Builder-developer&nbsp;<a href="https://www.apartments.com.au/developers/graya">Graya</a> has secured a prime Newstead site from fellow developer Fraser, subsequently lodging plans for The Silo, a major mixed-use residential project in Newstead designed around a new public laneway linking the James Street precinct with the wider Gasworks and Newstead neighbourhood.

Proposed for the corner of Chester and Morse streets, the <a href="https://www.apartments.com.au/architects/bureauproberts">Bureau^Proberts</a>-designed project places its strongest emphasis at ground level, where retail, landscaping and a new cobblestone pedestrian connection would open the site to the surrounding neighbourhood. The design team describes The Silo as “more than a residential building”, positioning the development as an extension of Newstead’s public realm rather than a standalone apartment tower.

“A new cobblestone laneway and landscaped connection between James Street and Gasworks unlock a missing pedestrian link, improving walkability and stitching together two of Brisbane’s significant urban destinations,” Bureau Proberts said in its Urban Design Report.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="0ea1b06a-75f5-40a5-b2c5-33c97bc86052" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/silo%20bldg.png?VersionId=KmjsAtNePu57_B31EM_DJ5T6KPJHtcmo" />

The Silo is planned as a mixed-use development incorporating apartments alongside a bar and centre activities including food and drink outlets, indoor sport and recreation, office and retail uses.

Architecturally, Bureau Proberts has conceived the building as a collection of vertically expressed, stepping forms rather than a single uniform tower. The composition rises from an articulated podium before being broken by a triple-height landscaped recreation level, with the upper section becoming more compact before terminating in a landscaped rooftop garden.

The project's name and architectural language draw directly from Newstead's industrial history. Patterned off-form concrete is proposed as the principal façade material, complemented by slender metal rod balustrades and extensive planting. The cylindrical and vertically ribbed elements give the building its silo-like expression, while curved balconies and planted edges introduce a softer subtropical layer.

“The Silo reinterprets its robust forms, scale and materiality through a contemporary subtropical architectural expression, creating a building that acknowledges its industrial legacy, while responding to the way the precinct is occupied today,” Bureau^Proberts said.

The recreation level is one of the defining breaks in the tower. Plans include a lap pool, mature subtropical planting and shared resident facilities within an elevated communal garden. Landscaping continues through the podium and onto the rooftop, where a further garden forms what the architects describe as a “subtropical crown” to the building.

<img alt="First look: Graya plans The Silo as new pedestrian link between James Street and Gasworks" data-entity-type="file" data-entity-uuid="f8451036-35a4-49a9-8d88-2ef4438eba3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Silo%20Lane.png?VersionId=h8N31_rYmCEqoNrpt4kbYVQhJGZn60LH" />

At street level, the development has been designed to establish a more permeable block. Retail and hospitality tenancies address the public realm, while landscaped pedestrian spaces lead into the new laneway connection. Renders in the design report show the proposed “Silo Lane” as a substantial opening through the podium, framed by cylindrical concrete forms with cascading planting above.

The Silo continues Graya's move into larger apartment developments after building its reputation across high-end residential projects in Brisbane and the Gold Coast.

Joel Robinson

Graya buys Frasers Newstead site, plans The Silo between James Street and Gasworks precincts

<a href="https://www.apartments.com.au/developers/wickton">Wickton</a>’s completed Linacre Rise development in Hampton is giving Bayside downsizers the opportunity to move into a spacious apartment near the beach, with the developer covering stamp duty for a limited time.

The 27-residence development has been designed for buyers who want to simplify their living arrangements without giving up the space, warmth and quality associated with a long-term family home. Most apartments have already been secured by Bayside locals, leaving a select collection of two and three-bedroom residences and penthouses available.

Two-bedroom apartments are priced from $1.275 million, three-bedroom residences from $2.25 million and penthouses from $3.375 million, with the completed homes available to inspect and move into now.

[smartcode_project:default project_id=95289 project_image_fid=366760]

<a href="https://www.apartments.com.au/buildings/linacre-rise-hampton-8-10-linacre-road-hampton-vic-3188">Linacre Rise</a> occupies an elevated position on one of <a href="https://www.apartments.com.au/developments/hampton-vic-3188">Hampton</a>’s quiet, tree-lined streets, around 250 metres from the bay and 500 metres from Hampton’s village centre. Its setting gives residents access to the beach, local cafés, shops and Hampton Train Station while retaining the feel of an established residential neighbourhood.

Architecture and interiors by <a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a> draw on the warmth and permanence of traditional brickwork, with the building integrated into terraced landscaping by <a href="https://www.apartments.com.au/landscape-architect/john-patrick-landscape-architects">John Patrick</a>. Ground-floor apartments are elevated above the street and include private garden courtyards, while several upper-level residences have generous balconies and outlooks toward the bay.

Inside, the residences favour natural materials and generous proportions. Herringbone-pattern European oak flooring, natural stone benchtops, premium joinery and Swiss V-ZUG appliances are among the key inclusions, while integrated storage has been incorporated across kitchens, bathrooms, studies and living areas.

The kitchens have been planned as practical spaces for both everyday use and entertaining, with substantial island benches, detailed cabinetry and adjoining dining and living zones. Full-height wardrobes, plush bedroom carpeting and carefully considered lighting reinforce the residential character Wickton sought to retain for buyers moving from larger homes.

[smartcode_project:default project_id=95289 project_image_fid=366769]

A Linacre Rise purchaser said the completed apartment had delivered the space, outlook and construction quality they had been seeking.

“The unit is very light, has views to die for over the bay, all construction materials and fittings are premium quality, we have secure parking for three cars, EV charging at very competitive rates, the neighbours are friendly and there is just a lovely ambiance about the place,” the purchaser said.

Environmental features include solar panels, shared electric vehicle charging stations, rainwater harvesting for toilet flushing and landscape irrigation, double-glazed windows and water-efficient fixtures and appliances.

[smartcode_project:default project_id=95289 project_image_fid=366762]

The development was built by Balmain &amp; Co, with Wickton managing the broader development process through its in-house team.

For downsizers, the project’s completed status removes much of the uncertainty associated with buying off the plan. Purchasers can inspect the finished apartments, understand their outlook and proportions, and move in without waiting for construction to conclude.

The remaining selection includes north-oriented balconies, corner configurations and penthouses with elevated bay views. The developer-paid stamp duty initiative is available for a limited time, with potential savings of up to $200,000 depending on the residence purchased.

[smartcode_project_cta:default project_id=95289]

Limited-time stamp duty offer at completed Linacre Rise apartments in Hampton

Luxury apartment buyers have long prioritised design, space and finishes, but increasingly they're placing equal importance on something less tangible: how easily they can live without relying on a car.

At <a>Richmond Square</a>, <a href="https://www.apartments.com.au/developers/fortis">Fortis</a> believes that convenience begins beyond the apartment itself, with the mixed-use precinct earning a near-perfect Walk Score of 99.

The development has been planned around the idea that some of the most valuable amenities aren't contained within a building, they're the restaurants, cafés, parks, transport connections and daily conveniences that can all be reached on foot.

Located just behind Swan Street and Church Street, <a href="https://www.apartments.com.au/new-apartments/richmond-square-1-wiltshire-street-richmond-vic-3121">Richmond Square</a> places residents within one of Melbo​u​rne's most established lifestyle precincts while offering a quieter residential setting removed from the busiest thoroughfares. East Richmond Station is moments away, trams run along both Swan and Church Streets, and the MCG, Melb​​ourne Park, Yarra River trails and the CBD are all within walking distance. At the same time, the precinct itself will introduce a curated mix of dining, retail, hospitality and wellness offerings, creating a destination that extends well beyond its residential buildings.

[smartcode_project:default project_id=13181 project_image_fid=348530]

For Fortis, that combination of location and scale was what made the site unique.

