<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Policy

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Regional banks have called on the Financial System Inquiry to address issues that they say have created competitive advantages for the big four banks in home lending and other financial services.
In a joint submission to the inquiry, Bendigo and Adelaide Bank, BOQ, ME Bank and Suncorp Bank said the fall-out from the global financial crisis had favoured the major players.
“The banking landscape is now characterised by a higher degree of market concentration, consolidation and increasing dominance of the large banks relative to other providers,” the banks noted in their submission, which was prepared with the help of Pegasus Economics.
“While smaller banks and others provide customers with real alternatives and choice when it comes to financial services, these smaller participants do so at a distinct competitive disadvantage.”
Over the past few years, the major banks had become more vertically integrate with mortgage brokers and financial advice networks, which the regional banks’ submission claimed provided advantages in distributing home loans and other financial products.
The regional banks recommended the inquiry consider commissioning the Australian Securities and Investments Commission to survey the market to assess whether the major banks’ multi-brand strategies were confusing consumers about ownership.
“If it is found that confusion does exist, then a strong disclosure obligation must be introduced to ensure customers are making informed decisions,” the banks said in their submission.
The regional banks also noted that significant funding and cost advantages were available to the big banks deemed “systemically important” and that new regulatory and prudential requirements cost more, in relative terms, for the regional banks to implement.
They also claimed that asset requirements under the Basel capital adequacy framework made it more profitable for the big banks than for the regional banks to issue home loans.
The four big Australian banks, which had undertaken advanced Basel accreditation, were required to hold on average 1.3 cents of capital against each $1 of mortgage credit, UBS Securities Australia estimated. Banks operating under the standardised accreditation – including the regional participants – must hold up to three times more capital for the same loan.
The difference in capital requirements meant that the implied return on equity for ANZ to supply a home loan (estimated to be around 50 basis points) was 34.92% while the same mortgage delivered Bank of Queensland a return on equity of just 14.17%.
Other submissions to the Financial System Inquiry did not agree that competition in the mortgage market was inadequate.
The Reserve Bank of Australia in its submission said a good deal of focus had already been placed on competition in the mortgage market since the financial crisis and that competition in the market for small business loans was more of a concern.
“The [Reserve] Bank considers that this market should be the focus of inquiries regarding competition in lending, rather than the mortgage market,” it said.
Commonwealth Bank of Australia and ANZ agreed in their separate submissions that the inquiry should focus on improving the depth and liquidity of debt markets, on ensuring regulatory standards were consistent and on improving consumers’ financial literacy.
ANZ said: “An open market should continue to be the primary mechanism for maintaining an efficient, competitive financial system. Improvements to retail bond markets and removal of interest withholding taxes would promote efficient competition.”
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zfielding-GvX3Uq9KTa

Regional banks highlight competitive disadvantages in Financial System Inquiry submission

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RE/MAX Western Australia’s managing director Geoff Baldwin has spoken out against potential changes to current stamp duty dispensations for first home buyers, saying that if the relief was decreased or abolished there would be dire effects across the market.
 “The negative affect the ceasing of stamp duty relief for first home buyers would be extremely damaging however, when this segment of the market stagnates it ripples up through all price ranges and the effect would be crippling”, said Baldwin.
“If you take a line through New South Wales and Victoria where subsidies have been abolished, first home buyer activity has dropped to 8% and 12% respectively, compared to the current 22% in Western Australia (RP Data).
“Historically, in a healthy market, first home buyers account for around 25 to 30% of all buyers.
“The established home market has already taken a massive hit through the government’s recent actions in changing the First Home Owner Grant whereby those building new homes receive $7,000 and people buying established only $3,000.
“To abolish first home owner stamp duty concessions would be extremely short sighted as it will a negative impact the whole market and hence the Industry, just at a time where we are again experiencing some prosperity in the property sector.”
 
