A who's who of Australian surfing, business and entertainment has emerged on title records following the completion of Esprit Rainbow Bay, the latest boutique beachfront apartment development by former professional surfer Paul Gedoun's S&amp;S Projects.

The completed project has attracted an enviable collection of owners, many with long-standing ties to the southern Gold Coast and the surf culture that has helped define Rainbow Bay and neighbouring Kirra for generations.

Given Gedoun's own background in surfing, it perhaps comes as little surprise that some of Australia's most recognisable surfers have chosen to buy into the development overlooking one of the country's most celebrated stretches of coastline.

Pezet Matheson directors Jayde Pezet and Todd Matheson launched the project in late 2021, and have managed the sales campaign all the way through to its sell-out and recent completion.

<img alt="Esprit" data-entity-type="file" data-entity-uuid="08fc6261-b84e-4b09-8a44-66d3067fd0d1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-29%20at%208.51.05%E2%80%AFAM.png?VersionId=4AOcb6ETZwNUnMPdTtz1B3pZAIB_jgZ2" />

Former world champion Mick Fanning, who grew up in Coolangatta, secured an apartment in 2023. He paid&nbsp;$2.07 million. Last year he sold his Bilinga home for over $16 million.

Three-time world champion Joel Parkinson also purchased in the development, alongside big wave surfer Mark Mathews. Mathews bought the most expensive apartment in the building, spending just over $4 million.

Joining them is Rip Curl founder Doug Warbrick, whose company helped shape Australia's global surfing industry over the past five decades.

The appeal of Rainbow Bay has extended well beyond the surfing community.

International DJ Paul Fisher purchased an apartment through his investment vehicle, YLB Developments, an abbreviation of his trademark phrase "You Little Beauty".

The purchase comes as Fisher and his wife Chloe are developing their own luxury apartment project further north in Palm Beach. Their boutique beachfront development, Pescado, comprises just seven apartments on Jefferson Lane, which start from just shy of $6 million. The couple intend to retain the two-level penthouse as their Australian base between international touring commitments.

Melbourne Storm coach Craig Bellamy and his wife Wendy have also invested in Esprit, purchasing two apartments after spending decades holidaying on the southern Gold Coast. They also have a luxury apartment in Joe Adsett's Rockpool, less than 400m away from Esprit.

<h2>Boutique project draws owner-occupiers</h2>

Esprit launched in 2021 and sold strongly, with buyers drawn to its boutique scale, beachfront position and contemporary design.

The completed development comprises 94 apartments across 11 levels, offering expansive floorplans designed primarily for owner-occupiers rather than the investor market.

Crowning the building is Club Esprit, pitched as being the Gold Coast's first residential rooftop wellness centre. The roof features a&nbsp;25 metre magnesium lap pool, which is surrounded by wet daybeds and poolside cabanas,&nbsp;multiple barbecue areas,&nbsp;a yoga and relaxation play lawn, and a private dining room with a kitchen scullery, bar, lounges, and an outdoor terrace.

The wellness centre is&nbsp;fully equipped with a Technogym, ice bath, infra-red sauna, steam room, thermal room, and treatment room. The roof has views spanning&nbsp;Rainbow Bay, Snapper Rocks and the Pacific Ocean.

<h2>S&amp;S Projects continues to shape Rainbow Bay</h2>

S&amp;S Projects founder Paul Gedoun has become one of the key figures behind Rainbow Bay's evolution over the past several years.

After establishing S&amp;S Projects, Gedoun has focused on delivering lifestyle-driven apartment developments designed primarily for owner-occupiers seeking a permanent coastal home.

Esprit is Gedoun's third completed project in Rainbow Bay, following Flow and Awaken, both of which achieved record prices for the suburb.

He is now delivering <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, a 38-apartment development on Boundary Street that is currently selling, and has no plans to leave the precinct anytime soon. S&amp;S Projects has also lodged plans for its fifth Rainbow Bay development, an 88-apartment project on Boundary Street featuring a strong wellness focus.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">First look: S&amp;S Projects proposes 88-apartment wellness tower at Coolangatta's Boundary Street</a>

&nbsp;

&nbsp;

&nbsp;

Joel Robinson

Who's who of buyers revealed as Esprit Rainbow Bay settles

Nature Based Cities (NBC), the not-for-profit organisation focused on improving biodiversity and nature outcomes in urban development, has launched its latest industry design guidelines and accreditation framework, this time targeting precinct-scale residential communities.

The move extends NBC’s influence beyond its initial focus on medium and high-density residential developments. Several projects have already achieved NBC accreditation since the launch of its Medium &amp; High-Density Residential Guidelines in early 2025.

The expansion into masterplanned communities and new residential precincts reflects the growing need for stronger nature-positive benchmarks as Australia’s outer suburban growth corridors continue to expand at pace.

Paul Hameister OAM, NBC Founder and the Executive Chairman of Melbourne developer Hamton who itself leans heavily into nature and biodiversity in its developments, says the&nbsp;nature-first approach to mitigate the effects of climate change has become standard in other parts of the world such as the UK, but Australia is lagging.&nbsp;Australia’s environmentally sustainable design (ESD) rating tools have no minimum mandatory requirements for living landscapes.

“We’ve always wanted to do more, and we know other developers who want to do more, but the ESD rating tools just aren’t there,” Hameister says. “In Australia, you can have a five-green-star rated building that’s concrete and glass with not a blade of grass. 
 
