Apartment buyers in New South Wales are set to gain a decade of insurance-backed protection against major building defects, after the NSW Parliament passed the Fair Trading and Building Legislation Amendment Bill 2026.&nbsp;

The Bill establishes decennial defect insurance, known in the market as Latent Defects Insurance (LDI), as an alternative to the existing two-year strata building bond. It cleared the Legislative Council with amendments on Tuesday evening (August 4, 2026), with the Legislative Assembly agreeing to those amendments shortly after.

Under the reform, eligible developers can satisfy their statutory bond obligation by taking out an approved decennial-style policy that gives owners 10 years of cover for major structural defects from completion, claimable directly, without first having to pursue developers or builders through costly legal action.&nbsp;

The change forms the final tranche of amendments arising from the 2021 statutory review of the Strata Schemes Management Act 2015 and related legislation.

Resilience Insurance, which originated the cover in Australia and has delivered it in NSW since 2022, welcomed the passage and credited the NSW Government for delivering it.

“This is protection apartment buyers have needed for a long time, and the credit for delivering it belongs to the NSW Government,”&nbsp;said Corey Nugent, CEO of Resilience Insurance.

“Minister Chanthivong and his team have shown real leadership in replacing an outdated two-year bond with cover that matches the lifespan of the buildings people are buying into. Reform like this is what good, evidence-based regulation looks like.”

Resilience has delivered LDI in NSW since 2022, protecting thousands of apartments, giving the State, and now the country, real-world evidence of how decade-long, no-fault protection works in practice.

The reform also places NSW within a wider national shift.

NSW is the third jurisdiction to put decennial cover into law. The ACT legislated for it in 2024, with the scheme taking effect in late 2025, and Victoria passed its own framework on 17 June. Between them, the three cover the majority of Australia's apartment market.

The reform commences once the legislation is proclaimed, which is expected in the coming weeks. From that point, developers of Class 2 residential apartment buildings can meet their statutory obligation with an approved decennial policy in place of the bond.

Buyers who purchased into projects that took out the cover early are among the first in the country to take keys to apartments carrying decade-long structural protection.

“With the legislation passed, the focus now turns to making it work for buyers,”&nbsp;Nugent said.

“There are already thousands of apartments in NSW covered by this insurance, bought by developers who moved early. The question every buyer should be asking in a display suite is a simple one: does this building come with 10-year defect cover, and who stands behind it?&nbsp;

“We look forward to working with the Government and the Building Commission in coming weeks as the framework moves to implementation, and to sharing what we have learned over the past four years so the protection reaches owners as smoothly and quickly as possible.”

Other states are working through their own reform programs. Western Australia has indicated that decennial cover is within consideration a later stage of its reform sequence, and Queensland has been examining the settings as it looks at the development pipeline ahead of the 2032 Olympics.

Resilience Insurance acknowledges the NSW Government’s continued focus on strengthening consumer protection while supporting housing delivery across the State.

Fast Facts: What the reform means

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Proven at scale:&nbsp;Decennial cover has operated in NSW since 2022, protecting thousand of apartments.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">10 years of cover:&nbsp;Protection for major structural defects runs for a decade from completion, claimable directly and with no legal action required.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">An alternative to the bond:&nbsp;Eligible developers can meet their statutory obligation with an approved decennial-style policy in place of the 2% strata building bond.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Part of a national shift:&nbsp;The ACT has had decennial provisions in force since 2025 and Victoria passed its framework in June. NSW now joins them.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">No-fault, first resort:&nbsp;Owners corporations claim directly from the insurer without first having to establish who is liable for the defect.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost-competitive:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the 2% bond while offering broader, longer protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market position:&nbsp;Resilience originated LDI in Australia and has delivered it in NSW since 2022.</li>
</ul>

Fast Facts: What is Resilience LDI?

<ul style="color:#222222; font-family:Arial, Helvetica, sans-serif; font-size:small; font-style:normal; font-variant-ligatures:normal; font-weight:400; text-align:start; white-space:normal; background-color:#ffffff; text-decoration-thickness:initial; text-decoration-style:initial; text-decoration-color:initial">
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Resilience Latent Defects Insurance (LDI):&nbsp;Covers major structural defects for 10 years from completion.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Consumer-first:&nbsp;Direct claim access, no need for lengthy legal action.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Cost advantage:&nbsp;At approximately 1.8% of build cost, LDI is typically priced below the traditional 2% Strata Bond while offering broader protection.</li>
	<li style="margin-left:15px; font-family:Aptos, Arial, Helvetica, sans-serif; font-size:12pt; color:#000000">Market leader:&nbsp;&nbsp;Resilience Insurance originated LDI in Australia and is the national market leader.</li>
</ul>

Joel Robinson

NSW parliament passes 10-year defect insurance laws for new apartment buyers

Builder-developer <a href="https://www.apartments.com.au/developers/mcnab-developments">McNab</a> has wasted little time reshaping one of South Brisbane's most significant undeveloped apartment sites after acquiring the property earlier this year.&nbsp;

McNab has lodged plans to scrap an existing approval for two 30-storey towers and instead deliver a single 28-storey residential building, preserving part of the site for a future development opportunity.

The proposal, lodged over <a href="https://www.apartments.com.au/new-apartments/64-peel-street-south-brisbane-qld-4101">64 Peel Street and 9 Cordelia Street</a>, is for a residential-led mixed-use development comprising 124 apartments above a landscaped podium, alongside a boundary realignment that preserves part of the land for a future residential project.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="743bf564-3f8f-45fc-b8d3-bbf18f5b628f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20Peel%20st%20podium.png?VersionId=EhCxGrVn_VFH3qTbKnI4WppGwaMnOn0t" />

Designed by <a href="https://www.apartments.com.au/architects/hayball">Hayball</a>, the development will deliver 119 two-bedroom and five three-bedroom apartments across 23 residential levels. A five-level podium will accommodate 135 car spaces, while the ground floor will include a 66 sqm commercial tenancy, an activated residential lobby with work-from-home spaces, and a publicly accessible landscaped plaza linking Cordelia and Peel streets.&nbsp;

Communal amenities will span Level 6 and the rooftop, including indoor and outdoor recreation spaces, a swimming pool, barbecue facilities, kitchen and dining areas, lawn space, sauna, steam room and yoga facilities.

The application also proposes a boundary realignment to create a standalone 1,290 sqm development lot while retaining an adjacent parcel for future redevelopment, allowing the balance of the site to contribute additional housing over time.

Hayball said the architecture has been shaped by the site's elevated corner position at the intersection of Peel and Cordelia streets and Brisbane's subtropical climate.

The design incorporates generous landscaped setbacks, a masonry podium wrapped with planting, large north-facing balconies, and a slender tower profile intended to maximise natural light, cross ventilation and long-range views. The rooftop has been conceived as a wellness-focused retreat overlooking Brisbane, with amenities positioned to capture views towards Mount Coot-tha and the CBD.

