A landmark former orphanage site in Surrey Hills could be transformed into a new residential community under plans lodged by <a href="https://www.apartments.com.au/developers/antipodean-land-developments">Antipodean Land Developments</a> that would deliver 76 apartments and townhouses while restoring some of the suburb's most significant heritage buildings.

The burgeoninng Melbourne-based developer has submitted plans for the 9,158 sqm site at 1 Kent Road and 24 Durham Road, home to the former St Joseph's Home for Destitute Children, a historic institutional complex dating back to the late 19th century. The proposal seeks to adaptively reuse several heritage buildings while introducing two new four-storey residential buildings set within extensive landscaped grounds.

Designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> and Kerstin Thompson Architects, the project has been conceived as a contemporary residential village embedded within a restored heritage precinct. The development team describes the design approach as "The Village in the Garden," with new buildings positioned among mature landscaping by OCULUS and significant heritage structures.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="44ec8c1b-c0b6-44ae-859e-5811b3e6a023" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%281%29.png?VersionId=p.p1_KFh4iQoV4nisdnPfQBAsWNi7m79" />

The proposal would deliver 76 dwellings comprising a mix of apartments and duplex-style residences, significantly increasing housing supply on one of the largest privately held residential landholdings in Surrey Hills. The development includes 127 car spaces, 24 bicycle spaces and more than 1,000 sqm of communal amenity, with the existing chapel building earmarked for conversion into resident facilities.

According to the planning submission, the project centres on the restoration and adaptive reuse of the site's most significant heritage assets, including the original c.1889 St Joseph's building, the chapel designed by architect Augustus Andrew Fritsch, and the historic brick perimeter walls and entry gates. The proposal also incorporates the retention of other contributory buildings including the former infirmary and school building.

Tract Consultants, in the planning report accompanying the application, said the scheme had been shaped through extensive heritage analysis and design development.

"The shared vision for the Site by the project team has culminated in a scheme which successfully breathes life back into a historic site while delivering upon the objectives of Victoria's Housing Statement in a carefully curated and contextually responsive manner."

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="7263b7d8-95ea-400f-9531-6ca7d22c3c33" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design%20%282%29.png?VersionId=4cR1tiWOsDpgxEOwZi5vVFcyvvOsYkIE" />

The proposal is being assessed under Victoria's Significant Residential Development with Affordable Housing pathway. As part of the application, three per cent of the project's residential development cost would be contributed to the Social Housing Growth Fund. The development would also provide a diverse mix of one, two and three-bedroom residences targeting a broader range of buyers than typically found in Surrey Hills' detached housing market.

Sustainability initiatives include an anticipated 66 per cent BESS score, natural cross-ventilation to 80 per cent of apartments, 28 per cent deep soil landscaping and a canopy cover outcome exceeding local planning requirements. The proposal also sets aside more than 1,083 sqm for communal indoor and outdoor resident amenity spaces.

<img alt="First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills" data-entity-type="file" data-entity-uuid="33fad46f-fe26-4d0a-acfd-6b776e1c6a3d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Untitled%20design.png?VersionId=D9F6WVSyYCtGvSUmith35LRp6R7PQkw_" />

Planning documents describe the property as one of the largest underutilised residential sites in Surrey Hills, arguing it presents a rare opportunity to introduce "missing middle" housing in an established inner-eastern suburb while preserving and revitalising a significant heritage precinct.

Antipodean Land Developments has built a reputation for design-focused residential projects across Melbourne, particularly in the medium-density sector. Previous developments include Neighbourhood in Brunswick East, delivered with Breathe Architecture, and Balfe Park Lane, designed by Kerstin Thompson Architects.

They've been very active in site acquisition as they build out their future development pipeline. They recently launched Thornubury House, 45 apartments above a mix of commercial, retail, and food and beverage tenancies, and have plans for a boutique project in Fitzroy and another <a href="https://www.apartments.com.au/news/vic/antipodean-plan-apartments-for-deepdenes-missing-middle-on-whitehorse-road">"missing middle" project</a> on Deepdene's Whitehorse Road.

Joel Robinson

First look: Antipodean Land Developments plans heritage-led apartment community in Surrey Hills

Developer <a href="https://www.apartments.com.au/developers/auyin-property-development">Auyin</a> is the latest to turn to the Victorian Government's Development Facilitation Program in an effort to secure approval for its long-planned, mixed-use project in Elsternwick.

In 2018, Auyin lodged plans with Glen Eira City Council for a 14-storey building, however Council approved a reduced eight-storey scheme. A subsequent VCAT appeal in 2019 upheld the eight-storey height limit.

The project was later amended to nine storeys, but Auyin is now seeking to revive something closer to its original vision. The developer argues that the planning context has evolved significantly over the past decade, particularly within the Elsternwick Activity Centre, where higher-density development has increasingly been encouraged along Glen Huntly Road.

The proposal would transform the 1,239 sqm site at <a href="https://www.apartments.com.au/new-apartments/7-12-horne-street-elsternwick-vic-3185">7-15 Horne Street</a>, opposite Elsternwick Railway Station, into a 13-storey residential and retail development designed by CBG Architects, with 40 apartments

The site currently comprises three commercial properties.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="5f465dd4-509b-4082-a669-0253b313914b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20podium.png?VersionId=72frWi0SmQ5AVJ3ARRhX5ILUYObhTm7x" />

The proposed apartment mix comprises 25 two-bedroom and 15 three-bedroom residences above 200 sqm of retail space at ground level. Residents would have access to a 90 sqm wellness facility, a 351 sqm communal indoor and outdoor terrace on the third level, and extensive landscaped areas throughout the development. A publicly accessible 135 sqm plaza would be created on the north-east corner of the site, providing seating, landscaping, and a new gathering space adjoining Horne Street.

The design adopts a four-storey podium that references the finer-grain character of the surrounding streetscape, with the upper tower recessed behind generous setbacks on all boundaries.

<img alt="First look: 13-storey mixed-use tower planned for Elsternwick activity centre" data-entity-type="file" data-entity-uuid="e637e763-2abc-4c34-a0aa-5c7ad36fae18" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/elsternwick%20open.png?VersionId=J1AoOpZgTyaF.KeeFSX6lMjEScX8KKRi" />

A key element of the proposal is the reconfiguration and widening of the surrounding laneways. Vehicle access would be retained from Lois Lane, with upgraded pedestrian connections linking Ross Street and Horne Street. The development would provide 58 residential car spaces, two retail car spaces, and 52 bicycle spaces across two basement levels and ground-floor facilities.

Architecturally, the building draws inspiration from the established character of Elsternwick Village. The façade combines dark charcoal brickwork, textured concrete, bronze-toned metal detailing, and extensive planting integrated into podium and tower levels. The design also incorporates a chamfered corner treatment and publicly accessible plaza intended to strengthen pedestrian activity around the station precinct.

Elsternwick's last new development completion was&nbsp;EVA Elsternwick by Pitard late last year. <a href="https://www.apartments.com.au/developers/milieu-property">Milieu</a> is working away on its nature-led neighbourhood, <a href="https://www.apartments.com.au/new-apartments/elsternwick-gardens-by-milieu-8-gordon-street-elsternwick-vic-3185">Elsternwick Gardens</a>, on Gordon Street, with its first stage expected to complete next year.

