One of North Sydney's best-known commercial buildings could become hundreds of new homes, with insurance giant Zurich Australia lodging a State Significant Development Application (SSDA) to transform 5 Blue Street into a mixed-use residential development above North Sydney Station.

Rather than demolishing the existing building and starting again, Zurich is proposing an adaptive reuse project that would convert the landmark office building into a 15-level residential development delivering 62 apartments, 86 affordable co-living dwellings, activated retail and significant upgrades to the Blue Street Plaza.

The proposal reflects a growing trend of commercial property owners repositioning ageing office assets into residential housing as Sydney grapples with housing supply shortages and changing workplace demand.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="0bba7d12-06dc-4375-aad7-238c94b21ac5" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.42.05%E2%80%AFAM.png?VersionId=NJl5oLAEBDGuPmY3RnyliKODjMc8lvRh" />

Located directly above North Sydney Metro and train station, the 3,051 sqm site occupies one of the most strategically positioned parcels of land on Sydney's Lower North Shore.

Designed by fjcstudio, the proposal seeks to retain and adapt much of the existing structure while creating a contemporary residential address that better connects with the public domain surrounding North Sydney Station.

The application proposes two basement levels, ground floor retail, affordable co-living accommodation across the podium levels, and apartments above, while preserving and enhancing the publicly accessible Blue Street Plaza.

Rather than pursuing maximum apartment numbers, Zurich has opted for a housing mix heavily weighted towards larger owner-occupier residences.

The proposal includes 62 build-to-sell apartments comprising 12 one-bedroom, 19 two-bedroom, 29 three-bedroom apartments and two premium penthouses. It also incorporates 86 affordable co-living dwellings, which would be managed in perpetuity by a Community Housing Provider.

That balance between traditional apartments and affordable housing reflects the NSW Government's push to increase housing diversity around major transport infrastructure.

The proposal has been lodged concurrently with a rezoning application, with Zurich arguing the site is ideally positioned to support additional housing given its immediate proximity to public transport, employment and services.

"The proposal aims to respond to the housing challenges facing Sydney through the delivery of diverse housing types in a highly accessible location," the design report by fjcstudio states. It also seeks to improve pedestrian amenity through upgrades to Blue Street Plaza while creating a high-performing residential building that responds to the surrounding context.

<img alt="Zurich" data-entity-type="file" data-entity-uuid="36082e15-c636-4481-bb68-5a5f6443fe39" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%2010.41.36%E2%80%AFAM.png?VersionId=5P6VD.fvmqjQfIG3TWWMRXxQWiQBjeFB" />

Rather than replacing the commercial building, fjcstudio has developed a design that works with the existing structural framework above the rail corridor, an approach that significantly reduces demolition while allowing the site to be repositioned as a mixed-use residential precinct.

The existing structural constraints have informed much of the building's design, including its relationship with Blue Street and surrounding public spaces.

The building has been designed as a slender tower rising above a clearly defined podium, with vertically expressed façades intended to reduce the perceived bulk while reinforcing North Sydney's emerging skyline.

According to fjcstudio, the architectural language responds directly to the surrounding commercial towers while maintaining a finer grain expression more closely aligned with the neighbouring Lavender Bay streetscape.

The tower incorporates articulated façade elements, landscaped podium edges and recessed upper levels to soften its appearance and improve pedestrian amenity below.

A significant component of the proposal is the revitalisation of Blue Street Plaza.

The existing public space has long served as one of the primary pedestrian connections between North Sydney Station, Greenwood Plaza and Blue Street, yet its role is expected to become even more important following the opening of Sydney Metro.

Zurich's proposal seeks to strengthen that role by improving landscaping, introducing new retail frontages, enhancing pedestrian permeability and creating more active edges throughout the day and evening.

Ground floor retail would wrap the plaza, while separate residential and co-living entries have been designed to improve wayfinding without reducing street activation.

Landscape design has been integrated throughout the podium and public realm, softening what is currently one of the most heavily urbanised parts of North Sydney.

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fjcstudio has carefully oriented apartments towards Sydney Harbour and the CBD while using privacy blades and articulated façades to minimise overlooking between neighbouring buildings.

Large framed openings along the western elevation maximise harbour outlooks, while the eastern apartments have been angled towards the south-east to improve privacy from neighbouring development.

The project forms part of the continuing transformation of North Sydney from a predominantly commercial CBD into a genuine mixed-use city centre.

Since the completion of Victoria Cross Metro Station, developers have increasingly shifted their attention towards residential projects capable of leveraging the area's unparalleled transport connectivity.

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FiveX recently lodged plans for a 61-storey, 490-apartment tower that would become one of the tallest residential buildings in North Sydney if approved.

Aqualand continues to expand its Lower North Shore presence following the completion of AURA on Walker Street and its recent St Leonards and Roseville proposals.

Developers are also progressing projects throughout Walker Street, Miller Street and the Victoria Cross precinct as demand for well-located owner-occupier apartments continues to strengthen.

Joel Robinson

First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station

Busy developer Aqualand Prestige has formally taken the next step in its expansion across Sydney's Lower North Shore, lodging a State Significant Development Application (SSDA) for its long-held Archer Street site in Chatswood.

The application covers <a href="https://www.apartments.com.au/new-apartments/51-55-archer-street-chatswood-nsw-2067">51-55 Archer Street</a>, a 1,767 sqm amalgamated site on the eastern edge of the Chatswood CBD, where the developer is seeking approval for a 45-level mixed-use tower delivering 114 apartments, including a significant affordable housing component, alongside retail, commercial space and six basement levels of parking.

The SSDA marks the latest milestone for a project Aqualand has been quietly progressing over the past two years. The developer first secured the site for its Aqualand Prestige platform before undertaking an alternative design excellence process with PTW Architects, ultimately avoiding a formal design competition through the Housing Delivery Authority pathway.