<img alt="First look: McNab resets decade-old South Brisbane approval with 124-apartment tower" data-entity-type="file" data-entity-uuid="c5f99e84-6ad8-4a87-82d1-869685b754d2" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/mcnab%20tower%20perspective.png?VersionId=Gw0IuJaSAlk.tvGBxInhZOcQAdIB..2b" />

The planning submission positions the proposal as a response to both changing market conditions and Brisbane's Kurilpa Sustainable Growth Precinct planning reforms.

McNab acquired the site after the previous approval was granted, with the existing scheme no longer reflecting current residential market demands, economic conditions, construction challenges, construction efficiencies or the quality of development outcome now being pursued, the planning report noted.

McNab continues to expand its residential development pipeline across Brisbane and the Gold Coast. The developer recently launched The Tannery in West End, securing more than 60 per cent of apartments before the project's public release. It is also delivering Elements Budds Beach in Surfers Paradise and Lucia Highgate Hill, an eight-apartment boutique development overlooking the Brisbane River.

McNab resets decade-old South Brisbane approval with 124-apartment tower

A steeply sloping Bellevue Hill site is set to accommodate a new mid-rise apartment development, with plans lodged for 20 homes that respond to the site's dramatic topography.

The proposal for the consolidated land at <a href="https://www.apartments.com.au/new-apartments/138a-140-bellevue-road-bellevue-hill-nsw-2023">138A-140 Bellevue Road</a> has been designed by Sydney architecture practice Common Office, which has used the site’s substantial fall to distribute the building’s scale and unlock 20 apartments without presenting the full height to the street.&nbsp;

“The unique design strategy leverages the site’s substantial topographical fall to facilitate increased density, presenting a seven-storey profile to Bellevue Road while rising to 10 storeys at the rear,” Common Office said in its architectural design report.

The apartment mix spans one, two, three- and four-bedroom residences. Four two-bedroom apartments are designated as affordable housing, while the plans also include two adaptable dwellings. The mix is majority three-beds, with the typical three-bed apartment offering around 144 sqm internally, with balconies of around 15 sqm.

The affordable housing component represents 15 per cent of the residential floor area and allows the project to access additional height and floor space under the NSW Government’s in-fill affordable housing provisions. The site also falls within the inner area of the Low and Mid-Rise Housing Policy because it is within 400 metres walking distance of Double Bay Town Centre.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="b1230d0f-3bfa-4a11-abaf-0928c66ef345" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da.png?VersionId=dZeMK3P.OutGjN8ycjsxm8uNsj_QFWQv" />

Common Office has arranged the building around a masonry podium and a lighter upper volume, drawing on two recurring elements of Bellevue Hill’s established architecture: sandstone bases and the vertical proportions of local Inter-war Art Deco apartment buildings.

“The proposal is governed by a holistic design language that reconciles the solid horizontal masonry of the neighbourhood’s podiums with the elegant verticality of its Art Deco heritage,” the architect said.

“The building maintains a consistent rhythmic logic utilising deep recesses and a sophisticated material transition to break down the 10-storey scale into a series of articulated, human-scale volumes.”

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="0147f503-1af1-4d51-97fb-c2f1cba63a9d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20bldg.png?VersionId=GoW7q3NlK67OpnePXhk7zvklrlKb72Qc" />

Large-format sandstone tiles will define the lower levels, establishing a robust base that negotiates the change in elevation from Bellevue Road. Above, red-tinted precast concrete frames, recessed balconies, anodised aluminium screens and expanded metal details will create a more vertically expressed façade. Integrated planter beds will introduce greenery across balcony edges and recessed sections of the building.

The elongated northern façade has been divided into three recessed vertical masses to reduce its perceived length. Triangular window elements and metal privacy screens reference the geometry of nearby Art Deco buildings while controlling overlooking toward surrounding homes. The southern elevation will incorporate further privacy screening, landscaped edges and deep balconies to maintain light and ventilation.

<img alt="First Look: Plans lodged for topography-led affordable housing project in Bellevue Hill" data-entity-type="file" data-entity-uuid="e8679cf1-18bc-4447-8a0f-0052b94ab83c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Bellevue%20da%20rooftop.png?VersionId=5SQqQqRFf76rvE2p1TbxJSweMN70AIbc" />

Private and communal landscaping is distributed throughout the development. A landscaped garden apartment is positioned within the lower portion of the site, while a communal terrace on Level 5 will include a central timber deck, barbecue facilities, resident planting plots and areas for outdoor dining and informal gatherings.

Common Office described the terrace as an elevated sanctuary designed to capture district views and sunlight. Its planting strategy incorporates endemic species associated with the Eastern Suburbs Banksia Scrub, extending the landscape vertically through the building and providing habitat for local flora and fauna.

A second communal outdoor area is proposed at roof level, with built-in seating, paved gathering areas and perimeter planting.

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction. Positive Investment Enterprise is delivering the 16-apartment Kew Palm House on Birriga Road, while Chanine Developments is also under construction at Florian, a 36-apartment project on Banksia Road.

&nbsp;

Bellevue Hill is enjoying renewed momentum in the new apartment market, with several boutique developments recently launched and currently under construction.

First Look: Apartment development pitched for Bellevue Hill, Double Bay fringe

South Brisbane's apartment pipeline continues to build momentum, with <a href="https://www.apartments.com.au/developers/trk-property-group">TRK Property Group</a> lodging plans for a 161-apartment tower on Montague Road as developers accelerate investment across the Kurilpa Sustainable Growth Precinct.

The proposal for 176–186 Montague Road would replace an existing office building with a 20-storey residential tower designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, adding to a growing pipeline of high-density projects reshaping one of Brisbane's fastest-evolving inner-city precincts.

The project has been conceived as a "living building", featuring a flowing tower form, extensive vertical landscaping, and generous communal spaces that respond to the evolving Kurilpa Sustainable Growth Precinct.

TRK Property Group Development Director Matt Kan said the project reflected the confidence developers have in South Brisbane's long-term future.

"South Brisbane is entering an incredibly exciting period, and we see Montague Road sitting right at the heart of that evolution," Kan said.

"With the former Visy site directly opposite us and significant investment planned throughout the broader Kurilpa precinct, there is a real sense of momentum around this part of the city and what it will become over the coming years.

"For TRK, this is an opportunity to be part of that next chapter and deliver a project that responds to where the precinct is heading, while contributing to the continued evolution of Brisbane's river edge."

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="590fe1ad-f892-4446-a679-80e33a16d029" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20tower%20facade.png?VersionId=uOJStrcKpyHFcPE1w6_9SMAFzVMCcZll" />

The scheme includes a mix of one, two, three and four-bedroom apartments, incorporating multi-purpose rooms in selected residences to provide additional flexibility for home offices or expanded living areas. The proposed mix comprises 15 one-bedroom, 13 one-bedroom plus MPR, 73 two-bedroom, 26 two-bedroom plus MPR, 30 three-bedroom, and four four-bedroom apartments.

Rather than adopting a conventional rectilinear tower, COX Architecture has developed a sculpted form inspired by the movement of the Brisbane River.

"The proposal has been designed by COX Architecture as a 'living building' that responds to the site's riverine setting, floodplain history and evolving urban context within the Kurilpa Sustainable Growth Precinct," the planning report states.

"The architectural form draws from the fluid nature of the Brisbane River, with a curved and undulating tower form that creates a varied architectural edge and avoids a conventional rectilinear tower expression."