“The focus is on reducing emissions, which is laudable, but there hasn’t been enough attention paid to protecting and re-establishing nature. We need both for the health of the environment and for communities.”

He says that having now&nbsp;made good progress in supporting developers of medium and high-density residential projects, NBC is now looking to bolster better nature-based decision-making and recognise developers of greenfield projects in the outer ring and large inner-ring brownfield precincts, who want to champion nature and living landscape as a defining feature.

Since 2022, the not-for-profit has sought to remove the roadblocks preventing developers from incorporating nature and living landscapes into their projects, shifting the conversation from the reduction of emissions and grey infrastructure, toward recognising nature as an essential infrastructure.

The New Communities Design Guidelines and Scorecard arm developers with the tools needed to deliver a nature positive outcome for their new communities. Intended to be adopted at the outset of the planning process, the guidelines are designed to help create communities that are cooler, healthier and more resilient while also enhancing social wellbeing and long-term economic value.&nbsp;

New Communities developers seeking accreditation will be independently assessed across a range of key criteria including ecology, tree canopy, biodiversity, and walkability. Once the masterplan is complete and submitted for approval, the scorecard is formalised based on proposed outcomes. Projects that meet the NBC criteria will receive either Commended or Exemplary accreditation outcomes, creating a clear benchmark for nature-positive new communities in Australia.&nbsp;

Janis Fischer, Director at Tract and NBC Advisory Council member, said the development of new communities in our suburbs can have a substantial impact on nature and biodiversity.

"By incorporating nature-based design principles at the inception of a project, developers and their design teams can achieve nature positive outcomes that are good for both people and the planet.’’&nbsp;

NBC accredited New Community projects will gain access to NBC branding and marketing tools to help communicate their nature-based credentials to purchasers and the broader market.&nbsp;

Nature Based Cities: A new Australian benchmark for developing nature-positive new communities

Apartment buildings are increasingly being designed around how people actually live day to day, not just how they want a building to look.

For buyers, that shift is showing up in practical inclusions that respond to changing habits. Work-from-home spaces, EV charging, wellness amenities, secure bike storage and parcel management are becoming part of the broader apartment conversation, reflecting a move toward buildings that reduce friction in everyday life.

Online shopping has become one of the clearest examples of that change.

Australians spent a record $82.6 billion online in 2025, with nearly one in four retail dollars now spent online. That has made parcel delivery a regular part of apartment living, rather than an occasional inconvenience.

For apartment residents, however, the delivery process can be less straightforward than it is for detached homes. Parcels may be left in lobbies, redirected to Post Offices, missed entirely, or placed under the responsibility of building managers and concierge teams.

That is why secure parcel infrastructure is increasingly being considered alongside more familiar apartment amenities.

<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/-VjjLwoViX0?si=A3k7ws9NX35Uac7_" title="YouTube video player" width="560"></iframe>

Australia Post Parcel Lockers offer one way to address the issue. When a parcel arrives, residents receive a notification through the AusPost app or SMS, then collect it using a QR code or one-time PIN. The parcel is kept secure, accessible and removed from common areas.

The broader Parcel Locker network now includes more than 1,500 locations across Australia, positioned at Post Offices, shopping centres, supermarkets, transport hubs and other accessible locations.

For new apartment projects, the relevance is clear. A building’s amenity offering is no longer only about lifestyle spaces, but also about convenience, security and functionality.

As buyer expectations evolve, secure parcel delivery is becoming part of the same design conversation as flexible working, sustainable transport and resident wellbeing.

It is one less thing for residents to worry about, and another example of apartment design adapting to the way Australians now live.

Apartment design is adapting to the way Australians shop

While school holidays and trips to Europe tend to define the winter property market, there's been no cold snap at <a href="https://www.apartments.com.au/new-apartments/the-walden-north-sydney-177-walker-street-north-sydney-nsw-2060">The Walden</a> in North Sydney.

Developer-builder&nbsp;<a href="https://www.apartments.com.au/developers/aland">ALAND</a> sold more than $35 million worth of apartments throughout June, including a $6.8 million apartment that now ranks among the highest apartment sales ever recorded in North Sydney.

SRM Residential agent Ben Stewart said buyer demand throughout June reflected a mix of improving market confidence and longer-term thinking from owner-occupiers.

"We're seeing strong demand from owner-occupiers who are taking a longer-term view," Stewart said.

"Many recognise the opportunity to secure an apartment in an iconic building and premium location while values remain attractive. They may initially lease the property, but the intention is to eventually move in themselves, rather than purchasing purely as an investment."

[smartcode_project:default project_id=134323 project_image_fid=367129]

Located at 177 Walker Street, The Walden will deliver 161 one, two, three and four-bedroom residences across a 30-storey tower designed by Rothelowman. Every apartment occupies a corner position, maximising natural light, cross ventilation and views across Sydney Harbour, the Opera House, Sydney Heads and the northern districts.

Rather than a traditional balcony, the residences feature winter gardens that seamlessly extend the open plan living areas, creating versatile spaces for relaxing or entertaining throughout the year. Floor-to-ceiling glazing draws in natural light while showcasing sweeping views from the building's elevated Walker Street position.

Every apartment features high-end Calacatta marble, bespoke joinery, and fully integrated appliances.

The larger residences have been planned with distinct entertaining and private zones, with many master suites positioned on corners to capture natural light and harbour views. Walk-in dressing rooms, freestanding baths and refined stone finishes reinforce the house-like feel that has resonated with downsizers and owner-occupiers.

