Malaysian developer <a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> is the latest to jump into St Leonards booming Transport Oriented Development precinct.

The developer, which has previously delivered Sapphire by the Gardens apartment development in Melbourne, identified the Atchison Street site in 2023. It filed a Scoping Report around 12 months ago, and now has revealed the designs for the new&nbsp;40-storey mixed-use tower.

The State Significant Development Application covers <a href="https://next-portal.urban.com.au/projects/14650/summary">20-22 Atchison Street</a>, a 1,374 sqm site positioned between St Leonards Station and the new Crows Nest Metro station.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the project would deliver 181 apartments, above a four-storey commercial podium, five basement levels, and new public domain works along Mitchell Street. The apartment mix comprises 35 one-bedroom apartments, 39 one-bedroom-plus-study apartments, 85 two-bedroom apartments, and 22 three-bedroom residences.

The proposal has been lodged as a shop-top housing development under the NSW Government’s TOD planning pathway, which allows increased density around key transport infrastructure. The site sits within the recently rezoned Crows Nest Accelerated TOD Precinct.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b799673d-48e2-46b0-801a-0e33a9330100" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20site.png?VersionId=dPh0UfwfaHpbFL1R7H1cbZNbIW0CHbCC" />

SP Setia acquired the Atchison Street site as part of its continued expansion into the Australian apartment market. In comments made to City &amp; Country (The Edge Malaysia) in 2023, SP Setia President and CEO Datuk Choong Kai Wai described the acquisition as “a strategic move” aligned with the group’s post-pandemic market recovery strategy.

“Our target for this exceptional development is local and overseas buyers, including first-home buyers, downsizers and investors,” Choong said.

The tower has been designed as a slender vertical form rising from a mixed-use podium, with COX Architecture positioning the development as a response to the evolving St Leonards and Crows Nest skyline.

“The purpose of the project is to facilitate the delivery of high-quality housing at a strategically located site and deliver a built tower outcome that is consistent with the desired future character of St Leonards and aligns with the TOD controls,” the design report stated.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="b1a85eee-76f7-436c-a6da-73ba827b9b13" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/atchinson%20entry.png?VersionId=dA9jHGPMcm.dDbwk4QfxqWiY5bfh3UVt" />

The podium would incorporate retail uses fronting Atchison Street, commercial tenancies, landscaped communal areas, and pedestrian improvements along Mitchell Street. Vehicle access and loading would be consolidated via Atchison Lane.

Residents would have access to more than 665 sqm of communal indoor and outdoor spaces, while the development proposes 96 parking spaces across five basement levels.

The proposal also includes a commitment for 10 per cent of residential floor space to be allocated toward affordable housing through a monetary contribution.

COX said the tower form responds directly to the emerging high-density character of the precinct while seeking to maximise solar access, cross ventilation, and outlook from apartments.

<img alt="First look: SP Setia targets St Leonards skyline with 40-storey TOD tower" data-entity-type="file" data-entity-uuid="2163f85c-f63b-4be3-aafa-f8763976cec5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Article%20Feature%20Image%20%28Grid%29_5.png?VersionId=WiAmtIKJ6.ZQ41EtYEQ1fol7AeorKBlL" />

“The building is orientated towards north,” the Apartment Design Guide compliance report noted, adding that the tower’s slim form was driven by the constrained inner-urban site dimensions.

The design also incorporates landscaped setbacks and communal open space at podium level, intended to soften the interface with surrounding streets and improve pedestrian amenity.

The project adds to a growing wave of redevelopment proposals reshaping St Leonards and Crows Nest following the opening of the Sydney Metro City line and the NSW Government’s push for higher-density housing around major transport nodes.

Last week Stockland filed plans just down the road. They want to build a <a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">52-storey tower on Pacific Highway</a>.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">First look: Stockland plans 52-storey, 538-apartment St Leonards tower&nbsp;</a>

Joel Robinson

First look: SP Setia targets St Leonards skyline with 40-storey TOD tower

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> has revealed plans for a new mixed-use tower at 10 Dangar Street, Wickham, advancing a proposal that would reshape the southern gateway to Newcastle’s city centre with one of the city’s tallest residential buildings.