The podium has also been designed as an architectural feature rather than a conventional parking structure, with cascading planting, screening and natural-toned materials softening its appearance. Resident parking is elevated above ground level to address the site's flood constraints, while habitable apartments sit above flood planning levels. Upper-level communal facilities are designed to accommodate shelter-in-place arrangements during major flood events.

<img alt="First look: TRK Property joins South Brisbane apartment surge with Montague Road tower plans" data-entity-type="file" data-entity-uuid="01fa15d0-90df-46c7-9555-7941fc45373c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/TRK%20podium.png?VersionId=mHyua.w1pHGBt9qEdWzrlsv.leztUCwO" />

Communal amenity is a major focus of the proposal. Around 1,815 sqm of shared resident space is proposed across the ground floor, level 19 and the rooftop, including co-working areas, indoor and outdoor recreation spaces, wellness facilities, dining and gathering areas, lawn spaces, a rooftop pool and spa, and extensive landscaping. At street level, a landscaped forecourt and approximately 345 sqm of publicly accessible open space along Montague Road are intended to improve the pedestrian experience while activating the building's frontage.

The development will provide 163 car spaces, including 152 resident bays and 11 visitor spaces, together with 144 bicycle spaces incorporating resident storage, visitor parking, bicycle maintenance facilities and e-mobility charging infrastructure.

The site sits within one of Brisbane's fastest-changing inner-city precincts, less than two kilometres from the CBD and within easy reach of South Bank, West End, the Queensland Cultural Centre and extensive public transport connections. The Kurilpa Sustainable Growth Precinct planning framework is encouraging higher-density residential development to help meet Brisbane's housing supply targets while supporting walkable, transit-oriented neighbourhoods.

TRK Property joins South Brisbane apartment surge with Montague Road tower plans

Article summary

<ul data-end="785" data-start="311">
	<li data-end="459" data-section-id="5hbcyr" data-start="311">Pikos Group has released the five-penthouse collection at Skye Kangaroo Point, headlined by a two-storey sky home spanning more than 1,000 sqm.</li>
	<li data-end="561" data-section-id="1p7lq8n" data-start="460">Early buyer interest suggests the residences could set a new Queensland apartment price record.</li>
	<li data-end="667" data-section-id="1y70z0l" data-start="562">The collection includes four move-in ready penthouses and the highly customised Skye One residence.</li>
	<li data-end="785" data-section-id="yvm0y1" data-start="668">The release caps one of Bri​sbane's most ambitious luxury apartment developments overlooking the Brisbane River.</li>
</ul>

<hr data-end="790" data-start="787" />
Pikos Group has released the five-penthouse collection at its <a href="https://www.apartments.com.au/buildings/skye-residences-by-pikos-kangaroo-point-8-river-terrace-kangaroo-point-qld-4169">Skye by Pikos</a> development in Kangaroo Point, with early buyer interest indicating the flagship residences could eclipse every apartment sale previously recorded in Queensland.

The collection crowns the luxury riverfront development with five residences, including four completed penthouses and Skye One, a two-level sky home spanning more than 1,000 sqm that will be tailored to its eventual owner.

[smartcode_project:default project_id=90059 project_image_fid=374075]

Wanting to offer a fully customisable home, Pikos is offering Skye One as a blank canvas, allowing the buyer to work alongside the developer's design team to customise the home's layout, finishes and internal spaces.

The residence will feature a 247 sqm private rooftop terrace with its own swimming pool, sauna, steam room, outdoor kitchen and multiple entertaining areas overlooking the Brisbane River and CBD skyline.

The remaining four penthouses have been completed and are ready for immediate occupation, each offering four bedrooms, expansive open-plan living areas, soaring ceilings and private lift access.

[smartcode_project:default project_id=90059 project_image_fid=374059]

One of the defining features throughout the project is its use of Roman Classic Travertine, with more than 20,000 sqm of the natural stone imported from Italy after being personally selected by Pikos Group Founder and Executive Director Pedro Pikos, interior designer Julie Williamson and third-generation stone specialist Mario Caucci.

Pikos said the penthouse collection represented the culmination of the company's long-term vision for Skye.

"True legacy isn't measured by what we build today, but by what endures tomorrow," Pikos said.

"Our ambition is to create places that become more valuable with time, enrich the lives of generations, and stand as timeless landmarks long after we've stepped away."

[smartcode_project:default project_id=90059 project_image_fid=374060]

Williamson said the interiors were inspired by the natural character of Kangaroo Point and the Brisbane River rather than international design trends.

"Materiality tells the story of a place," Williamson said.

"We looked to the movement of the Brisbane River, the texture of the cliff face and the warmth of the surrounding landscape to create interiors that feel understated, enduring and unmistakably Brisbane."

Positioned above the Kangaroo Point cliffs, Skye places residents within walking distance of Howard Smith Wharves, South Bank and James Street while offering uninterrupted river and city views.

[smartcode_project_cta:default project_id=90059]

Brisbane's next apartment price record? Pikos unveils Skye's exclusive penthouse collection

Prominent New Zealand apartment and hotel operator, <a href="/developers/safari-group">Safari Group</a>, is offering up a prime investment opportunity for Australians to purchase off the plan in one of the world’s most popular ski destinations.

They recently took to market Mountain Oak Queenstown Apartments, in the growing precinct of Remarkables Park in Frankton, near the airport and at the foot of The Remarkables - the mountain range the locals like to call “The Remarks”.&nbsp;

Sydney investors have shown interest in the one, two and three-bedroom apartments that secure high-season occupancy six months over the year, primarily over summer and winter months.

They average 90 per cent occupancy across their portfolio over January, February, March, August, November and December, while shoulder season months of April, July, September and October are still occupied 70 per cent of the time, with the growing appeal of Queenstown becoming not just a hotspot for the snow, but a lifestyle destination.

Even in the low seasons of May and June, occupancy levels reach around 40 per cent.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Ext_Cam15_Sunny.jpg?VersionId=SJAROUM_1s.Tr5ciMk4EEj5oAt_Vewmv" />

Safari’s Safari Hotels arm can also manage the holiday letting for an investor, from the listing on holiday accommodation websites such as Airbnb and Booking.com to the cleaning and maintenance of the investment. They’ve been in the short stay management business for 15 years and offer 24/7 support for investors, an important convenience benefit for any overseas investor

Another major drawcard for Australians is that New Zealand doesn’t have a stamp duty policy - so the entry price of NZ$639,000 (AU$586,000), is all that is payable on completion.

<img alt="Safari Group’s Mountain Oak Apartments brings new investment potential to Queenstown" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/313_Livingv2_WEB.jpg?VersionId=nV229fM0ZeYpoxOrX372HyGjfwY_LR8c" />

Safari is starting construction of the 141 apartments in Q2 this year, with a two-year build estimated to complete in mid-to-late 2027.<img alt="" data-entity-type="" data-entity-uuid="" height="15" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczFpFAb7WuA6f4f9TtKWcqXyNwR8qqtakWv352ERkpqNlP3KwIo8YKxw67jZNHfpjEGIZGv5MQTbnvLZwNt8iu9IVdOrswOjCvBZ4zhSoOOLrpt6etVEZTN1gkBho0r_R72zdHNA?key=yq3daOanqHSb88QFd8jGYKdb" title="Click and drag to move" width="15" />​

The apartments will feature modern amenities and contemporary designs with expansive windows capturing sweeping views of The Remarkables mountain range.&nbsp;

Interiors are equipped with modern finishes, premium appliances, and secure electronic key-locked doors, ensuring a comfortable living experience for residents and guests alike.

