruiking in SMSFs is simply the tip of a much larger iceberg.  
Having worked in many aspects of the housing industry, I have seen first hand the type of material that’s presented at seminars not just from those who receive under the table commissions from developers, but also from advocates working as independent advisors for either the seller or buyer.  
It really isn’t unusual to see slides presented at seminars with straight lines charting the difference between investing in properties that supposedly “grow” at steady 5% per annum, compared to those that grow at 10%, using historical median data as ‘evidence’ that future returns can replicate those achieved in the past, without any distinction of how such data is correlated or the difference between individual “house prices” and “median values.”  
This information borders on financial advice and comes with no mention of risk or the type of rigorous analysis, which you would reasonably expect when choosing to invest in a single asset.  
Another widely used industry favourite is the statement;  
“FACT: fewer than 5% of properties are investment grade”  
A myth if ever there was one.  Perhaps the well-known companies that use this as an advertising tool, would like to point to the person who researched every property in Australia to correlate such a statistic? Maybe we could also ask for a comprehensive definition of what ‘investment grade’ really is – because I guarantee there would be no shortage of differing opinions from industry ‘experts.’  
This endless promotion of residential property, with rows of investment magazines lining newsagency shelves, promoting subjective ‘hotspots,’ or as I <a href="https://catherinecashmore.wordpress.com/2013/11/18/do-we-have-a-changing-landscape-concerning-australian-real-estate-and-property-prices/" target="_blank">pointed out</a> a few weeks ago, agencies cold calling households, and sending ‘advisors’ round to ‘educate’ and encourage inexperienced investors to negatively gear against their principle place of residence, is toxic.  
Article continues on next page. Please click below.
 
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Meanwhile, the RBA continue to sit on their hands, not wanting to pull a regulatory lever, instead <a href="https://www.afr.com/rw/2009-2014/AFR/2013/09/25/Photos/160229d4-2585-11e3-bbca-a7ec88bfff7c_FSR.pdf" target="_blank">warning</a> investors to employ caution, hoping they will fall into line like a bunch of good school kids. However, whilst macro prudential tools may assist in ensuring banking lending standards remain robust – can they have any long-term sustainable or lasting impact on property prices?  
In a recent research paper by BIS (Bank for International Settlements), entitled <a href="https://www.bis.org/publ/work433.pdf" target="_blank">“Can non-interest rate policies stabilise housing markets?”</a>, evidence was gathered from 57 countries spanning more than three decades, investigating the effectiveness of nine non-interest rate policy and macro prudential tools on restraining credit growth and house prices.  
The analysis used a new dataset going as far back as 1980, making it the most comprehensive study to date in terms of both scope and time span.  
The paper concluded that whilst reductions in the maximum LTV (loan to value) ratio can restrain demand, its effects can be partially or wholly offset by a rising market enabling the investor to borrow more, therefore, changes in the maximum DSTI (debt service to income) ratio were assessed to be more substantial.  
But importantly;  
“Only tax changes affecting the cost of buying a house, which bear directly on the user cost, have any measurable effect on prices” and,  
“None of the policies designed to affect either the supply of or the demand for credit has a discernible impact on house prices.”
The study puts this down to the ‘can buys’ still outnumbering the growing pool of credit constrained ‘can’t buys’ – stressing that the importance of housing supply was not explicitly considered. Therefore if we want to lower house prices or put in place policies to aid affordability, we need to look outside the limited powers of the RBA alone.  
As has been proven <a href="https://www.businessspectator.com.au/article/2013/1/21/national-affairs/built-backs-first-home-buyers" target="_blank">time and time again</a>, intermittently stoking at the bottom end of the market with FHB grants and incentives does little more than provide a short term happy pill for vendors, as the price multiplier effect ripples across the rest of the housing terrain, stimulating both an inflationary and volatile environment.  
Instead, we need to focus on the real problem in Australia – and it’s not property prices, it’s land prices - as economist <a href="https://www.macrobusiness.com.au/2013/11/residential-land-values-reflate-across-australia/" target="_blank">Leith Van Onselen effectively points out</a> when he analyses the difference between commercial and rural land compared to residential land values, and building costs.  
“Whilst commercial and rural prices have remained relatively stable over the last 24 years relative to GDP, residential prices have skyrocketed.”  
In other words, the cost of residential fringe land, which without constraint, should be close to its ‘raw’ value, is not cheap at all – and it’s all down to ineffective urban planning policy.  
As I (<a href="https://www.macrobusiness.com.au/2012/12/englobo-the-shady-world-of-land-banking/" target="_blank">and others</a>) have pointed out previously, even within a wide expansive boundary as mooted in Melbourne’s new urban growth strategy, the government limits land use until they have gone through a lengthy process of mapping out areas for infrastructure known as a ‘<a href="https://www.gaa.vic.gov.au/precinct-structure-plans/" target="_blank">Precinct Structure Plan’</a> (PSP) – it is a slow laborious process and as soon as you restrict the supply of anything, scarcity inevitably inflates values.  
Larger developers are not slow to purchase swathes of acreage prior to rezoning, and then once PSPs have been finalised, drip feed it onto the market. Not only do government bodies have little understanding of how released plots respond to consumer demand, they have no policy in place to deter the practice. It’s therefore a failure.  
Furthermore, facilitation of infrastructure is currently financed via hefty development overlays, which are passed onto the buyer rather than initiatives such as bond financing, where residents pay back proportionally over a lengthy period of time, as was the case historically.  
We must remove these barriers with effective policy and let land prices revert back to normal levels to reflect a real price closer to commercial values.  
Without doing so, we can’t gain a true indicator of the trade-off buyers are prepared to make between price and distance. Currently, the average price of a newly built house and land package is around $400,000, this is not serviceable on the single median wage, and therefore can hardly be deemed affordable.  
Get the land supply, price, and infrastructure equation right and I suspect there would be no lack of demand from genuine aspiring home buyers.  Only when this is done, can we have a truly transparent debate on first home buyers’ willingness to spread over the land.  
 