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Rumoured cuts to stamp duty relief for first home buyers would be “extremely damaging”: RE/MAX

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GUEST OBSERVATION
One of biggest issues to be addressed in last weekend’s WA Senate poll - and perhaps one of the most complex, too - was how best to maintain the state’s growth trajectory through the forthcoming period of transition.
Western Australia has undeniably seen the benefits from sustained economic growth over the course of the resources boom, with the state’s per capita gross income rising to around 50% above national levels in little over a decade.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/45584/width668/2z8jq8pc-1396569575.jpg" alt="">
Real per capita Gross State Income: WA and Australia, 1992 to 2013
However, the latest economic data does support the view that the WA economy has passed the peak of the construction phase of the commodities boom (characterised by growth in productive capacity, high employment and real wage growth). It is now moving to a production phase in which the state’s productive capacity is “put to work” in driving resource volume and export growth.
Early signs of this transition can be seen in reduced capital investment growth, lower participation and rising unemployment. WA’s unemployment rate has almost always been below the national rate, but there are signs that the unemployment and participation gaps are narrowing.
<img src="https://62e528761d0685343e1c-f3d1b99a743ffa4142d9d7f1978d9686.ssl.cf2.rackcdn.com/files/45580/width668/pkb3vxgg-1396569393.jpg" alt="">
Unemployment and labour force participation: WA and Australia, 1991–2013
Relatedly, the changing workforce and skills requirements for WA require careful thought. Skilled migration, whether from interstate or from overseas, can only do so much to meet the changing demand for labour in the state. The shifting industrial composition also requires an education and training system flexible enough to retrain WA workers to match the needs of industry.
Housing policy was also an important battleground in this weekend’s elections.
Industry group affordability indicators published recently suggest that WA isn’t significantly out of line with other states and territories. However, most of these measures dwell on cost burdens for the “typical” family and house, disguising some big economic and social issues facing policymakers.
The Perth housing market has a real problem providing affordable rentals to low income families, or the right types of properties in the right locations. The housing sector points to high construction, regulation and approvals costs as the main impediment to the efficient supply of affordable housing. Whatever the cause, these issues are common topics of conversation for West Australians.
Australia raises proportionately more in direct taxation than the OECD average (around 60%, two thirds of which is personal income taxation) but significantly less from indirect taxes (mainly GST) - 13% against an OECD average of around 19%.
Federal Treasury secretary Martin Parkinson this week rehearsed the positive arguments for shifting the balance of income taxation and GST more towards the latter, but the context is not textbook. If you had to raise more revenue as a government to honour public spending commitments on NDIS, health and schools reform, support the ageing baby boomer population, and defend against falling terms of trade, which would you choose?
<blockquote>
Housing policy was also an important battleground in this weekend’s elections.
</blockquote>
The subtle increases in direct tax revenues through fiscal drag can stretch only so far, and more overt increases in company or personal income taxation face strong political headwinds. It does seem unnecessarily restrictive for the Federal government to deliver effective tax policy in more challenging economic times with its GST hand tied behind its back. However, consumption taxes may be more efficient, but they’re more regressive too.
WA households have experienced significant real incomes growth over the course of the resources boom, not just in absolute terms but relative to the national trend. But this growth hasn’t been distributed evenly, and the impact of an increase in GST tends to fall regressively on lower income earners who are less able to substitute away from consumption.
With the falling allocation of the GST wealth share to WA - down to 4.2% - placing more pressure on the state’s spending program, there is a need to ensure that economic policy responses don’t contribute to further increases in inequality beyond those already seen.
When it comes to GST shares, it’s hard to argue that WA gets out what it puts in. However, whether the GST return to WA is “fair” (or at least reasonable) depends on the position one takes on the redistributive philosophy underlying the allocation of GST shares across states and territories.
Alan Duncan is director of the Bankwest Curtin Economics Centre and Bankwest Research Chair in Economic Policy at Curtin University.<img src="https://counter.theconversation.edu.au/content/25135/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
The Bankwest Curtin Economics Centre is an independent economic and social research organisation located within Curtin Business School at Curtin University. The Centre was established in 2012 with support from Bankwest (a division of Commonwealth Bank of Australia) and Curtin University. The views in this article are those of the author and do not represent the views of Curtin University and/or Bankwest or any of their affiliates.
The views in this article are those of the author and do not represent the views of Curtin University and/or Bankwest or any of their affiliates.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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jake-cSmGT7VXVf

