<a href="https://www.apartments.com.au/developers/sunland-group">Sunland Group</a> has officially lodged plans for its first Gold Coast apartment project since the departure of the Abedian family from the company three years ago, unveiling a new high-rise proposal for a prominent Broadbeach corner site on Old Burleigh Road.

The application was submitted by an entity directed by Tom Jamieson, stepson of longtime Sunland leader Soheil Abedian, and Riaz Rezvanipour, brother-in-law of Sahba Abedian, Soheil’s son.

Sunland acquired the 1,283 sqm site on the corner of Old Burleigh Road and Armrick Avenue for $9.5 million late last year and is now seeking approval for a <a href="https://www.apartments.com.au/new-apartments/99-101-old-burleigh-road-broadbeach-qld-4218">42-storey tower with 81 apartments</a>.

<img alt="First look: Sunland Group returns to Broadbeach with new Old Burleigh Road tower plans" data-entity-type="file" data-entity-uuid="fea2946d-90ee-4cfc-babe-2a8ad5db2cb6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers.png?VersionId=BV0fihJw31nDIQ8ozY_h3GbS8mxDyhnm" />

Designed by <a href="https://www.apartments.com.au/architects/contreras-earl-architecture">Contreras Earl Architecture</a>, the proposed tower at 99-101 Old Burleigh Road would deliver a predominantly larger-format apartment mix aimed at the owner-occupier market. Plans include 17 two-bedroom apartments, 55 three-bedroom apartments, and nine four-bedroom residences across 35 residential levels.

The development also incorporates three basement levels, four podium parking levels, two levels of communal recreation facilities, and rooftop plant and equipment. A total of 189 car spaces are proposed, significantly exceeding the 90 spaces required under the planning scheme.

The architecture adopts a sculpted, curvilinear form, with deep wraparound balconies and integrated landscaping intended to soften the tower’s vertical expression. The planning report states the building’s “slender footprint/form provides a complimentary yet varied built form within the local streetscape” and contributes to “a varied, yet ordered skyline.”

Contreras Earl noted in its Architectural Statement that from the early stages, the project addressed a fundamental challenge: how to accommodate the required residential yield while avoiding the conventional model of a tower sitting on a rigid, fully resolved parking podium.

“The most direct response would have been to consolidate parking into a singular, flat podium and extrude a repetitive tower above,” the statement said. “While efficient, this approach would result in a consolidated built form with limited engagement with the surrounding landscape and public realm.”

Instead, the conventional podium model was “deliberately rejected”. The architects described the base of the building as “a landscaped architectural condition where structure, planting and circulation are integrated”.

“Rather than presenting a continuous built mass, the base of the building is articulated through a series of concrete planter elements that organise the podium into a fragmented system,” the statement said. “This approach reduces the perceived bulk of the lower levels while establishing a more permeable interface with the streetscape and adjacent open space.”

<img alt="Sunland" data-entity-type="file" data-entity-uuid="923fad8d-c960-4527-8fbe-975cf1ddf88d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%2010.32.03%E2%80%AFAM.png?VersionId=pngwb0hYOIUpq9vDw6F2EsOiVuHF3DiX" />

&nbsp;

The site sits within the High Density Residential Zone and inside the City of Gold Coast’s unrestricted “HX” building height area, where the planning framework anticipates intensified residential development tied to the expanding light rail corridor. The planning report notes the area is undergoing “transition toward more intense development forms” given its proximity to Broadbeach, Surfers Paradise, and high-frequency public transport infrastructure.

Positioned directly opposite Broadbeach Park and within walking distance of Florida Gardens light rail station, the development would sit among a rapidly evolving stretch of Old Burleigh Road that has become one of the Gold Coast’s most active apartment development corridors.

The application joins a growing pipeline of luxury residential projects reshaping Broadbeach, including nearby developments by 5Point Projects, Polycell, and Graya.

The planning report argues the project contributes toward the Gold Coast’s long-term housing targets under the South East Queensland Regional Plan, which forecasts the need for more than 100,000 additional high-rise dwellings across the city by 2046.

<section data-scroll-anchor="false" data-testid="conversation-turn-4" data-turn="assistant" data-turn-id="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" data-turn-id-container="request-WEB:84a2af5e-d7cf-4ddf-922a-f4d44d6c6caa-1" dir="auto">
The Abedian family departed Sunland Group in late 2023, ending a four-decade association with the company, and subsequently established the private development firm Abedian &amp; Co. The group is currently delivering <a href="https://www.apartments.com.au/new-apartments/greenmount-residences-cnr-hill-street-and-marine-parade-coolangatta-qld-4225">Greenmount Residences</a> at Rainbow Bay and recently launched <a href="https://www.apartments.com.au/new-apartments/18-mary-avenue-14-18-mary-avenue-broadbeach-qld-4218">18 Mary Avenue</a> in Broadbeach.
</section>

Joel Robinson

First look: Sunland Group returns to Broadbeach new apartment market with new Old Burleigh Road tower plans

The Minns Labor Government has established the new Bays West Delivery Authority to lead the development&nbsp;of the Bays West Precinct and Blackwattle Bay Precinct.&nbsp;

The Authority is charged with creating Sydney’s newest precinct, a thriving, connected, sustainable hub with White Bay Power Station as its cultural heart. Its vision is to build on the area’s natural, cultural and industrial history to shape a vibrant new neighbourhood.

The precinct will deliver up to 8,500 well-located homes, including a minimum of 10 per cent affordable and essential worker homes. Combine new housing with public open space, opening public access to the waterfront for the first time in more than 100 years, while retaining important deep-water facilities to support Sydney’s working harbour.

Located just minutes from the Sydney CBD and connected to a world-class metro, ferry, walking and cycling links, the Bays West precinct will rebalance housing growth towards well-serviced inner-city locations and help tackle the state’s housing crisis.

The Bays West Delivery Authority,&nbsp;an agency of the Department of Planning, Housing and Infrastructure, will report to the NSW Minister for Lands and Property who already has oversight of major precinct renewal projects including at Blackwattle Bay and Barangaroo.

As part of the broader Bays West transformation, the Minns Government recently announced that a proposal from Lendlease to redevelop part of the Bays West Precinct has progressed to Stage 2 of the NSW Government’s unsolicited proposals process.