The State Significant Development proposal, now on exhibition, seeks approval for a <a href="https://www.apartments.com.au/new-apartments/bowline-10-dangar-street-wickham-nsw-2293">43-storey tower</a> immediately adjacent to the Newcastle Interchange. The project would deliver around 200 apartments, including 42 affordable housing dwellings, alongside 99 co-living units, a 171-room hotel, retail space, and new public domain integrated through the site.

The scheme marks a significant escalation of plans previously approved for the site. Urban Property Group took over the prominent 2,904 sqm parcel, where excavation and demolition had already commenced under an earlier consent for a 14-storey mixed-use development.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="58a96dd9-407f-4d20-86b4-94e4bfeef74b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20podium.png?VersionId=LGlf08pdFGAZDzvx_CXC4XakHNZRuEE0" />

Designed by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, the tower has been conceived as a landmark transit-oriented development anchored to the Newcastle Interchange precinct. The proposal includes 245 build-to-sell apartments across a mix of one, two, and three-bedroom residences, as well as two penthouses. Fifteen apartments and one operational unit are earmarked for NDIS housing. The co-living component would add a further 99 units, while the podium would accommodate retail uses and hotel facilities.

SJB said the site presents “a valuable opportunity to anchor the precinct by setting the standard for design, active ground planes and character at the key southern gateway.”

The architecture responds directly to the site’s position beside major transport infrastructure and within one of Newcastle’s fastest-evolving urban renewal precincts. The tower form sits above a sculpted podium designed to frame new public spaces, including a through-site pedestrian link connecting Station Street to Hannell Street, landscaped plazas, and activated retail edges.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="a7bd6ff0-f7db-4ce8-a6dc-ea56e72c6149" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20lanne.png?VersionId=xzf39VADyhj7zBQY2I9fx9vI62u2tuSb" />

The design report describes the project as part of the broader transition of Wickham into “a vibrant, high-quality mixed-use urban precinct” that leverages proximity to the station, open space, and regional connectivity.

A detailed public art strategy has also been prepared for the development. The strategy positions the project as “a transit-oriented development of state significance at the gateway to Newcastle’s city centre” and outlines a series of integrated artworks responding to Newcastle’s industrial and transport heritage.

Creative Road’s curatorial framework for the project, titled Unveil, draws on “stratified surfaces, carved volumes, and light-filled apertures” while referencing Newcastle’s transformation from an industrial city into a contemporary education and technology hub.

<img alt="First look: Urban Property Group unveils Newcastle’s next supertower at Wickham interchange" data-entity-type="file" data-entity-uuid="77a882bb-14b1-4d28-99ff-9438e39508c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/wickham%20site.png?VersionId=cevgo_vN0eKPK78P8YcEu3mKPLkpFqE7" />

The proposal is being advanced through the NSW Housing Delivery Authority pathway after being declared State Significant Development in June 2025. The accompanying scoping report states the development aims to “maximise the site’s proximity to the Newcastle Interchange by delivering transit-oriented development” while increasing housing supply and affordable housing provision within the Newcastle LGA.

Urban Property Group’s plans align with the long-term strategic vision established under the Wickham Master Plan, which identified the interchange precinct as suitable for substantial uplift in height and density. The current proposal would significantly intensify that vision, positioning the tower among the tallest developments proposed for Newcastle.

The site sits immediately north of the Newcastle Interchange, bounded by Dangar Street, Hannell Street, and Charles Street. It is surrounded by a rapidly growing cluster of residential towers and mixed-use projects that have emerged following the completion of the light rail and transport interchange.