"<a href="https://www.apartments.com.au/developments/richmond-vic-3121">Richmond</a> is one of Melb​o​urne's most established and distinctive inner-city neighbourhoods, with a rare combination of dining, culture, recreation, public transport and proximity to the CBD," the developer said.

"The opportunity at Wiltshire Street was particularly compelling because the site sits slightly removed from the activity of Swan and Church Streets while remaining only moments from everything that makes the area desirable."

Rather than developing a standalone apartment building, Fortis consolidated 15 individual properties to create one of the larger development parcels assembled on Mel​b​ourne's city fringe in recent years. That allowed the team to deliver a genuine mixed-use precinct comprising 107 residences across Wiltshire House and Carmine House, premium office space, hospitality venues, retail, wellness offerings and a future 57-room hotel.

"The scale of the site allowed Fortis to think beyond a standalone apartment building," the developer said.

"Richmond Square could be planned as a complete lifestyle precinct, bringing homes, workplaces, dining, retail, hospitality and wellness together around a series of activated public spaces. The aim was to create a destination that feels connected to Richmond rather than separate from it."

[smartcode_project:default project_id=13181 project_image_fid=348533]

The emphasis on walkability has also resonated with buyers.

Interest has been strongest from established owner-occupiers, particularly downsizers from Richmond and Melb​ourne's inner east who want to remain close to familiar restaurants, workplaces, family and social networks while moving into a more secure, lower-maintenance home. The project is also attracting Mornington Peninsula and interstate buyers seeking a Melb​ourne residence they can lock up and leave between visits.

Many are looking for generous living spaces, room to entertain, quality finishes and confidence in the project team, but location remains one of the biggest deciding factors.

"For many buyers, Richmond Square provides a way to simplify the practical side of home ownership without reducing the quality of their lifestyle," the sales team said.

"Location is also a major driver of interest. Buyers can remain connected to the CBD, major sporting events, the arts centres, local restaurants, cafes and bars and their family while living in a private and secure residence that is easy to lock up and leave for weekends or longer periods away."

[smartcode_project:default project_id=13181 project_image_fid=348549]

The residences themselves have been designed with that buyer in mind. Award-winning architecture practice SJB and interior designers Hecker Guthrie have created spacious two and three-bedroom apartments and penthouses that prioritise generous living areas, natural light, bespoke joinery and private terraces. Above, a rooftop sanctuary by Acre includes landscaped lawns, bookable dining rooms, barbecue facilities, wellness spaces and panoramic views across the CBD, the MCG and Port Phillip Bay.

Fortis believes Richmond Square reflects a broader evolution in apartment living, where the surrounding neighbourhood becomes just as important as the residence itself.

"Richmond Square introduces a different proposition: generously proportioned residences within a genuinely mixed-use, hospitality-led destination," the developer said.

"The project's location and Walk Score of 99 further support a lifestyle where residents can complete many everyday journeys without relying on a car."

Fortis has assembled an experienced team that includes <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, <a href="https://www.apartments.com.au/interior-designers/hecker-guthrie">Hecker Guthrie</a>, <a href="https://www.apartments.com.au/landscape-architect/acre">Acre</a> and builder <a href="https://www.apartments.com.au/builders/hacer-group">Hacer Group</a>, reflecting the developer's commitment to creating projects with enduring design quality and meaningful connections to the communities in which they sit.&nbsp;

Richmond Square is an expression of that philosophy, bringing together homes, workplaces, hospitality and wellness within one of Me​lb​ourne's most walkable neighbourhoods.&nbsp;

Construction is now almost complete, providing purchasers with growing confidence ahead of its expected September 2026 completion.

[smartcode_project_cta:default project_id=13181]

Walk Score of 99 places Richmond Square at the heart of Melbourne's most connected lifestyle

<h3 data-end="19" data-section-id="1dvgwoe" data-start="0">Summary</h3>

<ul data-end="634" data-start="21">
	<li data-end="170" data-section-id="1o77v31" data-start="21">Walker Corporation has lodged plans for a second major residential development in the Maroochydore City Centre, a 29-storey tower known as Celeste.</li>
	<li data-end="327" data-section-id="1lb0y6t" data-start="171">The Plus Studio-designed proposal at Lot 30 Sunshine Coast Parade would deliver 208 apartments, including four four-bedroom sub-penthouses and penthouses.</li>
	<li data-end="487" data-section-id="za720" data-start="328">The application comes as Walker doubles down on Maroochydore following the strong sales campaign at SOL by Walker, where the first tower is nearing sell-out.</li>
	<li data-end="634" data-section-id="5sovec" data-start="488">Walker is a key partner in the transformation of the Maroochydore City Centre, which is expected to ultimately deliver at least 4,000 new homes.</li>
</ul>

Walker Corporation is doubling down on Maroochydore following the successful sales campaign at its first residential project in the emerging CBD.

The national developer has filed plans for <a href="https://www.apartments.com.au/new-apartments/celeste-30-sunshine-coast-parade-maroochydore-qld-4558">Celeste</a>, a new 29-storey apartment tower at Lot 30 Sunshine Coast Parade, just metres from its under-construction SOL by Walker development.

The plans, prepared by Plus Studio, would see 208 apartments delivered across a 100-metre tower on the 2,376 sqm site, which fronts Sunshine Coast Parade, First Avenue and Future Way within the Maroochydore Priority Development Area.

<img alt="Walker" data-entity-type="file" data-entity-uuid="17038209-6fea-4ed2-855d-fd4df65b3d02" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.16%E2%80%AFAM.png?VersionId=iZD.oVXcQn.aLpUytDAW.CWjxP4puWMy" />

The proposed apartment mix comprises 36 one-bedroom apartments, 48 two-bedroom apartments, 72 two-bedroom apartments with an additional multipurpose space, and 48 three-bedroom apartments.

The upper levels would be capped by two four-bedroom sub-penthouses and two four-bedroom penthouses, taking the total apartment count to 208. The preliminary yield study also provides 262 car spaces, 114 resident bicycle spaces and storage for each apartment.

It represents Walker's next major residential move in the new Maroochydore CBD after the success of SOL by Walker, its $220 million two-tower project nearby.

SOL launched to market in early 2025 and has since seen strong demand, particularly from local owner-occupiers. By February this year, Walker said the first SOL tower was nearing sell-out, with a strong waitlist also emerging for its recently released penthouse collection.

Construction is already underway on SOL, with the first tower expected to be completed in late 2027 and the second to follow in early 2028.

[smartcode_project:default project_id=147777 project_image_fid=319846]

<h2 data-end="2518" data-section-id="1b2dyo5" data-start="2459">Celeste to rise 100 metres over Maroochydore City Centre</h2>

Celeste would take a different form to the twin 19-storey buildings at SOL.

Plus Studio has designed a single 100-metre tower above an activated podium, with the architecture responding to the site's prominent position and three street frontages.

The podium would incorporate commercial tenancies and public art, with sweeping façade elements wrapping the street edges. The scalloped concrete podium has been inspired by the patterns created in sand at low tide, while extensive landscaping would continue vertically through the tower.

The ground level plans show three commercial tenancies addressing Sunshine Coast Parade alongside the residential lobby and landscaped public realm. The podium would then accommodate several levels of car parking before the residential tower rises above.

<img alt="Celeste" data-entity-type="file" data-entity-uuid="121f77b1-71c5-46d7-9b36-0a7d474211ca" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-10%20at%2010.24.47%E2%80%AFAM.png?VersionId=MGrg9Hb7HgzLN0Lelq_xrXNAruVl77ia" />

Plus Studio said the tower had been designed to maximise views from each apartment, taking in the Maroochy River, Sunshine Coast hinterland, Cotton Tree and Maroochydore Beach and ocean.

Those views have also shaped one of the project's key features, with Walker proposing to put the primary resident amenity on Level 29 rather than lower within the building.

