<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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The federal government has removed the contentious doubling of the foreign investors’ withholding tax from its planned series of budgetary changes.
Instead the government plans to reintroduce the tax increase as a separate bill in the next few days.
The tax is charged on income paid to foreign investors who invest in managed schemes, many of which fund large infrastructure and property projects in Australia.
The raising of the current rate of 7.5% to 15% was due to kick in on July 1.
Assistant Treasurer David Bradbury still expects to see the bill passed in time for the next financial year but admits that it “continues to be a matter where there is some contention”, the Australian Financial Review reports.
But he adds that the government believes there is still a “very strong case” in support of the tax increase.
“We think it is appropriate that we implement these changes,” he says.
The raising of the tax threshold has been <a href="https://www.propertyobserver.com.au/tax/treasurys-doubling-of-withholding-tax-flawed-and-economically-harmful-property-council/2012061955192" target="_blank">slammed by the Property Council of Australia</a> (PCA), developer Lend Lease and managed funds representative body the Financial Services Council over fears it will scare off foreign investors.
Yesterday the PCA criticised the decision of a House of Representatives Economics Committee backing the doubling of the withholding tax.
“By doubling our withholding tax rate, Australia reduces its ability to compete with the lower effective rates of other countries” says Property Council chief executive Peter Verwer.
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lschlesinger-FZcF9M3vE6

Government to introduce withholding tax increase as separate bill

<html><body>
The Property Council of Australia (PCA) has slammed the decision of a House of Representatives Economics Committee backing the doubling of the withholding tax charged for foreign investors who invest in Australian managed investment schemes. 
Many of these managed funds are used to fund big property and infrastructure projects. The new tax rate of 15% (up from the current 7.5% rate) is due to kick in on July 1. 
Government members on the committee backed the raising of the tax rate, while Coalition members backed a position held by the PCA that the tax should be scrapped because it discourages foreign investment. 
The tax hike has also been slammed by <a href="https://www.propertyobserver.com.au/tax/lend-lease-slams-15-withholding-tax-as-property-council-fails-to-convince-wayne-swan-to-scrap-it/2012053154915" target="_blank">property developer Lend Lease</a> and the Financial Services Council, which represents fund managers and superannuation funds. 
“The evidence provided by industry shows that Treasury’s reasoning is inadequate, flawed and economically harmful,” says Property Council chief executive Peter Verwer. 
“It is particularly galling that government members endorsed Treasury’s position despite Treasury’s repeated refusal to reveal its modelling on the impacts of a higher tax on the economy.” 
“Treasury didn’t even bother to assess the impact of a higher withholding tax on the federal government’s own revenue streams.”
His comments come soon after a <a href="https://www.propertyobserver.com.au/leisure/malaysian-reit-pays-%24415-million-for-marriott-five-star-hotel-portfolio/2012061455118" target="_parent">Malaysian investment trust payed $415 million for a portfolio of three five-star Marriott hotels,</a> with the deal going ahead despite the prospect of the higher withholding tax rate “causing some friction”, according to Mark Durran and Craig Collins of Jones Lang LaSalle Hotels, who negotiated the deal. 
Verwer says Treasury’s analysis of the tax hike is flawed on three counts. 
“First, Treasury says that international investors are more interested in Australia’s AAA credit rating than tax rates.” 
“Treasury doesn’t understand that investors actively compare tax rates in different countries to assess the relative impact on their investment returns.” 
“It should be obvious that after-tax returns are critical to investor decision-making,” he says. 
Secondly, Verwer says that Treasury “ignores any difference between the headline withholding rate promoted by a country and the effective rate – the rate actually imposed on investors.” 
“Treasury has not done its homework and has been conned into believing that other countries apply a 15% rate.” 
“In fact, most countries charge pension funds withholding tax of 5% or less, many charge zero.” 
“Other countries are determined to attract the patient equity capital of large pension funds, particularly when debt markets are increasingly unstable.”
“By doubling our withholding tax rate, Australia reduces its ability to compete with the lower effective rates of other countries.”
Lastly, Verwer says: “Treasury has failed to realise that a higher withholding tax will scare off international investors, which will reduce both economic activity and government revenue flows.”
“You can’t tax investment that doesn’t occur.” 