<img alt="Sydney" data-entity-type="file" data-entity-uuid="2ed71eb9-d8e8-4fa7-b9d1-de4531dcf2f3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-25%20at%209.42.31%E2%80%AFAM.png?VersionId=IDryFIbped9SNDg72LEN_EecvhUsOPvp" />

The Minns Labor Government has also confirmed the Bays West precinct will have a new suburb name. This will be the first major suburb built in close proximity to Sydney’s CBD in decades and will encompass the area currently being referred to as Bays West, including Glebe Island and the White Bay Power Station. Served by a new Metro station just five minutes from the CBD, it will become one of the most populous suburbs in the Inner West and one of Sydney’s premier cultural destinations.

An early works program is taking shape, which&nbsp;includes the first stages of an international design competition.&nbsp;

The aim of the Bays West&nbsp;International&nbsp;Design Competition is to&nbsp;ensure design excellence is embedded in the project from the start. The competition will deliver an&nbsp;urban framework that defines the character, ambition and long-term identity of&nbsp;this&nbsp;former industrial precinct as it transitions to a vibrant, inclusive and sustainable residential&nbsp;neighbourhood.

The competition will be led by the Bays West Delivery Authority in partnership with Government Architect NSW.&nbsp;

It will launch with an invitation for a global Expressions of Interest, before moving to an invitation-only stage that will be assessed by a panel that&nbsp;will provide advice to Cabinet who will select a winner.

Premier of NSW, Chris Minns said the establishment of the new Authority is the first step in transforming the Bays West precinct into a vibrant, livable suburb minutes from the Sydney CBD and two stops from Hunter St Station on the Metro West line.

“The Authority will deliver well-located homes close to the heart of the city and integrate the new precinct with Blackwattle Bay and the new Sydney Fish Market.

“This is a generational opportunity to build a new suburb on the city’s edge and open the harbour foreshore to the public for the first time in a century.”&nbsp;

Minister for Lands and Property Steve Kamper said the new Bays West Delivery Authority established by the Minns Government will turbocharge the development of Sydney’s newest suburb.

“The Authority is working at a record pace to deliver an international design competition, planning pathways and a financial model so that this development benefits Sydney with well-designed homes in a central location, close to public transport, jobs, entertainment and essential services.

“If we want Sydney to stay liveable and affordable, we need to be bold about using underutilised government-owned land to deliver homes for the future while making sure essential working harbour functions can be accommodated.”

Bays West Delivery Authority established to "turbocharge" Sydney’s newest suburb

Around 400 additional homes could be built at Southwark Grounds on Port Road, lifting total site capacity from 1300 to around 1700 dwellings.

A recently approved code amendment would allow apartment towers of up to 14 storeys in some areas of Renewal SA’s redevelopment of the former West End Brewery.

Renewal SA Acting Chief Executive Shane Wingard said he welcomed the code amendment, with the increase in heights and homes making a positive impact on the supply of high-quality, well-connected housing close to the city.

“By going higher across some parts of Southwark Grounds, we are adding a substantial number of very well-located homes with little impact on project delivery time or planned open space,” Mr Wingard said.

Since the project officially launched in 2025, Mr Wingard said more than 12,000 enquiries had been received about living at Southwark Grounds.

“The very strong early interest we’ve seen since homes were first released in the precinct reinforces our plans to create more housing opportunities,” he said.

The Southwark Grounds code amendment was launched in December last year, with community engagement undertaken over five weeks from January.

It proposed increasing maximum building heights from eight to 14 storeys on the eastern section of Southwark Grounds, and to 12 storeys across the remainder of the site, with minimum building heights ranging from two to four storeys.

The code amendment was implemented through an Early Commencement policy in late January, allowing developers to quickly explore the viability of increased height and housing yield while other planning processes continue.

One of the first developers delivering apartment sites have already finalised redesigns to increase the number of apartments following the code amendment.

Samaras’ development adjacent to the future Colonel Light Park is now planning to deliver 125 apartments across 11 storeys, significantly greater than original plans of around 50 apartments across four storeys.

The developer is also exploring the potential for additional affordable housing outcomes.

Most of the apartments at Southwark Grounds will be delivered within a master-planned precinct on a large parcel of land on the eastern portion of the site, covering around two-thirds of its 8.4 hectares.

Wingard said detailed precinct planning over the coming months may identify further opportunities to increase yield further that could see total apartment numbers at Southwark Grounds, exceed this number.

Affordable homes at Southwark Grounds will also see a net increase, with Renewal SA maintaining its commitment to a minimum of 20 per cent affordable housing across the development.

&nbsp;

&nbsp;

Civil works have begun across the site, with construction under way on the first new roads surrounding a townhouse precinct in the south‑west corner of Southwark Grounds. This includes Renewal SA’s 17 Founder’s Row homes, which are on track for completion by Christmas.

“We expect to have people living at Southwark Grounds by the end of the year, so delivering roads and public spaces for those residents is among our highest priorities.”

Construction of 40 townhouses off Anderson Street, known as West Village and being delivered by Contour, is forecast to begin in mid‑2026. Kolabb’s Anderson Lane development will follow shortly after, delivering a further 26 townhouses.

Southwark Grounds is a state government‑led urban renewal project now set to deliver around 1,700 homes over the next decade.

Homes will be supported by a supermarket, a range of retail and hospitality offerings anchored by a revitalised Walkerville Brew Tower, a childcare centre, car parking and well‑connected public spaces.

400 new homes planned for Adelaide's former West End Brewery site

Brisbane developer&nbsp;<a href="https://www.apartments.com.au/developers/cavcorp">Cavcorp</a> has lodged plans for a new mixed-use residential development at <a href="https://www.apartments.com.au/new-apartments/55-wyandra-street-teneriffe-qld-4005">55 Wyandra Street</a>, Teneriffe, anchored by an 85-metre public laneway designed to reconnect the suburb’s riverfront with the Gasworks precinct.

The buildings, known as Teneriffe House and Teneriffe Lane, would replace the existing Queensland Cotton head office site with a 15-storey residential tower transitioning to eight storeys toward Helen Street. The project has been designed by Plazibat Architects and lodged as a code assessable development application for 93 apartments across a 3,401 sqm mixed-use site within the Newstead and Teneriffe Waterfront neighbourhood plan.