<hr>
 Catherine Cashmore is a market analyst with extensive experience in all aspects relating to property acquisition.
 
 
 
 
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Can housing really be affordable and unaffordable at the same time?

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Australian banks are much more heavily exposed to mortgage lending than banks in most parts of the world, which is why the latest publication of <a target="_blank" href="https://www.apra.gov.au/statistics/Pages/default.aspx">APRA data</a> on home lending has set the hares running.
The data showed 14% of the recent mortgage lending by banks has been for loans which exceed 90% of the relevant property valuation.
The IMF has also been in Australia on its annual review and <a target="_blank" href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2013-11-21/imf-issues-property-warning/5107090">commented</a> on the risk to the banking sector from its exposure to mortgages. It often does.
This is a well-worn theme. The IMF’s last <a target="_blank" href="https://www.imf.org/external/pubs/ft/scr/2012/cr12305.pdf">review</a> (p7) expressed the risk in these terms:
“Domestically, despite a recovery in the household savings rate and a recent softening of house prices, high household debt coupled with elevated house prices remains a vulnerability”.
It is an important issue, particularly in Australia. Kevin Davis has <a target="_blank" href="https://www.rba.gov.au/publications/confs/2011/pdf/davis.pdf">pointed out</a> the unusually high levels of exposure of Australian banks to residential real estate. He suggested that some 59% of the total loans of Australian banks in 2009 were for this purpose compared with the US 38%, Canada 32%, Germany 17% and the UK 15%.
In essence there are two areas of major risk in the Australian financial system.
Australian banks are heavily exposed to domestic mortgages and they are still very reliant on borrowing from foreign wholesale markets to fund their lending.
The banks have worked hard to manage the funding risk in recent years by increasing their use of local deposits and to ensure that their offshore borrowing is more long term and hence more stable. We can worry less on that score than we did once.
Bank lending for mortgages also looks quite stable. Most borrowers have a lot of equity in their houses so that even a big price fall would not mean their loans were worth more than their houses, and most have made extra payments so they have a buffer against unemployment.
Less than 2% of loans are low-doc, potentially the highest risk category. The local banks also normally require borrowers take out insurance when they are borrowing more than 90% of the value of the loan.
We can see the impact of these factors in NAB’s recent results. The bank’s average mortgage borrower is eight months ahead of the required payments, and two-thirds of customers are at least one month ahead, the average loan to valuation ratio on its books is 48%, and some 15% of the book is insured. The consequence is that the bank’s loss rate on mortgage lending is 0.04%. Clearly there are still risks, for example if a mortgage insurer were to collapse, but it looks quite safe.
Nevertheless most analysts, investors and parties which lend wholesale funds to the Australian banks, pay close attention to their housing exposures.
Particularly in an environment where credit growth is quite slow, one way in which banks can increase their returns is to take on more risk. Hence the interest in the APRA data published this week. Are the banks moving up the risk curve?
Even there it is not clear that there are particular concerns (see chart below). The recent proportion of loans at high LVRs shows no clear trend over the last two years. Looking back earlier we see similar numbers for the period in the mid-2000s.<img width="470" style="font-size: 0.8em;" src="https://c479107.ssl.cf2.rackcdn.com/files/36781/width668/sb5j4qpk-1386046684.jpg">
Percentage of loans above 90% of property valuation (High LVRs). Source: APRA
Just eyeballing the data suggests that APRA might well have had some conversations with the banks requesting them to keep the proportion of high LVR loans in their portfolios to below 15%.
 