With its strategic location near Coronet Peak and Cardrona Alpine Resort, as well as key retail and dining precincts such as Market Street, Five Mile Shopping Centre, and Remarkables Market, Mountain Oak offers a strong proposition for investors seeking high rental yields and capital appreciation in one of New Zealand’s most sought-after locations.&nbsp;

Queenstown’s sustained demand for visitor accommodation and rental properties is underpinned by a shortage of housing options, attracting both local and international buyers.

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

<html><body>
Usain Bolt has defended his title as the world's fastest man, winning gold in the 100-metre sprint at the London Olympics.
But while Bolt has successfully defended his title on the track – and set an Olympic record at the same time – in the business world, his record shows a different story.
The star's Caribbean sports bar, Tracks &amp; Records, opened in 2011 in Bolt's home town of Kingston. On its website, the company says it has "already started to break the barriers of a casual eatery and sports bar &amp; lounge".
As it turns out, the <a target="_blank" href="https://www.smartcompany.com.au/wealth/051046-the-richest-people-in-sports">track superstar's</a> aggressive schedule for opening more bars overseas has proven elusive.
The<a target="_blank" href="https://www.tracksandrecords.com/nmcms.php?content=About%20Us&amp;show=1" rel="nofollow"> site </a>says the bar is built with an "almost stadium-like presence" occupying 6,000 square feet (557 square metres).
"The brand's unique décor reflects the offering's dual sports and music concept – playing on the 'tracks' run on and the 'records' broken by Usain Bolt, as well as on the 'tracks and records' which are key elements of music."
"The overall décor features are the fundamentals of brand Jamaica, with a contemporary sophistication, which takes patrons on a journey from old school Jamaican culture to the most modern audio-visual experience."
Bolt wanted to open a branch in London before the Olympics, but that plan was shut down as early as 2011. According to his London agent, Ricky Simms, the <a target="_blank" href="https://blogs.telegraph.co.uk/sport/shart/100016414/usain-bolt-loses-race-to-open-sports-bar-in-london-in-time-for-the-2012-olympics/" rel="nofollow">plan was in doubt</a> about 18 months ago.
"Things have taken a bit longer than expected so I don't think there is going to be time for that before the Olympics," said Simms.
"But it could well happen after 2012. I know Usain is looking at opening bars in London and New York."
As Bolt has risen in popularity since Beijing, his fortune has also grown to more than $US20 million a year, coming from various events, sponsorship deals and prize money. <a target="_blank" href="https://blogs.telegraph.co.uk/sport/shart/100016414/usain-bolt-loses-race-to-open-sports-bar-in-london-in-time-for-the-2012-olympics/" rel="nofollow">Forbes places him at 63rd</a> on its list of the world's highest paid athletes.
Some of his sponsorship deals include Gatorade, Virgin Media, Visa and Puma. Back in 2010, Bolt signed another deal netting him $US9 million a year – an unusual amount for a track and field star.
This article originally appeared on <a target="_blank" href="https://www.smartcompany.com.au/index.php">SmartCompany</a>.
</body></html>

pmcstafford-pr9eMARWoN

Usain Bolt's international restaurant chain expansion stumbles at the starting block

<html><body>
The Labor government is crowing about its latest statistical achievements — low inflation, low unemployment, strong growth and booming investment.
So, why aren't Australians feeling an overwhelming sense of warmth and wellbeing? Probably, as my earlier articles have explained, it all comes down to an overall lack of confidence.
Most people are still expecting the RBA to further reduce interest rates. However, barring a European meltdown, that would seem to be rather unlikely in the foreseeable future.
You only need to study these graphs to understand the RBA's hesitancy — because clearly, the average measures of inflation currently sit at the bottom of the target band adopted by the Reserve Bank.
Click to enlarge
<a title="Click to enlarge" rel="shadowbox" href="/images/stories/2012/08/langaug7.gif"><img src="/images/stories/2012/08/langaug7thumb.gif"></a>
Closer scrutiny is required
However, when you look more carefully at the composite parts, you can better understand the make up the overall CPI figure itself.
As a result of the high Australian dollar, the prices for tradable items (mostly imported) contribute -2% per annum to the total figure.
However, the prices for non-tradable items (being domestic goods and services) are currently growing at 3.6% per annum. And the problem is that these represent about 60% of the CPI's final figure.
These domestic items include essential goods and services, which people need and use on a daily basis.
Things like electricity, education, healthcare and rent — where electricity alone has risen by 10.7% over the past year.
Therefore, the low "official" measures of inflation mask the fact that everyday consumers continue to experience living costs, which are rising on a monthly basis.
And this is what is fuelling the present uncertainty within the Australian community.
However, the real irony here is that, if overseas events were to cause the Australian dollar to fall below parity (with the US dollar), this would provide a welcome boost for all our exporters — not merely the mining sector.
And in turn, this would help restore some balance to our present two-speed economy.
Bottom line: These are certainly strange times. And yes, local investors do seem to be confused by all the mixed signals.
However, this doesn't seem to be deterring private overseas buyers, who see Australian commercial property as extremely well-placed for growth over the next five years. And in particular, Melbourne — as Dr Frank Gelber (of BIS Shrapnel) confirmed last week at the REIV's Annual Forecast Luncheon.
All these investors require is a well-located property with a solid tenant on a good lease, and their decision to buy quickly follows.
 Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, <a href="https://bitly.com/IFf40C">his-best.biz</a>, which he updates regularly about the best way to get the most out of your commercial property investment.
</body></html>

chrislang-EQKojcgJPV

Local commercial property investors confused by mixed economic signals

<html><body>
<img src="/images/stories/2012/08/300.gif">
The advertised net rent per square metre per annum for office premises at 214 Park Street, South Melbourne, that will be taken up by Antony Catalano’s Metro Media Publishing (MMP) business.<a href="https://www.propertyobserver.com.au/industry-news/accc-approves-fairfax-weekly-review-deal/2012052454818"> Metro Media’s 50% merger with Fairfax Media </a>was approved by the ACCC in May. MMP is the publisher of Melbourne real estate advertising glossy The Weekly Review. There was 1,210 square metres of space available for lease in the two-storey free-standing building, with the lease negotiated by Paul O'Sullivan and Richard Curtain from Lemon Baxter South Melbourne.
 
<hr>
<img src="/images/stories/2012/08/700.gif">
The estimated gross face rent per square metre per annuam that Discount Vitamin Warehouse will pay to lease 93 square metres of retail space at 321a Chapel Street in Prahran, Melbourne.  The lease was negotiated by Mike Crittenden, Colliers International Executive for retail leasing. “We are noticing a shift from tenants to secure space in the Prahran/Windsor precinct, due to the type of shopper in the area and also the competitive rentals, rather than the South Yarra end, which historically has demanded higher rentals,” Crittenden says.
 
