Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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GUEST OBSERVATION
Over the past year, the Reserve Bank has elected to hold interest rates at an unprecedented low level a level which I’ve never seen during my 42 years practicing real estate.
This has had a marked impact in the property market as historically, continuous periods of low interest rates tend to drive interest in property as an asset class. This is an effect we’ve observed over the past two and a bit years and a contributing factor to the property markets sustained recovery, with the market achieving 15.5% growth since the trough in May 2012.
The Australian property is now entering a very steady adjustment and growth mode driven by the shift to a market where buyers and sellers negotiate a fair price for a property – not one driven by vendor’s expectations.
Despite this, <a href="/expert-insights/buying/moody-s-says-property-market-may-be-overheating-and-could-face-a-correction">Moody’s recently warned of a growing risk</a> of an overheated Australian property market developing into a real estate bubble, driven by low interest rates and growing interest from offshore investors.
My reaction to this is simple: If the Reserve Bank suddenly raises interest rates suddenly and steeply, it will almost certainly look like we’re in a ‘bubble’.
Similarly, if the world was to experience another global financial crisis, it’s likely that many property markets across the world will look overvalued.
At times such as this, it’s important to remember that in the right situation, almost anything could be deemed in a bubble, but it’s currently unlikely that either of these scenarios will eventuate and push the Australian property market in to bubble territory.
However, I would caution investors, home owners and prospective buyers to budget for the effect any interest rate movements could have on their finance. This is because while interest rates are currently steady at 2.5%, it’s unlikely they’ll stay this low forever.
Buyers who fail to budget for the impact of any potential interest rate increases may find themselves in financial difficulty should the Reserve Bank’s next interest rate movement be upwards.
Charles Tarbey is chairman and owner of <a href="https://www.century21.com.au/" target="_blank">Century 21 Australasia</a>.
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ctarbey-W47GL9jwxa

Unprecedented low interest rates won't last forever

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With an increasing number of lenders dropping their interest rates, Mortgage Choice recorded demand for fixed rates grew over August and now accounts for almost 25% of mortgages written.
The Mortgage Choice Homeloan Choices data saw 24.19% of loans written being for fixed rates, up from 23.82% the previous month.
“At the end of July, many of Australia’s lenders slashed the interest off their suite of fixed rate products – most notably their five year home loans,” said Mortgage Choice spokesperson Jessica Darnbrough.
“Whenever lenders cut their rates, we tend to see a lift in demand for that type of product a few months later,” she said.
Darnbrough noted that it was unsurprising that fixed rate traction grew through August and with many lenders offering historically low fixed rates, expects the trend to continue through September.
Queenslanders were the most likely to opt for fixed rates, at 29.85%, while they were also popular with South Australia and New South Wales borrowers, at 25.83% and 25.30% respectively.
Victoria’s demand for fixed rates was the lowest in the country, at 16.70%, with borrowers preferring variable rates. Western Australia also recorded strong interest in variable rates,at 80.94%.
“Not only are rates low, but Australia’s lenders have proven they are hungry for business and they are willing to cut the interest on their suite of products, offer significant discounts or other incentives in order to win business,” said Darnbrough.
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jduke-EHk3XBmHkn

