Queensland builder-developer MAYD has revealed the first look at its major North Kirra beachfront development, lodging amended plans that reduce the number of apartments and increase the proportion of larger residences.

The project is planned across a substantial 4,742 sqm amalgamated site spanning seven lots at <a href="https://www.apartments.com.au/new-apartments/2-6-pacific-parade-bilinga-qld-4225">2-6 Pacific Parade</a> and 27-33 Golden Four Drive in Bilin​ga, directly opposite Nor​th Kirra Beach.

<a href="https://www.apartments.com.au/developers/mayd-group">MAYD</a> secured the site for $32.5 million in 2025, in what was one of the Gold Coast's largest property transactions of the year.

The development will be delivered across two stages, with the first stage carrying an estimated gross realisation value of around $360 million.

The latest amendments seek to reduce the overall apartment count and shift the project further toward the owner-occupier market, with larger residences designed for buyers wanting considerably more space than traditionally offered in a beachfront apartment.

The residential mix will include townhomes, oversized two-bedroom apartments, substantial three-bedroom residences and four-bedroom homes.

MAYD has appointed Cera Stribley to lead the architecture and interiors, with the Melbourne-based design practice drawing on the beachfront setting through a series of ocean-facing terraces and heavily landscaped balconies.

Strong horizontal forms and curved balconies will define the exterior, with subtropical landscaping integrated throughout the building to soften the built form and increase the connection between the residences and the beachfront.

The project will also include an extensive collection of resident wellness and lifestyle facilities, continuing the broader shift across the Gold Coast's luxury apartment market toward larger homes supported by resort-style amenity.

<img alt="MAYD" data-entity-type="file" data-entity-uuid="d1bcbb05-e659-4b47-8bd4-1e595315e2ad" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%202.05.03%E2%80%AFPM.png?VersionId=jj0XEud1X1DuLt7_KyElhjMdZGOXmLHP" />

MAYD Founder Todd Mould said North Kirra was increasingly appealing to buyers attracted to the more established, lower-density character of the southern Gold Coast.

"North Kirra presents one of the most compelling luxury residential opportunities currently emerging in Australia, combining absolute beachfront with the character and authenticity that buyers are increasingly seeking, and the same sense of tight-knit community that defined Burleigh and Currumbin perhaps 10 or 15 years ago," Mould said.

"With Gold Coast Airport on its doorstep, it also offers a level of accessibility that broadens its appeal across almost every market demographic."

The project comes as the southern Gold Coast continues to attract an increasing share of high-end apartment development and buyer activity.

Kirra in particular has emerged as one of the region's more tightly held beachfront markets, with its relatively low-density character, established surf and hospitality scene and proximity to Gold Coast Airport differentiating it from the higher-density markets further north.

Mould said those characteristics had informed the approach MAYD and Cera Stribley had taken to the project.

"We've worked closely with Cera Stribley to create a vision that is deeply connected to its surroundings," he said.

"Inspired by the coastline itself, the architecture has been shaped around space, privacy and resort-style living, creating a collection of homes that reflects the next generation of luxury on the southern Gold Coast."

MOTIV Managing Director Carly Cottam, who has been appointed to market the project, said buyer attention had continued to move south along the Gold Coast.

"Purchasers who may once have defaulted to Broadbeach, Main Beach or Surfers Paradise are increasingly recognising the value of a genuine beachfront location that offers lower density, strong amenity and a more established sense of community," Cottam said.

"Kirra has a powerful combination of growing demand and genuine scarcity. Beachfront supply is inherently constrained, the area remains relatively low density, and buyers are increasingly placing a premium on locations that feel established, uncrowded and authentic rather than heavily developed."

Cottam said the proximity to Gold Coast Airport was also proving increasingly important for interstate and second-home buyers.

"Being minutes from Gold Coast Airport makes it particularly compelling for interstate buyers, frequent travellers and second-home purchasers who can access an authentic coastal lifestyle almost immediately after stepping off a flight."

The acquisition takes MAYD's active development portfolio to more than $500 million, with the North Kirra project representing one of its largest undertakings to date.

MAYD is targeting an early 2027 launch.

Joel Robinson

First look at MAYD's North Kirra mixed-use precinct

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Castle Hill, the longtime hub of the Hills District, has been one of the major beneficiaries of Sydney's Metro expansion, with improved connectivity helping drive continued population growth, development and buyer demand across the Hills District.

But despite that growth, the suburb has seen relatively few major new apartment projects brought to market over the past 18 months.

Hills District developer Reve Group is looking to fill that gap with <a href="https://www.apartments.com.au/new-apartments/nova-r-ve-castle-hill-2-garthowen-crescent-castle-hill-nsw-2154">Nova Rêve</a>, a major new mixed-use precinct on the corner of Garthowen Crescent and Old Castle Hill Road, a short walk from Castle Hill Metro Station and Castle Towers.

