<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

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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Were the RBA holding its monthly monetary policy meeting today rather than last week, it would have cut the cash rate, Business Spectator columnist and former Gillard government economist Stephen “The Kouk” Koukoulas has tweeted today.
<a href="https://twitter.com/thekouk" target="_blank"><img src="/images/stories/2012/09/kouktweet2.jpg"></a>
This tweet was preceded by:
<a href="https://twitter.com/thekouk" target="_blank"><img src="/images/stories/2012/09/kouktweet3.jpg"></a>
His contention that a more monetary stimulus is needed follows mining giants BHP Billiton and Xstrata announcing around 900 employees will lose their jobs, with BHP saying it will close its Gregory coking coal mine in Queensland on October 10, coming soon after its decision not to proceed with its Olympic Dam expansion project near Roxby Downs in South Australia.
Apart from the loss of mining, jobs, housing finance data for July released today shows that mortgage lending slumped 1% despite rate cuts in May and June – though economists still expect some bounce.
Koukoulas, along with the other 23 economics polled by Bloomberg a week before the September cash rate decision, were unanimous (and correct) in tipping rates to remain on hold – but he was one of only three economists to tip a rate cut in October in the same poll.
The other economists raising their heads above the parapet were AMP Capital Investors chief economist Shane Oliver and the Australian arm of French bank BNP Paribas’s senior Asia economist Dominic Bryant.
Shane Oliver himself tweeted today about the need for a rate cut:
<a href="https://twitter.com/ShaneOliverAMP" target="_blank"><img src="/images/stories/2012/09/olivertweet.jpg"></a>
The same three are again swimming against the tide in the latest September 7 Bloomberg survey – with the other 21 out of 24 economists polled tipping a rate hold when the Reserve Bank next meets on October 2.
In his September 6 “Insights” update Oliver said that in order to boost growth and guard against a slump, the RBA was likely to cut rates to 2.75% in the next six months.
“The bottom line is that interest rates are still too high and will need to fall further.
“The standard variable mortgage rate at 6.8% is just below its long-term average of 7.25%, but normally rates need to fall well below their long-term average to be con?dent of stronger growth.
“In an environment of household and business caution since the global ?nancial crisis, the neutral rate has likely fallen, probably to around 6.75% which would suggest that current mortgage rate levels are not stimulatory at all.”
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lschlesinger-FZcF9M3vE6

Stephen Koukoulas suggests urgent rate cut needed as mining jobs go: Tweet of the day

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The number of home loans approved for owner-occupiers fell 1% in July to 44,804 loans from 45,278 in June., according to the latest housing finance data released by the ABS today.
The monthly drop indicates that the RBA cash rate cuts of May and June have failed to stimulate the demand for new mortgages.
The fall in July home loan approvals was below the expectations of economists polled by Bloomberg last week, who expected no growth in mortgage approvals over July.
Total housing finance by value fell by 1.8%, seasonally adjusted, to $20.05 billion.
Westpac says the detail in the ABS figures reveal a "broadly flat result", with new lending (excluding refinancing) slipping 0.3% lower while refinancing fell by 2.4%.
"Lending for the purchase of new dwellings was down 6.8%, partially reversing an 8.9% rise last month. This segment (just 5% of the total) is volatile," writes Westpac.
"Finance for established dwellings rose 0.2% while finance for the construction of new dwellings continued to trend higher, pointing to an improvement in dwelling approvals. Finance to this segment rose 0.3% in the month, to be 10% higher than a year ago," says Westpac.
"Looking through the volatile seasonally adjusted growth since early 2011, this month’s data confirms housing market activity remains weighed down by weak home buyer sentiment and soft economic conditions in some parts of the economy," commented David Cannington and Dylan Eades from <personname>ANZ Research.</personname>
<personname></personname>"Countering weak housing sales activity, housing finance should be moderately supported in the coming months by the May and June RBA rate cuts," they added.
On a state-by-state basis, the number of owner-occupier housing finance approvals fell in New South Wales (down 346, or 2.7%), Queensland (down 165, or 2%), Victoria (down 159, or 1.3%), South Australia (down 31, or 1%),Tasmania (down 23, or 3.1%) and the Australian Capital Territory (down 20, or 2.7%), while rises were recorded in Western Australia (up 118, or 1.8%) and the Northern Territory (up 27, or 8%).
Westpac says the Queensland result is disappointing and the falls in NSW and Victoria  reflect changes to state government stamp duty and bonus payments, which points to the likelihood of a "July let-down effect". In original terms, the number of first-home buyer commitments as a percentage of total owner-occupied housing finance commitments rose to 19.2% in July 2012, from 18.5% in June 2012.
"First-home buyers are coming back to the market – although the profile has been distorted by changes to incentives. For the month, finance to FHBs rose 2.4%, to be up 19% on a year ago. Further gains are to be expected, as FHBs respond to improved housing affordability," says Westpac.
Between July 2012 and June 2012, the average loan size for first home buyers fell $600 to $291,400.
The average loan size for all owner-occupied housing commitments fell $1,100 to $300,500 for the same period.
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Home loan approvals fall 1% in July: ABS