<hr>
<img src="/images/stories/2012/08/495.gif">
The initial gross rental of per square metre per annum that Rendezvous Hotels will pay to lease 287 square metres of office space at level six at 23 O'Connell Street in the Sydney CBD. The group is part of The Straits Trading Company Limited of Singapore. The leasing transaction at the former Permanent Trustee building was completed on behalf of owner Accord Pacific Resorts Pty Ltd by Ray White Commercial Office leasing directors John Skufris and Anthony Harris. Rendezvous Hotels has taken up a five-year lease. 
 
<hr>
 
<img src="/images/stories/2012/08/380.gif">
The commencing rent per square metre per annum that an unnamed international A-grade tenant will pay in a pre-commitment deal for 4,540 square metres of office space at levels 1 and 2 at Botanicca 8, within the Botanicca Corporate Park in Richmond, Melbourne. The lease was negotiated by Rob Joyes from Colliers International. The eight-year lease was negotiated on behalf of joint venture partners Pacific Group of Companies and Icon Developments. Peter Evans, Colliers International national director of corporate solutions, acted for the tenant in the negotiations. The new building will be completed by November 2013. Botanicca 8 is part of Botanicca Corporate Park at 576 Swan Street, Richmond offering more than 8,300 square metres of A-grade office space over four levels. 
 
<hr>
 
<img src="/images/stories/2012/08/100.gif">
The estimated annual rental per square metre that Melbourne Martial Arts company XFC Training will pay to lease a new facility at Bayswater in Melbourne’s eastern suburbs in a deal negotiated by Savills Australia. Located in the Bayswater Business Park, the Lot 31 Corporate Boulevard, facility comprises a 1,000 square metre building, which was specifically designed and built to suit the tenant’s requirements. Savills Adrian Smith, who brokered the deal, said the company had taken a five year lease with two, five year options.  The lessor was a local developer.
Negotiated a new lease? <a href="mailto:news@propertyobserver.com.au">Send an email to us</a> with the details and we will publish it our next edition of our commercial leasing ladder.
</body></html>

lschlesinger-FZcF9M3vE6

Commercial leasing: Watch this space

<html><body>
When we look at <a target="_blank" href="https://www.propertyobserver.com.au/trends/how-demographic-trends-shape-our-property-choices-peter-chittenden/2012080155815">the impact of family formation</a> it takes no enlightenment to understand that as families grow they have very different housing needs. This is an obvious fact but one that has far-reaching impacts for project marketing, because growing families top the list of reasons as to why most people move house. Likewise at the other end of the scale, when families shrink, the impact is visibly felt.
The needs of growing families have always fuelled the growth of Australian suburbs (as they do in every developed economy), and while more people are now living in the inner city and in apartments, the suburb is still, despite an ongoing debate about its future and cost, very much alive. Today across Australia on the outskirts of many cities there are major new areas of growth, and there are also areas where large tracts of in-fill sites are being developed.
However, almost without exception governments are either failing to deliver or are unable to afford the necessary infrastructure to support this growth, it’s a time bomb that is ticking away. The cost of new infrastructure impact almost every area of the housing market and is a major impediment to improving affordability and so directly impacts how families manage their housing needs.
There are also families who are very happy living in the city where they are big users of existing community facilities like parks, recreation facilities and schools. As children age some families do not see the inevitable need for a backyard or the need to live in the suburbs. These families are happy to trade private space for quality access to public space.
For the development community and as a key marketing challenge, finding the balance across these varied needs and aspirations provides choice and diversity of projects. The recycling of former inner-city industrial areas, which are close to established facilities, is one very big trend that is obvious in our capital cities and in many regional towns. And while these areas do not always have every facility or service, the density of development and the resulting increase in population then helps to underwrite investment in services.
Sooner or later almost all children will leave the family home, and this truth is one of the biggest drivers of demand in the housing market. While it is a gradual process, the demand created and the changes it causes for everyone involved, including mum and dad, are fundamental. The impact can be very chunky, like all those baby boomer kids leaving home in the late ’60s and into the ’70s and who now own a major part of the national housing inventory.
Young adults move into a flat, they move to a shared house or they buy their own home and they form varied relationships. Whatever step they take as kids leave home, it involves a shift in the demand for housing – both in terms of type and location. As families shrink some areas with less population have services run down, but over time we also see these same areas regain popularity and the cycle continues, and these are the very changes that create development and marketing opportunities.
This “chapter” is a big part of family formation story and also changes for many people the core dynamics of the family home, such as the amount of space needed and where people live.
Smaller families with fewer, no or older children at home have different housing needs, and now there is an emerging debate about the extent of empty rooms in family homes as areas experience housing crises and reduced affordability, and in some areas there appears to be a reluctance to sell up and move. The reasons for this reluctance are complex, but can include flat house prices plus the cost of moving including stamp duty.
Last week a study funded by National Seniors revealed that Australians give a huge $22 billion a year to their adult children. Why? Well, as it happens, to help them get established and mainly to buy property, but also to tide them over tough times.
As I look at older families the same survey also showed Australians gave another $1 billion a year to help house and support elderly parents. For the housing market the transfer of money between Australians aged 50-plus into the pockets of their children and to elderly parents suggests a more complex marketing environment. We may well have two target groups for some projects – the actual people living in the property and those (possibly older parents) paying or helping to foot the bill!
As families age and mature, this will almost always leave mum and dad at home, alone for much of the time in a home that has far too much space for just two people. The family home is now occupied by empty-nesters and so many, but not all, move on and in the move capital is freed up or the family homes acts as security to help house the next generation.
This same family home will also in many cases be sitting on a large block of land, that could either be subdivided or redeveloped – the pressures in infrastructure-starved cities are obvious.
One family moves on and another family moves in, or depending upon location and the age of the family home, it and adjoining homes become ripe for redevelopment. Development then responds to the changing demographics trends in an area, and that triggers, for example, the construction of medium-density apartments. This change at times results in intense community debate, but if we accept that family formation shifts with time and reflects wider social trends than the change might be seen as less disconcerting.
As the density of housing in an area shifts so will local services change, schools will close, or new ones open and the retail and social mix of an area responds, the housing market does not remain static and change is frequent.
Peter Chittenden is managing director for residential of <a href="https://www.colliers.com.au/Colliers%20Corporate/Residential.aspx" rel="nofollow" target="_blank">Colliers International.</a>
</body></html>

