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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Last year brought the usual proverbial "truckload" of tax and superannuation changes either passed by Federal Parliament or proposed to commence this year. It's difficult to keep up with it all, but below I set out some of the changes that might be of interest to small and medium-sized businesses, including property businesses.
This year's federal election is sure to bring more changes promised.
Significantly, January 1 brought something of a changing of the guard in that a new Tax Commissioner, Chris Jordan, took up his role, and a new chairwoman of the Board of Taxation, Teresa Dyson, commenced. They both have a very busy year ahead of them.
The following tax changes commence, or are expected to commence, during 2013.
<ul>
<li>Medical expenses rebate: legislation still before Parliament proposes that an income test will apply to the rebate for medical expenses from July 1, 2012 i.e. for 2012-13 tax returns. For taxpayers with adjusted taxable income above the Medicare Levy Surcharge thresholds ($84,000 for singles or $168,000 for couples or families in 2012-13), the threshold above which they may claim the net medical expenses tax offset will increase from the current $2,120 to $5,000 and the rate of reimbursement will be reduced from 20% to 10%. The claim threshold will be indexed annually to the CPI. Tax returns for the 2012-13 year (i.e. ending on June 30, 2013) will first reflect the changes.</li>
<li>Mature age worker tax offset: the mature age worker tax offset has been phased out from July 1, 2012 for taxpayers born on or after July 1, 1957. Again, tax returns for the 2012-13 year will first reflect the changes.</li>
</ul>
<h3>Superannuation</h3>
There are lots of changes here, particularly for small and medium-sized businesses that have self-managed super funds (SMSFs) – and it seems from stats just released that SMSFs continue to grow strongly and are now a major component of the superannuation sector holding over 30% of total superannuation assets. SMEs should particularly take note of the following.
<ul>
<li>All employers should note that the compulsory super contribution rate will rise by 0.25% to 9.25% from 1 July 2013 i.e. for the 2013-14 year. This is first phase of the scheduled increase from 9% to reach 12% from 2019-20. There will be increments of 0.25% in the first two years and 0.5% thereafter (i.e. from 2015-16) until the rate reaches 12% (from 2019-20).</li>
<li>SMSFs and related party asset acquisitions and disposals: Draft legislation proposes new rules requiring that a trustee or investment manager of an SMSF could acquire an asset from a related party if the asset is business real property acquired at market value, as determined by a qualified independent valuer. The valuer must also be independent and therefore cannot be a member of the fund or a related party of the fund. It will still be possible to acquire business real property and certain in-house assets (not exceeding 5%) from a related party, provided that the asset is acquired at market value as determined by a qualified independent valuer. However, it will only be possible for an SMSF to acquire a "listed security" from a related party in a way prescribed by regulations (yet to be released as at January 1, 2013). The changes are intended to apply from July 1, 2013.</li>
<li>A new registration regime for approved SMSF auditors applies from January 31, 2013. SMSF auditors are required to apply to ASIC for registration as an "approved SMSF auditor". Auditors can apply for registration from January 31, 2013. All auditors will be required to be registered with ASIC by July 1, 2013 to audit SMSFs after that time. All SMEs that have self-managed super funds should be aware of this requirement concerning auditors of their funds.</li>
<li>SMSF approved auditors: From July 1, 2013, draft regulations propose to require SMSF trustees to appoint an approved auditor no later than 45 days before the due date for lodgment of the fund's annual return. The draft regulations (yet to be finalised) also provide that the prescribed period for which an audit report in respect of an SMSF must be given is 28 days after the trustee of the fund has provided all documents relevant to the preparation of the report to the auditor.</li>
<li>The MySuper application and authorisation process commenced from January 1, 2013. Authorised superannuation entities will be able to offer a MySuper product from July 1, 2013. Employers will be required to make superannuation guarantee contributions (for employees that do not have a chosen fund) to a default fund that offers a MySuper product from January 1, 2014.</li>
<li>A trans-Tasman portability scheme will permit transfers between certain Australian superannuation funds and New Zealand KiwiSaver schemes from July 1, 2013. The proposed scheme will enable Australians and New Zealanders to consolidate their retirement savings in their country of residence when they emigrate and intend to stay indefinitely or permanently in the host country. Currently, Australians and New Zealanders working in Australia cannot take their superannuation with them when they permanently leave Australia. Note that New Zealand-sourced retirement savings from KiwiSaver schemes held in Australian superannuation funds will not be able to be transferred to or held in a self-managed superannuation fund.</li>
</ul>
<h3>Other changes</h3>
<ul>
<li>Private health insurance rebate: From July 1, 2013, the private health insurance rebate will no longer be paid on any lifetime health cover loading applied to the cost of a private health insurance policy for lifetime health cover. Legislation to implement this is still before Parliament, but is expected to pass before June 30, 2013.</li>
<li>The education tax refund has been abolished and replaced by the Schoolkids Bonus from January 1, 2013. For those eligible, the first instalment of the Bonus ($205 per primary student and $410 per secondary student) will be paid by Centrelink or the Department of Veterans' Affairs, directly into their bank accounts between January 9 and 22, 2013 to help with back-to-school expenses. Eligibility requirements for the Bonus are that the student must be undertaking primary or secondary studies and be under 20 years of age, and the parent or carer must be receiving one of several government payments, including Family Tax Benefit Part A or Youth Allowance or Disability Support Pension.</li>
<li>Social Security benefits: From January 1, 2013, the length of time many payments and concession cards can continue while a recipient is temporarily overseas was reduced from 13 weeks to 6 weeks. Payments affected include Pension Supplement, Disability Support Pension, Carer Payment, Wife Pension, or if a person is a Commonwealth Seniors Health Card Holder.</li>
</ul>
This article originally appeared on <a href="https://www.smartcompany.com.au/index.php" target="_blank">SmartCompany</a>. 
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thayes-XhNcNKLNWa