Enough talk: the economic policies that WA needs now

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Australia’s retirement income system is the most sustainable of 50 countries, according to a new survey by Allianz.
The Allianz 2014 Pension Sustainability Index report found that Australia’s combination of a public and private retirement income made it the most sustainable, placing it ahead of Sweden, New Zealand, Norway, the Netherlands and Denmark.
The annual report examined key elements of each nation’s pension system, both public and private, and the developments that influence them. It also evaluated the pressure on governments to effect reform to improve the fiscal sustainability of their systems.
Australia’s two-tier system, with a lean public pension and highly developed funded pension, means it is under the least pressure to reform.
New Zealand was also found to have a sustainable pension system, as it is not aging as rapidly as many other countries, and its labour force tends to work beyond statutory retirement age.
The report found that Thailand has replaced Greece as the nation with the most need to reform its pension system. Thailand has an extremely low retirement age and sporadic pension coverage.
Brazil was ranked second lowest, due to its high replacement rate and low effective retirement.
Allianz found that, in addition to Greece, Ireland, Luxembourg, Romania, Singapore, Turkey and the US were able to move more than five places up in the rankings from the 2011 report. It found a combination of factors led to this improvement, including improved aging perspectives and improved economic development.
Countries that dropped in ranking included Croatia, France, Hong Kong, Malta, Slovenia and Taiwan.
Allianz general manager of corporate affairs Nicholas Scofield told SmartCompany that one of the reasons Australia’s pension was sustainable was that it paid 42% of the average wage, while other countries paid much higher portions of their country’s average wage and had been slow to implement <a href="https://www.smartcompany.com.au/finance/superannuation/35084-apra-statistics-reveal-huge-gap-between-the-best-and-worst-superannuation-funds" target="_blank">private superannuation</a>.
Schofield says that while the Australian system is sustainable, the report does not rank on generosity. In Canada, France, Germany, Spain, Italy, Japan and Korea, the portion of the average wage paid was closer to 60%, while in Spain it was more than 70% and in Italy it was 80%.
The findings of the survey appear to contradict perceptions that Australia’s superannuation system and pension is in need of urgent reform, and Scofield says it shows there is a lot Australia is doing well.
“Australia moved early on establishing a private contribution system … there are some countries that are still starting that journey,” he says.
He says that with superannuation contributions edging towards 12%, Australia’s pension sustainability should continue.
Allianz Australia managing director Niran Peiris said one area the report found concerning was that Australia’s superannuation system allowed people to give lump sum contributions.
“The report highlighted that allowing people to take all their superannuation savings as a lump sum to be used to repay home mortgages or other purposes risked leaving retirees with reduced incomes for their retirement,” he said.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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moliver-7qYWqnHmyR

Australia’s pension system is world’s most sustainable, study finds

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Taxpayers could be hit with an extra $32.5 billion in tax in the next decade, unless the federal government make changes to personal income tax brackets, according to a new report.
Research commissioned by The Australian and conducted by the University of Canberra found if there are no changes to the personal income tax brackets, the number of people paying the top tax rate would increase by 134% in the next 10 years to just under 900,000 people.
The number of Australians paying the second highest rate, 37 cents for the dollar, would jump by 85% to 3.7 million.
This article first appeared on <a href="https://www.SmartCompany.com.au">SmartCompany</a>.
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yredrup-o4Anfe78KF