[smartcode_project:default project_id=152737 project_image_fid=377679]

The project will comprise three residential towers alongside a hotel, restaurants, cafes and a skybar, more than 1,600 sqm of ground-floor retail and almost an acre of landscaped gardens.

It represents the largest project undertaken by Reve Group, the development arm of the Kassis family, which has been building across the Hills District for more than 30 years through Kassis Homes.

[smartcode_project:default project_id=152737 project_image_fid=377675]

Nova Rêve also represents a significant step up from the family's first apartment development, Grand Rêve, which was delivered nearby on Garthowen Crescent.

Grand Rêve introduced larger, house-like apartment layouts and premium inclusions including Wolf and Sub-Zero appliances to the Castle Hill market.

Nova Rêve takes that approach to a precinct scale, combining the residential component with hospitality, retail and substantial public and resident landscaping.

[smartcode_project:default project_id=152737 project_image_fid=377685]

Reve Group Managing Director Sam Kassis said the project reflected the family's three decades of building in the Hills, which has evolved from trophy homes on quarter-acre blocks to larger-scale apartment development.

"Grand Rêve was our first apartment project here and it showed us what this pocket of Castle Hill could be. Nova Rêve is the refinement of that idea: not just apartments, but a place the whole suburb can use," Kassis said.

A key part of that approach is the hotel, which has been designed to operate as an amenity for the wider Castle Hill community rather than solely hotel guests.

It will include restaurants, cafes, skybars and all-day dining, alongside conference and event facilities catering to business functions, community groups and private events.

At ground level, more than 1,600 sqm of shops and cafes will open onto the surrounding streets and landscaped areas.

Almost an acre of gardens designed by Land and Form Studios will run through the precinct, incorporating pathways, seating, barbecue areas and children's play spaces.

[smartcode_project:default project_id=152737 project_image_fid=377680]

Reve Group's Romio Georges said creating an active ground plane had been central to the planning of Nova Rêve.

"There are gardens with pathways, barbecues, seating and play areas, shops and cafes opening onto the street, and a hotel with restaurants and a skybar that anyone in Castle Hill can walk into," Georges said.

The project's elevated position on one of Sydney's highest ridgelines will also provide apartments with outlooks toward the Sydney skyline, surrounding parkland and the Blue Mountains.

More than 80 per cent of the apartments will occupy corner positions, with Turner responsible for both the architecture and interiors.

&nbsp;

[smartcode_project_cta:default project_id=152737]

<h3 data-end="3697" data-section-id="q3n5ak" data-start="3672">&nbsp;</h3>
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Nova Rêve arrives as Reve Group bets on Castle Hill's next growth phase

A collection of just 25 large-format apartments and penthouses overlooking Goodwin Park is entering the Coolangatta market, with <a href="https://www.apartments.com.au/new-apartments/marea-residences-coolangatta-27-27a-dixon-street-coolangatta-qld-4225">Maréa Residences</a> combining a low-density, residential-only approach with uninterrupted park and Pacific Ocean outlooks.

Located at 27 Dixon Street, Maréa comprises three and four-bedroom residences alongside a limited number of dual-level penthouses, with the project positioned between Goodwin Park and <a href="https://www.apartments.com.au/developments/coolangatta-qld-4225">Coolangatta</a>’s coastal precinct.

Construction has commenced, with completion currently estimated for late 2027. Three-bedroom residences are priced from $1.8 million.

[smartcode_project:default project_id=150999 project_image_fid=374005]

The project has been designed around its northern outlook across the park, with the building’s architecture, landscaping and material palette intended to establish a connection with the neighbouring green space. The residences have been configured to maximise natural light and views across Goodwin Park towards the ocean.

Inside, the material palette incorporates timber, stone and brushed brass, complemented by curved detailing and ambient lighting. Kitchens and bathrooms carry the same natural material approach, while residences also include basement parking, storage and lift access.

Maréa’s penthouses are arranged over two levels and include private pools, adding another layer to the project’s focus on larger-format apartment living. Across the development, residences are configured with three or four bedrooms rather than the broader mix of smaller apartment types commonly found in larger projects.

[smartcode_project:default project_id=150999 project_image_fid=374010]

Resident amenity is concentrated at rooftop level, where landscaped entertaining terraces and pools take advantage of elevated views across Coolangatta and the Pacific Ocean.

The project has so far been particularly well received by local owner-occupiers and downsizers, according to Urban Activation Property Sales and Marketing Director Matt George, with the residential-only format, construction quality and northern park outlook among the features resonating with purchasers.

“The uninterrupted northern aspect overlooking Goodwin Park has been a key point of difference, with buyers attracted to the sense of serenity and open space the park provides, while still enjoying easy access to the ocean and being within walking distance of the lifestyle and amenities Coolangatta has to offer,” George said.