Fixed rate demand grows as lenders drop rates: Mortgage Choice

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Interest rates have been on hold at record low levels for more than a year now and experts predict there will be no increases for several more months to come.
But when rates turn, they can move quickly and borrowers should be prepared.
The Reserve Bank of Australia cut rates from 7.25% in August 2008 to 3% in April 2009 in a rapid response to the financial crisis. At the start of the recovery, official interest rate rose from 3% up to 4.5% in the eight months to May 2010.
Interest rate movements can still be volatile but the highs and lows have smoothed out over the past 20 years. Rates are now generally lower than they were. In the early 1990s and before the official cash rate was 17%. Fortunately for mortgage holders, economists agree it’s unlikely the RBA will need to lift interest rates as high as that again.
“The key driver of that story is that inflation is now much lower than it was in that earlier period,” says HSBC chief economist Paul Bloxham.
In the 1970s and 1980s, inflation was running at around 7 to 8%. Now it is between 2 and 3% and Bloxham says these lower inflation rates are expected to persist.
“That’s four to five percentage points that have come off interest rates because inflation is much lower than it was,” Bloxham says.
The RBA uses the short-term interest rate to try to control growth in the economy and keep demand increasing in line with supply. When the economy is weak, the RBA lowers the official interest rate to try to boost demand and when it is too strong, it lifts the interest rate to slow things down.
“They only have the interest rate to do that. They use the cash rate and yes, they have been successful,” Bloxham says.
BetaShares chief economist David Bassanese agrees.
“[The RBA] can achieve an increase in the real interest rate – that is the nominal interest rate less inflation - with a lower nominal rate,” he says.
Expectations of inflation have lowered since the 1990s which in itself slows the inflation rate, Bassanese says.
Labour and product markets are more open to trade and more competitive than they used to be. Competition and deregulation helps keep prices down and reduces demand for wage rises.
“You can get a situation where pockets of strength like in the mining sector don’t flow through to other sectors as easily as they did in the past because it’s much more deregulated,” Bassanese says.
The outlook for energy prices is more benign now than it was in the past, which will also help to keep inflation under control, Bassanese says.
In the 1970s and 1980s, world economies faced oil price shocks, which hit inflation rates. The price of oil for energy skyrocketed in the 1970s due to shortages sparked by tensions in the Middle East. That led to a slowdown in world economic growth in the 1980s, which in turn resulted in a glut of oil that caused oil prices to plunge.
“The other issue is that households now have a lot more debt,” Bassanese says. “Household debt to income has gone from 50% to 150% over the past couple of decades so now interest rate changes have a much bigger impact.”
Households are much more sensitive to interest rate changes, so the RBA doesn’t have to move them around as much as in the past to influence consumer behaviour.
Global factors are also having an effect on Australia’s interest rates, Bloxham says.
Interest rates in the rest of the world are much lower than they have been in the past, particularly since the global financial crisis. They are expected to stay lower, which will also help the RBA to keep Australia’s cash rate down.
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zfielding-GvX3Uq9KTa

Borrowers need to prepare for interest rate movements

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A strong resurgence in the residential property market has significantly lifted transfer duties; including residential stamp duty in 2013-14 and signs are the trend will continue.
However for what has been described by some commentators, as a ‘windfall’ may in reality be a clear sign that long overdue stamp duty reforms should be addressed now while the market is so positive.
Higher prices and continued strong demand are putting a lid on affordability, along with low interest rates and while very competitive interest rates are welcome, it’s time to look at a longer term solution to the government’s heavy reliance on stamp duty revenue. The state government’s first time buyer concessions are also only available on new homes and so this tends to fuel demand in some, mainly outer, areas but the concessions also limit the choices of first time buyers.
However the much wider consideration is that government revenue may be far too reliant on stamp duty revenue from a robust property market. We should question if this is placing a greater or uneven burden on home buyers for a revenue benefit for the government that may be short lived. At the same time government is naturally welcoming the revenue, but this is a volatile source of cash.
And while state-based tax reforms looks a long way off, I think that it is reasonable to suggest that while the market is so strong that this is the ideal time to start the process of reform. Because in the longer term, lower stamp duties with more widespread affordability might well help to fuel and sustain a more robust market. This process could start with indexation.
However before looking at the case in favour of indexation, one of the most telling figures in this debate is the comparison between GST revenue and transfer duty that NSW receives. GST revenue in 2014-15 is estimated at $6.094 billion rising to $6.9 billion in 2017-18. By comparison, the total transfer duty revenue in 2014-15 is estimated at $6.095 billion (of which $4.7 billion flows from residential property stamp duty) but this is anticipated to rise to $7.256 billion in 2017-18. On top of which we should not forget that revenue from land tax will add $2.4 billion – $2.8 billion in the same time frame, plus the parking space levy is set to reach $115 million by 2017-18. Adding these figures we see that by 2017-18 property related revenue for the state will be some $10.24 billion. To me this appears to suggest a possible imbalance.
Higher Prices Should not be Driving Revenue
We currently have historically low interest rates, pent up demand, undersupply, improved consumer confidence and of course the obvious big increase in house prices. It is the rapid increase in prices YTD to 16.3% against an anticipated 7% increase that really does support the argument. It is time for the NSW government to look at reducing or at least moderating the amount of stamp duty from residential buyers via some form of indexation.
The concern being expressed is that stamp duty does play a role in the housing affordability debate. The figures speak for themselves, when you consider that the average stamp duty paid by a property buyer is now $23,805 and that only nine years ago it was $14,485, then the figures look horrible. In 2005/06 total stamp duty paid was $2.3 billion today its $4.7 billion.
The result comes about because higher property prices are pushing average home buyers into more expensive stamp duty brackets. Economists refer to this phenomenon as bracket creep. Governments tend to enjoy bracket creep because it delivers growing tax receipts without nasty policy changes or political debates.
The current stamp duty brackets have not been changed for a very long time (except for the “premium property” bracket that was introduced in 2004). When these brackets were put in place, the median house price in NSW was less than $300,000. The median house price in Sydney is now $783,000 as bracket creep catches more and more buyers. Already we know that in some 170 Sydney suburbs, that’s one in five, median prices are now $1 million plus, and this is a further signal that some adjustments are warranted.
Governments do need revenue, but stamp duty reform has been promised for many years, and the current policy is a negative for many buyers. It’s also a source of income that in many ways is frequently volatile. One solution is to start and adjust the growing bracket creep problem, and this could be done in stages. 
If some changes are made now when receipts are high then the NSW government can start indexing the benchmark to be more in-line with today’s values, as current rates are distorted and need adjustment. 
After all, in Sydney almost no homes are well below or even near $300,000, which was the median price when current rates were set.
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pchittenden-eLqUUC8TWW