Millions of Australians to face higher tax brackets

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Complying with your legal obligations is crucial, regardless of whether you use a property manager or self manage your properties.
With this in mind, we're sharing 10 'must know' things from the Residential Tenancies Act in New South Wales and encouraging you to provide your own. Next week, we'll tackle Victoria.
<ol>
<li>
That the following terms are not allowed in your agreement:  - A requirement for the tenant to have the carpet professionally cleaned, or to pay for the cost of this service, at the end of the tenancy. - This may not apply if the tenant has pets. That the tenant needs any sort of specific insurance.  - That any rebate may occur if the tenant does not breach the agreement, and, on the other hand, that a tenant is liable to pay all the remaining rent, increased rent or a penalty if they breach the agreement. 
</li>
<li>
Your tenant has anti-discrimination rights.   While this can be a broad topic, you must not discriminate against tenants on the basis of your tenant's race, religion, sexual oritenation, age or any disabilities. Discrimination can be seen as broad, and may include undertaking extra inspections due to a tenant's age. 
</li>
<li>Pet bonds are not allowed. </li>
<li>
You do not have to allow sub-letting.  If a tenant is sub-letting without your consent, that is having another resident in the house pay rent to themselves, this is against the agreement. 
</li>
<li>
Tenants must be provided 60 days of written notice for a rent increase.   When 'written notice' is mentioned, you must allow time for postage if this is your intended method. It is recommended that landlords and property managers keep clear records of when notices have been sent, to avoid a breach. 
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The property must be in a reasonable state of cleanliness, and it must be habitable, when provided to the tenant.   While this is a debatable point, it's largely worth remembering the state of a property you would be happy to inhabit, and emulate this. Remember to focus on making the property compliant, safe and clean. 
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Tenants are required to report the need for repairs and maintenance.  They must also not make material additions or changes, such as the alteration of locks or security devices, or fly screens, without the consent of the landlord. 
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There is a limit on the amount of bond you can charge a tenant. In New South Wales, this limit is up to four week's of the rent you have agreed to pay. As a landlord or property manager, a bond lodgement form is required to be provided to the tenant. 
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A landlord must tell tenants 'material facts'.   These material facts include whether the home has been subject to serious flooding or bushfire in the past five years, if there are any health/safety risks or if the home has been the scene of a violent crime in the past five years. 
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A tenant should be provided with a condition report. The tenant should be provided two copies, one of which is for their records, the other is for the property manager. They should be given seven days in which to complete and return this form.
</li>
</ol>
Do you have any "must know" facts from the Residential Tenancies Act? Share yours below.
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10 things you need to know about NSW's Residential Tenancies Act

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Australia faces medium term challenges of paying for the things it wants to do as a society and finding enough workers as the population ages, Reserve Bank Governor Glenn Stevens says.
Stevens strongly backed Treasury Secretary Martin Parkinson who <a href="/expert-insights/finance/treasury-boss-hints-at-the-need-for-a-broader-gst">this week outlined</a> the huge calls on the budget over the coming years and urged a reweighing of the tax system to rely more on indirect taxes such as the GST.
Speaking in Brisbane, Stevens said it was becoming clear that programs were not fully funded by taxes over the medium term. “Our situation is not dire by the standards of other countries but neither are the issues trivial. A conversation needs to be had about this,” he said.
He described the Parkinson speech as “very important”.
Stevens said it was understandable that with announcements of job losses people focused on where future jobs would come from. But the problem was more likely to be not enough workers, rather than not enough jobs.
At present the number of new entrants to the workforce exceeded those retiring. 10 years from now, those numbers could be roughly equal, without a further rise in labour participation by older people.
“Demographic trends point in the direction of a smaller population working, and a larger proportion needing support in their later years, even as public demands on the finances for the provision of social goods increase.
“That looks like a pretty uncomfortable combination of trends.”
He said the answer to reconciling them was growth. To some extent we would hopefully be able to lessen the problem through higher labour participation, for longer. “But most of all we will need higher productivity of those working. That means making the system as flexible as possible and as encouraging as possible to innovation.”
For Australia one potential source of productivity improvement lay in the fact that across a range of sectors US productivity was much higher than our own. There were possibly substantial “catch up gains” to us by adopting better practices.
To those worried about projected job losses, Stevens pointed out that new jobs “will come from areas that we don’t see yet”.
“In the middle of 1991, at the low point of the last serious recession, people were very pessimistic about future employment prospects. The rate of unemployment was in double digits.
“But today, over 20 years later, there are nearly four million new jobs in the economy as there were then. The rate of unemployment, although it has gone up recently, is just slightly more than half what it was at its peak in the 1990s.
“It’s worth noting that none of those additional net jobs came from manufacturing,” Stevens said.
MICHELLE GRATTAN is professorial fellow at the <a href="https://www.canberra.edu.au/" target="_blank">University of Canberra</a>.<img src="https://counter.theconversation.edu.au/content/25216/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>. 
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Finding workers and money our main worries: Glenn Stevens