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Divergent cash rate forecasts from the major banks are providing new or refinancing borrowers with little guidance in deciding whether to opt for a fixed-rate mortgage and insulate themselves against future rate rises or choose a variable-rate offering and benefit from lower monthly repayments if rates fall.
A third option – splitting the loan into part-fixed and part variable – is also something for borrowers to contemplate.
According to the latest Bloomberg survey of economists, the most bullish of the major banks is Westpac, led by chief economist Bill Evans, which expects another 75 basis points trimmed from the cash rate between now and March 2013 to a record low of 2.75% and then expects the cash rate to remain at that setting over the course of 2013.
“We retain our view that there will be two rate cuts in the December quarter followed by a further cut early in 2013,” said Evans last week following the RBA’s decision to leave the cash rate unchanged at 3.5% on September 4.
Most bearish is NAB, led by chief economists Alan Oster, which does not expect any more cash rate cuts in the current cycle, with the cash rate remaining at 3.5% for the first six months of 2013 and then rising to 4% by year-end.
ANZ, led by chief economist Warren Hogan, expects 50 basis points to be cut over the same period, taking the cash rate to 3%, and Hogan also expects it to remain unchanged over 2013.
“Overall, our views on the Australian policy outlook and economy are largely unchanged. We continue to expect the RBA to end up changing its mind about interest rates, probably by November,” said ANZ economists Ivan Colhoun and Justin Fabo last week.
The Commonwealth Bank, led by chief economist Michael Blythe, expects one more rate cut in the final quarter of 2012 based on downside risks “emanating from Europe and the global economy generally” taking the cash rate to 3.25%, where it is expected to remain over 2013.
The confused picture comes as lenders continue to cut their fixed-rate mortgages in an effort to entice cautious borrowers, with the <a href="/news">Commonwealth Bank the latest to trim its suite of fixed-rate offerings.</a>
In August Mortgage Choice reported <a target="_blank" href="/news">a marked jump in the proportion of borrowers who took out fixed-rate loans to nearly one in five</a> in the month and attributed this to attractive reduced rate offerings and a penchant for borrowers to be conservative in their choice of home loans.
A survey of Sunday Herald Sun financial commentators found them divided over which strategy – fixed or variable – borrowers should adopt, with the majority in favour of a split loan option.
According to Lisa Montgomery, CEO of mortgage lender Resi, while low fixed-rate mortgage offerings can seem attractive, borrowers should be aware of the hidden traps including huge costs if they break the contract – the government ban on exit fees only applies to variable-rate mortgages taken out after July 1, 2011.
Other traps in fixed-rate home loans – besides the obvious one of not benefiting from lower interest rates  should the cash rate fall – include not being able to pay down additional amounts and pay off the mortgage earlier.
But the benefits of a fixed-rate loan, says Montgomery, include peace of mind for budgeting, protection from rate fluctuations and rates now at five-year lows.
Aussie Home loans founder John Symonds, a long-time supporter of variable rates, says currently low fixed-rates would be very tempting to borrowers at the moment.
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Fixed versus variable mortgage conundrum for borrowers as major banks differ on 2013 cash rate outlook