The proposal has evolved considerably from Aqualand's original concept. The revised scheme has been designed around larger owner-occupier product, with an unusually high proportion of three and four-bedroom apartments, targeting the more affluent buyer profile, and downsizer, emerging across the North Shore.

<img alt="Archer St" data-entity-type="file" data-entity-uuid="0171204c-5811-41b5-9b09-2335d1b7c3d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-22%20at%208.52.48%E2%80%AFAM.png?VersionId=6YTuxfq.puZo7k2wbfgemcO5K3QfXYGQ" />

The 114-apartment mix comprises six studios, 27 one-bedroom apartments, 18 two-bedroom apartments, 50 three-bedroom residences and 13 four-bedroom homes. A quarter of the building will be dedicated to affordable housing, well above the mandated 15 per cent&nbsp;

PTW has structured the building vertically, with affordable housing across levels one to six, premium apartments through levels seven to 31, duplex skyhomes on klevels 32 to 43, a penthouse on level 44, and a rooftop plant level above. Six basement levels will provide resident parking and servicing.

The tower is proposed to reach approximately 154 metres, placing it among a growing collection of residential high-rises transforming Chatswood's skyline.

Rather than competing purely on height, PTW says the design has been driven by creating a slimmer tower capable of delivering significantly larger apartments.

"The primary objective of this project was to create a distinctive building that stands out from the recently approved or built structures in the Chatswood area," the design report states, noting the structural efficiency allows greater investment into apartment quality and resident amenity.

Residents would have access to more than 450 sqm of communal open space including landscaped gardens, swimming pool, rooftop entertaining areas, fitness spaces, community gardens, children's play areas and barbecue facilities.

A major focus of the design has been the public domain.

The ground plane has been opened up through landscaped terraces inspired by Willoughby's sandstone ridges, with native planting, public seating, artwork, retail activation and a series of gathering spaces intended to soften what has traditionally been a hard commercial streetscape.

The landscape strategy references Blue Gum forests once common throughout the area, while incorporating Indigenous storytelling, public art and lighting installations to strengthen the connection to Country.

Chatswood has been one of Sydney's busiest apartment markets over the past 12 months, with a steady pipeline of both new project launches and fresh development applications.

Hyecorp recently launched Celine, a 122-apartment development just along Archer Street, while Changfa and Huirong Group are progressing The Anderson, an 84-apartment project on Anderson Street.

Develotek recently secured approval for a 101-apartment tower on Pacific Highway, while Tian An LFD received the green light for Hammond Greens, its apartment development on the edge of the Chatswood Bowling Club.

Commercial property developer FiveX is also making its move into the residential market. Last month it lodged plans for a 61-storey tower with 490 apartments, which, if approved, would become one of the tallest residential buildings in Chatswood.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-fivex-targets-chatswood-skyline-with-61-storey-tower-after-north-sydney-plans">First look: FiveX targets Chatswood skyline with 61-storey tower after North Sydney plans</a>

Aqualand is also expanding its development pipeline following the launch of its luxury residential brand, Aqualand Prestige. The developer has delivered a string of high-end apartment projects across Sydney's affluent suburbs over the past decade, most recently AURA by Aqualand on Walker Street in North Sydney.

[smartcode_project:default project_id=30959 project_image_fid=292863]

It has since quietly assembled its next wave of projects.

Earlier this year Aqualand launched Boronia in Roseville, a boutique 111-apartment development on Larkin Street. The project is one of the first significant apartment developments to launch in the suburb ahead of what is expected to become one of Sydney's most active new housing precincts under the NSW Government's Low and Mid-Rise Housing reforms, which allow greater density around train stations.

[smartcode_project:default project_id=152095 project_image_fid=373685]

The developer has also lodged plans for a two-tower, 413-apartment development on Herbert Street in nearby St Leonards, further strengthening its presence across the Lower North Shore.

Beyond that, Aqualand remains behind the final stage of Barangaroo, where plans will deliver a five-hectare mixed-use precinct comprising new homes, retail, hospitality and community facilities, alongside a new Metro entrance and more than two hectares of public open space, completing the Barangaroo precinct.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-aqualand-joins-st-leonards-apartment-party">First look: Aqualand joins St Leonards apartment party</a> 
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First look: Aqualand pushes ahead with Chatswood apartment tower as SSDA lodged for Archer Street

Mass timber is becoming an increasingly popular construction material in apartment developments, but Adelaide developer <a href="https://www.apartments.com.au/developers/otello">Otello</a> is taking the approach a step further.

At its new <a href="https://www.apartments.com.au/new-apartments/flowe-bowden-18-gibson-street-bowden-sa-5007">Flowe Bowden</a> development, the exposed cross-laminated timber (CLT) structure isn't just about reducing the building's environmental footprint. It also forms the foundation of a broader wellness strategy, influencing everything from indoor air quality and natural materials to the way residents move through and experience the building.

The 115-apartment mixed-use development, designed by Melbourne-based architecture practice Fieldwork, will occupy a prominent island site opposite Bowden Village Reserve, combining one, two and three-bedroom apartments with retail and a dedicated wellness destination.

[smartcode_project:default project_id=152022 project_image_fid=375528]

Wellness isn't confined to a gym or shared resident facility at Flowe. Instead, Fieldwork embedded the concept into the building itself.

The development has been split into two residential wings connected by a naturally ventilated central breezeway, replacing traditional enclosed corridors with open-air walkways that improve natural light, encourage cross ventilation and create more opportunities for neighbourly interaction.

"Rather than treating wellness as something that only happens on the ground floor, our response integrates it throughout the building, which led us to ask what it really means to design a healthy building," Fieldwork Director Quino Holland said.

[smartcode_project:default project_id=152022 project_image_fid=375531]

The building's architecture also reflects Bowden's industrial heritage. The lower podium references the area's historic brick and sandstone buildings, while the upper levels transition to exposed CLT, allowing the timber structure to become a defining feature throughout the apartments and shared spaces.