A truckload of superannuation reforms coming for property owners in 2013

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Self-managed super fund trustees are being put off from seeking financial advice by the slew of <a href="https://www.smartcompany.com.au/finance/44332-public-register-for-dodgy-financial-planners-aims-to-clean-up-industry">recent scandals in the financial planning sector</a>, according to taxpayer advocate group Taxpayers Australia.
Reece Agland, superannuation products and services manager at Taxpayers Australia, said the organisation has considerable anecdotal evidence to suggest trustees are being spooked by recent events, such as the Commonwealth Bank scandal.
“Talking with our member and SMSF clients, they are saying they are scared to go to a financial planner now because of all bad news and they are concerned they’ll receive bad advice,” says Agland.
Susie Salmon, head of superannuation and SMSF financial services at Crowe Horwath, said while she has not seen any evidence of this herself, SMSF trustees are generally more cautious than others with their super.
“SMSF trustees are more wary than other superannuants. They want to make sure they know how their investments are going,” says Salmon.
She says trustees are also more concerned with their independence, and the recent scandals have shown some financial planning institutions have a lack of independence.
Agland says a lack of trust in financial advice may lead trustees to miss out on investment opportunities or products. He says trustees must seek as much knowledge as they can to ensure the health of their SMSF.
“Even if [trustees] are scared to go to a financial planner, they should educate themselves to make better decisions.”
Meanwhile, the fears follow good news for Australian super, as a global superannuation index this week announced Australia as the number two global superannuation system.
The Mercer World Pension Index places Aussie super just behind Denmark in an annual survey of 25 superannuation systems, due in large part to our superannuation guarantee.
Salmon agrees the super guarantee and forced contributions have landed the country such a high ranking.
“The number one reason why we are so big and will become much larger is because we are forced,” she says, pointing out Australia is the only county in the world to institute such involuntary contributions.
“I’d expect we’d be number one soon. We are seen as one of the leaders in superannuation. They [the rest of the world] always look towards the Australian market.”
She also says Australians feel more invested in their super than other countries because the money is “our own personal” money instead of the government’s.
Salmon says because of their strong interest in controlling their own investment, SMSF trustees are key contributors to the strength of the Australian superannuation system.
Graeme Colley, director of technical and professional standards at the SMSF Professionals' Association of Australia, said he agrees the SMSF sector is a major factor behind the ranking, given SMSFs are the fastest growing segment of Australian super and the funds, on average, hold about $1 million each.
“They are contributing, not only by the amount they’ve got in the funds, but from an investment point of view, they are certainly doing their part,” says Colley.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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krobb-aCrRNnPq6D

Will financial scandals push SMSFs to go it alone?