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Last week the Commonwealth Bank cut its suite of fixed-rate mortgage products to appeal to those borrowers looking for certainty as the future direction of interest rates remains unclear.
The Commonwealth Bank now offers the lowest one-year, three-year, four-year and five-year home loan rates of the major banks, while NAB offers the lowest two-year fixed rate loan and ANZ the lowest 10-year fixed rate home loan.
Collectively the major banks account for around 80% of all new mortgage lending.
Here’s a guide to the advertised fixed and variable mortgage rates of the Commonwealth Bank and the other three major banks – NAB, Westpac and ANZ:
Rates correct as of September 10:
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="123">
 
</td>
<td valign="top" width="123">
CBA
</td>
<td valign="top" width="123">
ANZ
</td>
<td valign="top" width="123">
NAB
</td>
<td valign="top" width="123">
Westpac
</td>
</tr>
<tr>
<td valign="top" width="123">
Standard variable
</td>
<td valign="top" width="123">
6.80%
</td>
<td valign="top" width="123">
6.80%
</td>
<td valign="top" width="123">
6.78%
</td>
<td valign="top" width="123">
6.89%
</td>
</tr>
<tr>
<td valign="top" width="123">
One-year fixed
</td>
<td valign="top" width="123">
5.74%
</td>
<td valign="top" width="123">
5.84%
</td>
<td valign="top" width="123">
5.79%
</td>
<td valign="top" width="123">
6.09%
</td>
</tr>
<tr>
<td valign="top" width="123">
Two-year fixed
</td>
<td valign="top" width="123">
5.74%
</td>
<td valign="top" width="123">
5.94%
</td>
<td valign="top" width="123">
5.69%
</td>
<td valign="top" width="123">
6.09%
</td>
</tr>
<tr>
<td valign="top" width="123">
Three-year fixed
</td>
<td valign="top" width="123">
5.74%
</td>
<td valign="top" width="123">
5.94%
</td>
<td valign="top" width="123">
5.89%
</td>
<td valign="top" width="123">
5.89%
</td>
</tr>
<tr>
<td valign="top" width="123">
Four-year fixed
</td>
<td valign="top" width="123">
6.14%
</td>
<td valign="top" width="123">
6.44%
</td>
<td valign="top" width="123">
6.39%
</td>
<td valign="top" width="123">
6.69%
</td>
</tr>
<tr>
<td valign="top" width="123">
Five-year fixed
</td>
<td valign="top" width="123">
6.14%
</td>
<td valign="top" width="123">
6.54%
</td>
<td valign="top" width="123">
6.49%
</td>
<td valign="top" width="123">
6.19%
</td>
</tr>
<tr>
<td valign="top" width="123">
10-year fixed
</td>
<td valign="top" width="123">
7.74%
</td>
<td valign="top" width="123">
7.69%
</td>
<td valign="top" width="123">
8.09%
</td>
<td valign="top" width="123">
7.99%
</td>
</tr>
</tbody></table>
Source: Websites of ANZ, Commonwealth Bank, Westpac and NAB
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Fixed or variable: What mortgage interest rates the major banks are offering borrowers