The use of mass timber sits alongside a range of sustainability initiatives, including a fully electric, gas-free design, rooftop solar and a targeted 5 Star Green Star rating.

[smartcode_project:default project_id=152022 project_image_fid=375524]

Inside the residences, the focus remains on natural, durable materials. Blackbutt engineered timber flooring, exposed CLT ceilings, porcelain surfaces and warm timber joinery create a calming interior palette, while low-VOC finishes and responsibly sourced materials have been selected to improve indoor air quality.

Kitchens have been designed as the centrepiece of each apartment, featuring porcelain island benchtops, timber-look cabinetry and brushed steel tapware, with layouts that maximise natural light and ventilation.

[smartcode_project:default project_id=152022 project_image_fid=375530]

The more traditional interpretation of wellness comes in the form of Level Eleven, a two-storey wellness club spanning the ground floor, mezzanine and first floor.

The facility will include a gym, yoga and reformer Pilates studios, Finnish and infrared saunas, magnesium hot and cold plunge pools, and dedicated recovery spaces. Unlike many residential wellness facilities, Level Eleven will also operate commercially, allowing the broader Bowden community to access the venue while giving residents exclusive membership benefits.

The ground floor has also been designed around everyday living. A café overlooking Bowden Village Reserve will activate the street frontage, while a bike workshop with tool storage, co-working space and dog wash has been incorporated to support daily routines and encourage interaction between residents.

"Flowe brings together my two biggest passions, creating places and creating healthier lives," Otello founder Daniel Harris said.

"We wanted to create something Adelaide hasn't seen before, a genuinely healthy building, where the way you live is lifted without even trying."

Flowe is positioned directly opposite Bowden Village Reserve and within walking distance of Bowden Railway Station and the Adelaide Entertainment Centre, placing future residents just minutes from the Adelaide CBD while remaining connected to one of the city's most established urban renewal precincts.

[smartcode_project_cta:default project_id=152022]

Otello launches wellness-focused Flowe Bowden with Adelaide-first mass timber apartment design

Not all apartment amenities are immediately visible.

Swimming pools, gyms, rooftop terraces and residents' lounges have long featured on buyers' wishlists, but as the way Australians live has changed, so too have the features that make apartment living more convenient.

Increasingly, buyers are placing value on the practical aspects of day-to-day life. Fast internet, EV charging, secure bike storage, flexible workspaces and parcel management are becoming just as relevant as lifestyle amenities, reflecting changing habits and expectations.

Online shopping has been one of the biggest drivers of that shift.

Australians spent a record $82.6 billion shopping online in 2025, with almost one in every four retail dollars now spent digitally, making parcel deliveries a routine part of everyday life rather than an occasional convenience.

For apartment residents, however, receiving those deliveries isn't always straightforward.

Without someone home to accept a parcel, deliveries can be redirected to a nearby Post Office, left in building foyers or common areas, or require building management to temporarily store packages. As apartment living continues to grow across Australia's cities, parcel management has become an increasingly important consideration for both residents and developers.

Australia Post's Parcel Locker network is one response to that shift.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/KPZ9j5FRdsQ?si=Qztc1dNP3ZvEIUhb" title="YouTube video player" width="560"></iframe>

Rather than relying on home delivery, eligible parcels can be directed to a nominated Parcel Locker, where they're securely stored until collected. Once a parcel arrives, residents receive a notification through the AusPost app or SMS and can retrieve it using a one-time code or QR code at a time that suits them.

The network has expanded to more than 1,500 locations nationwide, with Parcel Lockers positioned at Post Offices, shopping centres, supermarkets, transport hubs and, increasingly, within or alongside residential developments.

That growing presence reflects a broader change in how apartment buildings are being planned.

Developers are increasingly considering the operational side of apartment living alongside traditional lifestyle amenities. Just as secure mailrooms, bicycle storage and EV charging have become more common inclusions, parcel management is emerging as another feature that supports everyday convenience.

It also helps preserve the arrival experience within a building. Carefully designed lobbies and communal spaces can quickly become cluttered when deliveries accumulate, while secure parcel solutions reduce the likelihood of missed deliveries or parcels being left unattended.

For buyers comparing apartments, these everyday details are becoming part of the decision-making process.

Location, floorplans and finishes remain fundamental, but the features that simplify daily life are carrying greater weight than they once did. As online shopping continues to shape consumer behaviour, secure parcel delivery is increasingly becoming another amenity worth looking for.

Parcel delivery is joining the apartment amenity checklist

Inca Property Group has lodged a State Significant Development Application (SSDA) for Dawn, a 53-apartment oceanfront development overlooking Mona Vale Beach.

The proposal, at 35-39 Darley Street East, would replace an existing 18-apartment strata building with a new owner-occupier-focused development comprising 53 two and three-bedroom apartments, including nine affordable built-to-rent residences delivered under the State's infill affordable housing scheme.

Positioned on a 2,679 sqm elevated site around 280 metres from Mona Vale Beach, the development has been designed to maximise panoramic ocean views while responding to the site's sloping topography.

<a href="https://www.apartments.com.au/developers/inca-property-group">Inca Property Group</a> Managing Director Josh Thompson said the State Significant pathway provided greater certainty for projects of this scale.

"This State Significant pathway gives the team real certainty to progress <a href="https://www.apartments.com.au/new-apartments/dawn-35-39-darley-street-east-mona-vale-nsw-2103">Dawn</a> through to completion," Thompson said.

"It allows us to acquire a one-off site, design it carefully and deliver the right offering for the suburb, assessed by the NSW Government's planning department."

The project is one of the first developments in the area to be assessed under the NSW Government's Low and Mid-Rise Housing policy, with the site sitting on the edge of the policy's designated inner area.

The proposal includes three basement levels providing 124 car spaces, alongside a range of resident amenities including a swimming pool, gym, sauna, wellness facilities and private plunge pools for selected ground-floor and penthouse apartments.