The rooftop would feature a 284.9 sqm pool area with an infinity edge, along with a cold pool, spa, sauna, 93.2 sqm gym, sunset lounge, BBQ and dining areas, pool deck and private dining space. Cabanas and day beds are also shown across the recreation level.

The two penthouses would extend across the upper levels and each feature private terraces and plunge pools.

<h2 data-end="4202" data-section-id="v5f4ix" data-start="4160">Walker's growing Maroochydore footprint</h2>

Celeste further reinforces Walker's commitment to the transformation of Maroochydore City Centre.

Walker is one of the key partners delivering the new CBD alongside Sunshine Coast Council and SunCentral Maroochydore, with the broader 62-hectare Priority Development Area occupying the former Horton Park Golf Course and surrounding land.

The precinct is ultimately expected to accommodate at least 4,000 new homes as Maroochydore evolves into the Sunshine Coast's principal commercial and residential centre.

When SOL secured approval in February 2025, Walker Managing Director and CEO David Gallant described it as the "first of many residential projects" the company planned for the Maroochydore City Centre.

Celeste now provides the clearest indication yet of what comes next.

The site sits immediately within the new CBD, with the design report identifying Sunshine Plaza and surrounding parkland within walking distance and Maroochydore Beach around a five-minute drive away.

For Walker, the timing of the application comes as its first residential bet on the new CBD appears to have been vindicated.

SOL has progressed from planning approval to construction while its first release has approached sell-out, giving Walker confidence to push ahead with another 208 apartments and take its residential pipeline in the Maroochydore City Centre to around 450 dwellings across the two projects.

Celeste remains subject to planning approval, with the architectural material describing the scheme as a preliminary yield study that may change through the assessment process.

Walker doubles down on Maroochydore with 29-storey Celeste apartment tower

For most Australians, buying an apartment is one of the biggest financial decisions they'll ever make

The location, floorplan and price are often the first considerations, but in recent years another question has become increasingly important: who is actually delivering the project?

A series of high-profile builder collapses, construction delays and defect concerns have fundamentally changed how many Victorians approach buying off the plan. The collapse of Porter Davis in 2023, which reportedly left around 1,700 homes unfinished, became one of the most visible examples of the risks that can emerge when a construction company fails. <a href="https://www.equifax.com.au/sites/default/files/lpassets/pdf/Final-Business-Market-Pulse-June-Sector-Deep-Dive-Report-2.pdf">Similar challenges across the broader construction sector</a> have left buyers asking more questions before signing a contract.

As Victoria continues encouraging higher-density housing to address supply shortages, transparency is becoming just as important as location or price.

One tool increasingly entering the conversation is the <a href="https://icirt.com/">Independent Construction Industry Rating Tool (iCIRT)</a>, an independent assessment framework designed to help buyers better understand the developer or builder behind a project. Originally developed by Equifax in consultation with government and industry as part of NSW's Construct NSW reforms, the system has since expanded nationally.

<h2 data-end="1519" data-section-id="7nmx3" data-start="1492">What is an iCIRT rating?</h2>

Most Australians are familiar with independent ratings in everyday life.

We compare ANCAP safety ratings before buying a car. We look at Health Star Ratings in supermarkets. Banks rely on credit assessments when lending money.

Until recently, however, there has been very little independent information available to help apartment buyers assess the business responsible for delivering a residential project.

That gap is what iCIRT was designed to address.

Builders, developers and other construction professionals with an iCIRT rating have demonstrated high-trust characteristics through an independent, evidence-based assessment across six criteria: Character, Capability, Conduct, Capacity, Capital and Counterparties. This involves a rigorous review of financial health, past project track record, and ethical conduct. Crucially, an iCIRT rating could help provide property buyers with confidence that they are working with a professional who has demonstrated the capability, capacity, and willingness to return and rectify issues.

Importantly, iCIRT is not a recommendation to purchase a particular property, nor is it a traditional credit rating. It is an independent assessment framework designed to provide objective information about a construction business using a <a href="https://icirt.com/sites/default/files/2025-08/iCIRT-Methodology-Issue1-May-2021.pdf">published methodology</a>.

The system has been widely adopted in New South Wales, where more than one-third of medium and large residential builders and developers now hold an iCIRT rating, representing over two-thirds of the state's residential building market by value as of 2025/26.

<h2 data-end="3126" data-section-id="h6ohtj" data-start="3084">Why buyers are doing more due diligence</h2>

For many buyers, particularly those purchasing off the plan, the biggest risk isn't whether they'll like the kitchen finishes.

It's whether the project will be delivered on time, to the expected quality, and by a company capable of completing the development.

<a href="https://icirt.com/sites/default/files/2026-07/iCIRT%202025%20Consumer%20Survey%20Report%20v05.pdf">Consumer research commissioned by iCIRT</a> found more than half of respondents believed current protections do not adequately safeguard buyers from builder insolvencies or defective projects. Other research found 88 per cent of prospective buyers would seek independent ratings or due diligence before purchasing, while 90 per cent said trust in construction professionals is essential.

That doesn't mean buyers should rely on a single rating alone.

Independent legal advice, understanding the contract, and seeking financial advice all remain important parts of the due diligence process.

However, an independent assessment can provide another source of information alongside those traditional checks.

<h2 data-end="4138" data-section-id="pquzxc" data-start="4094">Trust is becoming a competitive advantage</h2>

The conversation isn't only changing for buyers.

Developers are also recognising that trust has become an increasingly important part of the sales process.

Five years ago, purchasers typically asked about floorplans, finishes and settlement dates.

Today, sales teams are increasingly being asked about the developer's experience, financial stability, previous projects and construction partners.

For companies with strong governance and established delivery records, an independent iCIRT rating provides another way to demonstrate those credentials before buyers even visit a display suite.

According to Equifax, the assessment can also help businesses drive sales and <a href="https://icirt.com/resources-for-business/icirt-rating-helps-scion-secure-high-value-projects">secure high-value projects</a>, as well as identify operational improvements and <a href="https://icirt.com/resources-for-business/mirvac-reinforces-brand-trust-and-quality-independent-icirt-rating">attract top talent</a>.

<h2 data-end="4962" data-section-id="1j54ng5" data-start="4912">Beyond buyers: lenders are paying attention too</h2>

The influence of independent construction ratings is also extending beyond consumers.

According to Stamford Capital's Real Estate Debt Capital Markets Survey, an increasing number of lenders now incorporate iCIRT ratings into their due diligence processes when assessing residential development finance applications.

The survey found lender adoption has continued to rise, with many respondents saying independent assessments provide additional insight into governance, counterparties and delivery capability beyond traditional financial analysis. Some lenders also reported declining funding applications where businesses had poor or no ratings.

As construction costs remain elevated and access to development finance becomes more selective, demonstrating credibility is becoming increasingly valuable.

<h2 data-end="5801" data-section-id="1qazuxs" data-start="5772">What it means for Victoria</h2>

Victoria's apartment market is entering a new phase.

The state is seeking to accelerate higher-density housing while simultaneously introducing reforms aimed at improving confidence in residential construction.

For buyers, that means there are more tools available than ever before to research the businesses behind a project.

For developers, it signals that transparency is becoming another point of differentiation in an increasingly competitive market.

Buyers are asking more questions than ever before and increasingly expecting independent information, not just marketing material, before making one of the biggest financial commitments of their lives.

Find out how to get iCIRT rated <a href="https://www.icirt.com/sites/default/files/2025-08/iCIRT-Infographic-Assessment-Process-Final.pdf">here</a>.

<hr data-end="6469" data-start="6466" />
The information contained in this article is general in nature and does not constitute personal, financial, legal or tax advice. It does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it and, where appropriate, seek independent professional advice.

This article contains links to third-party websites. These links are provided for convenience only. Equifax Australia does not control and is not responsible for the content, accuracy or privacy practices of external sites.