First look: Auyin seeks mixed-use apartment project in growing Elsternwick Activity Centre

<a href="https://www.apartments.com.au/new-apartments/otium-parkdale-123-125-como-parade-east-parkdale-vic-3195">Otium Parkdale</a>, the 13-residence boutique development by&nbsp;<a href="https://www.apartments.com.au/developers/huxtable-property">Huxtable Property</a>, has entered its final stages of delivery, with completion expected within the coming month and more than half of the residences sold.

The Como Parade East project is nearing the finish line at a time when opportunities to purchase new apartments in <a href="https://www.apartments.com.au/developments/parkdale-vic-3195">Parkdale</a> remain exceptionally limited. Fewer than 10 per cent of dwellings in the bayside suburb are apartments, making developments like Otium a relatively rare addition to a market traditionally dominated by detached housing.

[smartcode_project:default project_id=134974 project_image_fid=5427]

The three-level development comprises 13 residences, including ten two-bedroom apartments and three larger three-bedroom homes, all positioned above a secure basement car park.

Designed by <a href="https://www.apartments.com.au/architects/almeida-architects">Almeida Architects</a> with a strong connection to its coastal surroundings, Otium combines red brick, exposed concrete and dark metal detailing with integrated landscaping and greenery. Expansive glazing, generous balconies and terraces have been incorporated throughout the design to maximise natural light and reinforce indoor-outdoor living.

Inside, the residences feature engineered European oak flooring, natural and reconstituted stone benchtops, Bosch kitchen appliances, ducted heating and cooling, lift access and secure entry systems. The larger three-bedroom residences on the upper level have been designed with house-like proportions, while the two-bedroom apartments prioritise functionality, flexibility and low-maintenance living.

[smartcode_project:default project_id=134974 project_image_fid=5421]

The project is now in its final stages, with <a href="https://www.apartments.com.au/builders/labco">Labco</a> completing the remaining landscaping and external finishing works following the completion of the residences' interiors.

Otium's location within the heart of Parkdale continues to underpin its appeal. Residents will be just steps from local cafés, restaurants, shops and the newly elevated Parkdale Station, while the beach is less than a kilometre away.

With the project tracking ahead of schedule, buyers can currently secure a residence with a five per cent deposit and benefit from settlement terms of up to eight months. The advanced stage of construction also provides buyers with the opportunity to walk through the near-complete residences and experience the quality and finishes firsthand ahead of completion.

[smartcode_project_cta:default project_id=134974]

Otium Parkdale enters final month before completion as rare apartment opportunity nears sellout

A new boutique apartment development is entering the market in <a href="https://www.apartments.com.au/developments/chermside-qld-4032">Chermside</a>, with Brisbane-based developer <a href="https://www.apartments.com.au/developers/ausdev">Ausdev</a> bringing 33 residences to a well-connected pocket of Brisbane's north.

<a href="https://www.apartments.com.au/new-apartments/parkdrive-apartments-chermside-25-sammells-drive-chermside-qld-4032">Parkdrive Apartments</a>, at 25 Sammells Drive, will comprise a mix of one- and two-bedroom residences positioned within walking distance of Westfield Chermside, The Prince Charles Hospital, and Bradbury Park.

Established in 1989, Ausdev has a long-standing presence across both development and construction, with Parkdrive Apartments representing its latest residential project in Brisbane's northern suburbs.

[smartcode_project:default project_id=152125 project_image_fid=363778]

The development has been designed around open-plan living and natural light, with residences featuring stone benchtops, timber cabinetry, BOSCH appliances, and private balconies that extend the living areas outdoors.

Kitchens are positioned as the centrepiece of the homes, incorporating natural material palettes and integrated appliances, while bathrooms have been designed with a focus on functionality and understated finishes.

Residents will have access to a communal barbecue and entertaining area on Level 3, providing shared outdoor space within the development. Secure parking and lift access are also incorporated into the building.

The project will deliver a limited collection of 33 apartments, with one-bedroom residences priced from $749,000.

[smartcode_project:default project_id=152125 project_image_fid=363782]

Beyond the building itself, the location places residents within easy reach of several of Chermside's key amenities. Bradbury Park is around 350 metres away, while Westfield Chermside is approximately 1.3 kilometres from the site. The Prince Charles Hospital is located within 750 metres, and the Chermside Bus Interchange is around 1.5 kilometres away, providing connections across Brisbane.

Parkdrive Apartments adds to the growing residential pipeline in Chermside, a suburb that continues to evolve as a major retail, healthcare, and transport hub for Brisbane's north.

[smartcode_project_cta:default project_id=152125]

Ausdev introduces boutique Parkdrive Apartments to Chermside's growing centre

<a href="https://www.apartments.com.au/developers/skymark-group">Skymark</a>'s boutique Cronulla development Solis has secured a 10-year Latent Defects Insurance policy through Resilience Insurance, providing buyers of the 16-residence building on Ewos Parade with structural and waterproofing protection that extends a decade beyond the building's completion.

Currently under construction and due for completion in late 2027, <a href="https://www.apartments.com.au/new-apartments/solis-cronulla-8-ewos-parade-cronulla-nsw-2230">Solis</a> is one of a small number of new developments in the Sutherland Shire to carry Resilience LDI coverage, a distinction that carries increasing weight as buyer confidence in the off-the-plan sector continues to be shaped by how developers stand behind their product.

Latent Defects Insurance, which entered the Australian market in 2022 when Resilience Insurance was approved to offer the cover, protects buyers against major structural or waterproofing defects for ten years post-completion. Unlike traditional statutory warranties, it operates as a first-resort policy, if a covered defect arises, the insurer responds directly, without the buyer needing to pursue the builder or developer through a lengthy claims process.

Resilience Insurance CEO Corey Nugent has noted that the product addresses something fundamental to the new apartment market.

"The overarching feedback from prospective buyers in the new development space is that they want more confidence and assurances around the quality of the build," Nugent says.

"Resilience Insurance Latent Defects Insurance not only gives them complete peace of mind for 10 years, but it shows the developer they are buying from is standing by their product."

[smartcode_project:default project_id=150499 project_image_fid=370898]

For Solis, the Resilience LDI policy adds a meaningful layer of accountability to an already considered project. The development comprises nine two-bedroom and seven three-bedroom residences, including one dual-level three-bedroom apartment, across a five-storey building on Ewos Parade, positioned between Shelly Beach and South Cronulla.

Garden apartments connect directly to private landscaped courtyards, while upper-level homes capture beach views to the east from level four and above.&nbsp;

All 16 residences include at least one balcony or courtyard, and select apartments on the upper floors feature bar areas and secondary flexible living spaces.

Hiba Sander, Managing Director of Skymark, says Solis offers a rare balance, nestled between the quiet beauty of secluded beaches and the lively charm of South Cronulla's esplanade.

"It's a place to choose your pace and live gracefully, seaside'," Sander says.