<hr>
 Rodney Maddock is Vice Chancellor's fellow at <a target="_blank" href="https://www.vu.edu.au">Victoria University</a> and adjunct professor of economics at <a href="https://www.monash.edu.au" target="_blank" rel="nofollow">Monash University</a>.
This article was originally published at <a href="https://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/risk-on-australian-banks-skirt-unofficial-home-lending-limits-20839">original article</a>. 
 
<img width="1" src="https://counter.theconversation.edu.au/content/20839/count.gif" height="1" alt="The Conversation">
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Over-exposed? Australian banks are taking risks by skirting unoffical home lending limits

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A director and sales manager of a <a href="https://www.smartcompany.com.au/growth/economy/33481-red-energy-bears-brunt-of-accc-crackdown-on-telemarketing---fined-for-false-claims">telemarketing</a> company that sold ink cartridges have copped $100,000 in fines for knowingly breaking Australian Consumer Law.
Tuan Nguyen, the sole director of Artorios Ink, and sales manager Thuan Nguyen have each been ordered by the Federal Court to pay a penalty of $50,000 each.
The pair admitted to acting deliberately to mislead and deceive small businesses to generate ink cartridge sales.
Artorios Ink was a telemarketing company that sold printer cartridges to businesses from 2008 to 2012. It went into voluntary liquidation in February after the ACCC began proceedings against it in September 2012.
The Federal Court found that between 2011 and 2012, the company engaged in false and misleading representations to five small businesses.
The misrepresentations included telling businesses that they had agreed to purchase printer cartridges from the company, when there had been no agreement. They also told the small businesses that they were already an approved or regular supplier of the business when in fact they were not.
Artorios Ink also told businesses they instituted proceedings in the Magistrates’ Court of Victoria against the business to obtain payment for printer cartridges, when they had not instituted any such proceedings.
The court also found that the company asserted a right to payment for unsolicited goods, by sending demands for payments for ink cartridges to businesses, which had never been purchased.
Justice Mortimer stated that the conduct involved “deceit” of businesses for financial benefit.
Justice Mortimer also inferred “there was a deliberate and calculated plan constructed to misrepresent to small businesses (through calls to unsuspecting employees or shop managers) some kind of existing supply relationship, then to take advantage of the misrepresentation to supply goods and then demand payment”.
The judge found that the most serious aspect of this was its “premeditated character”.
In addition to the fines, the Court accepted undertakings from the pair that they would not manage or be a director of a corporation for five years.
ACCC deputy chair Michael Schaper said in a statement that the court’s ruling was a lesson for people involved in misleading practices.
“These penalties send a warning to traders that dishonest business practices can result in substantial penalties being imposed against the individuals responsible,” he said.
Schaper said small business should watch out for companies targeting them with misleading claims, perhaps via inexperienced junior staff members who may not know the company’s history.
Hall &amp; Wilcox partner, competition and consumer law, Ben Hamilton told SmartCompany that the conduct of the pair was at the more “extreme” end of misleading actions he had seen.
He said the fine towards the two individuals appeared fair, and commented that when companies are fined for misleading conduct the amount can be far greater.
“The court considers a lot of factors in determining a fine … the judge appears to have been guided by the premeditated character of the offences, which influences the penalty,” he says.
Hamilton advises business owners that to avoid <a href="https://www.smartcompany.com.au/legal/34415-accc-issues-luv-a-duck-360-000-fine-for-misleading-claims">misleading customers</a>, they should ensure their teams are compliant with competition and consumer law.
“Often risks can arise when salespeople [who don’t know the law] are representative of the business,” he says.

<hr>
This article first appeared on <a target="_blank" href="https://www.SmartCompany.com.au">SmartCompany</a>.
 
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