Central to the scheme is the transformation of an existing service easement into a publicly accessible cross-block connection linking Wyandra and Helen Streets. Cavcorp says the new laneway will act as both a pedestrian shortcut and a landscaped civic space between the Teneriffe Riverwalk, ferry terminal, and Gasworks precinct.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="26e7f058-b065-4de8-b13d-a2b8cb64dfcc" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/bldg.png?VersionId=sELS0ZKYi361oYipUa1BIKfe_.DLZoFV" />

“The revised proposal delivers a legacy public-realm cross-block link, permanently secured for community use, transforming an existing private easement into a safe, high-quality pedestrian connection between the Teneriffe heritage riverwalk and the Gasworks–Long Island precinct,” the planning report states.

The laneway will sit beneath a large subtropical loggia integrated into the podium levels of the development. The design incorporates deep landscaping, water gardens, lobby spaces, business lounges, and ground-floor apartments to create what Cavcorp describes as a climate-responsive “urban verandah.”

The tower itself has been designed as a slender form with recessed floorplates and curved translucent corners inspired by contemporary Japanese architecture. The building height aligns with the Commercial Road precinct controls, which permit towers up to 15 storeys within proximity to Longland Street.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="a8a17d40-43b6-4718-b3fd-67676fcbb485" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/pers%202_1.png?VersionId=i3VwDtp5AmL_8InW7w4qRbDFEpb744Jt" />

The project will comprise a mix of larger-format apartments aimed at owner-occupiers, downsizers, and families. The proposed apartment mix includes 11 loggia apartments across the lower levels, 50 four-bedroom Sky-Terrace apartments from levels three to seven, and 32 Sky-Pool Homes occupying the upper tower levels. The Sky-Pool Homes will feature private thermal plunge pools integrated into oversized balconies.

According to the application, the apartments are intended to reinterpret the scale and character of Teneriffe’s woolstore conversions and Queensland homes within a vertical residential format.

“The sky-pool homes build on Cavcorp’s previous projects and introduce a distinct apartment typology to Teneriffe, informed by both local and international precedent and responding to an identified market demand for enhanced safety, space and amenity,” the planning submission notes.

A major focus of the proposal is its five-level wellness and lifestyle offering, extending from the basement through to the rooftop.

Amenities proposed include a rooftop Swim &amp; Racquet Club with a 25-metre Olympic lap pool and tennis court, coworking spaces and libraries, golf simulators, wine storage, concierge facilities, business lounges, pet wash areas, and rooftop longevity-focused wellness spaces with spas, outdoor fitness zones, and landscaped terraces.

<img alt="First Look: Cavcorp unveils Teneriffe House and Teneriffe Lane plans for landmark wellness tower in Teneriffe" data-entity-type="file" data-entity-uuid="944b352c-49b9-4247-a4c6-5967b4b69fda" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/amenity.png?VersionId=Ed_qKjAtMwFT.5gfl3jiA9QwdWxSMsaX" />

All parking will be concealed within basement levels accessed from Wyandra and Helen Streets. Cavcorp says the deep-basement engineering approach allows the entire ground plane to prioritise landscaping, pedestrian movement, and active frontage rather than vehicle infrastructure.

The development continues Cavcorp’s concentration in Newstead and Teneriffe, where the Brisbane developer has delivered a number of apartment projects including Lucent, Le Bain, and Luminare, as well as the Long Island Wellness Precinct nearby. Several of those projects have received national design and architecture awards, including recognition under Brisbane’s “Buildings that Breathe” program.

Cavcorp unveils wellness-focused Teneriffe House and Teneriffe Lane apartment buildings

Focus Group Investments has lodged plans for a new apartment development at <a href="https://www.apartments.com.au/new-apartments/64-70-hanover-street-fitzroy-vic-3065">64–70 Hanover Street</a> in Fitzroy, seeking to utilise the Victorian Government’s recently introduced Great Design Fast Track pathway to accelerate approvals for the project.

The proposal is among the latest developments to emerge through the state-led initiative, which was established to fast-track well-designed residential projects in activity centres and transport-connected inner-city locations. The pathway allows qualifying developments that meet elevated design and housing benchmarks to bypass traditional council planning timeframes and instead be assessed directly by the Department of Transport and Planning.

Designed by SJB, the development will comprise a mix of apartments above activated lower levels, with a strong focus on architectural articulation, landscaping, and communal amenity. The design response seeks to balance the industrial character of Richmond’s former warehouse precincts with a more contemporary residential form.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="abea51cc-d85b-479e-9aef-a589f3b37ca7" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/ground.png?VersionId=e1Kf8EyPWwyiVumtqQ4rM5S4GpOR3CCz" />

Proposed are 63 new dwellings, a wide ranging mix of studio, one-, two-, and three-bedroom apartments, and townhouses and duplexes. They will be spread across a part-three, part-eight storey building.

The Planning and Urban Context Report by Tract says the development is of an "exemplary architectural standard" and has been carefully crafted by SJB Architects.

"Dwellings&nbsp;will benefit from excellent access to natural light, cross-ventilation opportunities and extensive communal space," the report noted.

The architectural material highlights the project’s integration of landscaped elements and communal spaces throughout the building. The proposal also incorporates sustainability initiatives aligned with the Victorian Government’s push for higher-performing apartment developments under the fast-track program.

The Great Design Fast Track was unveiled by the Victorian Government in 2024 as part of a broader housing supply strategy aimed at accelerating the delivery of new homes. Projects assessed through the pathway must demonstrate high-quality architecture, sustainability outcomes, and housing diversity while being located close to public transport and existing infrastructure.

<img alt="First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Richmond apartments" data-entity-type="file" data-entity-uuid="afdbe834-8dc4-4a77-a943-ba07bc927348" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/site_11.png?VersionId=0J657j.TaChAZfp93wqJYBTqSsnREJx2" />

Focus Group, founder and led by Paul De Lutiis, is increasingly active across Melbourne’s inner suburbs, targeting well-connected urban renewal locations suited to medium and higher-density residential development. The Fitzroy proposal continues that strategy, leveraging the area’s strong transport links, established retail amenity, and proximity to the CBD.

Fitzroy has been one of the most popular spots for developers and buyers in recent years. The likes of PACE Development Group, SMA Projects, Crema Group and Chapter Group, currently selling projects in the suburb.