Copyright © 2026 Equifax Australia Information Services and Solutions Pty Ltd. All rights reserved.

Buying off-the-plan in Melbourne? How independent iCIRT ratings are set to change Victorian property

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?

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For investors hoping to use their properties as an income stream as well as a growth asset, some Sydney regions stand out more than others.
According to RP Data's Quarterly Rental Review, rental rates for houses in Sydney didn't move over the quarter to June, remaining at $520 per week.
While the median weekly rent for houses saw no change overall, one segment of the house rental market did grow in the June quarter. Four bedroom houses saw a 3.3% rise in rents to a median of $620 a week, while three bedroom houses stayed flat at $470 per week, as did five or more bedroom houses, which attracted $850 per week.
On a yearly basis, there was no area in Sydney which recorded a fall in rents for houses, although rents were flat for the year in the Fairfield-Liverpool region, at $450 per week. The Lower
Northern Sydney region saw a 10.4% jump in rents for the year, the biggest increase of any Sydney region and well above its own five year average of 6.7%. Its median rent per week is now $900.  
However, some growth was seen in the unit rental markets, with rents rising by 2% over the three months to June to a median of $500 per week. All unit types saw an increase for the quarter, with one bedroom units increasing by 1.1%, two bedroom units recording a 3.1% rise and rents for three bedroom units increasing by 3.5%.
The median weekly rent for units in Outer Western Sydney fell by 2.9% over the year to June - the region was the only Sydney area to see a yearly decrease in rents. The strongest regional rental performance for the unit market was seen in the Northern Beaches, where the median rent climbed 5.6% over the year, and Inner Sydney, where rents grew by 5.1%.
The top performing regions for rental houses over the past year
The following five areas had the strongest year on year growth in rents for Sydney houses.
<ol>
<li>
Lower Northern Sydney With 10.4% year on year growth in the median weekly rent, Lower Northern Sydney outperformed every other Sydney region's rental house market.  
</li>
<li>
Inner Sydney The median weekly rent for a house in inner-Sydney is now $750, up 7.1% from the same time last year. The area's rental market has shown consistent growth, with five year average rental increase of 6.4%. </li>
<li>
Northern Beaches Sydney's Northern Beaches have seen the median weekly rent for houses increase by 5.9% for the year to $900, the same median house rent as Lower Northern Sydney. However, the area has seen a dip in recent months - in the quarter to June, house rents dropped by 2.7%.  
</li>
<li>
Central Coast With 5.3% growth over the past 12 months, the median weekly rent for a house in the Central Coast is now $400. The region saw 2.6% quarterly growth.  
</li>
<li>
Canterbury-Bankstown The Canterbury-Bankstown area saw its median rent for houses increase by 5% in the past year, with 1% growth in the quarter to June. The median rent for a house in the area is now $520. </li>
</ol>
<hr class="system-pagebreak">
 The top performing regions for rental units over the past year
<ol>
<li>
Northern Beaches Units in the Northern Beaches attracted weaker rental growth than their house counterparts, with a 5.3% increase for the past 12 months. A renter can now expect to pay $550 per week for a unit in the Northern Beaches. </li>
<li>
Inner Sydney Inner Sydney units recorded 5.5% growth for the year, with the median weekly rent for a unit in the region now $580.  
</li>
<li>
Eastern Suburbs Units in Sydney's Eastern suburbs now attract a median weekly rent of $625 after a 4.2% growth for the year. The five year annual average growth for the area is 4.8%. <a href="/news"></a>
</li>
<li>
Lower Northern Sydney After 3.8% growth over the past year, the region now has a median weekly rent of $625.  
</li>
<li>
Inner Western Sydney Sydney's Inner West saw rents for units increase by 4% for the year. The past 12 months have outperformed the area's historical average - the five year annual average growth in rents for the region is 3.4%. <a href="/news">Click to open in new window: </a>
</li>
</ol>
<a href="/images/2014/07/21/rp-data-july-10-three.gif" target="_blank"><img src="/images/2014/07/21/rp-data-july-10-three.gif" alt=""></a>
<img src="/images/2014/07/21/rp-data-july-10-two.gif" alt="">
Source: RP Data.
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jrichardson-uRX5hFdKfN

Sydney's top five regions for rental growth: RP Data

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Strathfield’s newest residential development, marketed as a "one-of-a-kind for the up and coming area", Centric Strathfrield from Lumex Property Group launched on Saturday achieving a high number of sales - currently just a few of the penthouses remain.
The <a href="/expert-insights/buying/centric-strathfield-to-be-launched-with-57-inner-west-apartments">swish launch at the display suite on 9-13 Parnell Street</a>, just a two minute walk from the station, saw tuxedo-wearing staff members welcoming a large crowd into the development. While many of those looking to buy were of Asian appearance, Property Observer notes that the majority seemed to be local buyers – some moving from other areas of the inner west. Despite this, some investors were present.
<img src="/images/2014/07/21/strathfield-july-21-one.jpg" alt="">
Halfway between Parramatta and the city (less than 15 kilometres from both), the apartments launched to considerable success.
Just over halfway through the 8am to 10am launch, a CBRE marketing representative said that just six of the 57 one and two bedroom apartments were remaining. Prior to the commencement of the launch, a sell out was anticipated.
<img src="/images/2014/07/21/strathfield-july-21-three.jpg" alt="">
Centric Strathfield has positioned itself towards the owner occupier market, looking to offer top end finishes. Most apartments have northerly orientations, with winter gardens and terraces. All come with basement car parking and separate storage, as well as lift access.
The roof terraces offer CBD and Harbour Bridge views.
Spanning eight residential floors, and a commercial space at ground level, 51 square metre to 59 square metre one-bedroom apartments were being sold from $629,000. One bedroom and a study, 59 square metres, were selling from $685,000. Two bedrooms, from 71 square metres to 88 square metres were selling from $780,000.
The majority of the available apartments, 29 of them, were two bedrooms, with 24 one bedrooms and four one bedroom plus studies.
According to RP Data, the <a href="/news">median price currently recorded for a Strathfield unit is $570,000</a>, with a median advertised weekly rental price of $500 per week. The median unit price has significantly increased over the past year, profiting in on the growth seen across Sydney.
The designs, from SJB Architects, were also said to be a major drawcard for the interest in the development. Within the apartment building, there will be a number of community areas – including a roof top garden and an atrium lobby.
The properties themselves include limed European oak floors, AEG appliances and integrated banquette seats.
The display suited had been open from 5 July for interested viewers before the launch on 19 July.
Construction on <a href="https://www.centricstrathfield.com.au" target="_blank">Centric Strathfield</a> is expected to be finished by mid-2016.
How do property developers sell out mega residential projects? Where can financial planners find off the plan projects on one website? And what is all the fuss about with China?
Register now to join an expert panel in off the plan property marketing for an informative discussion and live Q&amp;A on Property Observer, in association with Investorist.
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jduke-EHk3XBmHkn

Centric Strathfield's weekend launch success - handful of penthouses remain 

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The prominent harness horse-breeder and construction company director Duncan McPherson sold his two-level Brighton house for $4.68 million at weekend auction.
Stefan Whiting of Buxton took bids from four interested parties when 30 Dawson Avenue was offered.
The house sits on a 987 square metre block four doors from the foreshore.
It had previously traded at $1.5 million in 2000.
It was among the 527 homes scheduled to go under the hammer in Melbourne over the weekend which was around 100 higher than the 426 conducted over the same weekend a year ago.
Australian Property Monitors put the preliminary auction clearance rate at 74.3%.
The most popular region for auctions was the north east with 97 followed by the west with 87, the inner city with 78, the inner south with 75, the outer east 68, and the inner east with 46 auctions scheduled.
Richmond was the most popular suburb with 15 auction listings, followed by Reservoir in the north east with 13 followed by Mount Waverley in the outer east with 12, and Glen Waverley, according to APM.
<div id="conditionalAd-300x250-pos-3" class="ad adCentred">
Melbourne’s auction market had been remarkably consistent, Dr Andrew Wilson, the Domain Group senior economist said.
</div>
One of Melbourne's best-known bridal wear families sold their ornate Bulleen home.
But the sale price secured by Joe and Patricia Pallozzi of Raffaele Ciuca for their Georgian-style house at 13 Coromandel Court was not disclosed.
The Ray White agent Frank Perri was looking for $1.5 million plus interest. 
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jchancellor-FAypfDUnLy