It’s time to index stamp duty

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All 25 experts surveyed by finder.com.au expect the Reserve Bank of Australia (RBA) to keep the overnight cash rate on hold this month.
The RBA has held the cash rate at a record low of 2.5% since August last year. More than half of the experts surveyed predicted that the next interest rate change will come in the second half of 2015, including Property Observer's Jonathan Chancellor.
Only one respondent, Nicki Hutley of Urbis, expects a rise as early as December this year.
“The Australian economy is still seeing growth a little below par," said Hutley. "Inflation is picking up but not yet alarmingly so... so the RBA won’t be in any hurry to move."
"A first rate rise is likely to occur either in December or the new year," she told <a href="https://www.Finder.com.au" target="_blank">Finder.com.au</a>. Of the 25 respondents, 10 surveyed expected an increase would come in the first half of 2015.
The experts surveyed include representatives  from AMP, ANZ, Bank of Queensland, Moody's Analytics and Commsec. James Bond of the Financial Services Council said uncertainty in recent economic indicators will see the RBA hold rates.
"The RBA will wait to see how employment and wages pan out over the next six months before they make a move either way," said Bond.
"The usual tightening cycle that we would expect has been pushed out by uncertainty in the some of the data.”
Janu Chan of St George Bank also believed that the RBA would wait for more solid evidence of an economic recovery.
"The RBA will probably want to see some stronger evidence that the recovery is strengthening before they raise interest rates," Chan said.
"We think the RBA is done cutting rates so the next move we expect will be a hike."
ING Direct's Michael Witts predicted a 25 basis point increase in the first six months of 2015.
"The Bank is trying to balance the strength of the housing and related sectors," said Witts.
"Equally it is mindful that any near term move in interest rates will see the Australian dollar move higher."
To see each expert's prediction, go to the next page.
<hr class="system-pagebreak">
Click to open in new window:
<a href="/images/2014/09/01/finder-sept-1-one.jpg" target="_blank"></a>
<a href="/images/2014/09/01/finder-sept-1-one.jpg" target="_blank"><img src="/images/2014/09/01/finder-sept-1-one.jpg" alt=""></a>
Source: finder.com.au
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jrichardson-uRX5hFdKfN

Experts predict no interest rate change tomorrow: Finder

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Second-round submissions to an inquiry into the banking system have challenged findings that the system is competitive and called for a review of mortgage broking practices to ensure consumers are getting quality advice on home loans.
The Financial System Inquiry released its interim report in July, calling for further input on a range of questions, including whether bank ownership of mortgage brokers was restricting competition.
Second round submissions were published on Friday.
The Mortgage and Finance Association of Australia challenged the report’s finding that the banking sector was “competitive, albeit concentrated”, noting that the financial crisis and government intervention had restricted competition.
However, the MFAA said there was no evidence that bank ownership of mortgage broking groups was limiting competition or discouraging brokers from acting in the consumers’ interest.
The MFAA argued that the National Consumer Credit Protection Act, 2009 required brokers to disclose commissions and lender panels and ensure clients were not disadvantaged by any conflicts of interest.
Suncorp disagreed, arguing that bank ownership of mortgage brokers was distorting the way in which mortgage brokers directed borrowers to lenders.
“Of great concern is the fact that customers view brokers as independent but the major banks have growing influence over these channels which they now predominantly own, and coupled with generous incentive schemes, are able to direct business to their products,” Suncorp said in its submission.
Consumer group Choice called for a review of how mortgage broking regulations were working for consumers including an assessment of the impact of mortgage brokers’ remuneration and institutional arrangements on the services they offered. It also called for an investigation into whether more extensive rules about the quality of mortgage broker recommendations and disclosures were required.
Choice said conflicts of interest reduced the quality of mortgage brokers’ recommendations and service for consumers. 
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Banking system uncompetitive and mortgage broking review needed: Senate inquiry submissions