[smartcode_project:default project_id=150499 project_image_fid=370900]

The architecture, designed by <a href="https://www.apartments.com.au/architects/ida-design-group">IDA Design Group</a>'s Michael Trinh, draws from the natural erosion patterns of <a href="https://www.apartments.com.au/developments/cronulla-nsw-2230">Cronulla</a>'s sandstone headlands, translating the organic forms of the coastline into soft curves, pavilion-style massing, and a material palette chosen for longevity in a salt-tinged environment.&nbsp;

Textured natural stone, soft renders, and timber-look battens reference the tones of the surrounding cliffs, while the building has been oriented to maximise natural light and passive ventilation, with primary living spaces facing north and east to capture morning sun and sea breezes.

"At Solis, our aim was to create architecture that feels quietly confident, grounded in natural materials like stone and timber, and elevated by light and landscape," Trinh says.&nbsp;

"The buildings are designed to sit gently within their coastal surrounds, with expansive glazing and abundant greenery creating a seamless dialogue between inside and out."

[smartcode_project:default project_id=150499 project_image_fid=370897]

Interiors by <a href="https://www.apartments.com.au/architects/hot-black">Hot Black</a> carry the same material language through to every room. Kitchens feature integrated Gaggenau appliances, sculpted stone benchtops, and Lo &amp; Co joinery, while bathrooms feature natural stone, timber, and brushed metal finishes.&nbsp;

Hot Black Founder and Design Director Sophie Safrin describes the intent as one of considered restraint: "At Solis, every detail has been thoughtfully considered to create a timeless coastal retreat, calm, refined, and effortlessly liveable. From natural finishes to seamless indoor-outdoor flow, Solis offers a quiet elegance that's deeply connected to its surroundings.

The landscape, designed by Julian Brady of <a href="https://www.apartments.com.au/landscape-architect/sitedesignstudios">Site Design Studios</a>, treats green space as an integral part of the resident experience rather than an afterthought.&nbsp;

"Gentle curves and layered native plantings mirror the ebb and flow of the ocean," Julian Brady says, "creating a serene connection between architecture and place."&nbsp;

Coco Republic has provided bespoke furniture packages tailored to the project's coastal palette.

[smartcode_project:default project_id=150499 project_image_fid=370899]

Skymark has an established track record in the Sutherland Shire, with a portfolio spanning Cronulla, Woolooware and Burraneer that includes Isla, Sylva, Bask, Shells, Sula and Mist. Securing LDI on Solis reflects a broader shift in how the developer is positioning its buildings to buyers, at a time when Resilience Insurance expects the policy to become mandatory in New South Wales by 2028.

Sales at Solis are launching soon through Ray White Projects, with an official event scheduled for 11 June. Enquire for more information.

[smartcode_project_cta:default project_id=150499]

Skymark takes out 10-year Resilience Insurance LDI at Solis Cronulla

Federal Government

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<h2>Comment</h2>

Accurately projecting population growth in order for Governments to plan better for our cities and regions won't mean much if at the end of the day local electorate politics trumps region-wide progress.

WA Senator Dean Smith led the ABC's National Wrap program on Sunday night and as host Andrew Probyn said in the opening remarks, the Senator wishes to start a national conversation on population growth.

The Senator said the population story around the country has not been uniform and the country needs to review how population projections are made.

<blockquote>
I think what we need to do is take some time to accumulate the evidence. What is it that we know about our population projections? What is it that we know about why the population projections might have been so inaccurate for such a long time? 

And then around that, perhaps, [we need to] build better modelling so we can more accurately project population. 

Importantly, [we need to] make sure that we are properly planning for infrastructure and regional development against future population projections, and importantly it's not just the size of population but where the population might find itself.  

Does it find itself in regional towns and cities? Does it find itself predominanently in Melbourne &amp; Sydney?

Because we know that the population story across the country has not been uniform.
<cite>Dean Smith, Senator for Western Australia - <a href="https://iview.abc.net.au/show/national-wrap">National Wrap</a></cite>
</blockquote>

Evidence-based policy development and implementation is always welcomed and in any review of how population projections are made the Commonwealth Government will need to involve all the states and territories.  And should a new suite of tools for modelling population projections be developed, they need to be flexible enough to look beyond the federal level of government adn take state and local policy parameters into account.

In the population debate that has been running for a while now, attention seems to always shift to immigration - whether the numbers are right or wrong.  But as the Senator rightly points out, the population story across the country is not uniform, nor do states and territories callibrate their policies in the same way.

In 2008-2009 Australia had a net migration rate topping 300,000 people and in 2017-2018 the net migration level is down from that earlier peak in around the 250,000 level.

The difference between 2008-2009 and now is that late last decade the population growth was spread around the country evenly - Western Australia and Queensland were doing much heavier lifting than they are now.

This illustrates why trying to 'better' the projections for population growth must take a deeper dive on the policy work of each individual state and territory as they have many levers at their disposal which will have an effect on the population growth.

Whether it's long-term planning-focused reform like the Postcode 3000 project in Melbourne which turned the doughnut city into one which now is the most densely populated census region in the country or wielding economic policy that sees widespread regional employment opportunities that fuels population growth - like what happened to Western Australia and Queensland during the mining boom - states and territories have a major impact on overall national population growth.

States are getting on board the 'Infrastructure [State/Territory Name]' train and the primacy of the state/territory level agencies should remain in place.  States and territories are in a far better position to judge the needs of communities and the data, research and policy work should inform the federal body, not the other way around.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/night-view-from-melbourne-port-victoria-australia.jpg" rel="gallery-all" title="Road projects had their place but it's now time to focus on getting people out of their cars"><img alt="" class="image-article-full-width-580px" height="349" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/night-view-from-melbourne-port-victoria-australia.jpg?itok=qquvonva" title="Road projects had their place but it's now time to focus on getting people out of their cars" width="580"></a>

<figcaption>Road projects had their place but it's now time to focus on getting people out of their cars</figcaption></figure>Australian citizens and those on visas are free to move from region to region within the Commonwealth and any attempt to restrict that movement will likely result in a date with the High Court and therefore, once we are able to accurately project population growth (if we can at all), policy should focus on economics when it comes to rebalancing the load of growth around the country.

Political parties also need to get real about the state of our cities as well.  

While you can apply transport policies which favour active modes across the spectrum of Australia's cities - whether big or small - the needs of the metro areas of Melbourne &amp; Sydney are different to those of Adelaide and Darwin and the needs of Benalla and Mittagong are different to Bendigo and Toowoomba. 

We see it around every state or federal election, the swinging voters are king and broadly located in areas that are seeing the highest amount of growth - in our context, that's generally on the fringe of suburbia where the normally the only infrastructure built to transport the new residents to and from their home is roads.  The logic follows that, well, a freeway! That'll buy us votes!

Melbourne &amp; Sydney may be congested and have major public transport projects under construction, but they also have equally enormous road projects which suck up more even more capital and will invariably turn into congested arteries &amp; orbital routes once the very well-researched induced demand phenomenon takes hold.

There's plenty of evidence out in the wild that public transport carries more people with a much smaller footprint, and if our electricity network keeps up the pace in its transition to more renewables added to the generation mix, electrified public transport will increasingly aid in reducing emissions levels in the transport sector.