pchittenden-eLqUUC8TWW

As couples have children and children grow up, housing needs change dramatically

<html><body>
When is the best time to buy an investment property? This is a question I’m asked a lot. Is it when interest rates are low? When the property market is going through a downturn period? In winter?
The simple answer is: whenever and as often as you can afford to.
During my 25 years of investing in property, many “experts” have told me that a given time was not the right period to buy. There was always some excuse. In the 1980s it was the recession and high interest rates. “The economy is in dire straits,” I was told. “Tenants won’t be able to pay your rent.” What about the fact that people could not afford to buy so they had to rent?  No one ever mentioned that.
In the mid-'80s tax legislation changed and many of the benefits associated with negative gearing were abolished. Again, people talked down the pros of property investing, saying it was pointless without the tax refund. In the early '90s, the story changed again. Low inflation meant property investing was dead (apparently). Later in the '90s we had the Asian financial crisis, then the introduction of the GST, then the global financial crisis more recently. If I had listened to all the naysayers I would never have bought any property or indeed continued to build a large portfolio of my own.
I can tell you one thing: I glad now that I did. Following each of these crises, I emerged still holding my portfolio of properties and not living in the poorhouse. How I did I survive in the face of unstable economic times? Some say it was luck, that it was a fluke to have bought all those properties when they were cheap.
In fact, my properties weren’t cheap at the time. I always negotiated well and bought smart, but I also regularly paid market rates for properties that I knew would outperform the average. And lucky? No way. It takes a great deal of commitment, not luck, to stick to a plan and buy property when no one else is.
And even today, with the market in Melbourne going through a slow period, investors still seem to be shying away from property investing when, in fact, right now is a fantastic time to buy. Why would anyone want to sell in a flat market? For most, it’s because they have to for their own personal financial reasons, not because they think they are going to make a killing. So, for investors, that can often mean lots of distressed sales so, of course, lots of bargains.
If you are in the financial position to act now, in 10 years’ time you, too, will look back and be amazed at how cheap property is right now. We can all think back to times when we thought prices were ridiculously high and remember thinking that people were paying way too much. But look at how the market has moved along. If you look at a property that sold for $500,000 in 2002, that property would most likely be worth over $1 million now. Was it expensive then? Is it expensive now? You’d be surprised at how your interpretation of “expensive” changes.
Building wealth is achieved through borrowing, buying and keeping residential property for the long term. It requires time – not timing.
Melissa Opie, aka “The Property Lady”, is  a multi-award-winning buyers’ advocate, bestselling author and managing director at <a target="_blank" href="https://www.kpi.net.au/">Keyhole Property Investments</a>.  The team at KPI act for investors and owner-occupiers Melbourne wide from $400,000 to $5,000,000. You can follow <a href="https://twitter.com/thepropertylady" target="_blank">“The Property Lady” on Twitter.</a>
</body></html>

mopie-oqKqoZWZ7D

The time to buy an investment property is whenever you can afford it

<html><body>
A substantial landmark retail building on High Street, Armadale, is scheduled for August 16 auction.
Located opposite the Armadale Railway Station, the building has been occupied by the art dealers Sotheby’s for the last two decades.
But the listing agents say its being offered subject to flexible lease arrangements providing flexible opportunities for investors, developers and or owner-occupiers.
It's tipped to fetch more than $5 million through Chris Kombi and David Bourke at Fitzroys.
Sotheby’s current lease dates from October 2008 and is three years at $300,760 per annum plus outgoings.
The lease was varied by agreement between the landlord and tenant to extend for a further 12-month period to September 2012.
Its current total rental of $352,760 per annum plus outgoings includes Zetta Florence at around $52,000 per annum plus outgoings.
The site area of 1,221 square metres has dual frontages to High Street and Morey Street.
It's a substantial two-storey building of 1,400 square metres with rear car parking.
</body></html>

jchancellor-FAypfDUnLy

Sotheby's building on High Street, Armadale, for auction

<html><body>
Mirvac's proposed 37-storey Sydney commercial building now faces its final approval processes after its public exhibition closed yesterday. 
Mirvac anticipates permission soon to demolish the existing George Street office block as its seeks construction to begin by December. 
Mirvac Group is reportedly set to include the new tower in a mooted $1.3 billion unlisted office trust, which will offer a 50% stake in four assets in a bid to attract more equity into its funds management business from international investors, according to a recent report by the Australian Financial Review.
The George Street project has been designed by Johnathan Redman of Francis-Jones Morehen Thorp, which won a design competition for the scheme.
The $250 million FJMT-designed development (architectural impressions below) will provide 43,270 square metres of floorspace including ground-level retail.
It emerged after six selected architects – Architectus; Bates Smart; Collins and Turner; Fitzpatrick + Partners; FJMT; and Woods Bagot – were invited in September 2011 to partipate in a competition for its architectural design to meet the target construction cost budget of $215 million.
<img src="/images/stories/2012/08/mirvac1.jpg">
It was concluded by the judging panel that its achieves warmth in materiality and character in the podium and tower forms that will result in definitive and elegant architecture.
"The building’s podium is one of its key strengths and recognises the site’s mid-block character by providing a respectful and strong street wall.
"The curved tapering end to the street wall also provides a strong reinforcement at the human scale of the ‘kink’ in George Street at this juncture (opposite Essex Street) and also purports to draw pedestrians along the site and through into the future public square," the judges concluded.
It comes with a through-site pedestrian link between George and Underwood streets, an enhanced Crane Place, along with the allowance for the future connection of a laneway between Dalley Street and Herald Square.
<img src="/images/stories/2012/08/mirvac2.jpg">
The site has frontages to George Street, Dalley Street, Underwood Street and Crane Lane.
The SMH commercial property editor Carolyn Cummins initially reported last year that Westpac might take the space, but more recently she's noted its likely leasing by Ernst &amp; Young.
 
<hr class="system-pagebreak">
 
The site, near Circular Quay opposite the Four Seasons Hotel, has been consolidated by Mirvac over the past decade since paying $17.5 million for the initial Dalley Street holding. The 188 George Street office block cost $43 million in 2003 when bought from AMP Life and the 190 George Street premises cost $24 million in 2003.
The 190 George Street office premises were associated with the Equitilink team, led by Brian Sherman and Laurence Freedman, who took up space in 1995.
<img src="/images/stories/2012/08/mirvac3.jpg">
Mirvac's application says the proposed development will contribute towards strengthening Sydney’s role as a globally competitive city by supporting business activities and ensuring adequate capacity for new and upgraded office accommodation in the CBD.
Upon completion, the final project will replace existing buildings with poor ESD performance with a new building that will achieve a five-star green star rating and five-star NABERS energy rating.
<img src="/images/stories/2012/08/mirvac5.jpg">
It will enhance the physical appearance of the site by providing a new building that achieves design excellence, "in place of outdated 1970s/1980s buildings".
It enhances the building’s relationship with the ground plane and surrounding public domain fostering the vitality of Sydney's historic network of laneways.
Click to enlarge
<a href="/images/stories/2012/08/mirvac4.gif" rel="shadowbox" title="Click to enlarge"><img src="/images/stories/2012/08/mirvac4thumb.gif"></a>
Set some 200 metres south of Circular Quay, the site has an area of 3,147 square metres and contains a former Telstra exchange building.
The design follow a September 2008 council-commissioned NSW government Architect’s Office urban design study for the entire block bounded by Alfred, Pitt, Dalley and George streets (referred to as the APDG block/site).
It notes the proposal incorporates commercial and retail uses and therefore assisted with restricting residential development to the northern end of the APDG site.
The proposal provides for the development of one of the three high-rise towers earmarked for the APDG site, however the proposed tower footprint does exceed the 42% building envelope control in order to achieve a typical floor plate net lettable area (NLA) greater than 1,200 square metre.
Its notes providing a minimum 1,200-square-metre NLA floor plate is required to meet the "premium-grade office building" classification in accordance with the PCA design specification for new buildings (2006).
Mirvac's consultant, JBA Design, maintains development proposed contributes towards reinforcing Sydney as the best place to work through establishing a new commercial office address that offers a dynamic and flexible work environment.
The developers suggest public transport patronage will be maximised through locating infill commercial development at appropriate density within walking distance of extensive public transport connections.
“Walking and cycling will be encouraged as a result of the proposed development through provision of a significant numbers of bicycle parking spaces (workers and visitors) and provision of end of trip facilities for workers,” the application says.
Mirvac was granted approval for a stage 1 development application by the City of Sydney Council for the 190-200 George Street and 4 Dalley Street site in November 2008.
For more on Sydney's present and future, download our free eBook <a href="http://propertyobserver.com.au/ebooks/free-ebook-sydney-embracing-the-world-of-tomorrow" target="_blank">Sydney: Embracing the World of Tomorrow</a>
</body></html>