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Borrowers are inclined to use a mortgage broker because they can recommend products from as many as 30 different lenders, but according to Sydney mortgage broker Tony Harris, many brokers will only recommend loans from one or two of their favourite lenders.
Speaking as part of a recent Property Observer webinar, Harris says it is very important how borrowers go about selecting a mortgage broker.
Harris says one of the first questions borrowers ask is: “How many lenders can you recommend?”
But the answer they get can be something of a red herring as he let listeners in an a little-known industry secret.
“A lot of brokers have 25 to 30 lenders on their panel, but in reality they are probably only writing loans through two or three lenders,” says Harris.
“The reality is that some brokers are wedded to certain lenders over others because they are comfortable with them and they understand their loan criteria,” he says.
Under the ASIC-enforced credit regulations, brokers must also ensure that a loan is ‘”not unsuitable” by making reasonable enquiries about a borrower’s financial situation, as well as their requirements and objectives.
“So the first question is how many lenders can you recommend, but then the next question is how many loans have you written so far and how long have you been in the industry,” says Harris.
Harris says borrowers should quiz brokers about the different lenders on their panel.
“If you feel you may be missing out on a few lenders, quiz them more
“Ask them: ‘Why are you recommending this lender? What is it about them? Do they offer good service levels?’
“It’s OK if they have a favourite lender and can explain why, but make sure you drill down and ask those questions.
“If it is compelling reason and they are good answers, by all means go with that broker.”
Borrowers should also be aware that brokers are paid by lenders through an upfront commission of around 0.5% to 0.7% of the loan balance and recurring annual “trail” commission of between 0.15% and 0.2% of the loan balance until the loan is discharged.
Unscrupulous brokers might be tempted to recommend one lender over another because of better commission rates.
In addition, some lenders offer brokers the opportunity to earn bonus payments and other incentives by meeting certain performance metrics such as loan volume targets or if additional financial products such as insurance are taken up by a borrower.
Listed mortgage broker Mortgage Choice averages out the commission payments from all the lenders on its panel so that its loan writers are paid the same rate regardless of lender – eliminating the risk of a broker favouring one lender over the other for the wrong reasons.
This averaging out of commissions was highlighted as part of Mortgage Choice’s annual results presentation last month.
Harris also delved into the issue of brokers charging an upfront fee.
He says this has become more prevalent in the current slow credit growth, weak property market and tighter margin environment post the GFC.
But Harris says brokers that charge a fee need to offer more than just filling in a loan application form.
“They need to be able to hold your hand and guide you through the process.
“At the end of the day, you get what you pay for.
“If you can find a broker that does not charge a fee and can provide a great service that may be a great way to go as long as you believe they are going to do everything for you and not just recommend one or two lenders because they are their favourites.”
Harris also recommends that borrowers ensure the broker is a member of the Mortgage and Finance Association of Australia, the peak industry body representing mortgage brokers, which works closely with regulators ASIC and APRA.
ASIC provides a free broker licence check on the credit section of its website.
“A broker can have their licence under own name or company name or work under someone else’s licence,” says Harris.
For more tips from Tony Harris on using mortgage brokers and refinancing your mortgage, <a href="/news">watch the free Property Observer webinar</a>.
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Borrowers should shop around for best mortgage broker, not just the best loan: Broker

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In most instances a quantity surveyor will conduct a property inspection when preparing a tax depreciation schedule. Sometimes this is not required, for example if a property has been built by the owner or the quantity surveyor has previously inspected a unit within the same complex. A good quantity surveyor knows when an inspection is not needed, and this generally results in a saving to the owner/investor. But if certain information is overlooked you will miss out on significant tax deductions. Below are the two main reasons why an inspection may not be required:
1. The quantity surveyor has inspected a unit within the complex before.
This is one of the more common reasons that a quantity surveyor will not need to inspect the property. As the quantity surveyor has been to the property before, the inspection on the common areas would have been completed, and he will apply their same information over the new unit, allowing for the new unit entitlement.
For example, if the unit is larger, the unit entitlement might be 110/10,000 instead of the unit entitlement of 100/10,000 that applied to the previously inspected property. The inspection would have also revealed the standard appliances through the property, the floor coverings, window furnishings light shades, etc. Many property investors take advantage of this situation to save around a third of the cost of a depreciation schedule. However, the saving must be accompanied by a firm understanding of whether preparing the report without an inspection is appropriate.
Your quantity surveyor should explain his rationale after asking a few questions about the property. For example:
<ul>
<li>Has the property had any additions or renovations? Two units side by side in a development may have been built identically, but have the owners differed in their property improvements? This is especially important in older developments, where the property may have had a new kitchen and bathroom installed by the previous owner. In this instance, the cost information is not available to the new owner. If improvements or renovations of this nature have been completed, the property should be individually inspected as the unit differs from the standard.</li>
<li>Are all units completed to the same standard? A one- or two-bedroom unit on the second floor might have a vastly different standard of finish to the penthouse or units on the upper floors. In this instance, a previous inspection on a lesser standard of unit cannot be used as the basis for a report on the units with premium fixtures and fittings. </li>
<li>Is the property furnished? If the property is furnished, the previous inspection needs to have been completed on a unit that was also furnished. Again, it's important that the furniture package is identical and that the furniture does not vary from unit to unit.</li>
</ul>
2. The property is brand-new and the report is prepared based on the plans and inclusions/specifications list. 
This is another of the more common reasons for a report to be prepared without an inspection. In this instance, the report is only as good as the level of detail contained within the plans. I've seen plans where the floor coverings are not completely specified and it's impossible to tell whether the living areas are carpet or tile. This may not sound important, but with tiles depreciating at 2.5% of their opening value each year compared with carpet at 20%, getting the measurements right equate  to a major difference in deductions. You'd also need to ensure that the specifications list contains enough detail to determine the type of appliances, rather than just the brand, most of the time this information is available.
There are a number of companies that provide for a “self-assessment”, schedule where you're undertaking the inspection yourself and sometimes even providing cost information. The ATO allows for this under the self-assessment rule, however these reports tend to attract greater scrutiny (for good reason) and both the Tax Practitioners Board and Australian Institute of Quantity Surveyors have acknowledge that they are not in favour of this type of report.
Property investors can certainly save on costs where their property does not require an inspection undertaken. However, ensure that your quantity surveyor explains the reasons in simple terms, lest you miss out on additional tax deductions.
Mike Mortlock is a director of <a href="https://www.mcgqs.com.au/">MCG Quantity Surveyors</a> specialising in tax depreciation deductions for property investors.
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mmortlock-YX58RgDaQB