First look: Focus Group Investments taps Victoria’s Great Design Fast Track for Fitzroy apartments

First Home Buyers

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The Australian Bureau of Statistics’ housing finance statistics for April 2014 have maintained that first home buyers are still keeping out of the market, with <a href="/expert-insights/finance/first-home-buyers-fall-back-to-record-lows">figures at historical lows of 12.3%</a>.
This 12.3% figure was also noted in November 2013, ticking up to 12.6% in March 2014.
The Real Estate Institute of Australia’s president, Peter Bushby, noted that increases were recorded in six of the states and territories: Queensland, Western Australia, the Australian Capital Territory, Victoria, South Australia and Tasmania. The ACT had the biggest increase, of 0.9%.
New South Wales fell by 0.9% while the Northern Territory remained flat.
When excluding refinancing, April saw a drop of 0.1% in owner occupied finance commitments in trend terms.
“In trend terms, the number of commitments for the construction of new dwellings climbed 1.1% and the purchase of established dwellings increased by 0.1%. However the purchase of new dwellings fell by 1.3%,” said Bushby.
Investment housing commitments increased, but by 0.5%, which follows three years now of monthly increases that were not as modest.
“The April 2014 lending figures indicate a stable market, and signal a period in which interest rates should stay at their current levels,” he said. You can read more about interest rates and predictions here.
ANZ Research’s David Cannington and Paul Braddick noted that mortgage commitments are “easing in line with moderation in housing market sales and price growth”.
“Today’s data continues to reflect a housing market dominated by investors and upgraders/downsizers, while first home buyer activity remains at historical lows,” they re-iterated.
It was suggested that sentiment has had some impact over recent months, however housing finance was noted to be at a new historical peak with the value of finance commitments 1.7% higher over the month.
Over the year to April, housing finance was 20.7% higher.
This has Housing Industry Association chief economist Harley Dale noting that there is upward momentum to the lending for construction of new dwellings, even when allowing for a decline in the seasonally adjusted number and value of loans in April.
“Over the three months to April 2014 the number of construction loans increased by 5.4% to reach the highest quarterly level since early 2010,” said Dale.
“In value terms the profile is very similar.”
“Today’s update is consistent with further growth in detached and low density dwelling construction into the new fiscal year,” he said.
“Meanwhile a modest downward trend in lending for the purchase of new dwellings still signals historically elevated levels of medium-high density construction being maintained in 2014-15.”
He also noted that the value of lending for investment in new rental stock is now at its highest since before the GFC.
<a href="/expert-insights/housing-finance-data-for-february-2014">Housing finance statistics: February</a>
<a href="/expert-insights/investing/level-of-investment-remains-stubbornly-high-in-housing-finance-data">Housing finance statistics: March</a>
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jduke-EHk3XBmHkn

First home buyers at historical lows, investors dominate: Industry reactions

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First home buyer grants aren't available for every first time buyer and there are many hoops that need to be jumped through. One of these hoops is buying a property that fits under a certain dollar value threshold.
Here are those cut off points across the country.
For more information as to which properties are eligible for a grant (the majority of offered grants are now for new builds only) you can <a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">see our state-by-state round up here</a>.
For those who aren't first time buyers, here are <a href="/expert-insights/investing/grants-for-non-first-time-buyers-a-state-by-state-guide">the other grants on offer around the country</a>.
AUSTRALIAN CAPITAL TERRITORY
Total value of eligible properties (home and land): $750,000 cap
Has applied since 1 September 2013.
Note: The new Over 60s Home Bonus Scheme has a cap of $764,999
NEW SOUTH WALES
At present, the cap for homes is $650,000.
For land, the cap is $450,000.
However, pre-budget announcements have <a href="/expert-insights/building/nsw-first-home-buyers-can-buy-up-to-750-000-under-extended-fhog">confirmed that this will now be increased to $750,000</a>.
NORTHERN TERRITORY
$600,000​ (established homes only)
QUEENSLAND
$750,000
SOUTH AUSTRALIA
$575,000
Note: The housing construction grant has a $450,000 cap.
TASMANIA
No limit.
VICTORIA
$750,000
WESTERN AUSTRALIA
$750,000
Or, if the home is north of the 26th parallel, then $1,000,000 or less.
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First home buyer price thresholds: The cut offs you need to know

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First home buyers are back at record lows.
Loans to first home buyers as a proportion of total new home loans fell 4% in the year to April – the share of first-time buyers in the market equalled the record November 2013 low at 12.3% of all loans.
Meanwhile the value of investor home loans rose by 2.3% to a record $11 billion in April, surging some 29.9% in the same 12 month period, filling the void.
First home buyer mortgages peaked in May 2009, accounting for 31.4% of total new home loans on the back of boosted government grants.
Craig James, the CommSec economist noted the first home buyer finance levels were well below the long-term average of 20%.
The St George senior economist, Hans Kunnen attributed the lack of first home buyers to state governments scrapping first home buyer grants for existing dwellings and the solid increase in house prices over the past year.
First home buyer families might need three income sources in future, he told Ross Greenwood's 2GB Money News.
Total housing finance edged 1.7% higher in April, in seasonally adjusted terms to $27.89 billion, while commitments for owner-occupied housing rose 1.4% and investor commitments by greater 2.3%, the Australian Bureau of Statistics ­figures showed.
The average home loan across Australia stood at $323,400 in April, up 7.2% on a year ago
Fairfax Media columnist Michael Pascoe noted the RBA had intriguingly dropped first home figures from its <a href="https://www.rba.gov.au/chart-pack/" target="_blank">June economic data chart pack</a>, perhaps as a consequence of rising concerns about the underestimating of first home buyer statistics.
<img src="/images/2014/06/11/fhb%20june%2011%20one.gif" alt="">
A RBA spokesperson advised Property Observer that the Bank had decided to remove the data from the graph while it is being reviewed by the provider.
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jchancellor-FAypfDUnLy