Verwer pointed to a recently released Allen Consulting Group report modelling the impact of the proposed withholding tax increase on tax takings and the broader economy. 
The report, commissioned by the PCA, shows that by 2015-16, instead of collecting $75 million, state and federal governments will only receive $36 million and GDP will shrink by $30 million. 
Both the Property Council and Financial Services Council say they have evidence that more than a $1 billion of global funds have already been directed to other countries or frozen, following the 2012 federal budget announcement.
In its defence, the government claims the new tax rate is a better balance of the needs of Australia to remain an attractive destination for foreign investors while ensuring a fair return.
Treasury is estimating a tax return of $260 million over four years generated from the withholding tax.
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Treasury’s doubling of withholding tax ‘flawed and economically harmful’: Property Council

<html><body>
HSBC chief economist Paul Bloxham and Westpac senior international economist Huw McKay have come to different conclusions about rate cut expectations for the remainder of 2012 following the release of the minutes from the June 1 RBA monetary policy meeting.
Bloxham expects just one more 25-basis-point rate cut this year, taking the cash rate to 3.25%, while McKay expects three more taking the cash rate to 2.75% by December.
“We think the RBA is probably a little ahead of the curve, having cut rates last month,” says Bloxham. 
“With global risks still tilted to the downside, we continue to expect that there may still be one more 25 basis points cut in the second half of 2012, but it is a close call,” he says. 
Bloxham says interest rate markets pricing in 90 basis points in cuts is “overdone”.
He notes the more “upbeat” nature of the minutes compared with the post-meeting statement.
“Today's minutes reiterated that the 25-basis-point cut in June was insurance against the possible effect of weakening global conditions, which was afforded because inflation is expected to remain low. In their view, local conditions had not significantly weakened. 
“They also told us that the RBA viewed the decision to cut rates on 5 June as 'finely balanced'. 
“We agree. As we noted before the meeting, our view was that local conditions did not warrant a further cut in interest rates. The minutes seem to suggest that on local conditions alone, they would probably have left rates steady. But the cut was in response to weakening global conditions.” 
McKay, however, says the best policy response from the RBA would be to reduce the cash rate by a further 75 basis points by the end of the year.
“The month-to-month path for the policy rate to achieve that end point is difficult to define precisely, with the fluid nature of the European picture making the potential timing more event-driven than is usual,” he says.
“We feel that the best policy response given the balance of domestic and international forces would be to deliver 25 basis points cuts at successive meetings in July and August, before a final move in the December quarter.”
McKay agreed with Bloxham that the June decision was a difficult one for the RBA board, which was ultimately swayed in favour of a rate cut by global concerns.
“The minutes to the board meeting of June 5, which resulted in a 25-basis-point cut in the policy rate to 3.5%, imply very strongly that a large cut was not countenanced, and that if the decision was being made solely on domestic grounds, a cut would not have been delivered,” McKay says.
“The rationale seems to have been that there were enough elements of resilience in the domestic figures for the bank to take some time to assess the impact of past easing on activity, but that with the potential for global tensions to ‘intensify’ precautionary behaviour, the ‘finely balanced’ arguments turned in favour of a cut.”
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HSBC expects one more rate cut following RBA June meeting, but Westpac says minutes suggest three more by December

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The continued deterioration of the housing market despite lenders reducing mortgage interest rates to well below 1996 levels was discussed by the Reserve Bank board before it cut the cash rate by 25 basis points on June 1.
Overall, the minutes of the meeting  indicate that fears of a “softening” global situation spilling over into “precautionary behaviour” in Australia prompted the RBA to reduce the cash rate by 25 basis points at its June 1 monetary policy meeting.
It says the decision to cut rates was “finely balanced”.
The RBA notes that “in aggregate, housing prices continued to decline, and activity in the housing market remained weak”.
The board also acknowledged challenges facing new home construction, noting a “sharp fall in dwelling approvals in April partly accentuated by the introduction of new legislative guidelines in Western Australia”.
The RBA highlights that mortgage rates continue to fall and are now well below the average rate of more than 25 years.
“Short-term interest rates in Australia had fallen sharply following the board's decision in early May to lower the cash rate by 50 basis points,” says the RBA board.