When an inspection is required for a tax depreciation schedule

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What is land tax? Who should pay it? And can I reduce this major property cost, which seems to eat into my rental income disproportionally?

These questions are often asked by the serious property investor who already has or is in the process of building a significant property portfolio.

The following article considers some of the traps and pitfalls while offering some suggestions on how to minimise this state-based tax.

In general, land tax is not levied on the property if it is your principal place of residence (PPR).

Land tax is an annual tax based on the ownership and usage of land owned at midnight on the land tax anniversary date of the state, which is usually either June 30 or December 31. It is levied in respect of the financial year immediately following that date. All states other than the Northern Territory apply land tax. This tax should be seen as a cost of doing business and is tax deductible.

As is the case for most taxes it is up to the taxpayer to advise the relevant state department that they are subject to land tax based on self-assessment by submitting either a land tax registration form or a land tax variation form. This will trigger land tax assessment notices to be issued if and when appropriate. Failure to advise can lead to significant penalties and back dated charges which the land owner may not be able to claim as a tax deduction.

Land tax is generally levied on the unimproved capital value of the land (not the total property value). Each state has different rules and thresholds of when the land tax will be applied. The threshold is the dollar value at which land tax will become payable. Below that figure no land tax is levied, and above it land tax commences at the prescribed rates. Most states have escalating rates as the land value increases so it is not proportional. In general there is a different rate and threshold for individuals and companies and a different set of rates for trust although in some states trusts are treated the same as individuals. The full land tax liability is therefore the land value multiplied by the applicable rate.

Exemptions are normally applicable to the principal place of residence, but only if it is being occupied as the PPR. If the taxpayer moves out (land tax form variation required) and uses the property as an investment property then land tax may be due even if it is still within the main residence six-year rule for ATO purposes. Other exemptions are normally available to agricultural use land and charities.

A PPR held in a trust may in some cases still be exempt if being used by a person with an approved disability and in some states an exemption or threshold is applied if the property in the trust is nominated as a PPR of the taxpayer. The rules for a PPR benefit within a trust are strict and need to be fully understood and met or the imposition of land tax will apply. Queensland has the easiest procedure (tick the box on the registration form), but while the property may be exempt from land tax it is not exempt from CGT on a sale, as this exemption normally only applies to individually held property. There are certain circumstances where the main residence exemption is applicable when a property is held in a trust but this is not discussed in this article.

In NSW and Victoria trusts with any discretionary capabilities do not get a threshold but in these states an approved fixed trust does receive a threshold if correctly worded and administrated. Superannuation funds in all states also receive the benefit of the threshold for property in that state.

An opportunity, however, does exist to manage the land tax liability for landholders by holding land in various individual, company and trust structures that are each entitled to a threshold. As land tax is state-based the tax is levied by the state where the property or land is located and a state does not aggregate land from other states when assessing. For example, land held in different companies would each be entitled to a threshold as long as management and control is different. Various states have grouping provisions which would also apply to trusts. Note that assets held in a company if sold do not get the 50% CGT general discount and for a waged employee negative gearing on a property held in a company cannot be claimed against personal income. Negative gearing against personal income is however available if the property or land is held in a Property Investor Trust®, which has an ATO Product Ruling (PR 2011/15).