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To this day, I have not seen any financial planner, accountant, or other financial specialists offer secondary stock to their SMSF client when their client is being referred to buy property.
What I have seen are many financial professionals moonlighting as real estate agents and offer new stock to their clients in droves.
My belief is that many are attracted by the extremely high commissions being offered, some as high as 6%-8% of the value of the property. A standard commission paid to an agency is on average 1.7% as reported earlier in the year.
Now if I read correctly, our own representatives from the REIA believe the lines are blurred on our side: “Our involvement with this inquiry was at the request of the committee, although the REIA has been pro-actively working to address community and industry concerns about the blurring lines between real estate agents and the provision of financial advice,”<a href="/guides/the-blurring-line-between-real-estate-agents-and-smsf-advice"> said the REIA</a>.
Property marketing companies may blur the line but they are not the majority of what I call the “real” real estate industry. I’m of the opinion that the lines are blurred on the side of financial planning (FP) and the finance sector and there should be tighter controls there, or at least be on-par with the onus placed on the real estate industry.
As real estate agents, we work under very close scrutiny by the authorities when it comes to offering any form of financial advice. In a nutshell, we can’t offer any financial advice. Even hints in our marketing of property by using such terms as 'great investment opportunity', 'great rental returns', 'awesome growth potential' and even 'investors dream' may get an agent into hot water.
However, many financial professionals moonlight as real estate agents. It appears that individuals in the financial sector and property marketing companies can state all of the above under their governance. They can also refer property without being holders of real estate licences. Ironic, unfair, unjust? however seemingly true. It’s a marketing fee, a referral fee that they get and not a commission. Semantics I know, yet a major loophole in the regulations that needs to be closed.
I have had many discussions with Tim McKibbin from the REINSW with respect to these issues over the years. I have been assured the REINSW is lobbying to have these issues resolved. Closing these loopholes couldn’t come soon enough. 
A lawyer friend of mine says: "If you don’t want to be fined and serve time, don’t have a licence and you have a better chance to keep under the legal radar." Wow, I guess these words echo very loudly in the halls of many financial institutions and property marketing companies pushing new property to SMSFs.
We also have the reversal, an agency<a href="https://www.smh.com.au/business/comment-and-analysis/shock-as-real-estate-franchise-enters-financial-planning-market-20140916-10hljo" target="_blank"> Ray White looking to move into the financial planning sector</a>. In my humble opinion, this move is a recipe for major disaster. However this is a path chosen by one group. If this is a means by the agency to get a piece of the action where very high commissions abound in the sale of new properties to SMSFs. If it is, all I can say is “watch this space” and good luck.
Some real estate agent will be tempted to flirt with massive fines and law suits as they step into a paddock where they believe the grass is greener. But I am one to believe most, if not all, that work in the space of “secondary stock” were “normal/standard” commission are paid will not be tempted to flirt with danger, nor have time to see if the grass is greener on the other side.   
Edwin Almeida is licensee in charge of <a href="https://www.just-thin.com.au" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for<a href="https://propertyinvestingvault.com/" target="_blank"> propertyinvestingvault.com</a>.
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ealmedia-arK4DBYLjS

When it comes to SMSFs, blurred lines favour financial planners not real estate agents