Brighton home sells for $4.68 million as weekend's top auction result

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A 12-bedroom 1888 Victorian Petersham trophy home sold at weekend auction for $3.3 million to an investor.
 Converted into 10 apartments in 1942, the four-storey mansion comes with 10 bathrooms.
The owners, Isabel Crespo and Vincente Traversa, who live in a three-bedroom rooftop apartment, collected an annual rental income of about $154,000. It will be higher once the vendor moves out and the investor buyer finds tenants for the two level penthouse, which is tipped to likely be around $650 a week, thereby giving a 5.6% overall yield.
They paid $75,000 for it in 1985, reflecting 13% annual price growth.
More than $2.5 million was tipped <a href="https://www.belleproperty.com/9P3648" target="_blank">by selling agents</a><a href="https://www.belleproperty.com/9P3648" target="_blank"> Rob Clarke and Callum Edmonds of Belle Property Annandale</a> for 29 Croydon Street, Petersham. The reserve price was $2.8 million. The suburb's median house price is $945,000, <a href="/news">according to RP Data</a>. 
It was among the 399 auctions are scheduled over the weekend in Sydney, some 92 more than the 307 homes auctioned over the same weekend last year, according to Australian Property Monitors.
The preliminary clearance rate was 77.3%, so another strong result.
"The weekend will likely prove to be the low point for auction listings this winter with numbers now set to rise through to spring with the July school holiday break now over," Dr Andrew Wilson, the Domain Group senior economist said.
The inner west hosted the most number of auctions with 64 followed by the city and east with 52, the south with 51, the upper north shore with 46 and the west with 41.
<div id="conditionalAd-300x250-pos-3" class="ad adCentred">
Mosman was the most popular suburbs for auctions along with Greenacre in Canterbury Bankstown and Blacktown in the west, each with eight.
</div>
The Potts Point apartment of the founder of Cara&amp;Co fashion and accessories concept store Rosa Alpert was withdrawn from weekend auction.
It is in the converted Victorian Italianate mansion Tarana.
The three-level apartment, first listed in 2012 with hopes of $5 million, was bought in 2005 for $4 million.
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Petersham boarding house fetches $3.3 million in Sydney weekend auctions

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In recent weeks, data from the Australian Bureau of Statistics (ABS) has revealed that the number of loans taken out for the purposes of construction has increased to the highest level in around four and a half years.
If we smooth the numbers out on a rolling annual basis, we can see that while an upturn is entrenched, the uptrend still remains relatively shallow at this stage, and there is much more lifting to be done here:
<img src="https://3.bp.blogspot.com/-tqj0YZO7Kec/U8oJqJk0eXI/AAAAAAAAOmc/BmOyCPYotp0/s1600/constr1.jpg">
With dwelling prices having risen over time the total value of construction loans on a rolling annual basis is getting set to break new record highs:
<img src="https://4.bp.blogspot.com/-QBdi5yNpAsg/U8oJqNmc-fI/AAAAAAAAOmY/NcXlcmhEXo4/s1600/consrt2.jpg">
Importance of this?
It's worth noting here why this is considered to be important.
Dwelling construction been extensively researched by the ABS in years gone by, and the data uncovered showed the construction industry to have a very strong multiplier effect on the economy.
One of the more depressing things about visiting Britain over the past six or seven years - apart from the ongoing under-performance of the national sporting teams, that is - has been the near total lack of cranes on the horizon. 
That's rarely a sign of a thriving economy.
Things have been picking up strongly for UK construction of late, but it's been a moribund period indeed for the construction industry.
<a href="https://www.abs.gov.au/Ausstats/abs@.nsf/94713ad445ff1425ca25682000192af2/ed6220072793785eca256b360003228f!OpenDocument" target="_blank">Here's the ABS</a> on the effect of construction on the multipliers on the wider economy in terms of output and employment in Australia:
"For every $1 million spent on construction output (houses, non-residential buildings, etc.) in 1996-97, a possible $2.9 million in output would be generated in the economy as a whole, giving rise to nine jobs in the construction industry (the initial employment effect), and 37 jobs in the economy as a whole from all effects.
"These flow-on effects are made up as follows. The initial effect of the additional construction is $1 million. The first round effect for this additional construction would be the increased value of activity of around $0.5 million in those businesses manufacturing the materials needed for the additional construction, such as concrete and steel frames.
"The businesses supplying and servicing the concrete and steel frame businesses, such as aggregate quarrying and raw steel production, experience an increased demand for their products and services. This industrial support effect is estimated to be an additional $0.4 million.
"As activity has increased in the construction industry, as well as in the suppliers to that industry and the suppliers to the suppliers, there is an increase in wages and salaries to employees in this chain. The spending of these wages and salaries induces a further round of consumption effects in other areas of the economy totaling an additional $1 million."
Multiplier of three for construction
So, there you have it: construction in Australia has a multiplier effect of close to three. That is, for every $1 million invested, an additional $3 million is generated in the economy as a whole. 
Now let's put this in its wider context.
Below is what has happened in Aussie construction over the long run. Note the gargantuan boom in engineering construction driven by the resources building boom.
This sector is set to tail off quite nastily over the coming few years, although it's not yet entirely clear how quickly that will happen. Note how construction has become overwhelming dominated by mining and resources:
<img src="https://2.bp.blogspot.com/-4H062eDXc9U/U8oKjO5YRII/AAAAAAAAOms/774bYa3YBso/s1600/cons3.jpg">
In terms of other building work done, the split between residential and non-residential building has tracked as follows:
<img src="https://1.bp.blogspot.com/-gtWrJsICYfs/U8oKvGB0FQI/AAAAAAAAOm0/-JrUJyQa-WU/s1600/CONS4.jpg">
We don't need to get bogged down too much in the headline numbers here, other than to note that if mining capital expenditure falls by 20% in the 2015 financial year (which <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/5625.0Main%20Features3March%202014?opendocument&amp;tabname=Summary&amp;prodno=5625.0&amp;issue=March%202014&amp;num=&amp;view=" target="_blank">forecasts suggest</a> may well eventuate), and does something similar again in the following financial year too, this leaves a monster hole in the Australian economy to somehow be filled.
Only one shining light exists in the state economies at the moment for infrastructure and dwelling construction, that being New South Wales, which is busily tackling its infrastructure and dwelling deficit:
<img src="https://1.bp.blogspot.com/-GSjRk0aOP2A/U8oPWO50R4I/AAAAAAAAOnI/YQx8kQ8oq0o/s1600/NSW+cwd.jpg">
Article continues on the next page. Please click below. 
<hr class="system-pagebreak">
States which need to rebalance?
The implication of the mining and resources construction boom detailed on the previous page is that the Aussie economy has gotten itself quite dramatically out of balance.
In the March 2014 quarter the total value of engineering construction seasonally adjusted at around $31,850 million was way, way bigger than the total value of building at closer to $21,750 million.
This means that some states are going to face very significant challenges when the mining construction drops away.
The quarterly engineering construction figures by state clarify which which states - Queensland and Western Australia in particular - are going to face an uphill struggle in the coming years.
Those two states have benefited greatly from the boom, so they face more of a challenge from the forthcoming downturn:
<img src="https://2.bp.blogspot.com/-o2yTIzIBqpE/U8ouGvfyJNI/AAAAAAAAOnc/-GshYS_mTcY/s1600/BWDa.jpg" style="line-height: 1.3em;">
This is especially so because when you look at the uplift in building work done in this cycle only New South Wales to date has shown any real sign of thriving. These figures are not seasonally adjusted so the next seasonal uplift will be key, but it's clear that Western Australia has hit a plateau, Victoria's house building boom was last decade's news and something is not working as it should be in Queensland in terms of building work. South Australia and the minnow states are floundering, and in any case they aren't going to add much value in chain volume measures terms:
<img src="https://2.bp.blogspot.com/-maZf5-kXmds/U8ouGnGYKhI/AAAAAAAAOnY/q4Z8QSzDQ-w/s1600/BWD1.jpg">
This something to be wary of when commentators start talking up the Brisbane property market with the usual hyperbole this year, stating that it is "due for a boom".
Look, maybe, yes, and the general consensus is that Brisbane offers relatively good bang for the buck and the outlook for the property markets over the the next few years appears bright. But equally it always pays to be careful of the shallow property market commentary which takes little (or more typically zero) account of what is actually happening in relation to these huge structural shifts in the Aussie economy. Yes, there is an argument for dwelling prices to rise strongly in response to low interest rates, but as a general rule people don't buy property when they don't have jobs, and there is a major rebalancing challenge lying right ahead in the Aussie economy, especially in the mining states. You'd need rocks in your head to call a sustainable property boom while taking no account whatsoever of what the wider economy and labour markets are up to. It's one to watch carefully. Rates to fall lower still 
The charts detailed above show quite clearly that the hole left by mining construction can't readily be filled only by building more houses and a moderate level of infrastructure.
Net exports need to increase, which they indeed have been doing, albeit in the face of lower commodity prices. Household consumption needs to increase, which it was doing quite nicely, but then appears to have stalled again post-budget.
With the economy looking likely to tread water in Q2 (the unpredictable effect of inventories left aside), futures markets are quickly getting around to realising that the next move in interest rates must be down. To me another rate cut is looking more and more likely by the week. Pencil in a likely interest rate cut before Xmas, for my money.
You can visit <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) or Pete's <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blog</a>.
His latest book is '<a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>' .
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pwargent-M4siyDbqQY