[smartcode_project:default project_id=134323 project_image_fid=6393]

Rothelowman Principal Ben Pomroy said the project was designed to make the most of its unique position overlooking the harbour.

"The Walden is a celebration of all things beautiful, curated for those who expect nothing less than exceptional," Pomroy says.

"Meticulously designed entertaining spaces and light-filled living areas that capitalise on capturing the natural beauty of Sydney's iconic harbour."

Residents will also have exclusive access to The Pavilion, a dedicated amenity building featuring a rooftop pool, wellness studio, gymnasium, sauna, concierge service, residents' lounge, private dining spaces and work-from-home facilities.

[smartcode_project:default project_id=134323 project_image_fid=6402]

The project marks ALAND's first major luxury apartment development in Sydney's inner-city market after more than two decades delivering residential communities across Greater Sydney.

Founder and CEO Andrew Hrsto previously said the rarity of the Walker Street site made it an opportunity the company could not overlook.

"This is a rare opportunity to bring a truly exceptional project to life in one of Sydney's most iconic locations, and to showcase our craftsmanship and design expertise at a world-class level," Hrsto said.

[smartcode_project:default project_id=134323 project_image_fid=6383]

The Walden has been introduced to the market at a time when demand for living in North Sydney is at an all-time high. Billions of dollars have been invested in infrastructure, including the recently opened Victoria Cross Metro station, located just 300 metres from The Walden, providing residents with direct access to the Sydney CBD in just minutes.

Private investment has also transformed the area through the arrival of new retail and dining destinations, elevating the lifestyle offering in what was once considered primarily a commercial precinct rather than an aspirational residential address.

The Walden is currently under construction and is scheduled for completion in 2028.

[smartcode_project_cta:default project_id=134323]

ALAND records $35 million in sales in North Sydney as The Walden bucks quiet winter selling season

The long-awaited redevelopment of the former Eastlakes Shopping Centre site has reached a major milestone, with Conquest's plans for a new mixed-use precinct officially placed on public exhibition.

The State Significant Development Application would transform the 1.7-hectare site at <a href="https://www.apartments.com.au/new-apartments/19a-evans-avenue-eastlakes-nsw-2018">19A Evans Avenue</a> into one of Sydney's largest urban renewal projects, delivering 736 apartments above a new shopping centre anchored by Woolworths, alongside specialty retail, dining, commercial space and new public open spaces.

The public exhibition marks the next chapter for the project after <a href="https://www.apartments.com.au/developers/conquest">Conquest</a> acquired the stalled Stage Two development from Crown Group, who completed the first stage across the road prior to their voluntary liquidation.

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="5fca22c5-d1ed-4e2c-8801-03f7df1eafc8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland%20podium.png?VersionId=uomwr41nF8CmLUZRDcu3mHQechlbxucS" />

&nbsp;

Designed by DKO Architecture, the proposal comprises four residential buildings ranging from 14 to 18 storeys above a two-level retail podium. The development would deliver 736 apartments, including 74 affordable homes, 215 Build-to-Rent apartments and 521 market residences. Provision has also been made for dual-key apartments, which could increase the total number of dwellings to 877.

At ground level, the shopping centre has been designed as the suburb's new meeting place, anchored by a full-line Woolworths and complemented by a curated mix of fresh food retailers, cafés, restaurants, health services and everyday convenience shopping. Generous pedestrian links and landscaped public spaces will connect the retail precinct through to Jack Mundey Reserve, creating a more walkable and connected neighbourhood.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

"Eastlakes has been overlooked for too long, and this is the community’s moment. We are building a shopping centre and homes, a genuine heart for the suburb, and we genuinely want locals to help shape it."

"We enrich communities through the creation of homes, places, and experiences designed for life, built to last, and owner for generations. That starts with listening, so we warmly encourage everyone with a connection to Eastlakes to view the plans and share their thoughts."

<img alt="First look: Conquest unveils plans for 736-home Eastlakes Shopping Centre redevelopment" data-entity-type="file" data-entity-uuid="22f6fb20-54fb-4bd7-8a92-48fafdd00608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/eastland.png?VersionId=cugp7s9hrMHGJJdYzkeAkrFoQgnF4GXf" />

DKO said the design had been shaped by the site's landscape setting and surrounding open space.

"Our vision for the site embraces its unique Bidjigal identity by blending the residential living with generous landscaping and a material palette inspired by the Bidjigal locality, and celebrating the panoramic views to Botany Bay and the wetlands reserves."

"Taking cues from Country, we seek to harmonise built form with the landscape and lightly touch the earth. By reconnecting, retaining and regenerating existing ecology, and weaving in natural elements, we can deepen our connection to Country."

The landscape strategy extends across the podium and rooftops, incorporating communal gardens, children's play areas, lawns, community gardens, family gathering spaces and extensive tree planting. New landscaped links will also strengthen the connection between the precinct and Jack Mundey Reserve, while publicly accessible open spaces have been integrated throughout the development.

The proposal builds on Conquest's broader placemaking strategy for the site. Through an ongoing partnership, local artist Joe Rashbrook has been appointed Urban Art Curator, working alongside young residents to transform the project's site hoardings into a public art gallery that allows the community to engage with the redevelopment before construction is complete.

Conquest has rapidly expanded its development pipeline since acquiring the Eastlakes site, with more than $6 billion worth of mixed-use projects now in planning across Sydney, including Stanmore, Castlecrag and Waterloo.