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SPONSORED POST
Every property investor wants to buy well, so they can eventually sell well. But identifying a property that will deliver strong yield and solid capital gains over the long term is not always easy. 
Rental growth has been stagnant in some areas, while capital gains on individual properties are never assured, even in cities where the overall trend has been for price growth. 
Finding a property that will produce a positive result requires in depth research and consideration whether investors are buying directly or through a self-managed superannuation fund.
Investors who buy property through an SMSF typically plan to hold for the long term. The fund should have an investment strategy that documents its goals for holding investment property. This should consider diversification and liquidity requirements. Properties are high value assets making it difficult for a fund to be diversified unless the balance is large. They are also illiquid, meaning they can’t quickly be sold for cash.  
There are restrictions on the types of improvements SMSFs can make to properties they own if they borrow the money, particularly if the fund has borrowed to buy the investment. This means capital growth and rental income, rather than profits from developing or renovating and on-selling a property, will drive investment returns for the fund. 
SMSFs can buy most types of residential new and established property as long as the property is not purchased from anyone related to the fund members. Commercial property can be bought from related parties as long as the transaction meets regulatory conditions such as being sold at market value. 
Where to Buy
Location, price point and the property’s attributes are some obvious features to consider when searching for residential investment property.  Looking at these from a home owners’ point of view gives little depth to the considerations of what will drive the profits.  
There are various schools of thought on the best locations for an investment property. Some commentators advocate buying apartments in inner city areas, while others favour properties in middle and outer ring suburbs, or in regional locations. Schools of thought promote property commentary or opinion and these are real estate skills. It is much better to look to advice that presents and analyses the facts to support informed decision-making.
It can be difficult to predict the capital gains prospects of an area but some factors that influence growth potential include demand as measured by population growth or days on the market, supply as measured by dwelling starts and infrastructure that attracts a regional focus or increases accessibility to regional amenities and employment.
Suburbs where the growth in demand is outstripping the supply of new properties are more likely to experience capital growth than areas where supply and demand are in balance, or where an oversupply is emerging.  
Rental growth and the yield the investment property delivers will be affected by factors such as the appeal of the area, its life style amenities and commute times to employment and educational centres. Rental vacancy rates that reflect the current appeal, can be trended to support in depth understanding.
Timing
Property markets tend to move in cycles where prices rise fairly strongly, then plateau or decline before picking up again.  
Buying into an area where prices have already achieved significant capital gains may not offer the same growth potential as nearby suburbs that have not boomed as strongly. 
Timing entry into any investment is complex and holding for the long term can minimise the risk of a capital loss.  Trended capital growth rates versus days on the market can give much stronger support for informed decision making.
Be wary of areas that are dependent on single industries for their economic success. Mining towns for instance, delivered incredible rates of capital growth during the boom but their prospects are very limited now that investment in the resources sector has slowed. 
What
When considering individual properties look at the demographics of the area and favour the properties that will appeal to the broadest range of tenants for rental and to home owners for your exit.   
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admin-TPy8csjoDs