 
<hr class="system-pagebreak">
 
Another trap is when property is in the name of more than one entity, say for example a couple. The couple are seen as a partnership and only one land tax threshold is available. If either of the people has land in their own right then at the secondary level only the proportion held together is included when determining the liability in total. No credits are available if the total liability at the secondary level is less than paid as a couple. For people with access to ongoing income (if negatively geared) it may be better to buy property in just one person’s name in order to get multiple thresholds. Long-term planning is therefore essential.

Land tax is payable by the current owner and not when it may have been applicable or levied. This can give rise to the new owner being liable for land tax when he or she did not “own” it. When purchasing land or property it is important to apply for a land tax clearance certificate to ensure you will not be liable for someone else’s tax or to give you the opportunity to have any liabilities adjusted at settlement.

Trusts can be a useful tool for both asset protection and estate planning. Widely used to hold property and with the ability to claim negative gearing against personal income (for some trusts), they have become a strategic tool for many property investors. States such as QLD, SA and WA have a relatively acceptable land tax threshold. While NSW does not give a threshold to a trust with a discretionary capacity this sort of trust may be useful when the individual exceeds the threshold in their own right. Most states have an upper limit on the total value of land held in an entity before they impose a surcharge on top of the normal land tax rates applicable, and so it may be beneficial to spread ownership between various entities if possible so as to not attract the surcharge. For example, in NSW the rate increases from 1.6% to 2% when the aggregate land value exceeds the premium rate threshold of $2.421 million (2012 year).

While not directly related to this topic it is important to understand that at a certain dollar value within a company or trust full transfer stamp duty applies as if the property was sold and not the more favourable stamp duty applicable to shares or trust units being sold. The ability to change control of a trust without triggering stamp duty in most states (given no change to legal ownership) is attractive as is the ability for investors to move into and out of trust without triggering full stamp duty. This has allowed many investors to work in joint venture together knowing if circumstances change to one investor then stamp duty would be minimised as opposed to a wholesale change to the legal owner if some of the joint owners wish to “buy” out the exiting partner. Unfortunately most states have an upper limit at which time changes to the ownership of a trust or company will trigger full transfer duty. Each state has different tests but by way of example in NSW landholder duty is triggered when the unencumbered land value exceeds $2 million in the company or trust. Landholders must register when the gross land value exceeds $2 million but the duty will only be applied to the unencumbered amount.

All states have a process for objection to a land tax assessments but this must be submitted on the proper form to the relevant person within 60 days from the date the assessment was issued. Objections can relate to any approved reason normally ownership, valuation and exemption. The relevant state websites show the process and documentation needed and should be immediately accessed if you want to lodge an objection as there are limited opportunities for discretion by the relevant commissioner if the 60-day test is not met.

Ken Raiss is a certified accountant and director of <a title="Chan &amp; Naylor " href="https://www.chan-naylor.com.au/" target="_self">Chan &amp; Naylor</a> national accounting firm. Chan &amp; Naylor offers a free five-minute question-and-answer session on its website under the<a href="https://www.chan-naylor.com.au/ask-the-experts/" target="_blank"> "Ask the Experts" section.</a>
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How property investors can avoid the traps and pitfalls of land tax

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The Commonwealth Bank will cut interest rates on new one-, three-, four- and five-year fixed-rate home boans by up to 0.4 percentage points per annum from September 7.
The benchmark three-year fixed rate mortgage will reduce by 10 basis points from 5.84% to 5.74%.
This latest rate cut means the bank's fixed rate mortgages are now at their lowest levels for almost three years, with the four- and five-year products the lowest they have been in over nine years.   
The new interest rates will be available to new customers, or customers looking to switch from variable to fixed rate home loans.
"This latest fixed-rate home loan interest rate reduction is great news for new customers looking to lock in their mortgages, offering them some certainty in the upcoming years," said Michael Cant, executive general manager of retail products and customers at the Commonwealth Bank. 
<table cellpadding="0" cellspacing="0" border="0" style="width: 450px;"><tbody>
<tr>
<td valign="top" width="134">
 