Why residential construction is so important to the Australian economy

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The Australian Bureau of Statistics (ABS) released housing finance data for May 2014 recently, with the data showing owner occupier housing finance commitments flat over the month.
The data also showed that the total value of housing finance commitments was -0.8% lower over the month.  Although this may be concerning, the number of housing finance commitments remain high and even if we have reached the summit, the RBA would probably be happy were commitments to remain at these current levels.
<img class="aligncenter size-full wp-image-3485" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-12.jpg" alt="Chart 1" width="500" height="181">
Over the month of May there were 52,092 owner occupier housing finance commitments, 17,463 of which were refinances and 34,630 which were non-refinances or new loans.
Refinance commitments were 2.1% higher over the month and are 10.1% higher year-on-year. New loan commitments were -1.0% lower in May and are only 2.0% higher over the month. 
Refinance commitments are at their highest level since April 2008 while new loan commitments are -2.5% lower than their recent peak in November 2013. Although owner occupier housing finance commitments are higher over the year they do seem to be at or very close to a peak.
<img class="aligncenter size-full wp-image-3486" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-22.jpg" alt="Chart 2" width="500" height="184">
In May, there was $27.5 billion worth of housing finance commitments which was slightly lower than the all-time peak of $27.7 billion the previous month. 
Over the month, owner occupier refinance commitments were up 0.8%, owner occupier new loans were -1.4% lower and investment finance commitments were -0.9% lower. 
Despite weaker results over the month, year on year there have been some significant increases with owner occupier refinances 17.7% higher, owner occupier new loans 8.3% higher and investment loans up 23.8%.  Again the rate of increase has definitely slowed of late potentially pointing to a peak.
<img class="aligncenter size-full wp-image-3487" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-33.jpg" alt="Chart 3" width="500" height="182">
Looking at how much housing lending each component is attracting, the data shows that in May 2014, 42.9% of lending was to owner occupiers for new loans, 18.0% was for refinances by owner occupiers and 39.1% is for investment purposes. 
As a proportion of total lending in May, owner occupier non-refinance commitments are at their lowest level on record while refinances are at their highest level since July 2013 and investment lending remains at around its highest level since late 2003.
The pick-up in investment and refinance lending has caused the proportional fall in owner occupier non-refinance lending.  If we exclude lending for refinances, 52.4% of lending over the month was for owner occupiers while 47.6% was for investors. This was equal to the second highest level of lending for investment purposes, behind the 49.0% of all loans to investors in October 2003.
<img class="aligncenter size-full wp-image-3489" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Housing-investors-by-state.jpg" alt="Housing investors by state" width="500" height="185">
Lending finance data released by the ABS on Monday for May 2014 revealed that investor activity is significantly higher in New South Wales than in all other states. Nevertheless, New South Wales (29.9%), Victoria (22.5%), Queensland (7.8%) and South Australia (2.1%) have each recorded a year-on-year rise in investment lending. 
Investment housing finance commitments account for an historic high 46.9% of all housing finance commitments in New South Wales and elsewhere the proportions are recorded at: Victoria (39.1%), Queensland (34.4%), South Australia (31.5%), Western Australia (31.0%), Tasmania (13.8%), Northern Territory (40.2%) and the Australia Capital Territory (33.9%). 
The data shows that although investment levels are generally rising, it is much more exacerbated in New South Wales and Victoria which are of course proxies for rising investment in Sydney and Melbourne.
<img class="aligncenter size-full wp-image-3488" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-42.jpg" alt="Chart 4" width="500" height="184">
Interestingly when we track the annual change in the value of housing finance commitments, excluding refinances to reflect home sales we can see that it correlates closely with the annual change in combined capital city home values. 
The recent slower rate of growth in capital city home values is happening in concert with a slowdown in the growth in housing finance commitments.
<img class="aligncenter size-full wp-image-3490" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-52.jpg" alt="Chart 5" width="500" height="181">
The housing finance data also shows that first home buyers continue to play only a minor role in the housing market. 
In May, the number of owner occupier first home buyer commitments was up 17.1% over the month however, as a proportion of total owner occupier lending activity it remains quite low at just 12.6%.
<img class="aligncenter size-full wp-image-3491" src="https://blog.rpdata.com/wp-content/uploads/2014/07/Chart-63.jpg" alt="Chart 6" width="500" height="187">
Across the individual states, the level of activity by first home buyers remains very low in the three largest states (New South Wales, Victoria and Queensland).  Elsewhere the percentage of owner occupier housing finance commitments for first home buyers is lower now than at the same time last year except in Tasmania and the Northern Territory.
Looking ahead, the RP Data Mortgage Index (RMI) indicates a slowing of demand for mortgages in June.  With value growth seemingly having peaked and transaction volumes lower than they were late in 2013 we anticipate that demand for housing finance is likely to remain at fairly similar levels to those current over the coming months.  The real test from here will be throughout the spring selling season when housing demand typically escalates.
With affordability factors anticipated to slow the rate of value growth we may also see slightly lower levels of mortgage demand.  As we have noted plenty of times previously, rental yields are generally low which suggests that most investors are seeking capital growth.  This is further highlighted by the high levels of investment activity in New South Wales and Victoria with Sydney and Melbourne having recorded the greatest increases in home values across the capital cities over the past year. 
The test will be once the value growth in the market abates what then happens with all these investor owned properties?  Do they wait it out for the next growth phase or do they exit the market and move to a more liquid asset class? 
Only time will tell but it is certainly something which lenders and regulators should be considering with such a high level of investment lending currently taking place.
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ckusher-ujnxiKuFQs

NSW investment housing finance commitments at an historic high

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What happened to Federation Square East (FSE)? Did it slide into the murky depths of the Yarra?