First look: Urban Property Group unveils Newcastle’s latest tower at Wickham interchange

Bottega House has completed settlement of a landmark riverfront site in Macquarie Street, St Lucia, representing its first major Brisbane development.&nbsp;

Positioned on the banks of the Brisbane River, the <a href="https://www.apartments.com.au/new-apartments/180-macquarie-street-st-lucia-qld-4067">premium site at 180 Macquarie Street</a> features uninterrupted river frontage in one of Brisbane’s most tightly held residential precincts.&nbsp;

The proposed development, currently under assessment with Brisbane City Council, has been designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a> with interiors by <a href="https://www.apartments.com.au/interior-designers/mim-design">Mim Design</a> and will deliver a boutique collection of premium residences positioned specifically for owner occupiers and downsizers.&nbsp;

The residences are set to redefine luxury apartment living in the area, with a focus on architectural quality, refined finishes, landscape integration and elevated amenities including curated wellness facilities, resort-style pools and recreation spaces rarely seen in the local market.&nbsp;

Exclusive sales for the project will be led by Keenan &amp; Byrne, ahead of an anticipated launch later this year.&nbsp;

Bottega House Managing Director Nick Malloch said the project reflects the group’s ambition to deliver a highly curated residential offering within one of Brisbane’s most tightly held precincts.&nbsp;

“This is an incredibly rare riverfront opportunity and one we have approached with a long-term perspective,” Malloch said.&nbsp;

“Our vision from the outset was to create a boutique collection of residences that feel more like private homes than traditional apartments, with generous proportions, refined finishes and exceptional amenity throughout."

Malloch says there is a&nbsp;lack of premium owner-occupier stock of this quality in the market, particularly for downsizers wanting space, privacy and a true lifestyle offering without compromise.&nbsp;

"Demand is expected to be strong given the scarcity of premium riverfront opportunities of this nature within Brisbane’s inner-west."&nbsp;

Bottega House secures landmark riverfront site in St Lucia 

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The arrival of the first piling rig officially marks the commencement of construction at SIERA’s new beachside apartment development, Exhale, in Northcliffe.

<a href="https://www.apartments.com.au/new-apartments/exhale-surfers-paradise-8-enderley-avenue-surfers-paradise-qld-4217">Exhale</a>, a glass-encased tower featuring 54 large-scale apartments at 8 Enderley Avenue, is SIERA’s third Gold Coast development. It follows the recently completed PIPIS Bilinga beachfront project, which achieved suburb-record prices, and the soon-to-be-completed Chevron Island development, Tapestry.

[smartcode_project:default project_id=112661 project_image_fid=359603]

<a href="https://www.apartments.com.au/developers/siera">SIERA</a> Founder and Managing Director Brent Thompson said the arrival of the piling rig represented a significant milestone for the development, which is scheduled for completion in late 2028.

Over the next month, around 260 piles are expected to be installed as work progresses on the basement structure. The building is anticipated to rise above ground level early next year, before unveiling its sculptural glass curtain wall, developed in collaboration with specialist façade engineers.

“The façade was designed to maximise panoramic coastal views while creating a distinctive architectural identity,” Thompson said.

[smartcode_project:default project_id=112661 project_image_fid=355935]

Designed by BDA Architecture, Exhale will comprise just 54 two- and three-bedroom residences across 26 levels, a level of low-density living rarely delivered in this beachside pocket between Surfers Paradise and Broadbeach.

The project has been conceived as a resident-only building, with no short-stay accommodation permitted. SIERA says the model is intended to appeal to long-term owner-occupiers rather than transient holiday demand.

[smartcode_project:default project_id=112661 project_image_fid=361052]

Residences have been designed with large-format layouts and expansive glazing, with most apartments featuring more than 30 metres of glass frontage to maximise natural light and ocean views.

The amenity offering spans two levels and centres on wellness and lifestyle, including a heated magnesium pool, sauna, yoga and Pilates studio, gymnasium, private dining facilities, cinema lounge, and dedicated surfcraft storage.

[smartcode_project:default project_id=112661 project_image_fid=359607]

More than half of the apartments have already sold. SIERA has also opened a sales gallery for Exhale at its Chevron Island commercial premises, near its Tapestry tower and the site of its second Chevron Island apartment development, which is slated to launch in early 2027.
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</section>

[smartcode_project_cta:default project_id=112661]

SIERA kicks off construction at Northcliffe tower Exhale

Local Little Bay residents, along with buyers from premium postcodes across Sydney’s affluent Eastern Suburbs, have dominated purchases in developer-builder Urban Property Group’s first Eastern Suburbs apartment development, <a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a>.