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First National Real Estate has called on governments to cut restrictions on housing supply.
According to the real estate agency, poor planning and policy co-ordination has contributed to affordability issue leading to Australia’s lowest level of home ownership in 40 years. First National cites a 2.3% average national price rage in March and a cumulative price increase of 16% since June 2012 at the commencement of the current growth cycle.
First National chief executive Ray Ellis attributes price increases to infrastructure costs.
“Although these gains have mostly been in Sydney and Melbourne, the price of land for new homes nationally has climbed hugely, largely as a result of exorbitant headworks costs. Developers can only contain costs and maintain affordability by subdividing land into ever-decreasing block sizes,” said Ellis.   “Local council headworks charges used to cover things like water and sewerage but they now include a host of other charges, including infrastructure costs for roads and, in some cases, recreational and community facilities, electricity charges, footpath networks and more. As a result, the land cost of a new home has surged by 150% square meter in the past decade.”
While First National has acknowledged changing population demographics, living costs, interest rates and stamp duty and taxes as factors in affordability, the company believes that under supply is the major driver for increased prices. According to First National, the market is absorbing all new supply, a sentiment aired earlier this week by RP Data’s Cameron Kusher.
Ellis says that supply side issues may contribute to further affordability issues.
“Although the number of new residential listings coming to market is higher now than it was at this time last year, the total amount of real estate for sale in Australia is actually close to 4%lower. While this means homes are selling very quickly, if supply is not addressed, the gap between supply and demand will significantly widen by 2015, potentially reducing affordability,” he said.
Further policy factors that are hindering the efficiency of the market include state based stamp duties, First National has claimed, which discourage housing turnover and inhibit labour mobility. According to the agency, stamp duties were “supposed to have been removed” when the GST was first introduced.
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Poor planning threatening home ownership: First National

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Modern governments believe that during budget framing, it is politically savvy to parade the pain. We saw it with Labor and the Coalition is doing the same.
There are scary scenarios of what would happen without remediation, with warnings about problem areas. Some surprises will be held for the night, but other measures will be strategically “leaked” beforehand.
Tony Abbott, in Perth campaigning for the West Australian Senate election, let it be known he was chairing Wednesday’s meeting of cabinet’s expenditure review committee.
Shadow treasurer Chris Bowen declared it was the first time in Australian history a PM had chaired the ERC, claiming it showed dysfunction at the highest level.
This was nonsense. The government could quickly counter that Bob Hawke, John Howard and Kevin Rudd had also done so.
But it was surprising Abbott gave such a high profile to this “razor gang” meeting.
The ERC is all about nasties and, after all, Labor is making the prospect of deep budget cuts a centrepiece of its WA Senate campaigning. Abbott seemed to be providing ammunition. On the other hand, he could take the view Labor had the bullets anyway so he might as well play the longer game.
Treasury secretary Martin Parkinson publicly chimed into the pre- budget debate with a speech reinforcing the government’s lines about spending growth in the big areas.
But Parkinson also sent a public message to the government for later about what it should do on taxation.
With Hockey shining attention on health and pension costs, Parkinson documented the escalation.
Total Commonwealth spending on health is set to rise from $64.7 billion in nominal terms in 2013-14 to $74.6 billion in 2016-17, and to $116 billion in 2023-24.
The Commonwealth’s three main pension payments - for the aged, those on disability support and carers – will grow at an annual 6% in nominal terms over the forward estimates, adding $13 billion to annual payments by 2016-17, and another $39 billion by 2023-24. “Of this nearly $52 billion in additional payments in 2023-24, compared to 2013-14, over half is a result of indexation with the remainder due to increases in the number of recipients.”
That seems a fair hint that both drivers are being looked at. It should be remembered that successive governments have been trying to curtail the numbers on the disability pension but it has seemed a losing battle. It’s never as easy as it looks in theory.
Parkinson then turned to the tax side. His argument, aimed well beyond this budget and directed squarely at the political masters he will leave in December, is crystal clear. Australia needs a tax system it relies more on indirect tax, less on direct tax. The king of indirect taxes is, of course, the GST.
Parkinson pointed to one rather surprising fact, given the tax debates we’ve been through over many years. “Despite reforms that broaden the tax base (such as the GST), and decisions that have lowered corporate and personal tax rates across the decades, the share of direct and indirect taxes (as well as Australia’s reliance on income taxes) has changed little since the 1950s.”
Australia had relatively high reliance on direct taxes as a proportion of revenue raised compared with other OECD countries, he noted, before observing that: “Research consistently says that reduced reliance on income taxes and increased reliance on other, more efficient sources of revenue, including indirect taxes, can support higher growth and higher living standards by increasing workforce participation and lifting productivity.”
The problem is that “without conscious change, Australia’s tax mix will move in the opposite direction as personal income tax increases through fiscal drag”.
“We will move even further in this direction if, as we anticipate, the relative share of total indirect taxes (including GST) continues its long-term decline. Contributing to this decline is the non-indexation of fuel excise (unlike other excise rates) and a rising proportion of consumption outside the GST net, for example, in increased health expenditure.”
Parkinson warned that “continued increases in the personal income tax burden will hit lower and middle income earners with higher marginal and average tax rates. This will have adverse labour force participation impacts, while sharpening incentives for tax minimisation by higher income earners”.
The globalised economy meant Australia would be under pressure to cut the company tax rate.
“Given the pressure to return fiscal drag and to reduce the burden of corporate income tax, it will be a challenge to maintain the current levels of revenue over the medium term, let alone the increases required to achieve the budget projections.”
In the past, Parkinson said, tax reform had largely been pursued through broadening tax bases as an offset for lowering tax rates.
“However, a key challenge for the upcoming White Paper on Taxation will be to consider the mix of taxes, including whether there is a role for a greater contribution from indirect taxes.”
The opportunity were there to plot a path to a better tax system and the dangers clear if it was not done.
“If we do not start making these changes and simply keep drifting along we will be increasingly vulnerable to the next global crisis and will also lose out on the opportunities presented by the rising Asian middle class. The exceptionalism of this ‘lucky country’ will become just a distant, ironic memory and our children may really end up ‘doing it tough’”.
So there you have it. Parkinson, axed by the government (though extended until year’s end) won’t be around for the battles after the white paper, which has a long time table.
But he has signposted another lot of unpalatable truths. In terms of painful decisions ahead, this budget is only the start of it for the Abbott government, which hates the idea of tax increases, fears the politics of a robust debate about needing a higher, broader GST and has promised to take any major tax changes to the election.<img src="https://counter.theconversation.edu.au/content/25161/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Michelle Grattan is professorial fellow at the <a href="https://www.canberra.edu.au/" target="_blank" style="line-height: 1.3em;">University of Canberra</a>.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
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Treasury boss hints at the need for a broader GST