“Following the cash rate announcement, most lenders had reduced their standard variable housing rates by between 30 and 40 basis points.
“As a result, the average interest rate on outstanding housing loans at present was about 40 basis points below the post-1996 average, while rates on small and large business loans were 30 and 60 basis points lower, respectively. Members discussed the strong competition among banks for term deposits and the continuing pressure this was having on the funding costs for Australian banks.”
The RBA notes that overall, data on the domestic economy appeared to be broadly consistent with the central bank's most recent forecasts.
“In particular, employment growth was picking up gradually, but the unemployment rate was still expected to move somewhat higher over the coming quarters. Output growth was expected to increase towards trend over the remainder of this year, and inflation (excluding the impact of the carbon tax) was expected to remain in the lower part of the 2% to 3% range.”
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RBA notes continuing decline in house prices despite low mortgage interest rates at June 1 meeting

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The Commonwealth Bank is telling everyone it “CAN”, but it is ANZ and NAB that are steaming ahead this year when it comes to lending to owner-occupiers.
Analysis of APRA banking figures for the first four month of 2012 show that ANZ has written nearly $3.8 billion in owner-occupier mortgages and NAB more than $3.3 billion, growth of 3.2% and 2.6% respectively.
In comparison the Commonwealth Bank has written just $1.29 billion in new loans between January and the end of April (growth of 0.7%) while Westpac (including all its subsidiary brands) ranks outside the top four, managing $1.05 billion in new mortgages (growth of 0.6%).
Bankwest, owned by the Commonwealth Bank, wrote $1.46 billion (up 4%) in new loans ranking as the third biggest lender of 2012 with Suncorp also prominent with new lending totalling $1.14 billion – an increase of 5% over the first four months of the year.
 
<table cellpadding="0" cellspacing="0" border="1" style="width: 470px;"><tbody>
<tr>
<td valign="top" nowrap width="62">
Rank
</td>
<td valign="top" nowrap width="155">
Bank
</td>
<td valign="top" nowrap width="82">
New lending Jan 1 to April 30
</td>
<td valign="top" nowrap width="92">
loan book  April 2012
</td>
<td valign="top" nowrap width="84">
loan book Dec 2011
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
1
</td>
<td valign="top" nowrap width="155">
ANZ
</td>
<td valign="top" nowrap width="82">
$3,795
</td>
<td valign="top" nowrap width="92">
$122,199
</td>
<td valign="top" nowrap width="84">
$118,404
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
2
</td>
<td valign="top" nowrap width="155">
NAB
</td>
<td valign="top" nowrap width="82">
$3,310
</td>
<td valign="top" nowrap width="92">
$128,602
</td>
<td valign="top" nowrap width="84">
$125,292
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
3
</td>
<td valign="top" nowrap width="155">
BankWest
</td>
<td valign="top" nowrap width="82">
$1,456
</td>
<td valign="top" nowrap width="92">
$37,098
</td>
<td valign="top" nowrap width="84">
$35,643
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
4
</td>
<td valign="top" nowrap width="155">
CBA
</td>
<td valign="top" nowrap width="82">
$1,287
</td>
<td valign="top" nowrap width="92">
$177,874
</td>
<td valign="top" nowrap width="84">
$176,588
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
5
</td>
<td valign="top" nowrap width="155">
Suncorp
</td>
<td valign="top" nowrap width="82">
$1,143
</td>
<td valign="top" nowrap width="92">
$22,004
</td>
<td valign="top" nowrap width="84">
$20,861
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
6
</td>
<td valign="top" nowrap width="155">
Westpac
</td>
<td valign="top" nowrap width="82">
$1,047
</td>
<td valign="top" nowrap width="92">
$167,292
</td>
<td valign="top" nowrap width="84">
$166,244
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
7
</td>
<td valign="top" nowrap width="155">
Bendigo &amp; Adelaide Bank
</td>
<td valign="top" nowrap width="82">
$787
</td>
<td valign="top" nowrap width="92">
$14,295
</td>
<td valign="top" nowrap width="84">
$13,508
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
8
</td>
<td valign="top" nowrap width="155">
Bank of Queensland
</td>
<td valign="top" nowrap width="82">
$381
</td>
<td valign="top" nowrap width="92">