Conquest CEO Michael Akkawi said the redevelopment was about far more than replacing a shopping centre.

First look: ‘Far more than replacing a shopping centre’ as Conquest unveils 736-home Eastlakes redevelopment

Election

<html><body>
The City of Sydney electoral rolls for the 2016 election will close on 1 August.
On this date, the City of Sydney will provide details from the non-residential register to the NSW Electoral Commission.  After this date, they will verify if each individual on the register is eligible for the non-residential electoral roll. 
If you are eligible, your name and address will be added to the non-residential electoral roll and you will be required to vote at the next City of Sydney Local Government election in September.
<h3>Checking your name on the electoral roll </h3>
From early August, you should check if your name is on the non-residential electoral roll before election day to confirm if you are required to vote.
You can check the roll by either:
<ul>
<li>checking <a href="https://www.votensw.info/" target="_blank">online with the NSW Electoral Commission </a>
</li>
<li>visiting the City of Sydney Customer Service Centre in Town Hall House, 456 Kent Street Sydney, where the roll will be available</li>
<li>calling our Customer Service team on 1800 101 667.</li>
</ul>
The address on the electoral roll will be that of the property you own, occupy or lease in the City of Sydney Local Government Area.
ad of the City of Sydney Local Government election on 10 September 2016, owners, occupiers and rate-paying lessees of rateable property in the City of Sydney area are required to register for the non-residential register and roll.
This is your final reminder to be on the register and be eligible to vote at the 2016 City of Sydney Local Government election.
</body></html>

jonathanchancellor-7SQnKwU6yx

Property 101: City of Sydney ratepayers election roll requirements 

<html><body>
Redfin says increasing numbers of United States homebuyers think the presidential election will negatively impact the housing market.
According to a recent survey 27 percent of homebuyers think the election will negatively affect the housing market.
The study was conducted on nearly 1,000 homebuyers across 36 states. 
<div id="div-oas-ad-article2">The 27 percent is up from 15 percent just four months ago, according to the report.</div>
</body></html>

Property 101: Presidential election set to unsettle US residential market

<html><body>
A poll by the property agency iBuyNew found by a narrow margin that 54 percent of respondents said the election was not influencing their decision on whether to purchase a property.
Some 46 percent of respondents to the online survey said they would wait until after the July 2 election because they wanted to weigh up the policies which will impact the real estate sector.
iBuyNew CEO Mark Mendel said one of the main concerns was the proposed removal of negative gearing on established properties by the Labor Opposition as well as the halving of the CGT discount for assets held longer than 12 months from 50 percent to 25 percent. 
Mark Mendel predicted prices will rise after the federal poll.
</body></html>

jchancellor-FAypfDUnLy

Property 101: Has the election delayed purchasing of property?

<html><body>
If you thought the election debate on negative gearing was interesting watch the new property debates get a whole lot hotter with the Australian Taxation Office’s (ATO’s) latest bombshell announcement which guaranteed will send shockwaves through property markets. 
No doubt this is just the next step following the ATO being handed total ownership of the Australian property transaction register in mid – 2015, a role they had been champing at the bit to control for quite some time.
From Friday July 1 2016 (the day before the federal election) all sellers of residential and commercial property worth in excess of $2 million will be deemed as an overseas investor unless they can attain a special tax clearance. Failure to attain the special tax clearance certificate means the seller must deduct ten (10) percent from the purchase price which is immediately paid to the ATO.
No doubt lawyers, accountants and conveyancers would be rejoicing at these newly discovered revenue streams although what has not been announced is when a seller receives their compliant special tax clearance are the associated costs in receiving the compliance tax deductible?
This is all aimed at closing loopholes solely aimed at the leakage of tax revenues. Australian residents will get their tax clearance so long as they are up to date with tax returns, proving that they acquired the property within their declared earnings – which I see as a very good move.
When the ATO took over the property reins they quickly started extrapolating all property transactions back to 1985, so it will take a while to complete the register. This new legislation is simply closing the door on those who acquired property illegally either from proceeds of crime or as non – residents.
For the last five years foreign investors have been running amok buying Australian real estate. The federal governments have laid out the welcome mat when they raised off – the – plan purchase restrictions in 2008 from 50 percent to 100 percent.
This week Fitch Ratings warned that Australia clearly has a significant ‘hidden’ offshore property buyers risk. Andrea Jaehne, a director at Fitch Ratings, stated that she was shocked by the increase of foreign buyers since 2010, where the Foreign Investment Review Board experienced an eightfold increase in approvals up to 2015. She said that it was difficult to know the true number of properties being sold offshore because foreign investment rules did not require an approval for foreigners buying apartments off the plan.
The question that needs to now be asked is (with the recent property frenzy which conveniently replaced the mining boom) with all these new measures what will happen to property prices? Well foreign buyers will almost certainly now hold back and watch what happens to the Australian markets particularly Melbourne and Sydney – we can expect some big corrections in these investment markets.
With a further 250,000 apartments to hit the domestic markets within the next two years it is very difficult to see a happy outcome for these markets – more particularly as we have more evidence that these markets are significantly slowing. Then throw in the latest Australian Bureau of Statistics data which shows that Australian wages are growing at the slowest rate for at least 18 years.
Furthermore, we are now hearing that market analysts are now coming to the conclusion that low interest rates actually cause more damage to the economy. As one commentator said this week “very low interest rates around the world are inhibiting economic recovery rather than encouraging it.”
Australia is now just 44 days away from getting a clearer indication of what will happen to the markets more particularly with negative gearing. Now is not the time to start tinkering with investors clearly preferring existing properties. Agents will tell you that when an existing apartment comes onto the market the ratio of home buyers to investors inspecting is generally 50/50. Take away half the market and of course prices will come down – which in turn will drive rents up.
Of course the opposition treasurer could produce his modelling to show otherwise, however this has not been forthcoming so one can then conclude that no modelling is in existence.
With all that’s happening on the Australian property landscape the timing is a potential disaster. In the meantime, watch how many vendors try and offload their properties before the new ATO legislation comes into effect. No doubt the ATO will be watching too.
 