Creating an SMSF portfolio of property: Forrester Cohen on entry strategy

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More SME owners will focus much more closely in coming months on the pros and cons of buying and gearing their businesses premises through their self-managed super funds.
Specialists in superannuation, investment and business advice <a href="https://www.smartcompany.com.au/finance/superannuation/43421-self-managed-super-smes-to-expedite-gearing-of-business-premises" target="_blank">expect SME owners to consider accelerating any existing plans</a> to gear their business premises through their self-managed super funds. This follows renewed debate about whether to bar future gearing.
The interim report of the Australian government’s inquiry into the financial system calls for views about whether superannuation gearing should be prospectively prohibited because it “may create vulnerabilities for the superannuation and financial systems”.
Here are 10 critical points to consider when deciding whether your SMSF should acquire business premises, typically through gearing, to rent to your family business:
Pros
<ol>
<li>
Family businesses may make excellent tenants Sue Prestney, a partner at PwC Private Clients, says that in her experience, family businesses tend to make “excellent” tenants for their SMSF-owned business premises. Again speaking in regard to her own clients, Prestney says their family businesses typically pay their rent on time to their SMSF. “They look after the premises like it was their own.” Martin Murden, a director of SMSF consulting and auditing with the Partners Wealth Group, says family businesses make “great” tenants provided the business is successful. And Murden says dealings between a family SMSF as landlord and a family business as tenant can be smoother – regarding such things as rent reviews – than with an arm’s-length tenant. 
</li>
<li>
Exception for business property Business real estate is one of the limited types of assets that SMSFs are allowed to acquire from related parties including members. And business real estate is one of the few types of assets that SMSFs can lease to related parties, including the members’ businesses, without a limit on its value under the in-house asset rules in superannuation law. 
</li>
<li>
Concessional tax treatment During an SMSF’s accumulation or saving phase, rents are taxed at 15% within the fund while capital gains are taxed at an effective 10% if the property is held for more than 12 months. And once the business premises are backing the payment of a superannuation pension, fund income and capital gains are tax-free. This means that the SMSF may eventually be able to sell a property in the pension phase without paying CGT on any profits. SMSFs in the accumulation phase can claim the same types of tax deductions as individual investors who buy properties in their own names including negative-gearing deductions for the shortfall between the deductible expenses, including interest payments, and rental income. 
</li>
<li>
Business succession and estate planning SMSF trustees aim to keep the premises of their family businesses in their super fund through generations, with the aim of gaining greater security of tenure for the business as well as business succession and estate-planning benefits. Under this strategy, an SMSF will need sufficient other assets to pay member superannuation benefits when necessary for older members such as a business’s founders. 
</li>
<li>
Asset protection Business premises held in an SMSF are generally out of the reach of creditors if individual fund members are declared bankrupt – subject to claw-back provisions in the Bankruptcy Act.
</li>
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Article continues on the next page. Please click below. 
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Cons
<ol>
<li>
Potential conflicts if family business struggles to pay rent While the principals of a troubled family business may need the premises to keep trading, the family SMSF’s trustees – who are often the same people – must maintain the fund for the core or sole purpose of paying member benefits. Additionally, funds are prohibited from providing financial assistance to members, says Murden. This includes giving rent relief to family businesses in financial difficulties. 
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<li>
High-cost business premises can dominate an SMSF’s portfolio This can make it to diversify a fund’s portfolio to spread investment risks and opportunities. When preparing their mandatory investment strategies, SMSF trustees must consider such factors as investment risk, portfolio diversification, liquidity of investments, ability to pay member benefits and the members’ circumstances. Peter Crump, superannuation strategist for ipac South Australia, says that super funds are not legally required to diversify their investments but emphasises that trustees must consider diversification when preparing their investment strategies. Indeed, some fund trustees specifically decide to have SMSF portfolios dominated by a single property asset, such as the premises of their businesses, perhaps after considering the diversification of their other super and non-super investments. 
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<li>
It may be more tax-effective to gear business premises outside super Much will depend on the circumstances. First, the superannuation tax rate is much lower than most personal marginal tax rates, thus providing potentially lower tax deductions for negative gearing. Second, lenders usually require a much higher deposit for SMSF gearing, which means a property is likely to remain negatively-geared for a relatively short period – if at all. As well, SMSF trustees should be cautious about relying too much on the possibility that the business premises will eventually be sold when the asset is backing the payment of a pension and thus becomes exempt from CGT. Crump suggests that trustees recognise that the fund may well sell the property before it becomes exempt from CGT. 
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<li>
Potential costly traps in conditions for super gearing SMSFs should gain quality professional advice to ensure compliance with the strict conditions allowing funds to borrow. Mistakes can be costly. SMSF Trustees must enter a limited recourse borrowing arrangement and a geared asset must be held in a separate trust until the load is repaid. Lenders cannot make a claim against any other assets of the super fund in the event of a default on the loan. 
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SMSF could face severe financial setback following loan default Despite the requirement for a limited recourse loan, an SMSF that defaults on a loan to buy business premises could lose its sizeable deposit plus capital repayments and payments of interests and costs. Upon a property’s forced sale, a defaulting fund would be paid whatever is left after the lender recovers any outstanding amounts including the cost of a forced sale and the discharge of the mortgage.
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</ol>
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>. 
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mlaurence-vhAHaLZT8y