$12,095
</td>
<td valign="top" nowrap width="84">
$11,714
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
9
</td>
<td valign="top" nowrap width="155">
Macquarie Bank
</td>
<td valign="top" nowrap width="82">
$287
</td>
<td valign="top" nowrap width="92">
$1,951
</td>
<td valign="top" nowrap width="84">
$1,664
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
10
</td>
<td valign="top" nowrap width="155">
Members Equity Bank
</td>
<td valign="top" nowrap width="82">
$260
</td>
<td valign="top" nowrap width="92">
$4,360
</td>
<td valign="top" nowrap width="84">
$4,099
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
11
</td>
<td valign="top" nowrap width="155">
Citigroup
</td>
<td valign="top" nowrap width="82">
$243
</td>
<td valign="top" nowrap width="92">
$5,011
</td>
<td valign="top" nowrap width="84">
$4,767
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
12
</td>
<td valign="top" nowrap width="155">
AMP Bank
</td>
<td valign="top" nowrap width="82">
$201
</td>
<td valign="top" nowrap width="92">
$5,333
</td>
<td valign="top" nowrap width="84">
$5,132
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
13
</td>
<td valign="top" nowrap width="155">
ING Direct
</td>
<td valign="top" nowrap width="82">
$166
</td>
<td valign="top" nowrap width="92">
$27,878
</td>
<td valign="top" nowrap width="84">
$27,712
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
14
</td>
<td valign="top" nowrap width="155">
Heritage Bank
</td>
<td valign="top" nowrap width="82">
$115
</td>
<td valign="top" nowrap width="92">
$3,014
</td>
<td valign="top" nowrap width="84">
$2,899
</td>
</tr>
<tr>
<td valign="top" nowrap width="62">
15
</td>
<td valign="top" nowrap width="155">
HSBC Bank Australia
</td>
<td valign="top" nowrap width="82">
$40
</td>
<td valign="top" nowrap width="92">
$3,500
</td>
<td valign="top" nowrap width="84">
$3,460
</td>
</tr>
</tbody></table>
Source: APRA Figures are in millions
Suncorp Bank head of personal lending Tony Meredith attributes the growth in its mortgage lending pipeline in recent months to “an attractive product and service proposition in target markets and a renewed focus on the broker channel”.
Growth has come from the bank’s key target markets in the mortgage space – refinancers and first-home owners.
“We’ve been growing strongly in the broker space, having reaffirmed our commitment to, and investment in, this important channel through a range of technology, commission and servicing improvements,” Meredith tells Property Observer.
“Suncorp Bank consistently has greater customer satisfaction scores than the major banks for both personal and business lending. We continue to see disenfranchised customers of the major banks make the switch to Suncorp Bank, testament to our strong customer proposition in making it easier to get a good value home loan, suited to the individual’s needs.”
Smaller banks feature prominently on the list, with Bendigo &amp; Adelaide Bank managing mortgage lending growth of 5.8% and Members Equity bank 6.3%.
ING, which has the sixth biggest mortgage book (or fifth if you put Commonwealth Bank and Bankest together) has written just $166 million in new owner-occupier mortgages over the first four months of the year and ranks 13th, behind a swathe of smaller lenders.
Lisa Claes, executive director of direct business at ING Direct, says the bank is satisfied with its current rate of mortgage growth, which she says is “on a par of where it has been since the GFC”.
“We are not driven by market share targets, but by a sustainable growth proposition.
“We want to grow our mortgage book responsibly – we are happy with where we are, but we are not complacent,” she says.
Macquarie Bank, which grew its investment housing lending book by 33% over the same four-month period, was also the top owner-occupier lender in percentage terms, growing its book by 17% and benefiting from its closer ties to the mortgage broker market.
</body></html>

ANZ and NAB steamrolling over CommBank and Westpac in owner-occupier mortgage lending

<html><body>
Consumers are growing more confident that mortgage rates will continue to fall over the next 12 months following the May and June RBA rate cuts, but a significant proportion still expect rates to rise, according to the June Westpac-Melbourne Institute consumer survey.
The June results show for the first time since Westpac began asking the question (in February 2010) a majority of consumers (52%) expect mortgage rates to fall over the next 12 months.