The $250 million coastal project, one of the first new developments in the area in several years, has proven particularly popular with downsizers, especially those from Coogee and Bondi. One Double Bay downsizer paid $4.7 million for a four-bedroom penthouse, setting a new local apartment price record in the process.

Buyers have been attracted to the combination of coastal tranquillity, premium design and amenity-rich neighbourhood living. The walkable village setting, along with proximity to three of Sydney’s leading golf courses, New South Wales Golf Club, St Michael’s Golf Club and The Coast Golf Club, has also been a key drawcard.

[smartcode_project:default project_id=112343 project_image_fid=352689]

Built across two low-rise buildings designed by <a href="https://www.apartments.com.au/architects/hill-thalis-architecture-urban-projects-pty-ltd">Hill Thalis</a> and set along a lush, landscaped green spine, designed by leading landscape architect <a href="https://www.apartments.com.au/landscape-architect/arcadia-landscape-architecture">Arcadia</a>, ESTE Little Bay offers a collection of one, two, three and four-bedroom residences with interiors by Richards Stanisich.

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a> Sales Director, Tom McIvor said the response to ESTE has been "nothing short of extraordinary."

“Buyers have been quick to recognise ESTE as a rare opportunity to invest in a coastal sanctuary that offers both seclusion and connectivity to the heart of Sydney,” McIvor said.

[smartcode_project:default project_id=112343 project_image_fid=352687]

<a href="https://www.apartments.com.au/project-marketer/srm-residential">SRM Residential</a> Senior Director, <a href="https://www.apartments.com.au/project-marketer/srm-residential">Clayton Ross</a> said the local market has responded incredibly well, driven by ESTE’s exceptional location and the rarity it offers.

“We’ve seen strong interest from a variety of buyer groups, all of whom are drawn to the exclusivity and quality of the build and construction by the 4.5-star iCIRT-rated builder / developer, Urban Property Group. There’s truly nothing else like it along Sydney’s coastline.”

[smartcode_project:default project_id=112343 project_image_fid=352690]

The project also includes robust buyer protections, including Resilience Insurance’s Latent Defects Insurance, providing 10 years of structural cover, and an independent iCIRT-rating of the developer.

“The iCIRT-rating adds another layer of confidence,” Ross added. “Buyers see it as a safeguard for their investment and their lifestyle.” A highlight of ESTE’s offering is its exclusive wellness amenities, including a heated rooftop infinity pool and outdoor heated spa, a state-of-the-art Technogym fitness centre, and a sauna.

<a href="https://www.apartments.com.au/new-apartments/este-little-bay-jennifer-street-little-bay-nsw-2036">ESTE Little Bay</a> is topped out and is on track to complete towards the end of 2026, with residents moving in before Christmas.

[smartcode_project_cta:default project_id=112343]

Eastern Suburbs buyers snap up ESTE Little Bay apartments

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

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Superannuation law does not prohibit a fund from owning just one asset such as a valuable investment property.
Indeed, some fund trustees specifically decide to have SMSF portfolios dominated by a single property asset, perhaps after considering the diversification of their other super and non-super investments.
SMSFs are required to have written investment strategies.
And when preparing their strategies, trustees must consider such factors as investment risk, portfolio diversification, liquidity of investments, ability to pay member benefits and the members’ circumstances.
Despite the requirement that fund trustee smust consider diversification when preparing an investment strategy, they are not legally required to diversify.
Financial planners and superannuation specialists typically urge fund trustees to recognise the possible consequences if their retirement savings are overly dependent on the profitability of a single, high-cost asset.
<hr>
This article is part of Property Observer's <a href="http://propertyobserver.com.au/ebooks/free-ebook-21-dos-and-donts-for-smsf-property-investors" style="color: #000000; font-size: 15px;">free eBook: 21 do’s and don’ts for SMSF property investors</a>. 
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mlaurence-vhAHaLZT8y