Mirvac's 37-storey, $250 million Sydney office block proposal awaits final approval

<html><body>
As it does around this time of year, the ATO recently released its 2012-13 Compliance Program outlining those it intends to target in the coming year. Small and medium-sized enterprises (SMEs) figure prominently.

While much has already been written about the program, it is worth exploring a little more deeply what the ATO will be looking at. It's something of a roadmap for SMEs in the tax compliance cut and thrust.
There are around three million so-called micro enterprises i.e. businesses with an annual turnover of under $2 million or superannuation funds with less than $2 million in assets. They represent a significant part of the taxpaying population, employing 1 in 5 Australian workers.
Over the coming year, the ATO says it will focus particularly on the following compliance risks:
<ul>
<li>unrecorded and unreported cash transactions;</li>
<li>employer obligations eg. super;</li>
<li>GST refund integrity and GST evasion;</li>
<li>ensuring businesses are correctly registered in the tax system;</li>
<li>supporting businesses in meeting their lodgment obligations; and</li>
<li>incorrect fuel tax credit claims following implementation of the clean energy measure.</li>
</ul>
The ATO said profiling is used to identify potential tax risks such as businesses operating outside industry or economic benchmarks.
Information matching forms a key part of the ATO's arsenal. It matches information in tax returns and business activity statements (BASs) with details of transactions reported to it by a wide range of third parties, including:
<ul>
<li>payments and grants by other government agencies;</li>
<li>payments by businesses to contractors especially the new building and construction industry reporting system;</li>
<li>income from investments and partnership and trust distributions;</li>
<li>property and share transactions;</li>
<li>cross-border transactions and international funds transfer.</li>
</ul>
<h3>Unrecorded and unreported cash transactions</h3>
The ATO said the plastering and cafe sectors have been selected for more intensive activity for 2012-13. In relation to the plastering sector, the use of cash along with historical weaknesses in tax compliance and high number of information referrals from the public has prompted the increase in ATO activity.
The ATO said it will review both business-to-business and business-to-consumer transactions, comparing information from hardware store accounts against their customers' purchasing records to detect cases where businesses are skimming cash or are outside the system.
In relation to cafes, the ATO said it is expanding its compliance program of comparing information from coffee-supplier trade accounts against their customers' purchasing records to detect cases where cafe businesses are skimming cash or are outside the system.
<h3>Employee vs contractor</h3>
The ATO will continue the compliance program on contractor arrangements. Trying to present an employment relationship as a contract between two businesses by, for example, forcing the worker to supply invoices and quote an ABN, does not in the ATO's view override an underlying relationship of employment. The ATO is concerned this threatens the welfare and entitlements of workers and creates unfair competition for honest employers.
The statistics paint their own picture on this issue. In 2011-12, the ATO conducted approximately 1,100 audits on businesses where it suspected that the business may have incorrectly treated employees as contractors. From the resultant audits, the ATO collected details of approximately 51,000 payments made to around 41,000 contractors, about 18,000 of which were individuals. It found that 48% of businesses that engaged contractors were wrongly treating individuals as contractors.
This is an ongoing major issue for the ATO, and SMEs should also be aware that Fair Work Australia also looks closely at this issue of employee vs contractor.
<h3>Small business benchmarks</h3>
The ATO has developed benchmarks for over 900,000 small businesses in over 100 industries. According to the ATO, approximately 90% of businesses in benchmarked industries fall within a benchmark range.
The benchmarks can be a two-way street. While they are a valuable tool for the ATO to check tax compliance, they can be useful for SMEs too. For example, where a business is reporting significantly more net income than its industry peers, this can alert the business to consider if it has forgotten to claim all of its business tax deductions. It isn't always that simple, but the potential exists for these benchmarks to actually help some SMEs.
On the flip side, where a business is reporting significantly less income than the benchmark range for its industry, the ATO may ask a few questions. However, if the business had good evidence to explain all its income and expenses, the ATO says it will not be subject to tax adjustments.
<h3>Employer obligations</h3>
For the 2012-13 year, the ATO expects to:
<ul>
<li>review the tax affairs of more than 20,000 businesses across all markets to ensure they are reporting the correct amounts of PAYG withholding;</li>
<li>conduct a range of education and assistance activities regarding reporting of payments to contractors in the building and construction industry;</li>
<li>use third-party data to income match taxable government grants and payments with reported amounts in tax returns;</li>
<li>conduct an outbound phone campaign and 500 enterprise reviews with the aim of ensuring that businesses register for PAYG withholding when they take on staff for the first time and register for GST when their turnover exceeds the $75,000 threshold.</li>
</ul>
<h3>GST refund integrity and GST evasion</h3>
With the recent passage of new laws that give the Commissioner a discretion to retain high risk refunds, the ATO may stop a small percentage of BASs for verification where anomalies, discrepancies, unusual behaviour, or change in patterns occurs. It said to minimise the number of businesses having refunds delayed, it may also check some refunds after they have been paid.
In addition, the ATO said it will review 35,000 GST registration applications to ensure that new registrants are legitimate. It will review around 500 serious cases of fraud involving identity theft and groups of entities established with no intention of undertaking an enterprise.
The ATO will monitor and investigate taxpayers who dispose of real property and fail to report the transaction on their BASs or misclassify the transaction for GST purposes.
The ATO said it has recently identified cases of fraud involving groups of entities established with no intention of undertaking an enterprise. Stolen identities were used to falsely register ABNs and make fraudulent refund claims on 1,670 activity statements totalling more than $17.5 million. An additional 600 entities associated with this fraud were detected before lodgement and subjected to enhanced registration check processes preventing additional claims being lodged. The ATO expects to review around 500 of these more serious cases in 2012-13.
<h3>Fuel tax credit claims</h3>
While this does not affect all SMEs, the ATO said incorrect or ineligible fuel tax credit claims continue to be made as a result of taxpayers misunderstanding their entitlements or poor record keeping.
In 2012-13, it will continue to provide claimants with information and assistance. However, in cases of serious breaches, it said it will consider cancellation of registration, prosecution and debt recovery.
Terry Hayes is the editor-in-chief of tax news reporting at <a rel="nofollow" href="https://www.thomsonreuters.com.au/">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
This article first appeared on <a href="https://www.SmartCompany.com.au">SmartCompany</a>. 
</body></html>