This compares with the less than 40% who expected rates to fall when the question was last asked in February this year and fewer than 20% of consumers who thought so in August 2011 – before the RBA began its current rate cutting cycle.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune18.gif"><img src="/images/stories/2012/06/westpacjune18thumb.gif"></a>
Of those who expect rates to fall over the course of the next year the vast majority (83%) expect mortgage rates to fall by less than one percentage point, while the remaining 17% expect a fall in excess of one percentage point.
A quarter of consumers surveyed still expect mortgage rates to rise over the next year, while slightly less (23%) expect no change in mortgage rates.
Westpac senior economist Matthew Hassan says the results indicate that consumers have a “firmer sense of where rates are likely to head” but cautions that the “consensus is not particularly strong”.
“At 52%, the proportion expecting rates to fall is well short of the 70 to 90% that were calling rates to rise in surveys conducted in 2010-11.”
Hassan also points out that the responses from consumers to the question of where mortgage rates are heading fluctuated over the week they were asked indicating a “lack of conviction”.
“Responses over the course of the survey week (June 4 to June 10) – which was a very busy one for interest rate developments, economic surprises and the unfolding crisis in Europe – show significant daily fluctuations and a less certain view amongst those surveyed later in the week.
“The high and rising proportion saying they simply don’t know also suggests a more uncertain outlook for rates,” he says.
Hassan says the bottom line is that “predicting mortgage interest rates has become very hard” due to mixed signals in the “official guidance”. 
As an example he says the RBA has cut rates (usually a sign the economy is worsening) but affirmed “Australia’s positive prospects”. 
“Add to this the surprisingly upbeat first quarter economic data on the domestic front, the deeply threatening and uncertain situation in Europe, and the less predictable linkage between official cash rate changes and mortgage interest rates and it’s not surprising consumers are unsure about future moves,” he says. 
Hassan also points out that interest rate market pricing and economist surveys are equally unhelpful. 
“The former is being skewed by investors seeking ways to profit from downside risks to the global growth scenario – and implies 100bps of easing by year end. 
“Economist forecasts range from up 25bps to another 100bps in cuts to the cash rate with a median view of a 25 bps reduction (Westpac’s forecast is for 75 bps,” he says. 
“And in both cases the forecasts are for the official cash rate rather than the average standard variable mortgage rate,” he says. 
State-by-state responses to the question indicate that consumers from South Australia (59%) and NSW (56%) are the most optimistic about rates falling while those in Queensland (49%) are the least optimistic.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune181.gif"><img src="/images/stories/2012/06/westpacjune181thumb.gif"></a>
Men are more optimistic than women about rates falling, as are those that own their home outright or have a mortgage compared with renters.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/06/westpacjune182.gif"><img src="/images/stories/2012/06/westpacjune182thumb.gif"></a>
</body></html>

Consumer sentiment swings towards greater rate cut anticipation: Westpac 

<html><body>
Westpac’s discount bank brand, Bank of Melbourne, has cut its benchmark three-year fixed rate by 20 basis points to 5.79%, one of the lowest rates on offer in the market. 
This matches Greater Building Society’s 5.79% three-year fixed rate. 
The bank of Melbourne has also reduced rates on its one- and two-year fixed-rate products by 15 basis points. 
Bank of Melbourne’s new fixed home loan rates under the Advantage Package are: 
<ul>
<li>1 year – 5.74% p.a. </li>
<li>2 years – 5.74% p.a. </li>
<li>3 years – 5.79% p.a. </li>
</ul>
In addition to the fixed-rate cuts, the bank has also lifted its life-of-loan discounts on packaged variable home loans. 
From tomorrow the bank is also offering life of loan discounts of up to 0.9% p.a. off new standard variable rate home loans through its Advantage package. 
“More customers are talking to us about fixing all, or part, of their home loan to help manage their finances and gain greater certainty in these uncertain times,” says Bank of Melbourne chief executive Scott Tanner.
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Bank of Melbourne cuts fixed rates and improves incentives for borrowers

<html><body>
Here’s some good news for Queensland home buyers and a warning of some traps to avoid.
In one of his early moves as the new Premier of Queensland, Campbell Newman reinstated state stamp duty concessions for principal places of residence (your home).