Do think about impacts of direct property on your fund's diversification

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Superannuation law allows self-managed super funds to borrow to invest provided strict rules are met.
Geared assets must be held in a special trust until payment of the final installment.
And lenders cannot make a claim against any other assets of the super fund – apart from the geared asset – in the event of a default on the loan.
Martin Murden, director of SMSF consulting with the Partners Group in Melbourne, says his firm receives about one serious question a day from people who are interested in gearing through an SMSF.
“This is beyond tyre-kicking,” he emphasises.
<hr>
This article is part of Property Observer's <a href="http://propertyobserver.com.au/ebooks/free-ebook-21-dos-and-donts-for-smsf-property-investors" style="color: #000000; font-size: 15px;">free eBook: 21 do’s and don’ts for SMSF property investors</a>.
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Do understand the basics of SMSF gearing

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Negative gearing becomes less effective as marginal tax rate lowers, late-middle-aged SMSF investors have been warned.
Tony Bates, chief executive of Bluepoint Consulting, says negative gearing into property might have proved a successful strategy throughout a Boomer's high-flying career "but in your late 50s and early 60s it's time to slow down."
"My advice to Boomer clients is to transition slowly into retirement, pedal slower and progressively shift gearing down to zero," he told the Australian Financial Review, which reported modelling released by the Australian Institute of Superannuation Trustees and Mercer which showed very high-income earners received an average of $335,000 more over a lifetime in government support via superannuation tax concessions towards their retirement incomes, than the level of government support provided to median-income earners.
"Negative gearing becomes less and less effective as your marginal tax rate lowers," Bates warns.
"With the possibility of very low tax rates in retirement through generous super arrangements, I am cautioning Boomers against extending their already geared property portfolio if this is at the expense of accumulating super," he says.
Those coming to retirement need to wind down debt, sell surplus property and maximise contribution caps.
Using the "bring-forward" provisions for after-tax (or non-concessional) contributions would enable a couple to inject $1.44 million into super over two years, says Bates, or $720,000 for an individual.
It could work where in June this year the investors make an after-tax contribution of $180,000 for this financial year; then in July this year you could contribute $540,000 for the 2016, 2017 and 2018 financial years. 
The "bring-forward" rules allow you to make contributions for this and the next two years at the same time, as long as no further contributions are made until the fourth year.  
The maximum non-concessional contribution for an individual is now $180,000, up from $150,000.
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jchancellor-FAypfDUnLy