First home buyers fall back to record lows

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The NSW government has extended the first home owner grant in its June 17 budget.
First-time buyers who purchase new properties - houses or apartments - worth up to $750,000 will now qualify for the $15,000 payment from July 1. 
The previous threshold had been $650,000 since the June 2012 budget. 
Sydney's runaway median dwelling price has moved from $541,000 as at June 2012 to sit currently at $678,500, according to RP Data, so the catchup decision barely keeps pace with actual price movements.
However Housing Industry Association chief economist Harley Dale said the median price for new homes in NSW was around $650,000 which means most first home buyers will be able to get the full benefit. 
The threshold decision also brings NSW into line with several other states and territories.
Treasurer Andrew Constance initially announced the extended eligibility criteria for the first home owner grant by $100,000 with Premier Mike Baird in a visit to Sydney's north west.
“This will make the dream for young families of owning their own home that bit easier,” Andrew Constance said.
The government claims 100,000 new homes have been built since the March 2011 election. But NSW first home buyers still remain at well below the long term average in their buying habits, in part due to the desire to shift their buying to new homes, and also given affordability issues.
Last year around 7600 home owners secured the $15,000 grant, compared with 36,000 in 2011, after the scheme was restricted to new homes. 
<a href="https://www.osr.nsw.gov.au/grants/fhog" target="_blank">The First Home Owner Grant (New Homes) scheme</a> was established in 2012 to assist eligible first home owners to purchase a new home or build their home by offering a $15,000 grant.
The take-up of the grant scheme has been greater in recent times - some 45 per cent higher in the four months to April compared with the same time in 2013.
The scheme applies to new homes only, houses or apartments, and is scheduled to be reduced to $10,000 on 1 January 2016.
In Victoria first home buyers qualify for the $10,000 First Home Bonus, but the value of the property must not exceed $750,000. Eligible recipients will also qualify for a reduction of up to 40% on stamp duty payable on first homes purchased below $600,000. 
Queensland's Great Start Grant valued at $15,000 is paid to first home buyers who are buying or building a new home valued up to $750,000.
The ACT offers first home buyers $12,500 when purchasing new, off the plan with the grant is capped at $750,000 purchases.
<a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">Last month Property Observer published a national guide for first home buyers.</a>
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NSW first home buyers can buy up to $750,000 under extended FHOG

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Mortgage Choice says it’s surprised by the results of its own survey of property investors.
Why? Because the people at Mortgage Choice have their heads as full of misinformation about real estate issues as everyone else out there.
They apparently expected the survey to show that saving a deposit was the biggest problem faced by property consumers, given the (alleged) big increase in property values around the nation and the (apparently) ongoing affordability crisis.
<a href="/expert-insights/finding-an-investment-property-harder-than-saving-for-one-mortgage-choice">But the survey showed</a> that the biggest challenge for investors was finding the right property, while affordability issues ranked well down the list of concerns.
There’s actually nothing surprising in any of that. You just need to have a little market knowledge – by which I mean real knowledge, not vague impressions absorbed from media sound bytes.
Mortgage Choice issued a press release, which presumably was designed to generate credibility for the organisation, but it did the opposite.
Here’s what the media release said:
“According to Mortgage Choice's 2014 First Time Investor Survey, 50.6% of investors who purchased their first investment property within the last two years said finding the right property was the hardest part of investing. Mortgage Choice spokesperson Jessica Darnbrough said the results were surprising, especially given the current market conditions. With property values climbing considerably over the last 12 months, we expected to see more first time investors saying their biggest challenge was saving a deposit, Ms Darnbrough said. Instead, just 15.3% said 'saving a deposit' was the biggest challenge they faced when investing in property.”
A couple of points about that - property values haven’t been climbing considerably in the last 12 months. Only in Sydney (and, more recently, in near-Sydney centres) have property values boomed. Most major cities and regional centres have had only moderate growth and some have had no growth at all.
While media continues to fabricate an affordability crisis, the two quarterly indexes published on affordability show the opposite is true. They’ve both just published their latest editions and found that affordability continues to improve and is the best it’s been in 12 years.
How can national organisations that make their living from real estate be so badly informed about it?
It’s no surprise that finding the right property is the biggest issue for novice investors. At Hotspotting we encounter this from consumers on a daily basis. The most commonly used word is “overwhelmed”.
Real estate consumers are overwhelmed by many things, including the massed of bad and conflicting information, but most of all by what to buy and where to buy it. This is a seriously large country with tens of thousands of locational choices. Sydney alone has over 700 suburbs.
The key element missing for most investors is not financial capacity – it’s the absence of a clear strategy for putting their financial capacity to effective use.
The investors who are not overwhelmed are those who have a clear set of goals, an understanding of their risk profile and borrowing capacity, and a strategy for achieving the end game.
Investors like that are quite rare – which is why the Mortgage Choice survey found that most novice investors struggled with finding the right property in the right location.
You can contact Terry via  <a href="https://mailto:ryder@hotspotting.com.au" target="_blank">email</a> or on <a href="https://www.twitter.com/hotspotting" target="_blank">Twitter</a>.
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terryryder-YECXbqmri2