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Urban development policies do not reflect the needs of Australia’s wealthiest group of property buyers leading to a mismatch between the housing stock available and what is in demand, according to architecture and design firm Hames Sharley’s associate director Arun Broadhurst.
Speaking at the Urban Development Institute of Australia’s national congress in Brisbane last week, Broadhurst said public policy around the country was designed with an overwhelming desire to increase the density of capital cities. As part of that, developers were encouraged to build smaller types of housing with one to two bedrooms.
“The problem is that Generation X, which is our most wealthy generation, is of child bearing age and the policies don’t necessarily reflect what they need. They’re still going to need three, four or five bedroom houses,” Broadhurst said.
Most of the members of UDIA are large land developers that focus on green field sites on the city fringes. First home buyers form their main target markets.
Broadhurst told conference delegates that while some first time buyers were interested in one to two bedroom homes, many were still looking for three to five bedroom homes because they were planning to have children in future.
Broadhurst’s comments were based on the findings of The Housing We’d Choose: a study for Perth and Peel report, which was released last year. The research was conducted by Curtin Business School with Hames Sharley managing the project. The report analysed the compromises people in Perth were prepared to make when they bought a home.
The Grattan Institute had put together similar research in 2011 based on the Sydney and Melbourne markets.
The studies constrained people’s decision making by forcing them to make realistic assessments based on their own financial situations.
“If you asked people ‘What do you want to buy?’ people would say a five bedroom house in Kirribilli but we know this is unattainable for most people. [The research] constrains people’s choices by income and available stock to get a better feeling of how the real housing market works ,” Broadhurst said.
The Perth and Peel study found Perth was well catered for in three to five bedroom houses but had a large undersupply of one to two bedroom homes that suited people looking for smaller, more affordable homes. “It’s probably similar in Brisbane,” Broadhurst said. 
“In Melbourne and Sydney there’s a greater amount of housing diversity,” he said.
However, there were opportunities for developers to attract a greater variety of people to live out on the city fringes if they built homes that better suited wealthier growing families.
“Generation X tends to be affluent enough to live in the suburbs of their choosing,” Broadhurst said.
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