Property investors need to plan their borrowing in lead-up to retirement 

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GUEST OBSERVER
The latest Productivity Commission report, <a href="https://www.pc.gov.au/research/completed/superannuation-post-retirement" target="_blank">Superannuation for Post-Retirement</a>, highlights two aspects of post-retirement income policy that have recently attracted considerable attention: the age at which people should be able to access their superannuation, and whether lump sum withdrawals should be restricted.
Preserving superannuation
The preservation age, which is the age at which a person who retires can access their superannuation, is set by superannuation regulations, and is currently between age 55 for a person born before 1 July 1960, and age 60 for a person born after 1 July 1964. Anyone who reaches the age of 65 can access their super without retiring.
The preservation age has always been lower than the age at which a person becomes eligible for the age pension. In 1997, when the current preservation age was set, a person became eligible for the pension at age 60 (for women) or age 65. Therefore there was a five year gap during which a retiree could draw on their superannuation to support themselves before becoming eligible for the pension. However, superannuation balances were much lower at that time: <a href="https://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/C0A01711EAD911BFCA256BCD007D7F10/%24File/41020_2002.pdf" target="_blank">in 2000 </a> the mean superannuation balance for a male over the preservation age was A$44,700, and for a female was A$19,800. With lower balances, there was less incentive to retire early.
The gap of five years between preservation and pension age has now extended to seven years. From 2017 the pension age will be 67 for both men and women, and as superannuation balances have increased, in recent years there has been concern that retirees will retire earlier, living off accumulated superannuation until they reach age pension age. This could reduce workforce participation among people in this age group, which would impact on productivity in the National Accounts; and would also increase the cost of the age pension as superannuation savings are exhausted before pension age.
The Productivity Commission found that there could be a fiscal saving of about A$7 billion by 2055 if the preservation age and the pension age were to be synchronised. Most of this would be from additional tax paid by higher income households. 
<h2>The losers</h2>
However, there are other factors in the report that could equally be used to argue against the proposition.
Firstly, the increase in workforce participation would be relatively small, about 2%, and most of this would be from workers who are already more likely to continue to work beyond the age pension age: those with higher wealth who are more likely to be in managerial or professional positions.
Secondly, the impact of deferring the preservation age is likely be felt most severely by workers who take involuntary retirement, about half of all Australians between the age of 45 and 70. If these retirees are unable to access the superannuation they have accumulated, they will be forced onto other forms of government benefits that are generally lower and more restrictive than the age pension.
Overall, a change to the preservation age is likely to have a regressive effect on retirement incomes. High-income earners would work longer, save more and access higher incomes when they do retire. Lower-skilled workers, who are more likely to face involuntary retirement, would have lower superannuation balances and would be unable to use those balances to supplement income from other benefits while waiting for the age pension.
<h2>Transition to retirement</h2>
There is, however, a case to change the current transition to retirement pension arrangements.
Under the current rules a person who has reached preservation age can access some of their superannuation without formally retiring if they enter into a transition to retirement scheme. Although this was conceived as a good way to allow people to reduce their working hours in the lead up to formal retirement, in practice it has become a way for high-income earners to maximise superannuation concessions without reducing their working hours. The Productivity Commission has joined other <a href="https://www.acoss.org.au/wp-content/uploads/2015/06/Reform_of_taxation_of_super_contributions_ACOSS.pdf">critics</a> of this arrangement that seems to be used primarily as a tax-saving measure.
<h2>The lump sum myth</h2>
The second issue addressed in the report is the myth of the lump sum. It is frequently <a href="https://www.smh.com.au/it-pro/pensioners-angered-by-claims-of-cruises-and-luxuries-splurge-20140515-zrd5w">said</a> that Australians take a lump sums from their superannuation to fritter away on lifestyle assets such as holidays. However, this is not supported by the evidence of how people access and use their super.
There is a clear preference for people with lower superannuation balances to withdraw significant lump sums when they retire (see chart below).
<a href="/images/2015/07/09/image-20150708-31601-1erjjg2.png" target="_blank">Click to enlarge</a>
<img src="/images/2015/07/09/image-20150708-31601-1erjjg2.png" alt="">
Because lump sums are generally less than A$20,000, taking the lump sum does not have any impact on eligibility for the age pension. Members with higher balances are increasingly likely to convert their balance to an income stream, which is now tax free.
Where a lump sum is taken it is generally used to pay down debt, including mortgages, or to purchase durable goods like cars at the start of retirement. About half of the lump sums taken from superannuation are used in this way. About another third are converted to a different form of financial asset: an annuity is purchased or the money is invested or rolled over to another form of deposit.
All of these uses of the lump sum preserve the wellbeing of a person in retirement. Only 7% of lump sums taken are used for a holiday.
The Productivity Commission has conducted analysis, as opposed to a report with recommendations. It does note that any such decisions are a matter for the government to decide. In this instance, perhaps the current government mantra of no change to superannuation can be justified.
Helen Hodgson is Associate Professor, Curtin Law School. Curtin Business School at Curtin University. She can be contacted <a href="https://oasisapps.curtin.edu.au/staff/profile/view/Helen.Hodgson" target="_blank">here</a>.
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po-LsXgBTHBmX

It’s your super, so why shouldn’t you be allowed access?