<img alt="Dawn" data-entity-type="file" data-entity-uuid="fc1a1daf-0ce4-4f12-9076-b1fa553c7a91" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-21%20at%208.42.11%E2%80%AFAM.png?VersionId=4GZ9h.gpNkTljbxyAET8Jfhv51XUamDm" />

Thompson said Dawn had been designed specifically for owner-occupiers and downsizers, a buyer profile that has driven demand across Inca's recent Upper North Shore developments.

"The majority of buyers in our recent North Shore projects have been downsizers, and we are learning exactly what this market is looking for. Beyond the location itself, we have included resort-style amenities to deliver a genuine lifestyle offering," Thompson said.

Located within walking distance of Mona Vale Beach, the town centre, Mona Vale Golf Club and the Royal Motor Yacht Club, Dawn represents Inca's first Northern Beaches project following the sell-out of Tara on Park in Waitara and Ellis Residences, currently under construction in St Ives.

Construction will be undertaken by Inca's in-house construction arm, GOP Constructions.

Dawn is the latest major apartment proposal for Mona Vale, with the suburb emerging as one of the key beneficiaries of the NSW Government's new Low and Mid-Rise Housing policy.

New developer One Living, led by industry veteran Joseph Scuderi, recently secured a site on Mona Vale Road, on the border of Mona Vale and Pymble, where it is planning around 140 apartments.

IPM is also planning its third project in Mona Vale, significantly increasing the scale of its previous developments with an 82-apartment proposal at <a href="https://www.apartments.com.au/new-apartments/159-167-darley-street-west-mona-vale-nsw-2103">159-167 Darley Street West</a>, opposite Bayview Golf Course and less than 800 metres from Mona Vale town centre.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/one-living-enters-sydneys-new-apartment-market-with-northern-beaches-site-acquisition">One Living enters Sydney's new apartment market with Northern Beaches site acquisition</a>

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/first-look-ipm-plans-third-mona-vale-project">First look: IPM plans third Mona Vale project</a>

First look: Inca eyes Mona Vale with State Significant DA for Dawn apartments

Drought

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GUEST OBSERVATION
With drought ravaging Australia’s eastern states, much attention has been given to the need to provide short-term solutions through drought relief. But long-term resilience is a <a href="https://agupubs.onlinelibrary.wiley.com/doi/pdf/10.1029/2007GL031524" target="_blank">vital issue</a>, particularly as climate change adds further pressure to farmers and farmland.
Our <a href="https://www.publish.csiro.au/book/7844/" target="_blank">research</a> has found that helping farmers improve the rivers, dams, native vegetation and trees on their land increases productivity, the resilience of the land to drought, and through this the health and well-being of farmers.
Now is the time to invest more heavily than ever in vital networks in regional Australia, such as Landcare and natural resource management groups like Local Land Services and Catchment Management Authorities.
Growing pressures on agricultural land
Some <a href="https://www.sciencedirect.com/science/article/pii/S0143622814002793" target="_blank">researchers</a> suggest that up to 370 million hectares of land in Australia and the Pacific is degraded. This diminished productivity across such a large area has significant implications for the long-term sustainability of agricultural production.
Australia also has one of the <a href="https://www.propertyobserver.com.au/http://www.pnas.org/content/112/15/4531" target="_blank">worst records</a> for wildlife diversity loss, including <a href="https://www.researchgate.net/publication/230817486_Impacts_of_red_meat_production_on_biodiversity_in_Australia_A_review_and_comparison_with_alternative_protein_production_industries" target="_blank">extensive loss</a> of biodiversity across much of our agricultural land. The problems of degradation and biodiversity loss are often <a href="https://agupubs.onlinelibrary.wiley.com/doi/pdf/10.1029/2007GL031524" target="_blank">magnified</a> under the pressure of drought.
The good news is that there are ways to strengthen the resilience of the farmland. One key approach is to invest in improving the condition of key natural assets on farms, like shelter belts, patches of remnant vegetation, farm dams, and watercourses.
When done well, active land management can help slow down or even reverse land degradation, improve <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/work/31727010?q&amp;sort=holdings+desc&amp;_=1540253638970&amp;versionId=209856779" target="_blank">biodiversity</a>, and increase <a href="https://www.publish.csiro.au/book/7844/" target="_blank">profitability</a>.
Better lands make more money
Many <a href="http://fmnrhub.com.au/wp-content/uploads/2015/04/Francis-Weston-Birch-2015-FMNR-Study.pdf" target="_blank">studies</a> have shown improving the natural assets on an farm can boost production, as well as avoid the costs of erosion and flood control. For example, restored riverbank vegetation can <a href="http://www.publish.csiro.au/pc/PC990028" target="_blank">improve</a> dry matter production in nearby paddocks, leading to greater milk production in diary herds and up to a 5% boost in farm income.
Similarly, shelter belts (tree lanes planted alongside paddocks) can lower wind speeds and wind chill, and boost pasture production for livestock by up to <a href="https://books.google.com.au/books/about/Trees_for_Shelter?id=to0FxKcZ-8AC&amp;redir_esc=y" target="_blank">8%</a>, at the same time as providing habitat for <a href="https://www.publish.csiro.au/book/7844/" target="_blank">biodiversity</a>.
Our own <a href="https://www.publish.csiro.au/book/7844/" target="_blank">long-term work</a> with farmers who invested in their natural assets prior to, or during, the Millennium Drought in New South Wales suggests these farmers are currently faring better in the current drought.
Investing in resilience for the long-haul
Well-supported and resourced organisations like Landcare groups are pivotal to supporting effective land management, which improves degraded land and helps farmland (and farmer) through tough times.
However, Landcare and other natural resource management agencies have been subject to <a href="https://www.theguardian.com/australia-news/2017/dec/13/environment-funding-slashed-by-third-since-coalition-took-office" target="_blank">major budget cuts</a> over the past decade.
They are also a key part of the <a href="https://www.propertyobserver.com.au/https://trove.nla.gov.au/work/11139291?q&amp;versionId=45483041" target="_blank">social fabric</a> of rural communities, bringing together landowners to exchange ideas and support each other. Indeed, the Australian Landcare model is so well regarded globally it has been adopted in 22 other countries.
This drought is a critical decision point. The need to invest in maintaining and improving our vegetation, water and soil has never been more apparent than it is now. We have a chance to determine the long-term future of much of Australia’s agricultural land.<img src="https://counter.theconversation.com/content/105485/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
David Lindenmayer, Professor, The Fenner School of Environment and Society, Australian National University
Michelle Young, Director, Sustainable Farms, Australian National University
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/we-must-look-past-short-term-drought-solutions-and-improve-the-land-itself-105485" target="_blank">original article</a>.
Main photo: Lines of trees, called windbreaks or shelterbelts, can protect and improve the fields next to them. <a href="https://www.flickr.com/photos/peterfenda/11883603303/in/photolist-j77zf8-gs5twp-2yarvi-97rS4x-gctVvc-2zbPGZ-eZjZC9-n5u36E-qpbapj-i8u5i1-n5s6QM-pDrU3q-5YciLn-hvmtkA-23ZR5wr-dhZQg8-6WZjZQ-ayJwHt-25tYPnE-YFrUGJ-atxPZS-ppRWYA-RLZsrv-pDFgh2-hvnV3n-bWYiTp-Rpm12q-qArxKx-ntUjWJ-4zs3xh-nzZyew-5VyEeu-a5P87s-oaarB1-hvmW1N-hoPvL4-pLUKsC-5ZdRKT-Ek7o5-gmWNST-4AfTnR-iT6rNY-gqwGJr-gUM9Xb-MRXgiQ-5Zur7c-hvm2Pz-LymskZ-vaCtm-d4YfSh">Peter Fenda/Flickr</a>, <a href="http://creativecommons.org/licenses/by-nc-sa/4.0/">CC BY-NC-SA</a>
</body></html>