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There was an initial 81.9% clearance rate at Sydney weekend auctions, continuing the recent renewed strength.
The revised APM prior weekend result was a strong 78.9%.
Umbrellas galore when Sydney's wet auctions got underway today on the busy last Saturday in August.
There were six bidders, barely visible, spotted amid the downpour when <a href="https://www.ppdre.com.au/selling/NSW/Eastern-Suburbs/Queens-Park/House/1P0577" target="_blank">53 Alt Street, Queens Park</a> went to auction.
<img src="/images/2014/09/01/rainy-day-sept-1-one.jpg" alt="">
Bidding opened at $2 million, with the hammer coming down on the Federation home at $2.51 million when auctioned through Debbie Donnelly at Phillips Panzter Donnelly. It was $160,000 over reserve.
The 53 Alt Street offering, Mayo was sold as a deceased estate.
The double-fronted brick house presented as an exciting prospect for a complete renovation and transformation with rear and second floor extensions (STCA) similar to neighbouring homes. Owned by the same family for many decades, it has a wealth of original features including leadlight windows and a tessellated tiled verandah with timber fretwork.
Another nearby offering at 6 Lynch Avenue, Queens Park (pictured below) sold this afternoon for $1.45 million.
<img src="/images/2014/09/01/quenns%20park%20sept%201%20towo.jpg" alt="">
<div>There were five registered bidders – with competition from three of them.</div>
<div> </div>
<div>The buyers are a young couple upgrading from a unit in Bondi.</div>
<div> </div>
<div>He’s a builder and they will add the approved second storey.</div>
<div> </div>
<div>The two bedroom house had already been renovated when it last traded for $1.325 million in November 2011.</div>
APM noted auction numbers in Sydney have risen steadily over recent weekends with this weekend some 573 auctions scheduled compared to the previous weekend’s 440.
There were the 550 listed over the same weekend last year.
The city and east hosted the most number of auctions with 82 followed by the inner west with 81.
Mosman hosted the most auctions this weekend in Sydney with 12. Next highest was Epping on the upper north shore, Strathfield in the inner west and Manly on the northern beaches each with 9 auctions.
With five Saturdays, Sydney has recorded its highest ever August for auction listings this year with 2660 properties going under the hammer.
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jchancellor-FAypfDUnLy

Bids aplenty as rain buckets down on Sydney weekend auctions

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Is e-Conveyancing going to be a way of ensuring that foreign nationals comply with Australian foreign investment rules?
The Real Estate Institute of Australia suggests that this might be exactly the case.
As part of the House of Representatives Standing Committee on Economics’ public hearings into the Inquiry into Foreign Investment in Australian real estate, REIA board member First National's Ray Ellis is to address the inquiry and detail the possibility of using e-Conveyancing to improve compliance.
This would ensure greater inter-departmental and agency communication, including with the Department of Immigration, with REIA CEO Amanda Lynch noting that later in the year the first national e-Conveyancing platform will be rolled out.
“While it is important to stress that the new online platform is heavily regulated with keen focus on protecting privacy of individuals, it will be capturing a rich set of data including identification where the transaction involves foreign nationals,” said Lynch.
“Lawyers and conveyancers will have to verify the identity of the clients they represent and reflect the client’s foreign residency status while filling the form in an online workspace,” she said.
They will reflect the paper versions of transfer in each state and territory, with the same data fields, however will store data electronic – something that matches the expectation for 85% of all property transactions over the next two years to be electronic, explained Lynch.
Monitoring could more easily be undertaken under this system.
“The transition towards e-Conveyancing provides the opportunity for easier detection of irregular activity,” said Lynch.
“The last thing that the sector wants to see is unnecessary red tape around foreign investment in Australia and here is an ideal platform that is available for all property purchases, not just those involving foreign investment,” she said, noting the REIA supports both foreign investment in Australia, and the current guidelines.
Ellis noted that the issue isn't that foreign investment happens, but that it is inadequately monitored and regulated.
"Australia has long depended upon migration and foreign investment. It’s vital to a thriving economy in a country with a comparatively small population," he said.   "However, there appears to be evidence that some wealthy foreign investors have been purchasing existing homes and leaving them vacant to avoid detection by the Foreign Investment Review Board (FIRB)."
He noted that there is currently an $85,000 fine for breaching this law.
"Foreign developer investment, when compliant with our laws, creates jobs and benefits the construction industry. However, if foreign residential property investors believe they can buy existing properties and leave them vacant, to avoid detection, this is clearly against the rules and objectives of the FIRB scheme and measures should be put in place to address this cavalier attitude," he said.
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How e-Conveyancing can help ensure foreign investors comply with rules: REIA