</td>
<td valign="top" width="134">
One Year
</td>
<td valign="top" width="134">
Three Years
</td>
<td valign="top" width="134">
Four Years
</td>
<td valign="top" width="134">
Five Years
</td>
</tr>
<tr>
<td valign="top" width="134">
CBA (current*)
</td>
<td valign="top" width="134">
5.84%
</td>
<td valign="top" width="134">
5.84%
</td>
<td valign="top" width="134">
6.44%
</td>
<td valign="top" width="134">
6.54%
</td>
</tr>
<tr>
<td valign="top" width="134">
CBA (new*)
</td>
<td valign="top" width="134">
5.74%
</td>
<td valign="top" width="134">
5.74%
</td>
<td valign="top" width="134">
6.14%
</td>
<td valign="top" width="134">
6.14%
</td>
</tr>
<tr>
<td valign="top" width="134">
Change
</td>
<td valign="top" width="134">
-0.10%
</td>
<td valign="top" width="134">
-0.10%
</td>
<td valign="top" width="134">
-0.30%
</td>
<td valign="top" width="134">
-0.40%
</td>
</tr>
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Commonwealth Bank cuts fixed rate mortgage offerings

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ASIC has flexed its muscles as credit watchdog imposing its first civil penalty on the former director of an unlicensed mortgage broking firm since assuming the role as national regulator for consumer credit in July 2010.
The $7,500 penalty was imposed on Nathan Elali, of South Hurstville by the Federal Court in Sydney on 31 August.
The court found that Elali, was the sole director of a company formerly known as EasyChoice Home Loans Pty Ltd (EasyChoice), when it advertised on its website for more than a year that it provided home and investment property loans when it did not hold an Australian credit licence.
“As the sole director of the company during the period, Mr Elali was found to have been knowingly concerned in the company’s contravention of the National Credit Act,” said ASIC. Despite repeated warnings by ASIC to remove the advertising, the company did not respond.
The material was removed only after ASIC had commenced court action. “Where ASIC identifies a possible breach of the consumer credit laws, our first step will often be to require the company to take action to ensure the contravention ceases,” said ASIC Commissioner Peter Kell said: ‘If the company fails to comply, we are prepared to commence civil penalty proceedings as part of our approach to enforcement.’ Under the National Credit Act, individuals or businesses who engage in credit activities are required to hold an Australian credit licence, or be an authorised representative of a credit licence holder.</body></html>

Former director of mortgage broking firm hit with $7,500 civil penalty for operating without a credit licence

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Mortgage Choice has attributed a marked increase in the popularity of fixed-rate home loans in August to more attractive reduced rate offerings and a penchant for borrowers to be conservative in their choice of home loans.
Fixed-rate home loans accounted for nearly one in five home loans arranged by Mortgage Choice mortgage brokers in August, a five percentage point increase from July.
<img src="/images/stories/2012/09/mcsept5.gif">
At the same time as fixed-rate demand increased ongoing discount rate loan demand fell for the first time in five months, from 44% to 38%.
Ongoing discount rate loan loans are those where the rate is discounted over the entire loan term.
Company spokesperson Belinda Williamson called this a surprising result and the first time in five months that demand for this loan type has diminished.
The other noticeable tend in the August data was that the popularity of no-frills, basic variable-rate loans reached a 14-month high of 21% of all new loans.
Williamson says lenders have been tweaking their fixed-rate loans, making the price of such loans more competitive in some cases when compared with variable rates.
“Looking at Mortgage Choice’s lender panel, the average three-year fixed rate, the most popular fixed rate term, currently sits at just over 6%. This is about 0.30 percentage points lower than the average basic variable rate home loan.”
According to research by Property Observer, the <a href="/news">current lowest rate available on a three-year fixed-rate mortgage is 5.44% offered by lender My Mortgage Freedom</a>.
The lowest variable rate offering is a 5.62% refinance loan from UBank, part of NAB.
“The upward trend in fixed-rate loan demand was evident in all states except Western Australia, where fixed-rate demand fell by one percentage point," says Williamson.
She says the data reflects the prevailing conservative attitude of Australians.
“Many more mortgage holders are locking in the interest rate on part or all of their loan so they can structure their repayments and take better control over their finances,” she says.
 “It is obvious that concerns about our domestic economy, rising utility bills and other living cost hikes along with predictions of fewer rate cuts taking place this year are having an effect on the purchasing decisions of Australians. Home loan choices are no exception.”
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