j.ballantyne1990-6AQqhLzZaK

We must look past short-term drought solutions and improve the land itself

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GUEST OBSERVATION
Two years ago we were celebrating just about the best year for farmers ever. Now many farmers – particularly in New South Wales and southern Queensland – are in the grip of drought.
It underlines just how variable the Australian climate can be.
While attention is focused on responding to the current situation, it is important to also think long-term. In our rush to help, we need to make sure well-meaning responses don’t do more harm than good.
The drought policy debate
The recent drought has stimulated much empathy for farmers from the media, governments and the public. Federal and state governments have committed hundreds of millions of dollars in farmer support. Private citizens and companies have also given generously to the cause.
While there appears to be overwhelming public support for helping farmers through drought, concerns have been raised by economists as well as farmer representatives – including both the former and current head of the National Farmers’ Federation.
A central concern is that drought support could undermine farmer preparedness for future droughts and longer-term adaptation to climate change.
Another concern is that simplistic “farmer as a victim” narrative presented by parts of the media overstate the number of farmers suffering hardship and understates the truth that most prepare for and manage drought without assistance.
Sensationalist media coverage can also damage Australia’s reputation as a reliable food producer. Images of barren landscapes, stressed livestock and desperate farmers send the wrong signals to customers and trading partners.
An acute policy dilemma
The tension in drought policy is real.
To remain internationally competitive Australian farmers need to increase their productivity.
Agricultural productivity depends on two main factors. First, innovation – adopting new technologies and management practices. Second, structural adjustment – shifting resources towards the most productive sectors and most efficient farmers.
Supporting drought-affected farms has the potential to slow both these processes, weakening productivity growth.
This gives rise to an acute dilemma: should we support farmers in distress, or support the industry to be the best it can be?
Factoring in climate change
While it is difficult to attribute any specific event to climate change, it is clear Australia’s climate is changing, with significant consequences for agriculture.
Australian average temperatures have increased by about 1℃ since 1950. Extreme heat events have become more frequent and intense. Recent decades show a trend towards lower average winter rainfall in the southwest and southeast.
Research by the Australian Bureau of Agricultural and Resource Economics and Sciences shows climate change has negatively affected the productivity of cropping farms, particularly in southern Australia.
This research also shows evidence of farmers adapting to maintain productivity and reduce their sensitivity to climate.
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Key southwestern and southeastern agricultural zones have been especially impacted by climate change. ABARES
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There is still much uncertainty over what climate change will mean for agriculture in the future.
However, the evidence we do have points to more frequent and more severe droughts, if only because of higher temperatures and evaporation rates.
Farming isn’t like other industries
Although businesses in other industries are expected to manage risk without assistance, agriculture has some special aspects that help build a case for a government policy response.
First, risk in agriculture is generally greater than in other industries. Farmers are vulnerable to variation in international commodity prices as well as droughts and other extreme events.
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Second, most farm businesses are also farm households.
While many other risky industries are made up of large corporate businesses (generally with diversified assets and ownership), agriculture is dominated by family farms.
Third, financial markets both in Australia and internationally struggle to provide viable risk management products for farmers – particularly drought insurance.
This means farming is an unusually risky business. Farmers must therefore be more conservative about financing and operating their businesses, which constrains investment, innovation and ultimately productivity.
Helping farms without making things worse
In 2008 a Productivity Commission review recommended a national farm income support scheme.
This led to the Farm Household Allowance program.
It provides a fortnightly payment, usually set at the rate of the Newstart unemployment allowance. There is also a financial assessment of the farm business and funding to help develop skills or get professional advice.
Those welfare programs provide an important safety net for farm households. Because they provide targeted support to households, rather than businesses, they result in fewer economic distortions than alternative approaches.
Past reviews have consistently recommended against subsidising farm business inputs or supporting output prices. This includes providing subsidies for livestock feed.
While these measures might provide short term relief, if they become routine they risk weakening the incentives to manage farms properly, by for instance destocking sheep and cattle ahead of likely droughts.
Looking to the future, it is possible insurance could have an important role to play.
While drought insurance has failed to thrive in Australia to date, advances in data could allow more viable forms of insurance to emerge.
In particular, index-based insurance products where payouts are based on weather data rather than an assessment of farm damages.
Such insurance, if done well, could provide farmers with better protection from climate risk, while also supporting adaptation and productivity growth – effectively sidestepping our current drought policy dilemma.<img src="https://counter.theconversation.com/content/105281/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Neal Hughes, Senior Economist, Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
Steve Hatfield-Dodds, Executive Director, Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/helping-farmers-in-distress-doesnt-help-them-be-the-best-the-drought-relief-dilemma-105281" target="_blank">original article</a>.
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Helping farmers in distress doesn’t help them be the best: the drought relief dilemma