There is very little appetite to pick a winner when it comes to delegating dollars to transport projects among state and federal governments, we're told we need more roads and rail ad nauseum.  

But how much longer can Melbourne &amp; Sydney grow, both of which will have populations over 5 million soon, with this 'balanced' transport manifesto that sits alongside a policy of continued outward growth into defined corridors?

The Senators remarks are welcome, but having better population evidence isn't enough when a major part of the problem lies within the electoral DNA of political parties which find it hard to have a rational debate about appropriate transport policy for our largest cities.

Some political parties have targets - quotas - in areas such as gender which aim to get more women elected to parliaments around the country; we need targets which aim to rebalance the totally out-of-balance &amp; reliance on the private car in our biggest cities.  Will the Federal Government come to the table on that?
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Alastair Taylor

Better population projection is good, but implementing better transport policies would be better

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Reforming negative gearing could save the federal government A$1.7 billion without hurting “mum and dad investors”, according to our <a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/295" target="_blank" style="font-family: Tahoma, Helvetica, Arial, sans-serif; font-size: 12.16px;">new modelling</a>, by focusing tax deductions on investors with smaller property portfolios and removing them for richer investors.
Combined with changes to capital gains tax, reforming negative gearing could make the Australian housing market more sustainable and equitable.
<a href="https://theconversation.com/explainer-why-negative-gearing-is-bad-policy-21882" target="_blank">Negative gearing </a>allows investors to claim a tax deduction if their rental income is less than their expenses. It cost the federal government A$3.04 billion in 2013-14, according to our calculations.
Our report <a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/295" target="_blank">also confirms</a> that negative gearing and the capital gains tax discount incentivise housing investors to take on debt. This potentially makes the housing market less stable and crowds out first home buyers.
According to <a href="https://treasury.gov.au/foi/1876/" target="_blank">Treasury modelling</a>, the <a href="https://www.alp.org.au/negativegearing" target="_blank">Labor Party’s plan</a> to limit negative gearing deductions on newly acquired rental housing would put relatively modest downward pressure on house prices. Preliminary <a href="https://www.rba.gov.au/publications/workshops/research/2017/pdf/rba-workshop-2017-simon-cho-may-li.pdf" target="_blank">research from Melbourne University</a> has found that eliminating negative gearing would result in an increase in home ownership.
Nevertheless, there are <a href="https://theconversation.com/the-real-reasons-negative-gearing-on-housing-should-be-phased-out-43529">concerns</a> that reforming negative gearing would <a href="https://www.propertycouncil.com.au/Web/Content/Media_Release/National/2016/Changes_to_negative_gearing_will_put_jobs_and_growth_at_risk.aspx" target="_blank">harm the financial wellbeing</a> of mum and dad investors.
But using data on the distribution of property and incomes makes it possible to differentiate between poorer and wealthier investors, allowing the government to target reforms to cushion the blow for investors on lower incomes.
<h2>Targeted negative gearing reform</h2>
In our example, investors in the bottom half of the income and property distributions could be allowed to claim tax deductions for all allowable rental expenses. Those in the 51st–75th income percentiles could deduct 50% of those expenses, while negative gearing would be eliminated for those in the top 25% of incomes.
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Our modelling of this scenario shows this would save the federal government A$1.7 billion, or 57.3% of the current cost to the budget, each year. If negative gearing deductions were limited based on property values, the saving would be A$1.5 billion (or 48.3%).
Given this reform would be less likely to hurt poorer investors, they would be less likely to withdraw from the rental market than if negative gearing was eliminated. This would also mitigate the impact of negative gearing reform on renters.
<a href="https://www.propertyobserver.com.au/http://www.abc.net.au/news/2017-04-26/negative-gearing-increasing-house-prices-expert-says/8473374">Most experts agree</a> that negative gearing is <a href="https://theconversation.com/three-myths-on-negative-gearing-the-housing-industry-wants-you-to-believe-54732">linked to housing market activity</a>. However there is no consensus on just how significantly negative gearing <a href="https://thenewdaily.com.au/money/property/2018/01/23/negative-gearing-housing-market/">affects housing prices</a> or <a href="https://theconversation.com/why-rents-will-rise-under-labors-negative-gearing-proposal-59970">rental market activity</a>.
Our modelling does not focus on the impact negative gearing reform might have on the housing market, house prices, rents, or how investors might respond, but our modelling does show the impact of changing who can claim negative gearing deductions, as well as capping it at different levels.
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<h2>Who benefits from capital gains tax?</h2>
Our research also identified that the capital gains tax discount has been a significant factor in the growth of negative gearing since 1999, as <a href="https://theconversation.com/policycheck-negative-gearing-reform-58404" target="_blank">investors are able to claim a rental loss but do not pay full tax on later capital gains</a>.
Home owners who also own at least one rental property receive the highest capital gains tax benefits. Our analysis showed this group has an average property portfolio valued at over A$730,000.
These home owners also have an average taxable income of A$82,000 per person, which is more than 250% of the average taxable income of renters (A$31,000).
We modelled some alternative capital gains tax scenarios reducing the discount – which would increase the tax payable on net capital gains. Our calculations show that reducing the discount would lead to higher income earners paying more capital gains tax.
This would reduce the difference between the tax payable by higher and lower income rental investors, and therefore reduce inequities in the current system.
<a href="https://images.theconversation.com/files/209031/original/file-20180306-146666-1ihuc1p.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/209031/original/file-20180306-146666-1ihuc1p.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a> Author provided, Author provided
<a href="https://www.propertyobserver.com.au/https://www.ahuri.edu.au/research/final-reports/295" target="_blank">Our modelling</a> shows benefits of negative gearing are skewed towards more affluent investors in middle age and in full-time employment. Investors aged over 55 or who aren’t in the labour market (those who are unemployed, retired or not working) benefit the least from negative gearing.
We need to change the way we tax housing to create a more equitable and sustainable housing market. But this needs to be done (<a href="https://theconversation.com/treasury-memo-misses-the-real-impact-of-labors-negative-gearing-policy-89765" target="_blank">and communicated to investors</a>) in a way that limits the risk of a shock to the market if investors exit the housing market.
<a href="https://theconversation.com/essay-a-sober-responsible-budget-but-negative-gearing-a-blind-spot-58922" target="_blank">Policymakers have been reluctant</a> to change the fundamental settings of the tax system, but our modelling shows it can be done in a way that limits the impact on poorer investors.
<img src="https://counter.theconversation.com/content/92679/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The main limitation on this reform is behavioural, determining how investors will react to the effects of tax changes. Housing reform is complex, involving a range of market factors as well as the tax drivers.
<a href="https://theconversation.com/profiles/helen-hodgson-94553" target="_blank">Helen Hodgson</a>, Associate Professor, Curtin Law School and Curtin Business School, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a>; <a href="https://theconversation.com/profiles/alan-duncan-100759" target="_blank">Alan Duncan</a>, Director, Bankwest Curtin Economics Centre and Bankwest Research Chair in Economic Policy, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a>; <a href="https://theconversation.com/profiles/john-minas-448990" target="_blank">John Minas</a>, Lecturer, <a href="http://theconversation.com/institutions/griffith-university-828" target="_blank">Griffith University</a>, and <a href="https://theconversation.com/profiles/rachel-ong-113482" target="_blank">Rachel Ong</a>, Professor of Economics, School of Economics and Finance, <a href="http://theconversation.com/institutions/curtin-university-873" target="_blank">Curtin University</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/negative-gearing-reforms-could-save-a-1-7-billion-without-hurting-poorer-investors-92679" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