MOSMAN – 2088
Number of houses on the market this time last year – 65
Number of houses on the market last week – 55 
Number of houses on the market this week – 55 
Number of apartments on the market this time last year – 47
Number of apartments on the market last week – 50
Number of apartments on the market this week – 50
 
CREMORNE – 2090
Number of houses on the market this time last year – 5
Number of houses on the market last week – 7 
Number of houses on the market this week – 11 
Number of apartments on the market this time last year – 10
Number of apartments on the market last week – 23 
Number of apartments on the market this week – 22
 
NEUTRAL BAY – 2089 
Number of houses on the market this time last year – 6
Number of houses on the market last week – 8
Number of houses on the market this week – 8 
Number of apartments on the market this time last year – 29 
Number of apartments on the market last week – 21
Number of apartments on the market this week – 22
 
ROBERT SIMEON is a director of <a href="https://www.rwm.com.au/" target="_blank" title="RWM" rel="nofollow">Richardson Wrench Mosman and Neutral Bay</a> and has been selling residential real estate in Sydney since 1985.  He has also been writing real estate blog <a href="https://www.rwm.com.au/news/" target="_blank" title="Virtual Realty News" rel="nofollow">Virtual Realty News</a> since 2000.
</body></html>

robertsimeon-hRNTwJyXkQ

ATO quickly wields its big new property tax

<html><body>
<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
It is well known that retail sales have regular cycles that can be disrupted by external events, such as federal elections. While anecdotally it has been suggested that uncertainty around elections causes shoppers to close their wallets and purses, there appears very little evidence either domestically or globally to support the claim that an election campaign will negatively impact consumer spending.
<h2>The Blame Game</h2>
Retailers are notorious at playing the “blame game” when it comes to their sales and profit reporting. They too quickly point the finger at Mother Nature, for being too hot or too rainy, the releasing of blockbusters that distract shoppers, and even customers themselves for being too price conscious, chasing discounts that erode their margins.
This month, Myer CEO Richard Umbers warned that the election campaign is expected to hit consumer sentiment and negatively affect Myer’s outlook.
Surprisingly, Australia’s other large department store, David Jones, remained silent. It appears David Jones is just getting on with business and delivering store sales growth twice the rate of the Australian department store sector. Seemingly, there are other factors affecting retail stores sales, other than an impending federal election.
<h2>Is there evidence?</h2>
Researchers from Princeton University and the University of Chicago found elections had little impact on how consumers actually spend. In their study, spanning four presidential elections, their initial findings identified a correlation between a voters’ “ideological opposition towards a winning candidate” (measured by a voter-ideology score) and a lower score on the Michigan Consumer Sentiment Survey.
However, the correlation did not prove causality. For example, when President George W. Bush was elected in 2000, negative sentiment had no effect on consumers’ self-reported spending plans or on their subsequent automobile purchases and credit-card use. Consumers ideologically opposed to President Bush were not happy about the election outcome, but this slump in sentiment had no effect on what they planned to spend, or actually spent.
It is a similar picture here in Australia, where commentators are looking a little more closely at claims elections stifle retail spending. A review of the ANZ – Roy Morgan Consumer Confidence Index demonstrates a similar phenomenon to that in the US. With the exception of September to October lead into the November 2001 election, marred by the 9/11 attacks in New York and the collapse of Ansett, in most cases, confidence remained positive.
Prior to the October 9 2004 election, the September consumer confidence grew by over 6 percent on August. Similarly, October 2007 was up nearly 6.5 percent on September in the lead up to the November 24 election.
<h2>Confident but deferred</h2>
The operative word used among consumers during times of uncertainty is “deferred”. IBISWorld chairman Phil Ruthven finds that shoppers tend to take a “wait-and-see approach” during election campaigns, which sees spending curtailed on big ticket items like cars, consumer electronics and high-end fashion, but household basics such as food and basics generally remain insulated. In most cases, consumer confidence tends to bounce directly after elections.
There are far too many variables in play to suggest that an extended federal election alone will derail consumer confidence and stifle retail spending. In fact, some consumers who expect to be the recipients of election sweeteners such as tax cuts, infrastructure projects and or job opportunities, may actually increase spending. The power of suggestion is strong with such consumers. Once consumers anticipate a specific positive outcome will occur, they believe their subsequent thoughts and behaviours will actually help to bring about that outcome.
<h2>What retail categories are most affected?</h2>
Food, groceries, fuel and basic clothing generally remain well protected during uncertain times. Despite increasing price competition between the players, the food and grocery division remain moderately strong.
Ultimately, shoppers still need to put fuel in their cars and food on the table. However, most exposed are “big ticket” retailers selling furniture, consumer electronics and automobiles. Fashion clothing and accessories are expected to struggle as such purchases are tied to discretionary spending.
<h2>Other factors?</h2>
Granted, the combination of unseasonable warmer weather across Australia and the growth of global fashion retailers like H&amp;M, Uniqlo, Zara, Forever 21 and Top Shop in the domestic market, will definitely pose a challenge for retailers.
This year incumbent players like Myer, David Jones, Premier Investment and Specialty Retail Group are not just competing with one another, but also these new entrants. This year, more than ever before, shoppers have more choice.
While most consumers remain confident, some retailers are certainly looking towards challenging times ahead. Granted, this is the first federal election held during winter in 20 years and timed “smack bang” in the middle of half yearly, stocktake sales. With an eight week election period well underway, shoppers will continue to buy the basics, but will defer upgrading big ticket items until an outcome is announced on July 3.
An unseasonably warm autumn and a glut of global fashion retailers in the market, will encourage incumbent retailers to cut prices little deeper this year. Great for shoppers, but tough on the books. It is looking to be a tough year ahead for retailers.
Gary Mortimer senior lecturer, QUT Business School, Queensland University of Technology and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gary-mortimer-1322" target="_blank">here</a>.
</body></html>