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GUEST OBSERVATION
The Australian Tax Office regularly flags tax compliance issues it has under the microscope.
But don't think if an issue is not on that list, the ATO is not looking at it. The ATO's administration of the tax system doesn't work that way.
Take <a href="https://www.smartcompany.com.au/finance/tax/32726-ato-rules-for-tax-deductions-for-work-related-expenses-in-australia">work-related tax deductions</a>, a big ticket item in the deduction stakes.
Tax deductions claimed for work-related expenses are a "tax 101" item. The vast majority of taxpayers claim them – in fact, in 2011-12, some 8.5 million individual taxpayers claimed some work-related expenses. The claims have steadily increased over recent years. In 2009-10, they totalled $17.1 billion, while in 2011-12, they were $19.3 billion, a $2 billion increase over two years. Those expenses represent a significant cost to the revenue so it is not surprising the ATO has a particular focus on them as part of its compliance activities. And there are specific rules surrounding claiming such expenses.
This year, the ATO says it is using extensive data analysis to identify areas requiring attention across all work-related expense claims, regardless of occupation. However, the ATO says it is paying particular attention to work-related expense claims relating to:
<ul>
<li>overnight travel;</li>
<li>transporting bulky tools and equipment – the recent Ford AAT case on this issue  involving a train guard transporting equipment essential to his work from his home to work highlighted the kinds of issues involved in making such claims. The taxpayer lost the case essentially because his employer provided a secure locker at his work place for the equipment, so he did not need to transport it to and from work;</li>
<li>the work-related use of computers, phones or other electronic devices.</li>
</ul>
Last year, the ATO paid particular attention to high work-related expenses claims made by: (i) building and construction labourers, construction supervisors and project managers; and (ii) sales and marketing managers.
Specific rules in the tax law specify the written evidence that an individual must obtain to substantiate deductible work-related expenses.
The ATO stresses that taxpayers claiming work-related expense deductions need to satisfy several basic requirements:
<ul>
<li>they must have spent the money;</li>
<li>the expense must be related to their job;</li>
<li>they must have a record to prove it.</li>
</ul>
If that seems like "stating the bleeding obvious", ask yourself why the ATO feels it necessary to remind taxpayers about it.
Rental property deductions
The current hot property market also has the ATO's attention. The ATO says it is increasing its focus on rental property deductions. It says common errors made by rental property owners include:
<ul>
<li>claiming rental deductions for properties not genuinely available for rent;</li>
<li>incorrectly claiming deductions for properties only available for rent part of the year such as a holiday home;</li>
<li>incorrectly claiming structural improvement costs as repairs when they are capital works deductions, such as re-modelling a bathroom or building a pergola; and</li>
<li>overstating deduction claims for the interest on loans taken out to purchase, renovate or maintain a rental property.</li>
</ul>
Story continues on page 2. Please click below.
<hr class="system-pagebreak">
Data-matching programs
In its drive to enforce tax compliance, the ATO's use of data-matching programs is ever-expanding, as I have mentioned before.
Offshore bank accounts
Most recently, the ATO has announced it will request and collect account details of bank customers from various financial institutions (see below) to identify Australian resident taxpayers with offshore bank accounts which may evidence undeclared income and/or gains for the years ended 30 June 2012 to 2015. The financial institutions concerned include:
<ul>
<li>Australia and New Zealand Banking Group Limited</li>
<li>Bank of China (Australia) Limited</li>
<li>Bank of China Limited</li>
<li>Credit Suisse AG</li>
<li>Deutsche Bank Aktiengessellschaft</li>
<li>HSBC Bank Australia Limited</li>
<li>Hongkong and Shanghai Banking Corporation Limited</li>
<li>Investec Bank (Australia) Limited</li>
<li>Macquarie Bank Limited</li>
<li>Rabobank Australia Limited</li>
<li>Rabobank Nederland</li>
<li>UBS AG</li>
<li>Citibank, N.A.</li>
<li>Citigroup Pty Limited</li>
</ul>
The program is designed to help the ATO identify Australian resident taxpayers who may be outside the tax system and increase transparency of the worldwide dealings of Australian resident taxpayers. The program will also assist the ATO to build an understanding of taxpayer behaviour in international dealings, develop compliance profiles and improve fraud detection models. The ATO estimates that approximately 50,000 offshore records will be obtained under the program.
Taxable government grants and payments
In another data-matching program, the ATO will also acquire details of entities receiving taxable grants and payments from various Federal, State and Territory and Local Government departments, agencies and authorities. The program is designed to enable the ATO to:
<ul>
<li>identify and test the correct taxation reporting by recipients of taxable Government grants and payments from agencies across the Federal, State and Local levels of government; and</li>
<li>identify areas that require improved educational and compliance strategies to encourage voluntary compliance for recipients of Government payments and grants.</li>
</ul>
Records matched under the program will exceed 5,000 individuals throughout Australia.
Music royalty payments
The ATO will acquire details of entities collecting and distributing music royalty payments for the 2011, 2012 and 2013 financial years from the following sources:
<ul>
<li>Australasian Performing Right Association (APRA) and APRA New Zealand Limited;</li>
<li>Australasian Mechanical Copyright Owners Society (AMCOS) and AMCOS New Zealand Limited.</li>
</ul>
Among other things, the ATO aims to detect instances of potential non-compliance, especially with omitted income and alienation of personal services income. The ATO also aims to develop a profile of the industry, including any risks and trends of non-compliance with taxation and superannuation obligations, and tailor educational strategies specifically for participants in the music industry. It is estimated that records for more than 15,000 entities will be obtained, of which most will be individuals.
Building sector – phoenix operators
And just to finish off, the security regulator ASIC says its surveillance program aimed at weeding out illegal phoenix operators has been widened to look at the<a href="https://www.smartcompany.com.au/legal/43425-asic-and-ato-cracking-down-on-phoenix-companies-in-construction-industry"> use of false statutory declarations in the building and construction sector</a>. The campaign follows feedback from small businesses, industry bodies and other government agencies about the use of false statutory declarations in the sector to falsely claim payments for work.
"There is concern that some company officers of larger companies have falsely declared that they have paid small businesses contracted to work on commercial and residential projects when this is not the case", ASIC Commissioner Greg Tanzer said.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" target="_blank">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
Thomson Reuters <a href="https://www.propertyobserver.com.au/https://www.thomsonreuters.com.au/the-australian-tax-handbook-tax-return-edition-2014/productdetail/121906" target="_blank">Australian Tax Handbook 2014 – Tax Return Edition</a> provides information on claiming all kinds of tax deductions, including the rules relating to claiming rental properties and work-related expenses.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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thayes-XhNcNKLNWa