Negative gearing reforms could save $1.7 billion

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<h1>
Saul Eslake, University of Tasmania
</h1>
The 2017-18 <a href="http://www.budget.gov.au/2017-18/content/myefo/html/" target="_blank">Mid-Year Economic and Fiscal Outlook (MYEFO)</a> is another reminder - if one is needed - that the relationship between the budget and the economy runs in both directions. While we mostly ask the question, “how will the budget affect the economy?”, this update shows the economy can also have (and has often had) a significant impact on the the budget.
The highlights of this year’s MYEFO, as far as the government is concerned, are the A$9.3 billion improvement in the underlying cash balance over the four years to 2020-21 (compared with what had been forecast in the May budget), and the consequential A$11 billion reduction in the forecast peak in net debt (from A$366 billion to A$355 billion) in that year.
These improvements are the result of revisions to economic assumptions and other so-called “parameter variations” since the budget, which in total have improved the four-year bottom line by more than A$11 billion. The biggest of these came from reductions in payments to people with disabilities, students, single parents and age pensioners (totalling A$4.6 billion over four years) due to lower-than-expected recipient numbers.
<h2>Personal income tax cuts seem possible</h2>
There is no additional detail in MYEFO regarding the government’s <a href="https://theconversation.com/morrison-talks-down-personal-income-tax-cuts-56308" target="_blank">foreshadowed personal income tax cuts</a> ahead of the next election. But if the forecast surplus for 2020-21 of A$10.2 billion is credible, then there’s arguably some scope for the government to fund personal income tax cuts beginning in that year.
Although the cost of more significant tax cuts would escalate substantially over the medium term, there is actually more scope for these cuts than generally realised (provided the government succeeds in keeping growth in spending under control).
That’s because the projected moderate surpluses, averaging about 0.5% of GDP out to 2027-28, incorporate an arbitrary assumption that taxation revenue will be capped at 23.9% of GDP. If that assumption wasn’t made, the projected surpluses would rise to 1.6% of GDP by 2027-28.
In dollar terms that would imply a surplus of around A$55 billion, compared with one of around A$15 billion if the surplus were only 0.5% of GDP. Over the period 2021-22 to 2027-28, relaxing the assumption that tax revenues are capped at 23.9% of GDP results in almost A$90 billion of additional budget surpluses. This is over and above what is projected with that “tax cap” in place.
Presumably, some of those “additional surpluses” are absorbed, in the government’s internal figuring, by the promised phased reduction in the company tax rate for businesses turning over more than A$50 million per annum by 2025-26 - which according to the last publicly available estimate would reduce revenues by some A$65 billion over ten years.
However, that would still leave a considerable amount “left over” to pay for personal income tax cuts, and allow the government to continue to project surpluses of around 0.5% of GDP out to the second half of the next decade.
That’s assuming, of course, that we are able to clock up 36 years of uninterrupted economic growth, and that all the other projections come to pass, including for a return to more “normal” rates of wages growth.
<h2>Economic indicators in MYEFO</h2>
Treasury has revised downwards its forecast for economic growth in the current financial year, from 2.75% to 2.5%. Partly offsetting this is stronger growth in public spending, which is now forecast to rise by 4% in real terms in 2017-18, up from 2.5% at the time of the May budget.
This reflects faster growth in both government spending (on the NDIS) and investment (NBN and state government infrastructure investment). The forecast for business investment has also been upgraded, from flat at budget time to growth of 2%, the result of both stronger growth in non-mining business investment and a smaller decline in mining investment.
This is largely the result of a downward revision to the forecast for growth in household consumption spending which has been lowered from 2.75% to 2.25%: and this carries over into a 0.25 percentage point reduction in the forecast for 2018-19, to 2.75%. Even these require a further decline in the household saving rate.
The forecast for dwelling investment spending has turned around from 1.5% growth to a decline of 1.5%, with the “softening in dwelling investment occuring slightly earlier than expected”.
Longer term, the government is still anticipating that economic growth will average 3% per annum from 2018-19 through 2023-24, by which time all the “spare capacity” in the labour market will have been absorbed. That is, the unemployment rate will be down to 5% and underemployment (workers not being able to get enough hours at work) returned to more normal levels.
<img src="https://counter.theconversation.com/content/89291/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">The longer-term projections also assume that wages growth accelerates significantly from 2019-20. This represents the greatest risk to the goverment’s promise of a return to surplus by 2020-21.
<a href="https://theconversation.com/profiles/saul-eslake-665" target="_blank">Saul Eslake</a>, Vice-Chancellor’s Fellow, <a href="http://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a>
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/government-budget-update-saved-by-higher-than-expected-economic-figures-89291" target="_blank">original article</a>.
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Government budget update saved by higher than expected economic figures

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GUEST OBSERVER
The Federal Government should reconsider changes announced in the 2017 Budget to allowable deductions for investment property related to depreciation and travel to inspect property, according to the Real Estate Institute of Australia (REIA). 
Whilst REIA supports the curbing of abuse of deductions, these two initiatives are contrary to the principles of a good tax system and the ATO has existing means for addressing abuses and excesses.
One of these principles is neutrality which in essence means that two tax payers in similar circumstances should be treated the same. These initiatives are contrary to this principle with the budget initiative of not allowing for travel to inspect residential investment property meaning that an investor who owns a commercial investment property can claim deductions for their annual site inspection travel costs but an investor who owns a residential property cannot. 
As the ATO itself points out on its website there are many valid reasons why an owner of investment property would incur costs travelling to a residential rental property. 
Whilst abuses and excesses should be eliminated there are other ways of achieving this through the ATO. The ATO has a myriad of information available to identify questionable claims. Conversely it will adversely impact those tax payers who are not abusing the system. 
Ironically these changes will do nothing to improve affordability in Sydney and Melbourne and indeed it may make it worse as investors in these two cities are discouraged from investing in locations other than their home towns. 
Anecdotal evidence is indicating that as Sydney and Melbourne prices have increased investors are turning to non-metropolitan locations. This regional investment brings employment for a multitude of regional services. This measure will put a brake on this trend. 
Regarding the proposal to restrict depreciation claims to items purchased and installed in the property by the claiming taxpayer, REIA believes, like travel, it doesn’t treat the investor buying a property that is 12 months old the same as one buying a new property. 
The ATO has monitored this area and has the ability to identify abuses and excesses and deal with them. We believe it will distort the market by making properties that are not new less desirable, and the impact on affordability is questionable and may even worsen affordability as existing investors hold on to their property and new investors push up the price of new property which are currently showing signs of easing. 
These changes appear to be more about politics than good policy.
Malcolm Gunning is president of the Real Estate Institute of Australia and can be contacted <a href="https://reia.asn.au" target="_blank">here</a>.
 