Keep calm and keep shopping – how elections impact retail sales

<html><body>
GUEST OBSERVER
Australia votes on 2 July 2016 and never before has so much superannuation policy turned on one election. A Liberal victory could mean very different things than a Labor victory.
In this article, I explore some of the ins and outs of each party’s announced policies.
Labor
The policy
Labor has been consistent with their policies for superannuation (including SMSF) pensions. Its position is <a href="https://www.alp.org.au/fairer_super_plan" target="_blank">available here</a>.
… reduce the tax-free concession available to people with annual superannuation incomes from earnings of more than $75,000. From 1 July 2017, future earnings on assets supporting income streams will be tax‑free up to $75,000 a year for each individual. Earnings above the $75,000 threshold will attract the same concessional rate of 15 per cent that applies to earnings in the accumulation phase
… capital gains will be grandfathered …
The drawbacks
The key drawback I feel is that the above could be very difficult to implement for those with pensions from multiple funds. For example, consider an individual who receives pensions from two superannuation funds. The earnings from the assets supporting the first pension in the first fund might total $60,000. The earnings from the assets supporting the second pension in the second fund might also total $60,000. Accordingly, total earnings (ie, $60,000 + $60,000 = $120,000) exceed the $75,000 threshold by $45,000. This raises a tricky question: in which fund is the $45,000 excess subject to tax?
I suspect that the most practical way of dealing with this problem is as follows. I stress that this is only what I suspect what would happen. Again, I have no special inside information.
At the end of each financial year, each fund tells their pensioners what the associated pension assets earnings of the fund are by way of a document that is similar to a PAYG payment summary.
Each pensioner has to lodge an income tax return with the total of all associated pension assets earnings from all funds. These figures would not constitute assessable income of the pensioner.
If total associated pension assets earnings is greater than $75,000, the ATO sends the pensioner a tax bill calculated as the excess (eg, $45,000 in the above example) multiplied by 15 percent.
The pensioner must give this bill to one or more for their superannuation funds to pay. The superannuation funds can adjust the tax bill by any deductions/losses they have in the relevant year.
The pensioner can only pay the tax bill him or herself if there is insufficient money in any of their superannuation accounts in any superannuation funds to pay the bill.
Naturally, the above would be very paperwork heavy. Further, it would be mean that pensioners who might not otherwise have to lodge income tax returns would need to start lodging tax returns. However, I suspect the above — or some version of it — is what would be needed to make the Labor policy work.
Another drawback is the question of what happens in respect of the sale of ‘lumpy’ assets such as real estate. Real estate can be quite low yielding in rent meaning that in most years the $75,000 threshold might not be used up. However, when sold, there could be a large capital gain. If this capital gain is greater than $112,500 (ie, $75,000 grossed up for the one-third CGT discount that superannuation funds currently get if the asset is held for more than 12 months), then the SMSF would pay tax at usual superannuation fund rates on the excess of the net capital gain over $75,000. However, some of the harshness of this would be mitigated by the fact that ‘capital gains will be grandfathered’. Also, there is no suggestion that the $75,000 threshold will be indexed.
The pros
Firstly, ‘capital gains will be grandfathered’. On one construction, this could mean that pension assets already owned in superannuation funds will remain CGT free upon sale. Alternatively, on a more charitable/optimistic reading of the sentence, this could even mean that the second drawback doesn’t even occur (ie, that there’s no limit on the pension exemption that applies to capital gains). Alternatively, it also mean even other things.
Liberals
The liberals made three noteworthy policy announcements in the Budget.
The first policy
The first policy is to:
… [f]rom 1 July 2017 … introduce a $1.6 million transfer balance cap on the total amount of accumulated superannuation an individual can transfer into the retirement phase. Subsequent earnings on these balances will not be restricted.
This $1.6 million cap will be indexed in increments of $100,000 in line with the consumer price index. A fact sheet released on Budget night explains:
A proportionate method which measures the percentage of the cap previously utilised will determine how much cap space an individual has available at any single point in time. ― For example, if an individual has previously used up 75 per cent of their cap they will have access to 25 per cent of the current (indexed) cap
The drawbacks of the first policy
On its face, the Liberals’ policy is similar to Labor’s policy. Afterall, assuming that assets yield income of 4–5% pa, $1.6 million of assets will generate approximately $75,000 of income. However, I suspect the reality could be quite different. My reasoning is as follows. Firstly, remember that under Liberals’ policy ‘[s]ubsequent earnings on these balances will not be restricted.’ Accordingly, a taxpayer with greater than $1.6 million of assets will have a tremendous incentive to try to do a bit of ‘crystal ball gazing’ in order to determine which assets will experience significant capital appreciation and use those assets to fund their pension. This can work out in two ways:
If the crystal ball gazing is right and assets that will experience significant capital grow are allocated to the pension, then — contrary to the Liberals’ motivation — high wealth individuals could still experience significant tax free income, including net capital gains.
However, the opposite could occur (ie, the crystal ball gazing is wrong), and indeed I suspect the opposite will occur more regularly. That is, assets are allocated to commence pensions and those assets end up collapsing in value, for example, where the next GFC comes along. Because it very much sounds like the Liberals want to implement a lifetime cap of $1.6 million, if you pick the wrong assets (eg, if you started your pension with $1.6 million of shares in the next Enron), then it appears to be a case of too bad: even though the original assets might collapse in value down to effectively nothing, you can never use your pension exemption again.
This means that the income tax system would not be taxing income. Rather, it would be giving a tremendous free kick to those who are good at picking investments and it would be giving a tremendous kick in the guts to those who mis-predict future investment performance.
Other draw backs of this policy include:
It sounds like there will be a harsh penalty for exceeding one’s cap. This could occur if a fund miscalculates market values and starts a pension not with $1.6 million of assets but with what ends up being valued at, for example, $1.7 million of assets. The penalty would a tax on not just the earnings of the excess but also on the capital of the excess. Hopefully lessons from the poorly drafted excess contributions tax regime would be learnt and a sensible discretion will be given to the ATO (or even to taxpayers themselves) in order to avoid unfair and harsh outcomes.
It would require tracking of how much of each individual’s lifetime cap — as proportionally indexed — has been used.
The pros of the first policy
This policy would be conceptually easier to administer I think than the Labor equivalent.
The second policy
The Liberals have said that they will remove ‘the tax exemption on earnings of assets supporting Transition to Retirement Income Streams from 1 July 2017’.
The key point here is that to date, for those wishing to take no greater than 10% of their assets per annum, it has not made a huge difference whether they receive transition to retirement income streams or full account-based pensions. However, under this policy it would make a big difference. Accordingly, if this policy ultimately becomes law, those wishing to commence transition to retirement income streams will have an incentive to see if they can first ‘trigger’ a retirement event so that they can take a full account-based pension rather than a transition to retirement income stream and thus pension assets can access the pension exemption. It has been noted by many that — particular once someone reaches age 60 — ‘retirement’ as defined in superannuation law can occur in ways that are very unintuitive. For example, according to paragraph 22 of APRA’s Prudential Practice Guide SPG 280 Payment Standard, if a 60 year old works two jobs and quits one job (eg, to work even more in the other job) this constitutes retirement under the superannuation law.
The third policy
The Liberals propose to remove the ability to make a reg 995‑1.03 election that ‘allows individuals to treat certain superannuation income stream payments as lump sums for tax purposes.’
Succession planning
Both the Liberals and Labor’s proposals could have a massive impact on succession planning.
Currently, the legislature has been quite explicit that if a fund member dies in pension mode, so long as their benefits are cashed as soon as practical after death, the pension exemption at the fund level will continue and there will be no ‘back door’ death tax by way of CGT at the fund level.
This could change a lot regardless of who wins. I won’t give this full consideration in this article, however, I will note the following consideration in respect of the Liberals’ policy. Namely, unlike Labor where an infinite amount can support a pension, it appears that under the Liberals’ policy, someone can never receive pensions with assets that were worth more than $1.6 million upon their commencement.
This might mean in a mum and dad fund with real estate worth say $3.2 million, if dad dies and mum already has a pension, all of dad’s benefits (ie, a 50% interest in the real estate) might need to be cashed out of the fund by way of a lump sum with no scope of a death benefit pension to mum.
Therefore substantially more CGT may be collected in superannuation funds in respect of death benefits especially given the Liberals’ proposed removal of the anti-detriment deduction.
Disclaimer: The following is based on my view of materials publicly available as at the date of writing (16 May 2016). I suspect that when more details become known about both parties’ policies, some comments could become redundant.
This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional. 
Bryce Figot is director, DBA Lawyers and <a href="https://www.dbalawyers.com.au/">can be contacted here</a>.
</body></html>