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GUEST OBSERVATION
Deputy Prime Minister Michael McCormack last week suggested the government would look at changing the law to allow water to be taken from the environment and given to farmers struggling with the drought.
This is a bad idea for several reasons. First, the environment needs water in dry years as well as wet ones. Second, unilaterally intervening in the way water is distributed between users undermines the water market, which is now worth billions of dollars. And, third, in dry years the environment gets a smaller allocation too, so there simply isn’t enough water to make this worthwhile.
In fact, the growing political pressure being put on environmental water holders to sell their water to farmers is exactly the kind of interference that bodies such as the Commonwealth Environmental Water Holder were established to avoid.
The environment always needs water
The ongoing sustainable use of rivers is based on key ecosystem functions being maintained, and this means that environmental water is needed in both wet and dry years. The objectives of environmental watering change from providing larger wetland inundation events in wet years, to maintaining critical refuges and basic ecosystem functions in dry years.
Prolonged dry periods cause severe stress to ecosystems, such as during the Millennium Drought when many Murray River red gums were sickened by salinity and lack of water. Environmental water is essential for ecosystem survival during these periods.
Under existing rules, environmental water holders can sell and buy water so as to deliver maximum benefits at the places and times it is most needed.
But during dry years the environmental water holders receive the same water allocations as other users. So it’s very unlikely there will be any “spare” water during drought. During a dry period, the environment is in urgent need of water to protect endangered species and maintain basic ecosystem functions.
We should be cautious when environmental water is sold during drought, as this compromises the ability of environmental water holders to meet their objectives of safeguarding river health. When the funds from the sale are not used to mitigate the loss of the available water to the environment, this is even more risky.
Secure water rights support all water users
In response to McCormack’s suggestion, the National Irrigators’ Council argued that compulsorily acquiring water from the environment can actually hurt farmers who depend on the water market as a source of income or water during drought.
Water markets are underpinned by clear legal rights to water. In other words, the entitlements the environment holds are the same as those held by irrigators. If the government starts treating environmental water rights as barely worth the paper they’re printed on, farmers would have every reason to fear that their own water rights might similarly be stripped away in the future.
Maintaining the integrity of the water market is important for all participants who have chosen to sell water, based on reasonable expectations of how prices will hold up.
Can taking environmental water actually help farmers?
As federal Water Resources Minister David Littleproud noted this week, environmental water is only about 8% of total water allocations in storage throughout the Murray Darling Basin. In the southern basin, it is still only about 14%. This means that between 86% and 92% of water currently sitting in storage is already allocated to human use, including farming.
There are calls for the Commonwealth government to treat the drought as an emergency and to take (or “borrow”) water from environmental water holders. But the Murray-Darling Basin Plan already has specific arrangements in place for emergencies in which critical human water needs are threatened.
The current situation in New South Wales is not an emergency under the plan. Water resources across the northern Murray-Darling Basin are indeed low, but storages in the southern basin are still 50-75% full. Although many licence holders in NSW received zero water in July’s round of allocations, high-security water licences are at 95-100%. In northern Victoria, most high-reliability water shares on the Murray are at 71% allocation.
The situation can therefore be managed using existing tools, such as providing direct financial support to farming communities and buying water on the water market.
Environmental water is an investment, not a luxury
As Australia’s First Nations have known for millennia, a healthy environment is not an optional extra. It underpins the sustainability and security of the water we depend on. When river flows decline, the water becomes too toxic to use.
Water has been allocated to the environment throughout the Murray-Darling Basin to prevent the catastrophic blue-green algal blooms and salinity problems we have experienced in the past. If we want safe, secure water supplies for people, livestock and crops, we need to keep these key river ecosystems alive and well during the drought.
In the past decade alone, Australia has spent A$13 billion of taxpayers’ money to bring water use in the Murray-Darling Basin back to sustainable levels. If we let our governments treat the environment like a “water bank” to spend when times get tough, this huge investment will have been wasted.<img src="https://counter.theconversation.com/content/103238/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Erin O'Donnell, Senior Fellow, Centre for Resources, Energy and Environment Law, University of Melbourne
Avril Horne, Research fellow, Department of Infrastructure Engineering, University of Melbourne
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/giving-environmental-water-to-drought-stricken-farmers-sounds-straightforward-but-its-a-bad-idea-103238" target="_blank">original article</a>.
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Giving environmental water to drought-stricken farmers sounds straightforward, but it’s a bad idea