ATO targets work expenses, rental properties and more

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A new Housing Industry Association report, Stamp Duty Watch, is looking to provide clarity around how much stamp duty is being paid by home buyers across the country.
In the winter 2014 edition, HIA senior economist Shane Garrett said the report confirmed “how onerous the stamp duty burden is for the long-term financial well-being of ordinary home buyers around Australia”.
Here’s what the typical home buyers are required to pay: (Note: These figures are based on the stamp duty bill on the purchase of a median-priced property for owner occupiers as of July 2014)
<ul>
<li>Victoria - $24,100</li>
<li>New South Wales - $19,230</li>
<li>Western Australia - $17,530</li>
<li>Queensland - $5,600</li>
<li>South Australia - $14,830</li>
<li>ACT - $16,550</li>
<li>Tasmania - $8,535</li>
<li>Northern Territory - $15,950</li>
</ul>
Source: HIA. 
And here’s how it affects the overall mortgage repayments: (Note: This is based on the effect of adding the above figure to a 30 year mortgage term at a discounted variable interest rate of 5.1%)
<ul>
<li>Victoria - $46,400</li>
<li>New South Wales - $37,100</li>
<li>Western Australia - $33,800</li>
<li>Queensland - $10,800</li>
<li>South Australia - $28,600</li>
<li>ACT - $31,900</li>
<li>Tasmania - $16,465</li>
<li>Northern Territory - $30,800</li>
</ul>
Source: HIA
“In all but two of the eight jurisdictions, stamp duty will set buyers back at least $15,000 on the median-priced home,” said Garrett.
“With the exception of Queensland, the tax adds at least 3% to the cost of the dwelling. In Victoria, the typical stamp duty bill comes to some 5% of the dwelling price,” he said.
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