Liberal v Labor: what different election outcomes could mean for smsf pensions

<html><body>
<img src="https://counter.theconversation.edu.au/content/57114/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
For committed urbanists, any sign of serious urban policy action by the federal government is welcome. Early announcements by Prime Minister Malcolm Turnbull and his appointment of a minister for cities were cause for some celebration.
The subsequent appointment of Angus Taylor as assistant minister for cities and digital transformation continued the positive outlook; a relatively new parliamentarian with a good track record of business development and an analytical disposition was entrusted to advance this policy agenda.
April 29 marked the start of the next phase of policy development, when we got to see what a Smart Cities Plan looks like and whether it was worth the wait.
On first reading it contains all of the right words – smart, innovative, liveability and prosperity. It also advocated some sensible principles – collaboration, co-operation and partnership. But do these nice words and sensible principles add up to a real step change in urban policy thinking, or to a business-as-usual approach wrapped in the latest policy terminology?
At this stage we cannot be sure, but prospective partners in state and local government seem to have a fair degree of optimism about the plan.
Most sensible public bodies will profess their support, in principle, for any initiative that offers the prospect of new money to support development proposals in their area. They will commit, in principle, to working together for the common good in their locality. And, if necessary, they will rebadge their current plans to fit more easily with the rhetorical flavour of the new initiative.
The proof will, however, lie in the detail of partnership arrangements, in the implementation structures that are developed and in the way new money is allocated. Even more importantly, success will depend on whether the actual measures employed work in practice.
<h2>Partnerships in practice</h2>
In each of our cities – large and small – we need all three levels of government to work together if growth is to be supported and managed effectively. Intergovernmental partnerships have been proposed for as long as we have had different levels of government.
There is much research on what makes such partnerships work well and what does not. Where partnerships work, much of this success is based on mutual respect and recognition of the distinctive contribution of each partner.
It becomes more challenging where the reality of an urban area requires horizontal partnerships between local councils as well as vertical partnerships with state and federal bodies.
The patchy experience of Regional Development Australia committees across the country gives some indication of how well this has been achieved to date. Some have worked very well. Others have struggled in the face of varied and variable enthusiasm among partners.
<h2>Getting implementation structures right</h2>
I have argued previously that effective implementation of any policy initiative is often plagued by a lack of long-term commitment and bipartisan support.
Along with a seemingly irresistible belief within governments of any hue that policies need to be fiddled with (the technical terms would be refreshed, refocused or rebadged) every few years, carefully designed initiatives are rarely left to get on with their work and run their course.
Another problem is bureaucratic capture, in which early ambitions to work differently, with greater agility perhaps, are slowly but surely overtaken by implementation regimes that do the opposite in practice. The business experience of both the prime minister and his assistant minister for cities will be needed to prevent this type of sclerosis taking hold.
<h2>Finding and spending new money to best effect</h2>
As Taylor told Michelle Grattan recently, some partnerships between public bodies and private investors have been very effective in the past – the construction of the national rail network in the US, for example. But there is also no shortage of ones that have not gone well for any of the parties.
So, while there has been some enthusiasm for the potential role of value capture of late – and certainly in the new plan – we need to see the detail of particular proposals.
The UK City Deals model includes the principle of transferring some of the increased tax revenue associated with growth from the Treasury back to local partnerships. However, this has sometimes proved difficult to agree in practice. 
And it is here that bipartisan agreement in the urban policy field seems unlikely at present. The shadow minister for cities, Anthony Albanese, has come straight out with a ringing condemnation of the Turnbull-Taylor plan as a policy without substance.
Albanese also joined with the Property Council of Australia in invoking the spectre of Australian families being slugged with a new property tax to capture some of any increased value associated with public investment in infrastructure.
<h2>How will we know what works?</h2>
Tucked away on page 23 of the plan is a small section about measuring success. This acknowledges the importance of having good-quality data to provide a baseline against which future performance can be measured. It cites the need for “unambiguous targets, accountabilities and timeframes for city-level reforms”.
The plan recognises that, without these, it will be impossible for the government to hold itself and its investment partners to account. I would like to think that in five years’ time we will be able to read a National Audit Office report (like this one on the 2011-14 Liveable Cities Program) describing how this bold new Smart Cities Plan heralded a new era of productive intergovernmental collaboration.
That would mean it succeeded in attracting substantial new private investment, which set our cities on a clear path to being smarter, more productive and nicer places in which to live.
Let’s hope that if I shared this view with The Castle’s Darryl Kerrigan he wouldn’t tell me, or indeed Angus Taylor, that we’re dreamin’.
 
Paul Burton is professor of Urban Management and Planning &amp; Director, Urban Research Program, Griffith University and author for The Conversation.
He can be contacted <a href="https://theconversation.com/profiles/paul-burton-5155" target="_blank">here</a>.
</body></html>

Smart Cities Plan offers signs of hope, but are Turnbull and Taylor just dreamin'?

<html><body>
During the life of the next Parliament — and probably by 2017 — Australia will fall into a prolonged recession, according to Steve Keen, the head of the school of economics, history and politics at Kingston University in the UK and author of Debunking Economics.
"For the last 25 years, Australian politicians of both Liberal and Labor hue have been able to brag that, under their stewardship, Australia has avoided a recession.
"Those bragging rights are about to come to an end," he blogged saying the recession has been set up by the sidestep both parties have used to avoid downturns for the past quarter century.
He claimed Australia’s most famous recession sidestep was during the GFC, when it was one of only two countries in the OECD to avoid experiencing two consecutive quarters of negative GDP growth (the other country was South Korea).
"Since then, the private sectors of the advanced countries have collectively de-levered, reducing their debt levels from about 170 to 160 per cent of GDP. Australia, in stark contrast, has levered up.
"Our private debt to GDP ratio is now more than 20 per cent higher than when the GFC began, and more than 50 per cent higher than in the USA (see Figure 1).
Figure 1: Australia has borrowed its way out of recession for the last 25 years
<a href="/images/2016/03/23/6cdbf509f2f9a18c8a88d8c79cf70910.jpeg" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/23/6cdbf509f2f9a18c8a88d8c79cf70910.jpeg" alt="">
"The day of reckoning can be delayed by encouraging yet more private borrowing, which the RBA can attempt to do by cutting interest rates, and the government can reduce the crunch by running a large budget deficit.
"But these are likely to happen after a crisis rather than before it, because our Reserve Bank and our politicians are as oblivious to the dangers of private debt today as Bernanke was back in 2007.
"The 2016 election could be a good one to lose."
</body></html>

Election

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Election

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News