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Park Trent Properties Group Pty Ltd, known as Park Trent, is under scrutiny from ASIC.
ASIC has commenced proceedings in the Supreme Court of New South Wales, where they seek interim and final orders that will stop the property promoters from carrying on an unlicensed financial services business.
Park Trent’s property promotion includes the use of SMSFs to purchase property. ASIC alleges that they are unlawfully carrying on a financial services business without a financial services licence.
At least 500 members of the public have been advised by Park Trent to start an SMSF and switch funds into it to then buy investment properties owned or promoted by Park Trent companies, according to ASIC, who are seeking orders to force Park Trent to notify current and former clients about the proceeding.
They would also be required to post details about the proceeding on their website.
Park Trent currently has almost 14,000 likes on Facebook and hold seminars across the country with offices in every state and territory apart from Tasmania and the Northern Territory.
The<a href="https://www.parktrent.com.au/finance/smsf/why-smsf/" target="_blank"> SMSF section of their website</a> encourages those who are interested in reading more to call their “EasyPlan Financial Services” team.
No doubt this will be of interest to other SMSF property promoters that do not hold financial services licences.
ASIC commissioner Greg Tanzer said that Australians hold more than $1.85 trillion in superannuation funds assets, including $557 billion in SMSFs.
“It is important when making decisions regarding superannuation to consider obtaining appropriate advice from an authorised financial adviser,” he said.
“Dealing with an authorised adviser affords specific protections under the law, such as acting in the best interests of clients, a duty to avoid conflicts of interest and providing access to dispute resolution schemes.”
The first hearing is listed for 26 November.
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jduke-EHk3XBmHkn

ASIC commences proceedings against property promoter Park Trent Properties

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Dixon Advisory Group Limited has paid off two ASIC infringement notices at $10,200 apiece for publishing potentially misleading claims regarding self-managed super funds on its website.
ASIC had concerns a web page and video dd not correctly portray the costs and performance of SMSFs when compared to retail and industry super funds.
ASIC Deputy Chair Peter Kell said any comparisons between SMSFs and industry and retail funds, particularly regarding performance or fees, must be accurate and have a reasonable basis, and that any qualification should be apparent to a consumer when they first see the information.
"ASIC is determined that all consumers including those considering a self-managed approach to their super get accurate information, and are not misled by any form of advertising, including online and through social media," Mr Kell said..
Dixon Advisory's website and social media accounts featured a promotional video making claims relating to an independent review of the superannuating system, according to ASIC.
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Dixon Advisory Group pays ASIC infringement notices on SMSF claims

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The average balance of self-managed super funds has topped $1 million for the first time, the latest tax office statistics show. It was at around $800,000 four years ago.
SMSFs returned 9.8 percent on assets in fiscal 2014, the fifth consecutive year of positive returns.
"For the first time the average assets of SMSFs grew to over $1 million in 2014, a growth of 23 percent over five years," ATO assistant commissioner Kasey Macfarlane said.
"Likewise, average assets per member increased to $564,000, the highest over the period," Fairfax Media reported.
The data shows there are one million members of DIY super funds which combined are worth $590 billion in assets.
The average assets per small fund are $1,066,080 and median assets $602,629.
Nearly 31percent of SMSFs now have assets of $1 million or over, including 10.8 percent with assets between $2 million to $5 million; 2.1percent in the $5 million to $10 million range and 0.5percent with a balance over $10 million.
 
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SMSF average balance hits $1 million

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Dear Margaret,
My husband and I would like to build granny flat through an SMSF at our own home – is this possible to do?
Lyn
 
Dear Lyn,
This one is a tricky one. I consulted Property Success team member Ian Rodrigues to get his thoughts and talk it through.
I’m not sure what it is that you are hoping to see as an outcome for doing this. Presumably, you are thinking that you can either get rental income from the granny flat into the super and it will be an inexpensive project since you won’t need to pay for the land, or that you can ‘rent’ some of your land to the super fund for the purposes of building the flat.
The issue is, once a building is built on a piece of land, that building becomes the property of the owner of the land.  And so the super rules would prohibit this, as the asset would no longer be owned by that super fund.
In talking this through with Ian, we considered what may happen if the granny flat was one of the mobile varieties, such as those often erected in holiday or mobile home parks. In this case, the super fund would be buying the flat as ‘plant’ and you would be allowing that piece of plant to be housed on your land. Technically speaking, if this piece of plant was fully mobile and could be shifted from place to place, it may be allowed, as the super fund can retain the ownership of this piece of plant, and receive any rent it attracted.   
Keep in mind that this granny flat would not be able to be rented out to any parties related in any way to the super fund, so if you’re thinking it could be a good way to get a place for the kids or a relative, then you won’t be allowed to do this. You may be able to personally receive rent on the land you provide to park the mobile home on. I say this because if you were, say, a plumber by trade, and your super fund rental property needed a plumber, you can carry out the work and be paid for that work.  I can’t see a lot of difference between that and receiving rent for land you provide.
The best way to check if any of this is allowable is to have a lawyer experienced in super fund law to check it out for you, or get a ruling from the tax office. As with all questions of this nature, pass it by your accountant to see what they think.
Regards,
Margaret
Have a property question?   <a href="mailto:admin@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