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jchancellor-FAypfDUnLy

Federal Government should rethink deductibility of investment outgoings, travel: REIA

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The Federal Government has let its housing affordability inquiry lapse.
News of the quashed inquiry emerged through Fairfax Media's commentator Peter Martin as Treasurer Scott Morrison delivered a speech in which he declared housing affordability to be an "important policy focus" of the Turnbull government in the new parliamentary term.
The inquiry was initiated by Morrison's predecessor, Joe Hockey early last year to be undertaken by the House of Representatives economics committee and chaired by Liberal backbencher John Alexander.
Alexander was replaced as chairman by Liberal MP Craig Laundy after hearings concluded in September last year.
Mr Laundy has told Fairfax Media he had worked on a draft report with the committee secretariat.
But he wasn't able to put it to the committee before he was promoted to the ministry and replaced with backbencher David Coleman shortly before the July election.
Under the rules governing committees, the inquiry lapsed with the election, meaning Mr Coleman is unable to conclude the report without a fresh referral from the Treasurer.
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Federal Government lets housing affordability inquiry lapse

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<img src="https://counter.theconversation.edu.au/content/64733/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The Federal Government’s plan to wind back superannuation tax breaks would create a fairer superannuation system more aligned to its purpose of providing income to supplement the Age Pension, according to new Grattan Institute analysis.
It would also contribute to budget repair.
The analysis shows how either of the reform packages proposed by both major parties would be a big step in the right direction. It explores how the current system provides much larger benefits to those with such ample resources that they will never qualify for an Age Pension. And it shows how the proposed changes would affect them - and pretty much nobody else.
As they debate the Coalition government’s proposals to wind back tax breaks on superannuation, politicians on all sides can do three big things: create a better and fairer superannuation scheme; take an important step towards repairing the Commonwealth budget; and show that our political system still works.
Both main parties have laid out their preferred reforms to super tax concessions. While they agree on all but the details, they are yet to strike a deal. Our new research shows what is at stake.
<h2>A better, fairer, super system</h2>
First and foremost, the proposed reforms to superannuation announced in the 2016 budget are about making super better, and fairer.
Tax breaks should only be available when they serve a policy aim. The purpose of super identified in the budget and <a href="https://sjm.ministers.treasury.gov.au/media-release/053-2016/">due to be defined in legislation</a> is to provide income in retirement to substitute or supplement the Age Pension. Super tax breaks don’t fulfil this purpose when they benefit those who were never going to qualify for an Age Pension in the first place.
The plans of both the government and the ALP would be big steps towards aligning super tax breaks more closely with their purpose. They would trim the generous super tax breaks enjoyed by the top 20% of income earners – people wealthy enough to be comfortable in retirement and unlikely to qualify for the Age Pension.
Retirees with large superannuation balances will start paying some tax on their superannuation savings, but still pay much less tax than wage earners on lower incomes. For a small proportion of women with higher incomes later in life, the changes will reduce their catch-up contributions. Yet the changes will reduce the tax breaks far more for wealthier old men.
Claims that the budget changes will affect many low and middle-income earners are wrong. Our research shows the changes will affect about 4 percent of superannuants, nearly all of them high-income earners who are unlikely to access the Age Pension. Nor are the proposed changes retrospective. Many reforms affect investments made in the past, and no-one suggests they are retrospective. Rather, the changes will affect taxes paid on future super earnings, and entitlements to make future contributions to super.
Any plausible combination of the packages on offer would make the super system fairer. At present, someone in the top 1% of income earners can expect to receive nearly three times as much in welfare and tax breaks from super in their lifetime as an average income earner. The government’s changes would trim some of these excesses: the top 1% would instead receive just twice as much as low or average income earners. And by targeting tax breaks that go to the top 20 percent of income earners, neither side’s plan would see much of an offsetting increase in Age Pension spending.
<h4><a href="/images/2016/09/06/image-20160904-20235-2lmns1.jpg" target="_blank">Click to enlarge</a></h4>
<img src="/images/2016/09/06/image-20160904-20235-2lmns1.jpg" alt="">
<h4>
Modelling on super reforms The Grattan Institute, Author provided
</h4>
<h2>An unsustainable tax system for seniors</h2>
Decisions by the former Coalition Government to abolish taxes on superannuation withdrawals in 2007 and radically increase the amount senior Australians could earn before paying income tax have dramatically reduced the tax bills of older Australians.
These changes are one of the main reasons why households over the age of 65 (unlike households aged between 25 and 64) now pay less income tax in real terms today than they did 20 years ago. At the same time, the workforce participation rates and incomes of seniors have jumped. Generous super tax breaks have been funded by deficits. The accumulating debt burden will disproportionately fall on younger households.
<a href="/images/2016/09/06/image-20160902-20241-1ljhnvu.jpg" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/09/06/image-20160902-20241-1ljhnvu.jpg" alt=""></h4>
Tax breaks to older Australians are also a major cause of the increase in the “taxed nots” identified by Treasurer Scott Morrison. The number of older Australians not paying any income tax has increased from three in four in 2000 to five in six today. The rise of these “taxed nots” coincides with the introduction of the Senior Australian Tax Offset in 2000, and tax-free super withdrawals in 2007.
<a href="/images/2016/09/06/image-20160902-20220-1h63t0l.jpg" target="_blank">Click to enlarge</a>
<h4><img src="/images/2016/09/06/image-20160902-20220-1h63t0l.jpg" alt=""></h4>
<h2>Repairing the budget</h2>
The increased cost of services and reduced taxes per older household explain in large part why the Commonwealth budget is in trouble. For eight years, budget deficits have persisted at about 2 to 3 percent of GDP, and the future looks little better. The returned Turnbull government is putting a priority on budget repair, now described as a “massive moral challenge” by the Prime Minister. Winding back some of the tax breaks given to older Australians during the happier times of the mining boom is an obvious step.
The government’s super package would save the budget at least A$800 million a year. Alternative proposals by the ALP, which broadly supports the Coalition’s reforms, and then goes further, would save more than A$2 billion a year. Should Treasurer Morrison seek a deal with the ALP or the Greens, any “concessions” will mostly improve the budget position.
Nor is the Turnbull government likely to find more attractive opportunities for budget savings. Unlike most of the government’s savings measures, changes to super tax breaks are broadly popular. Electorates more likely to be adversely affected by the super changes – that is, those with more old and wealthy voters – tended to swing less to the ALP at the last election than other electorates. And a survey before the election showed that the proposals had more support amongst those most likely to be adversely affected.
<h2>A test for our political system</h2>
Even after the reforms, super tax breaks will still mostly flow to high-income earners who do not need them, and the budgetary costs of super tax breaks will remain unsustainable in the long term. Further changes to super tax breaks will be needed in future. But agreeing to the super package now before the Parliament would be progress in the right direction. And there is a broader issue at stake.
Super is only the first of a number of difficult choices that will come before the Parliament as government seeks to promote economic growth in a sluggish global economy, and bring the budget back under control. There is no easy road to these ends that will keep everyone happy all the time. Pragmatic compromise will be critical.
The proposed changes to super tax breaks are built on principle, supported by the electorate and largely supported by the three largest political parties. If we cannot get reform in this situation, then our political system is in deep trouble. In coming weeks, our MPs have the chance to show how government in Australia can still change the nation for the better.
John Daley is chief executive officer, Grattan Institute, and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/john-daley-1870" target="_blank">here</a>.
Brendan Coates is a friend of The Conversation and can be contacted <a href="https://theconversation.com/profiles/brendan-coates-154644" target="_blank">here</a>.
William Young is associate, Grattan Institute and can be contacted <a href="https://theconversation.com/profiles/william-young-260984" target="_blank">here</a>.
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New Grattan research shows what is at stake in the superannuation debate