Cabinet formally approved the reinstatement of the principal place of residence stamp duty concession from July 1, 2012, which will save Queenslanders up to $7,000 when they purchase an average family home.
The concession was dropped in June 2011 by then Queensland Treasurer Andrew Fraser in a bid to raise an estimated $161 million for the state government.
While this is good news for home buyers in Queensland, as I said, there are some traps to avoid.
Firstly, what is stamp duty? 
Stamp duty is a tax that is levied by the state, not the federal government, on certain documents.
Historically, this included the majority of legal documents such as cheques, receipts, commissions, marriage licences and land transactions.
I remember the old days when a physical stamp (a revenue stamp) had to be attached to the document to denote that stamp duty had been paid before the document was legally effective.
Today, the tax no longer requires an actual stamp to be placed on the document, but obviously the tax must still be paid.
Interestingly, this type of duty was originally introduced in the Netherlands way back in 1624 and subsequently spread to many other countries.
So what is this new concession?
With the reinstatement of the home concession, contracts to purchase a home in Queensland entered into on or after July 1, 2012 by home buyers will be eligible for the transfer duty home concession if they meet the concession conditions. 
The home no longer has to be the first home of the home buyer, and can be a new house or one that has been previously occupied. In other words – it’s not a first-home owner’s grant and it’s not a new home owner’s grant.
But the home buyers will need to prove that they are individuals and not trustees, and the residence must be occupied as the principal place of residence within one year of the transfer and the occupation as principal place of residence must continue for at least one year from the time it commences.
Where the concession applies, a concessional transfer duty rate of $1 for each $100 or part of $100 will apply to the first $350,000 of the consideration or value of the home. Duty at the general rates will apply to any remaining part of the consideration. 
Putting this into numbers – the average home buyer will save $7,000 and if you think about it you’d probably have to earn $10,000 or more before tax to have that $7,000, so it’s a substantial savings for the average Queensland homebuyer. 
Here are the warnings…
 
If you plan to buy a property this month don’t make false arrangements in the hope of avoiding stamp duty – the government will be on the look out and is likely to scrutinise all home sale contracts carefully over the next few months. 
There are three very important circumstances in which the old duty will still apply: 1.    If the transfer or agreement replaces a transfer, or an agreement for the transfer, that included the land and was made before July 1, 2012; or 2.    If the transferee had an option to purchase the land, or the transferor had an option to require the transferee to purchase the land, granted before July 1, 2012 and exercised on or after July 1, 2012; or 3.    If another arrangement was made before July 1, 2012 the sole purpose or main purpose of which was to defer the making of the transfer or agreement until July 1, 2012 or later so the concession for transfer duty under the relevant provisions, as in force on or after July 1, 2012, would apply in relation to the dutiable transaction.
Buyers should be aware that these provisions are trying to “catch” anyone who comes to an agreement in principle with the seller but tries to delay signing a formal contract until July 1, 2012. 
It is likely that any contracts dated July 1 or shortly after that may be scrutinised and “show cause” letters could be sent to the buyers seeking proof that the decision to purchase was actually made on that day and not prior to it. 
I wonder if the last few months leading up to June will be quieter ones for home sales in Queensland.
Michael Yardney is the director of <a href="https://www.metropole.com.au/">Metropole Property Investment Strategists</a> , a best-selling author and one of Australia's leading experts in wealth creation through property. He also writes the <a href="https://www.propertyupdate.com.au/">Property Investment Update</a> blog.
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Good news for Queensland home buyers, but beware of stamp duty traps: Michael Yardney

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With the end of financial year fast approaching, we thought we would provide some general tax strategies for property investors to consider:
1. Documentation: Keep summaries of all your rental income and expenses.
This is much easier if you have your management agent looking after your property where they pay all expenses and collect all income. They will normally provide a monthly and annual statement.
Ensure you have all bank statements showing interest expense. The annual statement should show a summary of interest expense.
A specialist property accountant can assist by ensuring all allowable tax deductions are made. 
2. Depreciation: Only registered quantity surveyors are generally authorised to prepare depreciation schedules.
If you are contemplating a renovation a quantity surveyor can produce a scrapping schedule, which puts a value against all items to be thrown away. This value is expensed in the year of expenditure. The new items are then depreciated with a new depreciation schedule.