No surprise that finding a property is first time investors' biggest worry

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The Queensland Newman government’s Great Start Grant, which gives first home buyers $15,000 for buying or building a new home, is finally finding some take-up.
As of 2 June, 6,251 applications had been approved and paid. This was well up from 5,343 in March 2014.
More than 3,000 had been granted for Brisbane, according to Treasurer Tim Nicholls' budget papers.
Eligible first home buyers of properties up to $500,000 pay no duty, with reduced rates available up to $550,000.
It had been a slow start as in March 2013 the Queensland government renamed its $15,000 first-home owner construction grant (FHOCG) the 'great start grant' as just 126 first-home buyers had taken advantage since September 2012 last year.
But despite a small increase in new construction activity, the budget papers showed overall dwelling investment declined in Queensland for the sixth consecutive year in 2012-13. It was mainly due to a sharp fall in alterations and additions, partly reflecting the completion of earlier disaster-related renovation activity, and also slower income growth.
With sustained low interest rates and an improved outlook for residential property prices, growth in new dwelling approvals did accelerate in 2013, particularly for apartments in inner-city Brisbane. As a result, overall dwelling investment is expected to increase in 2013-14.
"Increased activity by interstate and overseas investors is also expected, as recent large gains in Sydney house prices prompt investors to seek markets elsewhere," Nicholls noted.
Beyond 2014-15, as the RBA moves to a more neutral monetary policy setting, dwelling investment growth is expected to moderate.
The first home grant take-up accompanies Treasury forecasting a further increase in residential sales.
“The recovery in the housing market is expected to continue in fiscal 2015 supported by low interest rates and the continuation of the government’s Great Start Grant,” budget papers said.
Revenue from transfer duty is expected to grow by 9.6% in 2014-15, following strong growth of 28.2% in 2013-14 that was supported by a number of large commercial transactions.
The 2014-15 estimate also includes the duty expected from a large commercial transaction. Underlying growth was 14.8% in 2013-14 and 13.3% in 2014-15 once the impact of these large transactions is removed. 
Article continues on next page. Please click below.
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Annual growth in transfer duty averaged over 22.6% from 2000-01 to 2007-08, driven by a range of factors including Queensland’s relative affordability of housing, high population growth and the impact of the burgeoning mining sector. 
Transfer duty growth is expected to be modest relative to that experienced between 2000-01 and 2007-08. The transfer revenue is tipped to be $2.65 billion in the 2014/15 year, compared to $2.42 billion in 2013/14. There is a $2.73 billion estimate for 2015/16.
"While low interest rates and a solid economic outlook are expected to support recovery in the property market, this is expected to occur at a gradual pace, particularly in the non-residential sector," the budget papers said.
Average growth of around 6.6% per annum is expected over the period 2013-14 to 2017-18.
Every one percentage point increase in the volume of sales sees transfer duty collections increase by about $25 million.
Land tax revenue of $980 million this year is tipped to increase to $995 million in the 2014/15 year.
Transfer taxes represent 21% of state taxation income and land tax represents 8%. 
Revenue growth from transfer duty can vary significantly from year to year due to the volatility of both the residential and non-residential segments of the property market, while land tax has a relatively stable base and the effect of three year averaging of land values for assessments.
Resident individuals are generally liable for land tax if the total taxable value of the freehold land owned by that person as at 30 June is equal to or greater than $600,000.
Companies, trustees and absentees are liable for land tax if the total taxable value of the freehold land owned as at 30 June is equal to or greater than $350,000.
Land tax is estimated to grow by 1.5% to $995 million in 2014-15, the first year of annual growth since 2010-11.
The budget papers noted in recent years, land tax revenue has been adversely impacted by declining values, particularly for commercial and multi-unit residential land. 
Real Estate Institute of Queensland’s chief executive Anton Kardash said Queensland's real estate sector was starting to hit its straps" with more favourable market conditions.
The Queensland Treasurer, Tim Nicholls, has delivered a budget with a projected surplus of $188 million, the first surplus in a decade.
"The Queensland economy is now entering a period of transition as the investment phase of the large LNG projects nears completion and the production and export of LNG begins.
"Supported by sustained low interest rates, rising asset prices and a lower exchange rate, economic growth in 2013-14 is expected to be underpinned by household consumption growth, a recovery in dwelling investment and a significant contribution from net exports.
"However, as construction of the major LNG projects nears completion, business investment is expected to fall and see overall economic growth ease to 3% in 2013-14, compared with 3.6% in the previous year," the budget papers said. 
Employment growth picked up during the course of 2013-14, supported by some recovery in the labour-intensive household sector.
"This recovery is expected to support a further strengthening in employment growth in 2014-15 and beyond.
"This, in turn, is expected to drive a steady improvement in the unemployment rate, from 6% in 2013-14 to 51⁄2% in 2016-17."
Following the global economic slowdown, Queensland’s annual population grew by almost 95,000 in the year ending December quarter 2012.
Since then, it has fallen back to approximately 84,000 in the year ending September quarter 2013, reflecting lower inflows from both net overseas and net interstate migration.
The decline partially reflects a slowdown in the influx of workers as the resources investment boom peaked during 2013.
"Looking ahead, net overseas migration to Queensland is expected to pick up to be more in line with the State’s share of the national population.
"This increase will be supported by an expected recovery in overseas student arrivals as a result of the lower Australian dollar, as well as measures to simplify student visas.
"Net interstate migration is also expected to recover from current low levels, assisted by improved housing affordability in Queensland relative to New South Wales and Victoria," the budget papers said.
Overall, Queensland’s population growth is expected to be 13⁄4% in 2013-14, similar to that nationally. Growth in Queensland is then expected to strengthen to 2% per annum over the remainder of the forward estimates period, slightly stronger than the 13⁄4% per annum forecast national growth over the same period. 
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Interstate investors arrive as Queensland Great Start Grant finally finds a place