A granny flat with your SMSF? Ask Margaret Lomas

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GUEST OBSERVER
The SMSF Association remains supportive of Limited Recourse Borrowing Arrangements (LRBAs) in the wake of today’s announcement by the Labor Party to recommend their abolition in line with the Financial System Inquiry (FSI) final report. 
SMSF Association Managing Director/CEO Andrea Slattery says the right decision was made when this FSI recommendation was rejected in late 2015, and there is no compelling argument to suggest anything has changed since regarding LRBAs.
“The fact remains there’s little or no convincing evidence that the use of LRBAs by SMSFs is playing a significant role in affecting housing affordability.
“The most recent Australian Tax Office statistics show that SMSFs hold $24.3 billion in LRBAs, with these financial instruments being predominantly used to invest in residential and non-residential property in an almost 50-50 split. 
“That estimated $12 billion where SMSFs have used LRBAs to invest in residential housing has to be put in the context of a $6.43 trillion housing market. In other words, LRBAs comprise only 0.18% of the market. On these figures, it’s hard to argue LRBAs are a ‘market mover’.
“SMSFs investing in residential property, whether through borrowing arrangements or not, should not be singled out from other investors when looking at policy solutions to improve housing affordability.
“The idea that SMSFs have plunged into property investment in recent times also is not borne out by the statistics, with SMSF residential property holdings (both geared and ungeared) being consistent between 4-6% of total SMSF assets in recent times.
“In addition, there is scant evidence to support the notion that the use of LRBAs by SMSFs pose a systemic risk to superannuation or the broader financial sector.
“Consistent with our view submitted to the FSI, we still believe that the clear majority of SMSFs are using LRBAs appropriately to build their retirement savings and therefore should remain an investment option.”
In a recent speech given at the 2017 SMSF Association National Conference, Andrea suggested SMSFs are integral to our superannuation system.
<h1>Andrea Slattery is managing director and chief executive officer, SMSF Association, and can be contacted <a href="https://www.smsfassociation.com/" target="_blank">here</a>.</h1>
 
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jonathanchancellor-7SQnKwU6yx

SMSF Association rejects Labor proposal to ban LRBAs

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CBA, the nation's largest mortgage lender, is axing residential and commercial loans for self managed super funds (SMSF).
The bank will be withdrawing its SMSF lending product, SuperGear, from October 12.
Westpac Group, the nation's second largest mortgage lender, already pulled out of the sector in July.
But the Australian Financial Review said the move had shocked mortgage brokers and financial advisers. 
"We are seeing the writing on the wall for leveraged SMSFs," said Sally Tindall, director of research for RateCity, which monitors rates for financial service products. 
"This calls into question the viability of the leveraged SMSF sector."
"CBA has decided to withdraw its SMSF lending product that allows SMSF trusts to purchase both residentially and commercially secured properties," a spokesman said.
"This is part of our strategy to become a simpler, better bank.
"We are streamlining our product portfolio and have decided to discontinue SuperGear."
The bank said it will be writing to customers who hold a SuperGear loan outlining the changes.
It will continue to support existing loan accounts.
Regulators fear problems arising from SMSF investors leveraging their superannuation to invest in a single residential property because of the lack of diversification and increasing dangers of loss in a falling property market where it is difficult to find tenants. 
A key finding of the David Murray-led financial system inquiry in 2014 was that leverage should be banned in superannuation funds to mitigate the risk of financial instability.
The government rejected his advice.
Nearly $700 billion is held in SMSF funds by more than one million investors.
During the past four years the number of members investing in property has increased from about 3.6% to 6.9% of SMSF fund assets.
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