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Farmers affected by the worsening drought crisis in NSW and Queensland are being urged to contact their bank to access assistance on offer.
The drought assistance has been available during the drought. 
There is a Federal Government roundtable on drought affected communities with banks invited by Minister for Agriculture and Water Resources, the Hon David Littleproud to participate. 
Anna Bligh, the CEO of the Australian Banking Association, said that banks were willing to help drought affected communities and have been rolling out assistance for to their customers in need. 
“I have seen firsthand the difficulties that drought brings to our farmers and regional communities, including significant financial stress,” Ms Bligh said. 
“Australian banks are ready to lend a hand to drought affected communities, particularly throughout New South Wales and Queensland, who are doing it tough. 
“My message for regional communities is there’s no reason for anyone to struggle in silence, call your bank today and ask what assistance can be offered to help you through this difficult time.
"The Industry will continue to work with government to play its part in helping those affected.
"Customers are encouraged to contact their bank to discuss what hardship arrangements are available to them," she said. 
ABA Member banks offer a range of services to help customers experiencing drought or other circumstances outside their control. 
These can include: 
<ul type="disc">
<li class="x_MsoBodyText">A deferral of scheduled loan repayments</li>
<li class="x_MsoBodyText">Waiving fees and charges, including break costs on early redemption of Farm Management </li>
<li class="x_MsoBodyText">Deposits</li>
<li class="x_MsoBodyText">Debt consolidation to help make repayments more manageable</li>
<li class="x_MsoBodyText">Restructuring existing loans free of the usual establishment fees</li>
<li class="x_MsoBodyText">Deferring interest payments on a case-by-case basis</li>
<li class="x_MsoBodyText">Offering additional finance to help cover cash flow shortages</li>
<li class="x_MsoBodyText">Deferring upcoming credit card payments</li>
<li class="x_MsoBodyText">Increasing emergency credit card limits</li>
<li class="x_MsoBodyText">Waiving early termination fees for customers who wish to access their term deposits.</li>
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Farmers offered banking assistance during drought

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GUEST OBSERVATION
Australia is a continent defined by extremes, and recent decades have seen some extraordinary climate events. But droughts, floods, heatwaves, and fires have battered Australia for millennia. Are recent extreme events really worse than those in the past?
In a <a href="https://www.clim-past.net/13/1751/2017/cp-13-1751-2017" target="_blank">recent paper</a>, we reconstructed 800 years of seasonal rainfall patterns across the Australian continent. Our new records show that parts of Northern Australia are wetter than ever before, and that major droughts of the late 20th and early 21st centuries in southern Australia are likely without precedent over the past 400 years.
This new knowledge gives us a clearer understanding of how droughts and flooding rains may be changing in the context of a rapidly warming world.
A history of drought
Australia has been shaped by floods, droughts, and blistering heat. How big and how intense these events were is poorly understood due to the limited historical and observational records.
Historical records provide rough estimates of the extent and intensity of droughts in parts of Australia since the late 1700s. For example, captains’ logbooks from ships anchored off of Sydney describe the Settlement Drought (1790-1793), which threatened the tenuous foothold of early European settlers in Australia. And farmers’ records describe the Goyder Line Drought (1861–1866) that occurred in areas north of the known arable lands of South Australia.
Observational weather records provide more detailed descriptions of climatic variability. However, systematic recording of weather in Australia only began in the late 19th century. Since then many parts of the continent have experienced prolonged wet periods and droughts. The most well known of these are the Federation drought (1895-1903), the World War II drought (1939-45), and the recent Millennium drought (1997-2009).
All three droughts were devastating to agriculture and the broader economy, but each was distinct in its spatial footprint, duration, and intensity. Importantly, these droughts also differed in seasonality.
<img src="https://images.theconversation.com/files/215802/original/file-20180422-75119-l7k2fy.png?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="">
Recent and historical droughts in Australia for the different natural resource management (NRM) regions. Provided by M.Freund
For example, the Millennium drought, which was most severe in southwestern and southeastern Australia, was caused by poor rainfall during the cool season. In contrast, the Federation drought, which affected almost the entire continent, was predominantly due to rainfall declines during the warm season.
Although the historical and observational records provide a wealth of information about the frequency of wet and dry extremes, they provide only part of the picture.
Looking back
To understand possible trends in rainfall and assess the likelihood of prolonged droughts, we need to understand the long-term climatic context. For this, we need records that are much longer than existing observational and historical records.
Our new study used an extensive network of tree rings, ice cores, corals, and sediment records from across Australia and the adjacent Indian and Pacific Oceans to extend rainfall records across all of the major regions of Australia by between 400 and 800 years. Importantly, we did this for two seasons, the cool (April–September) season and warm (October–March) season, over eight large natural resource management regions spanning the Australian continent. This allows us to place recent observations of rainfall variability into a much longer context across the entire continent for the first time.
We found that recent shifts in rainfall variability are either unprecedented or very rare over the reconstructed period. The two most striking patterns were in tropical northern Australia, which as been unusually wet over the past century, and southern Australia, which has been unusually dry.
Our reconstructions also highlight differences between recent extreme drought events and those in earlier centuries. For example, the Millennium Drought was larger in area and longer than any other drought in southern Australia over the last 400 years.
Our reconstruction also shows that the most intense droughts described in the historical records – the Settlement Drought (1790-93), Sturt’s Drought (1809–30), and the Goyder Line Drought (1861–66) – were limited to specific regions. The Settlement Drought appears to have affected only Australia’s eastern regions, whereas the Goyder Line Drought, which occurred north of the northernmost limit of arable lands in Southern Australia, primarily impacted central Australia and the far north.
These historical droughts varied widely in the area they covered, highlighting at a continental scale the spatial diversity of drought. This spatial variability has also recently been demonstrated for eastern Australia.
<img src="https://counter.theconversation.com/content/94292/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">Our multi-century rainfall reconstruction complements the recent Climate Change in Australia report on future climate. By providing a clearer window into climates of the past online, we can better see how extremes of rainfall may affect Australia in the future.
Mandy Freund, PhD student, University of Melbourne
Ben Henley, Research Fellow in Climate and Water Resources, University of Melbourne
Kathryn Allen, Academic, Ecosystem and Forest Sciences, University of Melbourne
Patrick Baker, ARC Future Fellow and Professor of Silviculture and Forest Ecology, University of Melbourne
This article was originally published on <a href="http://theconversation.com" target="_blank">The Conversation</a>. Read the <a href="https://theconversation.com/recent-australian-droughts-may-be-the-worst-in-800-years-94292" target="_blank">original article</a>.
Main photo: Lancelot that became a ghost town following the Federation Drought. <a href="https://www.flickr.com/photos/82134796@N03/9520085195/" target="_blank">denisben/flickr</a>, <a href="http://creativecommons.org/licenses/by-nd/4.0/" target="_blank">CC BY-ND</a>
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Recent Australian droughts may be the worst in 800 years