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GUEST OBSERVATION
When should a young person start getting paid as an adult?
It depends on where the money is coming from, according to current government policy - policy that is sending conflicting messages about the true value of young people to Australia’s economy.
In March, the Fair Work Commission (FWC) decided to alter the General Retail Industry Award so that 20 year olds would receive the “adult” rate of pay instead of the current rate of 90%. They will now be eligible for the full adult rate once they have been in the job for six months. This means that 20-year-olds will be treated virtually the same as those aged 21.
And yet in May, the federal budget proposed that unemployed people under the age of 25 would no longer qualify for the Newstart allowance of $510 a fortnight, currently available to people after they turn 22. People under 25 will have to apply for the lower Youth Allowance of $414 a fortnight at the full rate.
Currently, the Australian Chamber of Commerce and Industry (ACCI) is <a href="https://www.theaustralian.com.au/national-affairs/policy/business-push-on-sunday-penalties/story-fn59noo3-1226940798835#mm-premium" target="_blank">leading a campaign</a> to lower Sunday penalty rates, arguing that it will create jobs for young people.
These measures send contradictory messages about when young people officially join the mainstream “adult” workforce. Let’s look at each in turn.
First the FWC decision. The Australian Retailers Association has argued that changes to the system of junior rates could discourage employers from appointing young people. But as Damian Oliver from the University of Sydney has <a href="https://theconversation.com/adults-in-all-but-pay-the-case-for-increasing-youth-wages-16030" target="_blank">pointed out</a>, some employers already pay young people in this age group at the adult rate.
Parts of the manufacturing and construction industries - significant employers of young males - have already removed junior rates for many categories of workers aged 18 to 20. Coles and Woolworths, the two largest employers of young people in the retail sector, have already removed junior rates for 20 year olds from their enterprise agreements.
Casual work is on the rise
At the same time, young people face an increasingly casualised workforce, with access to full-time secure work happening later in life. The steady decline of full-time job opportunities over the last 20 years has meant that many teenagers must make do with part-time and casual work, in which associated entitlements such as access to flexible holidays are not available. Combine this with the ever-increasing challenges of entering the housing market and young people find that the secure markers of “adulthood” enjoyed by previous generations are often out of reach. Recognition of a fair level of pay commensurate with “adults” is one of the few concessions available in a fluid job market.
Recent surveys of business show concern that young people lack loyalty to their employers. Loyalty is a two-way street. Recognition of the value of young people’s labour through wage levels, with the expectation that in return young people will stay with employers, is one way of addressing this concern, so the FWC decision is potentially positive in this regard.
The Australian Industry Group has suggested: “The emphasis should be on preserving employment in the industry, not on imposing higher costs,“ but a more sophisticated response is required that both ensures fairness as well as providing youth employment and training opportunities. Arguably, wage rates could be traded off against traineeships with a qualification at the end or other benefits.
A less sophisticated approach is to lower penalty rates. ACCI Chief executive, Kate Carnell, <a href="https://www.smh.com.au/small-business/trends/acci-prioritises-youth-unemployment-20140521-38naz#ixzz33XBhZTkq" target="_blank">recently suggested</a> that “With youth unemployment rates going up, and the policies announced in the budget… you could get more jobs, especially with the young market, very quickly with movement on weekend penalty rates”.
With major employers of young people such as retailers joining the campaign, there is some justification to potentially opening up job opportunities. But again, the value of young people’s work (and rest) is ambivalent. While it may create jobs, it may also inadvertently contribute to the broader lack of security that permeates the youth labour force. And the argument that these jobs will lead to secure employment becomes problematic given that teenagers in part-time work are only <a href="https://www.fya.org.au/wp-content/uploads/2011/11/FYA_HYPAF_Full_Report_PDF.pdf" target="_blank">slightly more likely</a> to move into full-time employment than those who are unemployed.
Earning or learning
Under the government’s new earning or learning regime, jobseekers under the age of 30 will have to wait six months before receiving unemployment benefits, depending on their work history. In one stroke, this policy effectively extends the age of transition from school to work by five years. It does this by treating young people under 30 as one category, consisting of those who apparently need economically punitive motivation to seek work. Advocates of this policy may characterise this as an “incentive”, but the outcome is the same: if you’re young and not earning or learning, you will not be supported by government support derived from societal taxation.
What this does is to extend the economic definition of unemployed youth to the age of 30. It stands in contrast to the FWC’s implied judgement that 20 year-olds should be treated the same as those aged 21. The latter decision affords entitlements to a fair wage to younger Australians, the former denies entitlements to later in life. One step forward, two steps back.
At the heart of the FWR decision is that “the discounted rate for all 20-year-old retail employees is not a fair and relevant minimum safety net”.
Beneath these decisions is a social question: “When does a young person become an adult?” Prior to this decision, 18 year-olds working in retail are paid 70% of the full adult rate (i.e. the wage applied to those over the age of 21). 19-year-olds are paid at 80% of the wage, and so on until at age 21 they are recognised as “adults”.
What changes between the ages of 20 and 21? Based on the evidence, the Commission found there to be “little difference in the duties and responsibilities assigned to 20 and 21-year-old retail employees”. And what changes between the age of 21 and the age of 30?
A consistent message needs to be sent to young people about their economic status as “adults”. Recognising their work through providing the adult wage level is one small way of doing this, while addressing the discrimination evident in the way young people are paid.
The FWC described the decision to change the retail award as a special case and that this would not necessarily lead to similar findings for other awards. The federal government’s policy to alter conditions for receiving Newstart Allowance has yet to make its way through the Senate.
When viewed in combination, these approaches to youth employment suggest we are some way off from sending a consistent message to young people about the value of their work to the economy.
Lucas Walsh is associate professor and associate dean (Berwick), faculty of education at Monash University.
This article was originally published on <a href="https://theconversation.com">The Conversation</a>. 
Photo courtesy of Flickr/<a href="https://creativecommons.org/licenses/by/2.0/" target="_blank">Creative Commons</a>.
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jake-cSmGT7VXVf

Earning, learning or confused: Mixed signals on jobs for young

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First home buyers are fighting with a 100 pound gorilla with one arm tied behind their backs as they compete with investors who have the luxury of negative gearing and superannuation funds.
But laws around negative gearing and super are unlikely to change so it’s time to revisit the issue.
I believe the answer lies in rethinking superannuation laws and first home buyer grants.
Historically the family home has been the corner stone of ones wealth but this is in danger of being lost. Superannuation was implemented to help people self fund their own retirement and compliment the wealth in their family homes. I believe that allowing first home buyers to access their super and assist them in laying that foundation keeps within the spirit of superannuation.
 A worker who earns the average Australian income of $50,000 a year will have around $36,000 in super by the time they are 30 not including any return on their investments. As a couple that is $72,000! They also have the benefit of diverting more of their income into a tax-sheltered environment. It would not be unreasonable for a first home buying couple to have in excess of $100,000 in super by the time they want to purchase their first home.
<blockquote>
Buying a property is only the first step to home ownership. Keeping up with the mortgage payments is where the real pain starts to bite.
</blockquote>
A large deposit like this would mean first home buyers have more equity in their home and as a result in a more stable financial position. It would also save a significant amount in interest. For example if a first homebuyer had a $100,000 deposit they would only need to borrow around 80% of the property value rather than 90% or more. On a $500,000 home that would save them $2,500 to $3,000 per annum in interest.
They would also avoid paying a hefty mortgage insurance bill of around $5,000 to $10,000 in most cases.
Buying a property is only the first step to home ownership. Keeping up with the mortgage payments is where the real pain starts to bite. If governments really want to help with home ownership they should look at providing ongoing assistance and review first home buyer grants.
First home buyer grants have evolved over the years but on average they provide first home buyers with around $10,000 cash or stamp duty saving benefits. Rather than paying first home buyers a lump sum payment that is usually paid to the banks for mortgage insurance, I believe annual payments will be more effective and a better use of taxpayer money. An annual payment of $2,000 a year for the first five years would help first home buyers establish themselves in the market.
While the devil is in the detail the points outlined above provide a win-win outcome. The government wins as it helps solve first home buyer affordability at no extra cost. The economy wins, as more money will flow into the important building industry. First home buyers win as they will enter the market without paying mortgage insurance and save around $5,000 per annum in holding costs for the first five years.
There is a potential downside in that it would place further pressure on property prices. However this is already happening even without first home buyers and these ideas will go a long way to levelling the playing field between first home buyers and investors.
They would help young Australians into the market and start the process of building wealth in one of our most powerful tax-free investments – our home.
Mark Armstrong is a director of <a href="https://www.ipropertyplan.com.au/">iProperty Plan</a>, which provides independent analysis and tailored advice to investors and home buyers.
This article was first published on Property Observer in October, 2013.
YOU MAY ALSO LIKE TO READ:
<a href="/expert-insights/buying/exclusive-first-home-buyer-picks-from-the-experts">Exclusive: First home buyer picks from the experts</a>
<a href="/expert-insights/investing/how-will-rising-student-debt-affect-first-home-buyers">How will rising student debt affect first home buyers?</a>
<a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">The national guide to first home buyer grants</a>
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marmstrong-sd3emVLPPb