3. Travel: All your costs to inspect your investment property are tax deductible, including travel. Ensure you apportion any personal component.
4. Interest expenses: Only interest expenses on borrowed funds used to invest are deductible. It is the purpose of the loan that determines deductibility, not the security used to obtain the loan.
A split loan should be considered when a loan is used for both investment and private purposes.
If capitalising interest the Tax Office may require evidence of correct documentation and intention.
Interest deductibility should be easy but if not properly documented and managed this expense can cause frustration if the ATO decides to review and so the assistance of a specialty property accountant should be used.
5. Trusts: The use of a trust can be a major benefit to property investors by improving asset protection, estate planning and increasing flexibility. If using a trust ensure it has been correctly set up and operated to ensure you do not lose your interest deductibility, which is fully allowable by the ATO if you meet the requirements.
6. Pre-pay expenses: If you have a geared investment it is worth considering pre-paying next year's interest to gain an immediate tax deduction, especially if you're paying the flood levy this year. You can also get a deduction now by pre-paying next year's income protection insurance premiums. Also, consider bringing forward expenditure that would otherwise be spent after June 30. If you are planning on doing repairs on your property, note: Care should be taken in determining whether a maintenance or repair is deductible or if it is considered a renovation or of a capital nature.  Consider pre-paying other expenses such as rates, levies or possibly even interest (in the right circumstances).
7. Manage capital gains: Capital gains generated during the year can be minimised by offsetting it against capital losses or trading losses incurred during the same year. To reduce capital gain generated on sale of property or other assets during the year consider selling any assets which have lost value and their future is bleak. The 50% discount on capital gains is available where an asset is held for longer than 12 months. As this is a considerable saving consider the timing of any sale. The relevant date for calculating capital gains is the contract date, not the settlement date.
8. Manage capital losses: Capital losses incurred in any year are available to be carried forward to future years if there are insufficient gains to absorb it in the same year. It can be carried forward for an indefinite period. Capital losses cannot be offset against other income such as business trading income if you've made a capital gain this year, review your portfolio to see whether it is worth realising a capital loss to offset the gain. You can't carry losses back. So if you've made a capital gain, you may want to trigger a loss to offset it against.
9. PAYG variation: Where you have negatively geared rental investments, the negative part offsets against your other income, e.g. salary, reducing your tax payable and resulting in a large refund when your tax return is lodged. This refund can be used to reduce your loan, pay your interest expense or help finance another investment property. To help with cashflow, would it not be great if you were able to access this refund throughout the year instead of waiting till the end of the year? This can help finance that extra property, which has potential to pick up some capital growth between the beginning and end of year. This can be done by lodging an application to vary the income tax withholding using a form from ATO. This can be done electronically on line or you can download the form, prepare and lodge it manually. PAYG instalment obligations should be reviewed and consideration given to varying the instalment for the June 2012 quarter, where the estimate of income tax payable for the year is less than the instalments raised by the ATO. This will reduce the impact of this instalment on your cashflow.
Ken Raiss is a certified accountant and director of <a href="https://www.chan-naylor.com.au/" target="_self" title="Chan &amp; Naylor ">Chan &amp; Naylor</a> national accounting firm. Ken’s experience lies in working with large publically listed multi-national companies, which gives Ken excellent insight into international market trends. Ken specialises in educating “mum and dad” property investors and small business owners with advice on wealth creation, asset protection, taxation, superannuation and compliance.
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Nine tax tips for property investors

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Westpac has used the RBA cash rate cuts of May and June to position Bank of Melbourne as its budget bank brand among its multi-brand offering while reeling in the discounts offered by its mortgage franchise RAMS.
Before the RBA began cutting the cash rate in November, St George, BankSA and Bank of Melbourne all offered a benchmark standard variable rate of 7.8%, with Westpac’s six basis points higher at 7.86%
RAMS was significantly cheaper with a rate of 7.63%, a 23-basis-point difference.
Fast-forward eight months and Westpac still has the highest standard variable mortgage rate at 6.89%, but Bank of Melbourne is now the lowest of the budget bank brands, with a standard variable mortgage rate of 6.8%, followed by BankSA (6.85%) and St George (6.86%)
RAMS maintains its position as having the lowest standard variable rate of the Westpac brands at 6.75% but is now only five basis points lower than Bank of Melbourne – thanks mainly to RAMS not passing on any of the December RBA cash rate cut – and only 14 basis points lower than Westpac.