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Research on the last election results show seats with the higher numbers of property investors bucked the swing against the Turnbull government.
Analysis by Australian Demographic Strategies, headed by former Labor senator John Black, found seats with large number of investment property owners and people who were negatively geared “voted for the Coalition and swung far less towards the ALP”.
“When we ranked federal seats by per capita investment properties, the top four seats — Reid and Bennelong in NSW, Kooyong in Victoria and Curtin in WA — swung towards the Coalition by an average of 2 per cent, despite a ­national swing of 3 per cent to Labor,’’ ADS reported in an article in The Australian.
“The bottom five seats for per capita investment properties — Bass and Lyons in Tasmania, Macarthur and Chifley in NSW and Blair in Queensland — swung an average of 7.5 percent to the ALP.’’
Treatment of investment property was a significant policy difference between the Coalition and Labor at the July 2 Federal election.
Bill Shorten proposed to limit negative gearing to new properties from July 1 next year and cut the capital gains tax discount from 50 per cent to 25 per cent.
Malcolm Turnbull argued that Labor policy would "smash" property prices and deter investment.
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Labor's negative gearing policy helped keep it from office: research

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The federal government has announced an inquiry into specific cases of mistreatment of small business customers by banks.
It has been interpreted as a bid to take the steam out of Labor's call for a royal commission.
The government made the announcement minutes before Labor leader Bill Shorten moved a motion calling for a royal commission.
Kelly O'Dwyer, the Minister for Revenue and Financial Services, announced the inquiry. 
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, will undertake the inquiry "into the adequacy of the law" to address concerns raised by the Parliamentary Joint Committee on Corporations and Financial Services in its report released in May this year.
It will examine selected cases identified by the committee regarding small business lenders to determine whether regulatory action is required.
Mr Shorten's motion, seconded by independent MP Bob Katter, noted that "scandals in the banking and financial services industry have led to retirees having their retirement savings gutted, families being rorted, small business owners losing everything, Life insurance policy holders being denied justice; and agricultural assets being improperly foreclosed; and despite several inquiries, new powers, new resources, and a Financial Ombudsman Service, the rorts and the rip offs continue."
The terms of reference for Ms O'Dwyer's inquiry are:
"In undertaking the inquiry, the Ombudsman should: review a selection of the cases that have been identified by the PJC as unfair and ascertain whether there are any deficiencies in the regulation of authorised deposit taking institutions in lending to small business; 
"refer any matters identified in the review to the relevant authority for further consideration as necessary;
"determine whether the regulatory deficiencies identified by the PJC, or additional deficiencies identified through the inquiry, are being addressed by subsequent Government and industry reforms; and
"recommend whether additional reform measures should be implemented (legislation, regulations, guidance and practices) to ensure products perform in the way they should, taking into account that consumers have a responsibility to accept their financial decisions, including market losses, when they have been treated fairly, and any impact on the availability and cost of credit to small business."
The inquiry will take 12 weeks.
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Bank inquiry announced by Federal Government

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<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
The federal government’s Smart Cities Plan is framed around the “30-minute city”. In this city, journeys will take no more than half an hour, regardless of your location.
The recently released plan has significant implications for population, transport provision and land-use intensity in neighbourhoods – the places where people live and how they get around. The realisation of its goals will require ongoing densification of Australian suburbs.
<h2>Cities with more houses, more people, more NIMBYs</h2>
The doubling of the population in some Australian cities by 2045 is likely to generate fierce opposition to housing and transport projects.
Many medium-density housing projects prompt residents to act strategically to protect their neighbourhoods, even when these projects improve housing affordability and access to jobs and services.
Resistance is also directed at major infrastructure. Fierce campaigns are being (or have been) waged against Melbourne’s <a href="https://theconversation.com/the-sky-rail-saga-can-big-new-transport-projects-ever-run-smoothly-54383">“</a>sky rail” project and East West Link, Sydney’s ANZAC Parade light rail and Westconnex projects, and the Perth Freight Link.
Such opposition is not only felt through the planning system. Residents also use political channels to stop projects, as with the East West Link.
<h2>How should government respond to community resistance?</h2>
Contestation over city planning should not be shut down. Rather, we need to think about citizen opposition as a constructive process for working through difference. Here are five points to consider when including people in the delivery of the 30-minute city.
Point 1: We need active governments and active citizens
Private-sector lobbyists argue government is poorly placed to deliver small- and large-scale infrastructure. But think about a city with no roads, sewers, hospitals or schools. Without government-led planning, our cities would be dysfunctional places to live.
However, governments are not benevolent institutions. Active citizenries have long scrutinised the efficacy of government decisions.
The introduction of private and non-government infrastructure providers further complicates the relationship between citizens and governments. Whose interests does urban development then serve – a local community, regional community, or developers?
Governments need to be ready to answer questions about the role of the private sector and to change their plans following community input.
Point 2: More than finding better participation tools
Urban planning systems play important roles in engaging residents. However, community consultation has been sporadic. Neighbourhood meetings and letterbox notifications often fail to ignite engagement.
Then there is the question of representation. Community consultations attract the “usual suspects”. Time-poor working-age households and young professionals find it difficult to fit engagement with planning into their busy lives. Even more rarely does planning engage with youth and children about their visions and hopes for cities.
Local and state governments are aware of the need for new ways to bring citizens into decision-making. Infrastructure Victoria’s citizen jury panels are meeting mid-2016. Social media is also being considered as a way to engage a broader public about city futures.
However, when planning departments use social media the uptake by communities is poor. Our research suggests opponents to planned projects, rather than planning departments, are more likely to use social media.
The problem with current participation tools is their failure to account for conversations, debates and protests that take place outside the formal planning process. We need ways to include these discussions.
Point 3: Moving beyond NIMBYism
Not all community campaigns are the same. The dominant narrative around community participation in urban planning centres on the pejorative idea of “the NIMBY” (not in my backyard).
The term NIMBY is frequently used to delegitimise the claims of citizens opposing planned developments. They are characterised as self-interested residents who resist the inclusion of new social groups in their neighbourhoods, or any change to the built or natural environment.
Deliberately labelling these residents as self-interested fails to recognise the positive roles they can play. Local resident campaigns can focus on city-wide or local issues. They can range from unwavering opposition to more flexible and reflexive engagement in an urban discussion.
Some community campaigns might be viewed as vital forms of urban citizenship. Others are seen as “protecting their patch” against the best interests of the broader citizenry. Both views should be part of our discussion about city planning.
Point 4: The conversation never stops
An active citizenry is involved in short-term “one-off” planning and long-term strategic planning. Too often, public participation roles are confined to one end of this spectrum. For example, the NSW government recently attempted to limit public participation to high-level strategic planning documents, reducing community input into individual developments.
Most people have little knowledge of the urban planning system. A recent study found only 24 percent of Sydney residents surveyed were aware of the Sydney metropolitan plan. Confining participation to upfront strategic consultation limits community involvement.
For most people, engagement with planning and development issues will be reactionary. People engage with the planning system when a development is proposed for their area.
However, a recent national survey revealed that 65 percent of responses believed urban residents should be involved in each stage of the strategy-making process. Most will not be involved, but options for participation should not be confined to upfront consultation.
By engaging the community in an ongoing discussion we can listen and respond to local interests without compromising the broader strategic and long-term vision for our cities.
Point 5: Metropolitan-wide but locally situated debate
There will be winners and losers in the 30-minute city. Houses will be acquired, buildings will be demolished and sections of the natural environment will make way for new infrastructure.
Over the last decade, the idea of consensus has dominated participatory approaches. However, consensus-seeking is not always the best way to work through community disagreement. In some cases, consensus can be manipulative, or useful for mobilising resident opposition.
We need to recognise that cities are home to many different people who hold diverse views and values, and who will not always agree. Rather than aiming for consensus, we should set our sights on metropolitan-wide, locally situated debate, which supports an active citizenry.
In the end, the difference between no action and implementation may be in “agreeing to disagree” through open discussion about the planning of the city.
Crystal Legacy is Australian Research Council (DECRA) Fellow and Vice Chancellor's Research Fellow, Centre for Urban Research, School of Global, Urban and Social Studies, RMIT University and can be contacted <a href="https://theconversation.com/profiles/crystal-legacy-18412" target="_blank">here</a>.
Dallas Rogers is lecturer in Urban Studies, Western Sydney University and can be contacted <a href="https://theconversation.com/profiles/dallas-rogers-5269" target="_blank">here</a>.
Cristian Ruming associate professor in Urban Geography, Macquarie University and can be contacted <a href="https://theconversation.com/profiles/kristian-ruming-173545" target="_blank">here</a>.
Nicole Cook is researcher, School of Geography, University of Melbourne and can be contacted <a href="https://theconversation.com/profiles/nicole-cook-220909" target="_blank">here</a>.
All are authors for The Conversation.
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po-LsXgBTHBmX