thayes-XhNcNKLNWa

Small businesses under ATO compliance microscope: Terry Hayes

<html><body>
Lower interest rates and lower prices have improved housing affordability.  CommSec reports that rate cuts have helped to lift consumer sentiment about buying a dwelling, according to the Westpac Melbourne Institute Index of Consumer Sentiment, with improvement last month in the “time to buy a dwelling” index as well as the “time to buy a car” index.
However, concerns about the economic outlook and job security remain at the forefront; and overall sentiment sits at 1.7% below the level recorded in October last year, despite a 125-basis-point reduction in the cash rate that has brought the average standard variable mortgage rates down by nearly one percentage point.
But an interesting perspective comes this week from Crikey –  while we appear to be plagued by low levels of confidence (and could well do without the incessant negativity of federal politics), Aussies are buying new cars in near record numbers, travelling overseas – also in near-record numbers – and buying over the internet, both at home and abroad, in growing quantities.
And somehow, while managing to consume at fairly high levels, we are saving at rates of 9-10% a year.
There are many factors at play here, and clearly we need more solid ground to stand on; but could it be that we just don’t know how well off we are?
There is also good news on the housing front, with rising home prices and a pick-up in new home sales.
The back-to-back lift in house prices is encouraging.  Across Australia house prices have risen by 1.6% over the past two months, according to RP Data, and while that may not sound all that exciting, it is the biggest two-monthly increase in property prices in over two years and a welcome turn from a period of sustained weakness.
The ABS house price data, out this week too, finds a similar trend, with established house prices up 0.5% over the last three months, against an annual decline of 2.1% nationally.
These results highlight the underlying strength in residential property and that the market appears to have bottomed out.
In addition, housing activity has shown signs of improving, with new home sales rising for the third consecutive month.  It must be stressed that these gains come after new home sales reached a decade low earlier this year.  So they are off a low base.
It is clear that the sector is crawling off of the floor (basement, really), however the fundamentals for housing remain solid and while the sector is likely to remain in a period of consolidation in the near term, there may be light at the end of the tunnel.
Importantly, not only has there been a modest pick-up in sales/price activity across the sector, but rental vacancy rates remain strong, rents continue to rise and many investment properties are starting to show gross rental yields well into the 5% range. 
While builders are likely to continue to compete hard for available work, home owners are likely to see the value of their homes rise over the year.
Many forecasters are now tipping prices to rise over the remainder of calendar 2012.  We think – assuming one last drop of 0.25 percentage points in the cash rate later this year – that a rise of 2% or 3% in the price of generic housing across Australia over the next five months isn’t out of the question.
What to buy when buying property
Rules – I’ve got 10 of them when it comes to successful investment buying.  Here’s just a sample:
Rule 1: Select new or at least recently renovated property to maximise depreciation/tax return and gross rental returns.
Rule 2: Choose a small or multi-staged development – preferably under 50 dwellings; large properties should not be ruled out, but should have substantial points of difference.
Rule 3: Buy in a strong location – “infill” highly favoured, with high existing amenity; a great “walk-score” and more importantly, potential for above average mid-to-long term capital growth.
Next Wednesday’s Missive will elaborate – so pencil in the read.
But if you can’t wait and you’d like to register for a free copy of my presentation, <a target="_blank" href="https://www.matusik-sydney.com.au/">What to buy – 10 rules for better investment buying, just click here.</a>
Michael Matusik is the founder of <a href="https://www.matusik.com.au/" target="_blank" title="blocked::https://www.matusik.com.au/">Matusik Property Insights</a>, which has helped over 550 new residential projects come to fruition.  Read <a href="https://www.matusikmissive.wordpress.com%20/" target="_blank" title="blocked::https://www.matusikmissive.wordpress.com /">Michael's blog</a> or follow him on <a href="https://www.twitter.com/michaelmatusik" target="_blank" title="blocked::https://www.twitter.com/michaelmatusik">Twitter</a> or connect via <a href="https://www.linkedin.com/in/michaelmatusik" title="blocked::https://www.linkedin.com/in/michaelmatusik">LinkedIn</a>. 
</body></html>

michaelmatusik-49YzLvdmNv

Consumer sentiment up and home prices rising

<html><body>
One of Adelaide’s oldest family companies, J &amp; AG Johnston, is selling 25 South Australian properties, including 17 hotels, a shopping centre and smaller residences and shops.
Established in 1843, the company produced ales and cordials and established the hotels as a distribution network. The company has retained ownership of the hotels to this day but the board recently decided to move out of the hotel business.
“The investment properties have served the company’s stakeholders well, but following a major strategic review our shareholders decided it is time to offer these properties for sale to enable their funds to be invested in other ventures,” says chairman Mark O’Leary.
The Jones Lang LaSalle memorandum says the portfolio “provides the smaller investor an attractive opportunity to secure well-leased investments in the desirable Adelaide Hills, Lower Murray and Fleurieu regions”.
Jones Lang LaSalle agent Jamie Guerra says the company will be focusing on its winery and golf course businesses.
The company owns 50 hectares of vineyards and other land holdings around Oakbank as well as the nine-hole Oakbank Golf Course, founded in 1892.
<img src="/images/stories/2012/08/charleston.jpg">
All the hotels are at least 100 years old. The oldest hotel in the group is the 1851-built Woodside Inn (pictured below), built by James and elder brother William Johnston in the year the town was established.
<img src="/images/stories/2012/08/woodside.jpg">
They include the Balhannah Hotel and Chinese Restaurant in Balhannah, Bridge Hotel in Langhorne Creek, Charleston Hotel in Charleston (pictured above), District Hotel in Nairne, Millers Arms Hotel in Nairne, German Arms Hotel in Hahndorf, Gumeracha Hotel in Gumeracha, Mannum Hotel in Mannum, Meadows Hotel in Meadows, Pier Hotel in Milang, Pretoria Hotel in Mannum, Rising Sun Hotel in Lobethal, Stanley Bridge Tavern in Verdun, Swan Reach Hotel in Swan Reach (pictured below), Totness Inn in Mount Pleasant, Woodside Hotel in Woodside, and Callington Hotel in Callington (pictured below).
<img src="/images/stories/2012/08/callington.jpg">
Johnston’s aim with his brewing company was to supply as many of the hotels around the brewery as could be reached by bullock or horse-drawn wagons.
<img src="/images/stories/2012/08/swanbeach.jpg">
Together the hotel investments earn a total rent of $2.1 million per annum.
The Balhannah Junction Shopping Centre, anchored by Foodland supermarket, earns $221,800 per annum.
The properties are available individually or in one line.
The properties are being marketed through JLL’s Jamie Guerra and Roger Klem and Steele Hotel Brokers’ Darren Steele.
</body></html>

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Developments

New apartments

New townhouses

News

Latest Investing Insights

Safari Group offers low-touch investment proposition in Queenstown’s popular ski fields district

Editor's Picks

Receive the latest news stories to your inbox

Developments

New apartments

New townhouses

News