Last year the project had progressed to a point where EVOLVE Development founder Ron Walker was splashed across the media, drumming up support for $680 million bid to expand the precinct. Apartments.com.au also knew of one of Australia's largest developers who had also prepared a submission with the intention of snaring the site for a landmark development.

Alas like Flinders Street Station's overhaul and the Jolimont Railyards decking project, Federation Square East has fallen off the radar. Major Projects Victoria website states "The feedback received from the market has been provided in an Options Analysis which is being considered by Government." Options Analysis, is that code for no time soon?

Prior to offering forward five existing designs that I feel if transplanted in Federation Square East would suit it perfectly, I'll assert that Federation Square East should be devoid of any tall (beyond 15 level) buildings. The delineation that Flinders Street provides should not be broken by excessive towers which for mine would detract from the built form balance that should only be enhanced by Federation Square East.

<h2>The chosen five</h2>

<h3>Jean Nouvel: Philharmonie de Paris</h3>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image3fse.jpg" rel="gallery-all" title="Jean Nouvel's Philharmonie de Paris. Image courtesy Dezeen Magazine"><img alt="" class="image-article-full-width-580px" height="200" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image3fse.jpg?itok=x74UugfZ" title="Jean Nouvel's Philharmonie de Paris. Image courtesy Dezeen Magazine" width="580"></a>

<figcaption>Jean Nouvel's Philharmonie de Paris. Image courtesy Dezeen Magazine</figcaption></figure>Modern and uniform in appearance, Jean Nouvel's <a href="http://www.dezeen.com/2013/01/03/jean-nouvel-philharmonie-de-paris-spared-the-axe/">Paris Concert Hall</a> provides a stark contrast to the surrounding built form of Flinders Street and Federation Square itself. In situ at FSE and surrounded by greenery or other ancillary buildings, it would look incredible.

<h3>Asymptote: Kaohsiung Marine Gateway</h3>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image9fse.jpg" rel="gallery-all" title="A light and modern solution. Image © Asymptote"><img alt="" class="image-article-full-width-580px" height="528" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image9fse.jpg?itok=tqkO-Exm" title="A light and modern solution. Image © Asymptote" width="580"></a>

<figcaption>A light and modern solution. Image © Asymptote</figcaption></figure>Yes it's a harbour terminal but the notion remains the same. Asymptote's design transplanted at FSE would see a flowing, modern superstructure with multiple venues located under the one roof. Partly elevated, the complex would see greenery below the elevated elements while still providing an overall modern juxtaposition to its immediate surrounds.

<h3>Sériès et Sériès: Taichung City Cultural Center</h3>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image11fse.jpg" rel="gallery-all" title="Taichung City Cultural Center. Images courtesy Evolo"><img alt="" class="image-article-full-width-580px" height="324" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image11fse.jpg?itok=XnChcqM6" title="Taichung City Cultural Center. Images courtesy Evolo" width="580"></a>

<figcaption>Taichung City Cultural Center. Images courtesy Evolo</figcaption></figure>Bulky and economically unviable? Probably, but it is a statement! There's something enticing about having Birrarung Marr continue seamlessly into a new FSE

<blockquote>
The success of the cultural center lies in the ability of the built environment to actually inspire the residents to look beyond the common and expected, materialistic and the easily consumed, in favor of the stimulating and daring. The the Taichung Fine Arts Museum and Library is designed to become a sustainable landmark.
<cite>Evolo</cite>
</blockquote>

<h3>Striking a mix</h3>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image12fse.jpg" rel="gallery-all" title="New Ordos Museum, Kaohsiung Port Terminal &amp; New Dalian Planning Museum . Images courtesy Evolo"><img alt="" class="image-article-full-width-580px" height="296" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image12fse.jpg?itok=lO1SC5BL" title="New Ordos Museum, Kaohsiung Port Terminal &amp; New Dalian Planning Museum . Images courtesy Evolo" width="580"></a>

<figcaption>New Ordos Museum, Kaohsiung Port Terminal &amp; New Dalian Planning Museum . Images courtesy Evolo</figcaption></figure>Multiple architects contributing their individual design to FSE similar in scope and scale to what Zaha Hadid, RTA-Office and 10 Design have conceived above. Ideally FSE would not be seeded to a developer and likely single architect, rather transferred to a body such as Places Victoria (if they were in any way capable), who would in turn gather the best design put forward.

There's something captivating about having the best of the best selected designs side by side in such a prominent position... ahh wait reality is calling.

<h3>Peddle Thorp: Biocity</h3>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/image10fse.jpg" rel="gallery-all" title="Biocity. Image © Peddle Thorp"><img alt="" class="image-article-full-width-580px" height="295" src="/sites/urbanmelbourne.info/files/styles/article_full_width_580px/public/pictures/article-images/image10fse.jpg?itok=ISfizhcp" title="Biocity. Image © Peddle Thorp" width="580"></a>

<figcaption>Biocity. Image © Peddle Thorp</figcaption></figure>OK so it's a little old and completely out there but Melbourne-based Peddle Thorp ticked all the boxes with this 2008 concept for FSE.

<blockquote>
The Cycle of Life, closely linked to our most precious resource, formalises this urban extension above a city railyard. Composed of five blocks interconnected by a rainforest atrium, pedestrians are free to wander the whole of the ground level through public spaces designed as a plateau, canyon or valley.
<cite><a href="http://www.australiandesignreview.com/designwall/424-biospace">Australian Design Review</a></cite>
</blockquote>

<h2>Why highlight Federation Square East</h2>

I've chosen buildings that convey a grand, almost homogenous exterior that clash nicely with the varied built form surrounding FSE. This is similar to what Herzog And De Meuron's <a href="http://www.evolo.us/architecture/highly-contextual-proposal-for-flinders-street-station-rejuvenation-herzog-and-de-meuron/">Flinders Street Station design</a> would have achieved with its singular roof structure.

Federation Square East is an incredibly rare opportunity to deliver a truly recognisable structure (avoiding the term landmark) rather than merely another skyscraper or the like. An opportunity to deliver something out of the box, or is that out of the rail yards? Just make it soon...
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silvermb