Rate changes for Westpac brands following start of RBA cash rate cutting cycle in November 2011
<table style="width: 470px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td width="102" valign="top">
Brand
</td>
<td width="78" valign="top">
SVR June
</td>
<td width="78" valign="top">
 SVR May
</td>
<td width="73" valign="top">
SVR Feb 
</td>
<td width="77" valign="top">
SVR Dec 2011
</td>
<td width="77" valign="top">
SVR Nov 2011
</td>
<td width="60" valign="top">
SVR Oct 2011
</td>
<td width="71" valign="top">
Total change since Nov
</td>
</tr>
<tr>
<td width="102" valign="top">
Westpac
</td>
<td width="78" valign="top">
6.89% (- 20 bps)
</td>
<td width="78" valign="top">
7.09% (- 37 bps)
</td>
<td width="73" valign="top">
7.46% (+10 bps)
</td>
<td width="77" valign="top">
7.36% (-25 bps)
</td>
<td width="77" valign="top">
7.61% (-25 bps)
</td>
<td width="60" valign="top">
7.86%
</td>
<td width="71" valign="top">
-97 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
St.George
</td>
<td width="78" valign="top">
6.86% (-18 bps)
</td>
<td width="78" valign="top">
7.04% (-38)
</td>
<td width="73" valign="top">
7.42% (+12 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
- 94 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
BankSA
</td>
<td width="78" valign="top">
6.85% (-19 bps)
</td>
<td width="78" valign="top">
7.04% (- 38 bps)
</td>
<td width="73" valign="top">
7.42% (+12 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
- 95 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
Bank of Melbourne
</td>
<td width="78" valign="top">
6.80% (-19 bps)
</td>
<td width="78" valign="top">
6.99% (-41 bps)
</td>
<td width="73" valign="top">
7.40% (+10 bps)
</td>
<td width="77" valign="top">
7.30% (-25 bps)
</td>
<td width="77" valign="top">
7.55% (-25 bps)
</td>
<td width="60" valign="top">
7.80%
</td>
<td width="71" valign="top">
-100 bps
</td>
</tr>
<tr>
<td width="102" valign="top">
RAMS
</td>
<td width="78" valign="top">
6.75%  (-21 bps)
</td>
<td width="78" valign="top">
6.96% (-32 bps)
</td>
<td width="73" valign="top">
7.28% (+10 bps)
</td>
<td width="77" valign="top">
7.38% (0)
</td>
<td width="77" valign="top">
7.38% (-25 bps)
</td>
<td width="60" valign="top">
7.63%
</td>
<td width="71" valign="top">
- 88 bps
</td>
</tr>
</tbody></table>
 Bank of Melbourne is also trying to convince borrowers that it is a separate entity to its big four parent, with the ads in its windows talking about it matching the big four on price while beating them on service.
“Not a bad bit of spin for a bank wholly owned by the country's second-biggest major. It's a question of whether customers will buy it,” wrote Stewart Oldfield, an analyst at Investorfirst Securities, in the Fairfax press.
Oldfield says Westpac’s multi-brand strategy in Victoria is about trying win new customers by offering them a “regional bank” experience in a state where regional bank representation is low compared with the national average.
“Privately, the bank also highlights the ability to price brands differently, depending on market conditions,” he says.
What is also noticeable is that the range of standard variable rates offered across the five brands has shrunk from 23 basis points in November to just 14 basis points in June, providing less of an incentive for borrowers to refinance from one Westpac mortgage brand to another.
Westpac kicked off its multi-brand mortgage strategy –likened to that of consumer products giant Unilever – following the outbreak of the GFC.
It acquired the RAMS brand name and franchised stores for just $140 million in January 2008 following the disastrous float of the then non-bank lender.
One month later Gail Kelly left her role as St George chief executive to assume the position of Westpac CEO.
Twelve months later Westpac bought St George for $18.6 billion.
Westpac relaunched the Bank of Melbourne brand in August last year, replacing St George in the Victorian market.
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