Should your SMSF own your business premises? The pros and cons

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GUEST OBSERVATION
Former Prime Minister Paul Keating recently suggested that self-managed superannuation funds (SMSF) should be restricted from investing in residential property
Keating told the Financial Review: “If I was treasurer today, I would be looking very hard at the whole entitlement or availability of debt to SMSFs. They have gearing available to them and, of course, many of them are taking the option of buying residential property.”
According to the latest Australian Taxation Office (ATO) SMSF statistics, real residential property represents 3.5% of the value of all assets held in SMSFs.  This level of investment has been consistent since 2009 with the bulk of properties worth between $200,000 and $1 million.  SMSF investment in commercial property is around 12%.
However, what has changed is the number of investors with an average of 1,200 new investors using their SMSFs to purchase residential property each year.  The explosion in limited recourse borrowing arrangements which have increased 1,758% between June 2009 and June 2014.
For many SMSFs however, there are some very big risks if the borrowing arrangements and property purchases are not put in place correctly.  If your SMSF breaches its compliance obligations, it is at risk of being deemed non-compliant and losing its concessional tax status and the trustees also risk being fined personally under the ATO’s new penalty powers that came into effect on 1 July 2014.
Here are the top SMSF property issues:
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<li>
Should your SMSF buy a property? Liquidity, diversification and cashflow.  The Superannuation Industry (Supervision) Act (SIS Act) requires trustees to take heed of these elements when making any investment.  When an SMSF invests in real property, there is a risk that the trustees are putting all of the fund’s ‘investment eggs’ in one basket and the rate of return will not be enough to meet the fund’s obligations. Funds in, or entering, pension phase need to meet the minimum pension drawdown requirements.  The question is, will the rental yield meet the ongoing expenses of the fund including pension payments?  Funds are required to increase the minimum pension drawdown over time: 4% at age 64, and 6% at age 75.  That's an increase of 50% in draw down obligations.  Will rent increase by 50% to keep pace? But what if a member wants a lump sum and not a pension, where will the immediate cash come from? What about when a member dies?  How will the benefits be paid out from the fund? You can't sell one room of an investment property. 
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Can my SMSF purchase my investment property? A common question that often comes up is, can my SMSF buy a residential rental property, holiday home, or house from me or someone related to me?  The answer is no, not unless the property is business real property (a property used wholly and exclusively for business).  And, in most cases, residential property will not meet the requirements to be business real property.  It’s important to bear in mind that the penalty for breaching the related party investment rules is up to 12 months in jail. 
</li>
<li>
Improving a property If your SMSF has borrowed money to purchase a property, it cannot use any part of those borrowings to improve that property.  Also, a SMSF cannot borrow money to repair an asset it already owns outright. However, a SMSF can use its own money to improve or repair a property acquired with borrowings, as long as the improvements do not result in the asset becoming a different asset.  For example, the trustees could not change a residential property into a childcare centre.  Or, turn a vacant block of land into an investment property. Take the example of a SMSF that borrows to buy a residential house on a large block of land ripe for development.  The fund cannot subdivide the land and build another house because the borrowing rules prohibit a change in the character of an asset bought with borrowed money until the borrowings are extinguished. 
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<li>
Getting the essentials wrong The common problem areas for SMSF trustees are often simple things in the rush of the moment or simply poor structuring. The most obvious example is when a property is purchased by an SMSF but the contract is in the name of the individuals.  Sometimes people just get carried away and make the purchase without thinking through the details.  Or, where there is a related entity involved like a unit trust but the unit trust was not established before the property was purchased or the incorrect name is inserted on the contract or registered with the titles office
</li>
</ol>
Shukri Barbara is principal adviser at Property Tax Specialists.
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ShukriBarbara-XZhfVURjbR