Five designs to make Fed Square East proud

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GUEST OBSERVATION
Many property investors see land tax as an unavoidable evil, hard to get around and often simply the ‘price of doing business’ in this area.
But there are some ways to mitigate the effects of land tax on your property asset and cash flow. The best option depends on how you’ve structured your investments and planned your investing.
How it works
Land tax is levied annually on the value of your unimproved land holdings, determined as at 31 December each year. General exemptions exist in many States, such as the exemption for your primary place of residence or for land used for primary production. But vacant land, holiday homes and investment properties can all incur land tax liabilities.
Land tax is charged as a percentage of the total taxable land holdings value on a calendar year basis. Some States have a flat rate and others have a sliding scale. Most have a ‘tax free threshold’ so land tax isn’t payable until your land value exceeds the threshold. Some States also charge a different rate of land tax to trusts compared to individuals.
Who pays it?
As an individual, you are eligible to pay land tax in Victoria if your land holdings have a total taxable value of $250,000 or more. The taxable value of land is the site value provided by the relevant municipal council and can be found on your council rates notice.
Many people use trusts for asset protection and estate planning purposes. In Victoria trusts must pay a surcharge (subject to various exclusions) on top of the general rates of land tax.
It’s worth noting that some trusts - such as charitable trusts can be exempt from the land-tax surcharge. A Principal Place of Residence (PPR) Nomination may also exclude a trust from the surcharge if the trust’s beneficiary is using a residence owned by a trust as their family home.
It is important to remember that the taxpayer must notify the State Revenue Office if circumstances change. For example; if your principal place of residence is rented out for more than six months in a calendar year and you don’t notify the State Revenue Office you can face significant penalties.
When you begin to invest in property, land tax may not be a material consideration, but as additional properties are acquired the annual land tax assessment can become substantial. So what can you do to minimise your land tax obligations?
Invest in different states
Land tax is a State based tax - holdings in one State are not aggregated with holdings in another. Each State has its own land tax regime, with most States offering investors a tax-free land tax threshold. Consequently, investors may be able to own an investment property in each State before incurring a land tax liability. Concentrating your investment properties in one State means you cannot take advantage of the land-tax threshold available in other States.
Invest in different names
Holding all your investment properties in one name can result in substantial land tax assessments. Each individual has a tax-free threshold, so spreading ownership will often reduce land tax. For example, you may own one property, your spouse another, with a third property held in joint names or owned by a trust.
 If you own property jointly, remember that each owner is equally liable for the land tax assessed on any jointly owned land. An assessment will be issued to one of the joint owners on behalf of all owners.
If you hold additional land to that held jointly you will be separately assessed on your total land holdings, including your share of the jointly owned land. You will reduce your land tax liabilities for the tax already paid.
If investing in different corporations, it is important to remember that grouping provisions can deem related entities to be grouped if the management and control of the entities are the same. This will result in the taxable land values being aggregated for land tax calculations, rather than each corporation having its’ own tax free threshold.
Invest in Units/Apartments
As land tax is only based on the value of the land, there can be cash flow advantages to buying property with a very small land component. However, if you decide to invest in a unit or apartment, remember that the annual body corporate fees can often exceed your land tax liability. Further consideration needs to be given to the appreciation of the land value as opposed to short-term cash flow savings.
These are all useful ideas to consider when talking to your financial advisor or accountant about how to make your property investment as effective as possible. Remember, too, that while minimising land tax can have immediate cash-flow advantages, any land or property acquisitions should be made as part of a balanced, long-term and diversified investment strategy.
Danielle Canterford is an accountant <a href="https://www.marinaccountants.com.au/" target="_blank">Marin Accountants</a>, a firm specialising in advice for individuals, investors and family businesses. 
You can contact Danielle via <a href="mailto:daniellec@marinaccountants.com.au" target="_blank">email </a>or call (03) 9645 9229.
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po-LsXgBTHBmX

Mitigating the effect of land tax on your property assets and cash flow

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GUEST OBSERVATION
Husband and wives often regard themselves as jointly owning the assets each possesses. "What's mine is yours" and vice versa. In a happy relationship, that's all well and good, but unfortunately, the tax law can intervene to take some of the shine off such scenarios.
In a recent case before the Administrative Appeal Tribunal (AAT), a husband inherited 200 Telstra shares and 1,315 Commonwealth Bank shares from his father's estate. He transferred the shares into the names of himself and his wife to reflect his wife – who he considered at all times as a joint owner of the shares – as an owner of these shares.
However, the transfer of the shares to joint names produced a capital gain of over $19,000 which was included in his tax return for the 2013 tax year. Under the tax law, the share transfer caused a "CGT event" to occur.
The AAT confirmed the husband was liable for CGT (capital gains tax) on the transaction. It did so on the basis of finding that the taxpayer had disposed of a 50% interest in his shares and that this triggered CGT event A1. After the transfer, the husband and wife were treated by the system of taxing capital gains as each owned a 50% share of each of those shares, and before the transfer the husband was recognised as the sole owner of those shares. As a result, the husband was assessable on the capital gain made on the transfer.
The husband argued he and his wife regarded themselves as joint owners of all that they collectively owned. He believed from the outset that, in equity and morally, the shares transferred were owned "jointly". He also claimed he did not make any capital gain because he had not received anything and if he knew he would be subject to tax on the transfer, he would not have transferred the shares. All a very neat logical argument, but unfortunately the tax law does not operate that way.
The tribunal said it might well be, "and in some cases understandably so", that partners to a marriage or a marriage-like relationship regard his or her assets as "our assets". And it might also be the case for family law purposes, regarding the practical effect of ownership of assets by individual partners to those relationships.
But the AAT said Australian income tax law does not recognise these sorts of joint asset ownership arrangements. The transfer of the shares fell squarely within the terms of CGT event A1 (a disposal of an asset) and shares were clearly a CGT asset.
The tax law as applied to the facts in this case could only result in the outcome found by the AAT.
However, the AAT took the opportunity to issue a salutary caution: "Unless there is reason to do otherwise, partners to a marriage or marriage-like relationship who hold the assumption that his or her assets are our assets, would be well advised to continue with that assumption, without taking the step of formalising any joint ownership arrangements, as there will be a taxing point if they do if the transferred assets have increased in value".
To a seasoned tax practitioner, this might be Tax 101, but it is not difficult to appreciate that the views held by the husband and wife in this case, unversed in the ways of the tax law, might indeed be held by many in the community. In this case, their tax agent properly ascertained the situation and correctly lodged the tax returns.   
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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thayes-XhNcNKLNWa

Husband and wife, sharing and caring, until tax law do us part

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A textile manufacturing company that has been operating in the Victorian regional city of Wangaratta for more than sixty years has collapsed into liquidation due to the offshoring of government contracts and an increasingly competitive market.
Bruck Textile Technologies <a href="https://www.smartcompany.com.au/growth/42794-popular-cake-business-with-reality-tv-show-collapses-for-a-second-time" target="_blank">went into liquidation</a> on 11 July, with Barry Taylor and Andrew Needham from HLB Mann Judd appointed as liquidators.
Speaking to SmartCompany, Taylor said in prior years the manufacturer had a turnover of around $56 million.
“More recently to June 2013 it had dropped to about $38 million,” he said.
Taylor said creditors are owed around $7-8 million, with employees’ entitlements estimated to be worth an additional $4 million.
In recent days the textile manufacturer has been <a href="https://www.theage.com.au/victoria/wangaratta-textile-maker-shreds-company-sheds-worker-entitlements-20140713-zt65q" target="_blank">accused of deliberately entering into a questionable business arrangement</a> with another company, Australian Textile Mills, to avoid paying 60 redundant workers their entitlements – including annual leave, long service leave and redundancy pay entitlements.
This has caused Federal Employment Minister Eric Abetz to refer the matter to ASIC, and Taylor said as joint liquidator he is instructing solicitors to review the transaction.
“ASIC have been in touch with us and we are assisting them with their enquiries,” he said.
In a statement, Australian Textile Mills chief executive Geoff Parker told SmartCompany Bruck Textile Technologies was a company losing money despite its best efforts.
“With the demise of the local automotive industry and the offshoring of key government contracts, it was not a sustainable business and was incurring ongoing, significant losses,” said Parker.
“Under this strain, in the last six months alone, significant funds were invested by the shareholder to fund day to day activities, which was simply not sustainable,” he said.
Parker said the manufacturer’s board took professional financial and legal advice and decided it either had to liquidate the company – which would have affected more than 200 jobs – or sell the business to Australian Textile Mills in order to retain two-thirds of its staff.
Parker said all creditors will be paid and Australian Textile Mills will take on liabilities of approximately $20 million.
“The Directors of Australian Textile Mills are confident that they have made the correct decision,” said Parker.
“The only other option would have been far more devastating to the local Wangaratta community, creditors and employees.”
Bruck Textile Technologies has a long history in northeast Victoria and Cathy McGowan, the local federal MP, told SmartCompany there has been a huge amount of support shown for the workers both in Parliament and Wangaratta itself.
“The footwear clothing and textile industry is a very tough industry and it’s extraordinarily competitive,” says McGowan.
“This is a wake-up call for this sector in rural and regional areas.”
McGowan says it’s crucial for government to work with business in order to create an environment where manufacturing can reach its long-term potential.
“When businesses get into trouble they have to seek advice early,” says McGowan.
“There is absolutely no point in waiting until the death knoll. In a much bigger context, we need to look at how we can plan for the future of manufacturing.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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