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<img src="https://counter.theconversation.edu.au/content/68172/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1">
GUEST OBSERVERS
Droughts are a natural feature of the Australian environment. But the Millennium drought (or “Big Dry”), which ran from 1997 to 2010, was a wake-up call even by our parched standards. 
The Millennium drought had major social, economic and environmental impacts. It triggered water restrictions in major cities, and prompted severe reductions in irrigation allocations throughout the vast Murray-Darling Basin.
The Millennium drought also highlighted that, compared to the rest of the world, the impacts of drought on Australia’s society and economy are particularly severe. This is mainly because our water storage and supply systems were originally designed by European settlers who failed to plan for the huge variability in Australia’s climate.
<h2>Have we learned the lessons?</h2>
Are we likely to fare any better when the next Big Dry hits? It’s important to reflect on how much we actually understand drought in Australia, and what we might expect in the future.
Our study, part of the Australian Water and Energy Exchanges Initiative (OzEWEX), had two aims related to this question. The first was to document what is known and unknown about drought in Australia. The second aim was to establish how Australia’s scientists and engineers can best investigate those unknowns.
The fact is that despite their significance, droughts are generally still poorly understood. This makes it hard to come up with practical, effective strategies for dealing with them when they strike. 
One reason for this is that unlike natural hazards with more graphic and measurable impacts (such as floods, cyclones, and bushfires), droughts develop gradually over huge areas, and can last for years. Often they go unnoticed until they trigger widespread water or food shortages, or cause significant energy, economic, health or environmental issues. 
Drought has been described as a “creeping disaster”, because by the time a drought is identified, it is usually already well under way, the costs to fix it are mounting, and the opportunity to take proactive action has already been missed. 
This is complicated still further by the uncertainties around defining, monitoring and forecasting drought – including predicting when a drought will finally end. As in the case of other natural hazards (such as drought’s polar opposite, floods), what we need most is accurate and practically useful information on the likelihood, causes and consequences of droughts in particular areas. 
This is a very tricky question, not least because we still need to come up with a rigorous way to distinguish between correlation and causation. For example, are increased local temperatures a cause or a consequence of drought? 
The complications don’t end there. Because droughts are so much slower and bigger than other natural disasters, they therefore have much more complicated effects on agriculture, industry and society. Bushfires can be devastating, but they also offer ample opportunities to learn lessons for the next time. Droughts, in contrast, give us limited opportunities to learn how best to prepare. 
Yet prepare we must. Given Australia’s history of decades-long swings between wet and dry, and the fact that these swings are projected to grow even stronger, drought will be a key concern for Australia for a long time to come.
<h2>What to do next</h2>
We therefore make several recommendations to help boost our understanding and management of drought. 
1). Reconsider the way drought is defined and monitored to remove confusion between drought causes, impacts and risks. Similarly, there is also a need to better distinguish between drought, aridity, and water scarcity due to over-extractions. 
The simplest definition of “drought” is a deficit of water compared with normal conditions. But what is normal? How long does the deficit have to persist, and how severe does it need to be, to be considered a drought? What is meant by water: rainfall, snow, ice, streamflow, water in a storage reservoir, groundwater, soil moisture, or all of these? 
The answers to these questions depend very much on the local situation in terms of climate and water use, which varies significantly in space and time and is why the simplest definition of drought is insufficient. We need to develop drought definitions that clearly differentiate drought from long-term changes in aridity and water scarcity, and that capture drought start, duration, magnitude and spatial extent. Such definitions should account for the differences between Australia’s climate zones, the wide variety of end-users and applications of drought monitoring information, and the diversity of droughts that have occurred in the past. There needs to be a common understanding of what a drought is and the differences between drought, aridity and human-induced water scarcity.
2). Improve documentation of droughts that took place before weather records began, in roughly 1900. This will improve our understanding of Australia’s long-term “baseline” drought characteristics (that is, how bad can droughts get? how does the worst drought on record compare with the worst that has ever occurred?), and thus provide the fundamental information needed to successfully manage droughts. 
This requires compilation of longer-term and more spatially complete drought histories via the merging of palaeoclimate information with instrumental, satellite, and reanalysis data. This will help us better understand instrumental and pre-instrumental drought behaviour, and put the droughts observed in the instrumental record into context. This work will involve looking at ice cores, tree rings, different tree rings, cave deposits, corals, sediments and historical changes to river channels and floodplains.
3). Improve drought forecasting by developing more realistic models of the many factors that cause (or contribute to) drought. This will help us separate out the influences of natural variability and human-induced climate change, which in turn will help us make more accurate long-term projections.
If we can answer these big research questions, we will all be better prepared when the next big dry inevitably arrives.
Anthony Kiem is associate professor – Hydroclimatology, University of Newcastle and can be contacted <a href="https://theconversation.com/profiles/anthony-kiem-259458" target="_blank">here</a>.
Fiona Johnson is senior lecturer, School of Civil and Environmental Engineering, UNSW Australia and can be contacted <a href="https://theconversation.com/profiles/fiona-johnson-313721" target="_blank">here</a>.
Seth Westra is associate professor, School of Civil, Environmental and Mining Engineering, University of Adelaide and can be contacted <a href="https://theconversation.com/profiles/seth-westra-19720" target="_blank">here</a>.
All are authors for The Conversation.
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