The top four SMSF property investment issues

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Investment in residential property through self-managed superannuation funds has risen 11% in the past year. 
The big increase in property investment by SMSFs is revealed by the Australian Securities and Investments Commission in its submission to the latest parliamentary inquiry on home ownership. 
"As at March 2015, the value of residential real property investments through SMSFs was $21.78 billion … up from $19.49 billion … in March 2014," the ASIC submission said. 
Despite the growth, residential property still makes up less than 4% of total Australian and overseas assets held by the 500,000 SMSFs. 
The Reserve Bank of Australia also observed that "although the share of the housing stock owned by these funds is small, it has grown quickly". 
Since the law changed in 2003 to allow SMSFs to borrow money, concern has increased about the influence of the small super funds on the housing market. 
SMSFs are the fastest growing sector of the superannuation industry and investment in property through SMSFs is consequently also growing, ASIC noted.
As at March 2015, the value of residential real property investments through SMSFs was $21.78 billion, or 3.7% of total Australian and overseas assets, up from $19.49 billion, or 3.6% of total Australian and overseas assets, in March 2014.
"There has been an increase in investment in residential real property through SMSFs of 11.78% from March 2014 to March 2015, and an increase of 58.69% since March 2011.
"ASIC’s primary role in relation to SMSFs is to regulate the gatekeepers—the financial planners, accountants, auditors and providers of products and services to SMSFs.
"We want to ensure that those who are advising retail clients about establishing and investing through SMSFs are providing good quality advice.
"We consider that gatekeepers have a critically important role in ensuring the overall health of the SMSF sector is sound.
"ASIC has publicly warned investors about misleading advertisements regarding the use of SMSFs.
"ASIC has also taken regulatory action in relation to the promotion of investment in residential property through SMSFs in a number of instances, including Money Choice, Charterhill and Park Trent," the submission noted.
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jchancellor-FAypfDUnLy

SMSFs spending on housing up 11%: ASIC

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ASIC has provided two information packs designed to better the advice given by advisers on investing in self-managed superannuation funds.
The downloadable documents stress ASIC's view that an SMSF with a starting balance of $200,000 or below is unlikely to be client-centric and more likely be investigated by ASIC.
ASIC Deputy Chairman Peter Kell said it is important that consumers receive good quality advice that will assist them in making informed decisions about their retirement savings.
'ASIC wants to ensure that only those investors for whom an SMSF is suitable are advised to establish an SMSF and that our expectations around the standards of advice are clear.
'SMSFs are a key priority for ASIC and we will continue to target inappropriate advice about SMSFs in our surveillance work,' Mr Kell said.
ASICs information packs can be downloaded <a href="https://www.asic.gov.au/about-asic/media-centre/find-a-media-release/2015-releases/15-192mr-asic-releases-guidance-on-smsf-advice/" target="_blank">here</a>.
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mick.cee-iDmgDDAmu8

ASIC offers to help SMSF investment advisers

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The federal government has rejected the Murray review's proposal to ban self-managed superannuation funds from borrowing to buy property.
The new Treasurer Scott Morrison said yesterday there was insufficient evidence to support an immediate ban on borrowing.
"The information collected on this doesn't lead us towards that conclusion at this point," he said. 
However, regulators would be asked to monitor the situation closely and report their findings to the government, he said. 
The decision to reject a borrowing ban, which was recommended by the Murray Inquiry amid concerns about the stability of the system if property prices crash, will be welcomed by super fund investors.
In August then Assistant Federal Treasurer Josh Frydenberg gave the strongest signal yet that the then Abbott Government would not implement a recommendation to ban do-it-yourself super funds from borrowing to invest in property.
"I want to emphasise that we have been considering this recommendation very carefully but flag that we want to make sure the approach we take is proportionate to the risks that have been identified," he said adding to put it in context "only 0.07%, perhaps 6,500 properties, were held in an SMSF through a limited recourse borrowing arrangement in 2013." 
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SMSF borrowing ban ruled out by Treasurer Scott Morrison

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Westpac is cutting lending to self-managed super funds for residential investment properties, according to the Australian Financial Review.
The bank has cut maximum loan-to-value ratios from 80 to 70% and tightened other lending criteria.
Super fund borrowing has increased from less than $500 million to more than $9 billion, the Australian Taxation Office says over the past five years.
The recent financial system inquiry warned that current growth rates could create a systemic risk in the future, even though total borrowing was small compared to the overall economy.
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