It's time to re-think first home buyer grants

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Only 28 days remain for first home buyers in South Australia hoping to receive government assistance to buy an established home.
South Australian first time buyers are currently eligible for a first home owners grant (FHOG) on both new homes and established homes. 
For those purchasing established homes, current $5,000 is attainable. However, from the start of July the grant for established properties will end.
For those buying a new home, a grant of $15,000 is achievable for properties not exceeding $575,000 in value.
If you previously held any interest in residential property before 1 July 2000, even if it was an investment property, you're not eligible.
Those who have had a property since - but used it solely for investment purposes and did not live in it - may be eligible. You'll need to give them tax return details, tenancy agreements and current electricity and phone accounts.
After the property is built, you must then live in the property for six months commencing within 12 months of completion.
Off-the-plan properties may also be eligible for a stamp duty concession for a new apartment or substantially refurbisged apartment. This is for properties from 31 May 2012 to 30 June 2014, capped at the stamp duty payable on a $500,000 apartment (or $21,330). A partial concession will apply from 1 July 2014 to 30 June 2016.
The concession does, however, apply to specific areas as outlined on the Revenue SA site and associated maps.
You can check out the <a href="/expert-insights/buying/the-national-guide-to-first-home-buyer-grants">national guide to first home buyer grants</a> to see a more detailed rundown of what's available across Australia for first home buyers.
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South Australian FHOG for established houses runs out on 30 June

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GUEST OBSERVATION
Until now, student debt in Australia has been relatively modest, with low repayment rates, low indexation and high repayment thresholds. This won’t be the case if the government proceeds with changes mooted in the recent budget, including higher fees and higher interest on debts. Australia will move to a student debt model similar to the US, so this is a good place to look at the effects that large levels of debt have on young graduates.
<a href="https://www.demos.org/what-cost-how-student-debt-reduces-lifetime-wealth" target="_blank">Much recent research</a> from the United States shows that student debt is having profound and negative effects, both at the individual and at the national level.
Graduates living with debt
Purdue University is a public university in South Bend, Indiana. President Mitch Daniels commissioned a large, evidence-based study of the impact of student debt on university graduates. <a href="https://www.gallup.com/strategicconsulting/168791/gallup-purdue-index-inaugural-national-report.aspx">The results</a>, based on a survey of 30,000 graduates, were recently released.
The <a href="https://www.nuvo.net/indianapolis/purdues-mitch-daniels-talks-college-costs/Content?oid=2837651#.U4KfSPmSyPY" target="_blank">findings of the study</a> are sobering, on two fronts.
First, student debts weigh heavily on students’ later wellbeing. Wellbeing was measured along five dimensions: life purpose, social engagement, community engagement, financial satisfaction and physical health. Graduates without student debt were seven times more likely to report themselves to be “thriving” along all of these dimensions than graduates (or indeed dropouts) with more than $40,000 in debt.
This finding tends to confirm the results of a <a href="https://www.sciencedirect.com/science/article/pii/S0272735813001256">major meta-analysis</a> of evidence from the United States, the United Kingdom and New Zealand. The findings suggest that higher levels of debt while a student are significant predictors of stress and secondary negative health consequences. This study also points to other evidence of serious consequences more generally. Higher levels of debt have serious long-term consequences, including mental, neurotic or psychotic disorders, depression, suicide attempts (or suicide completion), problem drinking and drug dependence.
Secondly, large debt burdens influence choices related to work, careers and lives. Graduates with higher debts are less likely to be entrepreneurial and start new businesses. This is to be expected, as student debt repayments tend to constrain the capacity to borrow for other productive purposes.
In the robust free-market economy of the US, such entrepreneurial timidity among the best and brightest is a source of real and valid concern for policy makers.
Other <a href="https://www.sciencedirect.com/science/article/pii/S0047272710001337" target="_blank">recent research</a> has shown that students with higher debts tend to pursue higher-paying careers, not pursuing “public interest” jobs in areas like teaching and community services. Over time, this means that public institutions like schools will have to pay higher wages to attract the best and brightest, indirectly shifting some of the cost of student debt back to the taxpayer in the form of higher public sector salaries.
Large student debts <a href="https://www.learnvest.com/2012/10/real-women-speak-out-how-student-loans-have-affected-me/" target="_blank">have also been shown</a> to lead to delays in home purchases and having children.
Debt ain’t free
Shifting more of the burden for higher education back on to students, and saddling them with huge debts, may seem like a good idea for policy makers, but it will have serious long-term consequences for those students and thus the wider Australian community.
In the United States, the average student graduated with around $30,000 of student debt in 2013. Currently, Australian graduates of three-year business degrees have debt of a similar level.
If the proposed changes lead to higher fees, <a href="https://theconversation.com/how-much-student-debt-will-you-be-facing-post-budget-26712" target="_blank">as most analysts expect</a>, it would be reasonable to anticipate the graduates of 2018 completing their three-year degrees with debt of around $50,000.
It would be naïve to think debts of this level won’t have far-reaching consequences for graduates’ well-being and the work and economic choices they make in their lives. These choices will have serious consequences for our economy and society.
John Rice is associate professor in strategic management at Griffith University.
John Rice works for Griffith University, a public university. His most recent previous role was Chief Researcher at the National Centre for Vocational Education Research, a ministerial company owned by the Commonwealth and State education ministers. He has received grant funding from the Australian Research Council. He is a current member of the Australian Labor Party and the National Tertiary Education Union.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
Photo courtesy of <a href="https://taxrebate.org.uk/" target="_blank" rel="nofollow" data-rapid_p="22">TaxRebate.org.uk</a> / <a href="https://creativecommons.org/licenses/by-sa/2.0/" target="_blank">Creative Commons</a>.
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