‘30-minute city’? Not in my backyard! Smart Cities Plan must let people have their say

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By <a href="http://theconversation.com/profiles/andrew-lynch-7000">Andrew Lynch</a>.
The Commission of Audit has not flinched from making a <a href="http://www.ncoa.gov.au/">tranche of bold recommendations</a> to the Abbott government, but nothing in its report trumps the call for the Commonwealth to withdraw from areas that were once essentially state responsibilities, including education and health.
This would be nothing less than a major recalibration of Australia’s federal system, reversing decades of steady centralisation. The attractions of such a course are obvious, with the costs and inefficiencies of government duplication and overlap having long been well documented.
But we have seen the dawn of a “new federalism” fail to rise several times before. There are two reasons to be sceptical about the Commonwealth going along with the reforms necessary to realise the Commission of Audit’s vision.
First, there is the matter of money. Australia’s distorted federalism has come about through the Commonwealth gradually expanding its tax base to the diminution of that of the states. The states have become increasingly dependent on Commonwealth funding grants to meet their responsibilities.
The Commission of Audit reports that “around one-quarter of the Commonwealth budget” goes towards funding the states. This amounts to about 40% of state revenue and almost half of the money granted to the States is tied, meaning they come with conditions set by the federal government.
The Commission of Audit recognises that if real power in key policy areas – expensive ones at that – is to devolve back to the states then the Commonwealth needs to free up the states' taxing potential. It recommends the states get a cut of the income tax levied in their respective economies.
Since the Commonwealth takeover of income tax in 1942, Malcolm Fraser has been the only prime minister who offered the states a chance to reclaim some of this ground – although they saw political dangers in the model proposed. When Bob Hawke appeared to get too close to fiscal reform of federalism, it gave Paul Keating the opportunity to topple him as party leader. History suggests the Commonwealth is very comfortable with its financial dominance.
This is largely due to the second factor that prompts scepticism: the contemporary political culture in Canberra. Federal parliamentarians have long ceased to show any regard for the constitutional division of power when they see a potential for gaining some electoral capital.
While Labor has traditionally been no friend of Australia’s federal system, an interventionist approach now pervades the political spectrum. John Howard ended his prime ministership pleading the case of “aspirational nationalism” in order to save a hospital from closure in Tasmania. In his book <a href="https://www.propertyobserver.com.au/https://www.mup.com.au/items/120931">Battlelines</a>, Tony Abbott essentially argued for constitutional amendment so that the Commonwealth might overrule State governments on any issue as the wish took it.
There is a greater likelihood of positive reaction to the Commission of Audit’s broad call for a culture of “competitive federalism” among the states themselves. This echoes the stance of the current crop of state premiers, such as Queensland’s Campbell Newman, who have been frustrated by the smothering effects of the Commonwealth agenda dressed up as “co-operation” at the Council of Australian Governments (COAG).
The institutional architecture to ensure that competition will lead to innovation and best practice across the states and to overall national benefit already exists in the form of the COAG Reform Council (the CRC). As a result of the <a href="http://www.federalfinancialrelations.gov.au/content/intergovernmental_agreements.aspx">2008 Intergovernmental Agreement on Federal Financial Relations</a>, the CRC monitors and reports on the performance of states in meeting mutually agreed national targets. The data produced illuminates which states are leading the pack in any “competition” between them.
The commission has, however, highlighted the swift derailing of the aspirations of the 2008 agreement. This was due to the Commonwealth being unable to refrain from policy intrusion into state affairs through the habitual making of new tied grants to the states. The commission’s recommendation that these be reduced in line with opening up income tax revenue to the states makes a great deal of sense.
But, as a consequence, the Commission of Audit calls for the abolition of the CRC, saying the reduced work that would be required after rationalising Commonwealth-state agreements could be performed by the Productivity Commission. It is a shame that the CRC is in the firing line because the Labor government that designed the federal compact of 2008 managed to sabotage its own achievement.
Although the CRC’s agenda is seen as the result of Kevin Rudd’s push for “co-operative federalism”, it is not responsible for the negative consequences of centralisation and administrative complexity. These stemmed from the way the Commonwealth went on to conduct federal relations.
There is a strong argument to retain the CRC with its direct experience in benchmarking state performance. Achieving the reinvigoration of federal-state power-sharing in Australia is an ambitious goal. A body dedicated to evaluating the results of federal reform would seem worth keeping.<img alt="The Conversation" height="1" src="https://counter.theconversation.edu.au/content/26176/count.gif" width="1">
Andrew Lynch has received funding from the Australian Research Council for research on constitutional law and federal reform.
This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="http://theconversation.com/will-the-commission-of-audit-lead-to-another-new-federalism-26176">original article</a>.
Lead image credit: <a href="https://www.propertyobserver.com.au/https://www.flickr.com/photos/39551170@N02/8215959691" target="_blank">Flickr</a>, CC BY-SA 2.0
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