[smartcode_project:default project_id=150999 project_image_fid=374002]

“The combination of high-quality construction, a residential-only building, park outlook and proximity to the beach has resonated strongly with the local downsizer market.”

The Dixon Street address is within walking distance of Coolangatta Beach and the broader southern Gold Coast coastline, including the surf breaks at Snapper Rocks and Kirra. Coolangatta’s cafés, restaurants and retail are nearby, while Gold Coast Airport is also within close proximity.

[smartcode_project_cta:default project_id=150999]

Maréa Residences brings parkside apartments to Coolangatta

Melbourne developer PDG has secured Victorian Government approval for its $1.5 billion Southbank development <a href="https://www.apartments.com.au/new-apartments/the-one-1-queens-bridge-street-southbank-vic-3006">The One</a>, clearing the way for the long-dormant riverfront site opposite Crown to finally be developed.

The Minister for Planning has approved the project at 1-29 Queens Bridge Street, with the Department of Transport and Planning issuing the planning permit following its assessment.

The approval will allow PDG to develop the prominent 5,059 sqm site with a major mixed-use tower comprising premium apartments, including branded residences, a luxury hotel and boutique office space.

PDG acquired the site in late 2024, with its position directly opposite Crown's main entrance and near Melbourne's Arts Precinct making it one of Southbank's most significant remaining development opportunities.

<img alt="PDG" data-entity-type="file" data-entity-uuid="3933013e-6332-4386-b9be-089df05caf17" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.22%E2%80%AFAM.png?VersionId=sITIgBqDL0N3VNSMwWEmF5UA.uvcsRyu" />

Designed by COX in collaboration with ODO and PDG, the tower's architecture draws on the movement of the Yarra River, with six vertical pleats running the height of the sculpted facade.

The project will also see the heritage-listed Queens Bridge Hotel restored and incorporated into the development&nbsp;with new hospitality and public uses, including a rooftop venue.

A significant component of The One will be its residential amenity.

More than 5,000 sqm of resident facilities will be delivered across a single level, making it one of the largest consolidated residential amenity offerings proposed in an Australian apartment development.

The planning approval also incorporates a major upgrade of Queensbridge Square, which PDG will deliver in partnership with the City of Melbourne.

<img alt="PDG" data-entity-type="file" data-entity-uuid="73167fcd-1031-4b6f-a408-a064cfe45ed1" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-27%20at%209.29.17%E2%80%AFAM.png?VersionId=Pf1AEWxw6SNmBqR0zQW5lyEze.MtxgFp" />

The existing square will be revitalised as a new civic and pedestrian space along the Yarra River, strengthening the connection between the project, Southbank and the riverfront.

PDG Founder and Managing Director Vince Giuliano said the approval represented a major milestone for a site which has remained largely underutilised for more than 15 years.

“This is the most significant Planning Permit approval Melbourne has seen in recent years,” Giuliano said.

“For more than 15 years, this site has remained underutilised. This approval enables us to deliver a project that will contribute meaningfully to the revitalisation of Southbank, restore and reactivate an important heritage building, and create a new civic and hospitality destination for Melbourne.”

The latest approval follows an earlier planning permit issued by the City of Melbourne covering demolition works across part of the site at 9-29 Queens Bridge Street. Those demolition and early works are already underway.

PDG has also started generating early interest in the residential component from owner-occupiers ahead of a planned public launch in early 2027.

PDG secures approval for $1.5bn Southbank apartment development, The One

Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

Federal Budget

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Negative gearing remains, but the entitlement rules are being tightened around what can be claimed by property investors on travel expenses.
Investors will no longer be able to claim tax deductions for travel expenses “related to inspecting, maintaining or collecting rent for a residential rental property” from July 1.
Of the nation's 2 million landlords, about 1.3 million are negatively geared.
The measure is intended to “address concerns that many taxpayers have been claiming travel deductions without correctly apportioning costs”.
The government expects the travel changes to bring in an extra $540 million in revenue over the next four years.
Australia's 1.3 million-strong contingent of negatively geared landlords will no longer be able to claim travel expenses for inspecting their residential properties.
It also applies for travel to collect rent on a property.
At present, travel-related ­expense claims related to inspections but in reality ‘holidays’ is costing the government more than $160 million a year.
"This is an integrity measure to address concerns that many taxpayers have been claiming travel deductions without correctly apportioning costs, or have claimed travel costs that were for private travel purposes," the budget papers say.
It does not apply to commercial property.
Property management fees for third parties such as real estate agents will remain tax deductible.
The 2017 budget sees rules being tightened around what can be claimed by property investors, specifically around depreciation deductions.
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j.ballantyne1990-6AQqhLzZaK

Property investors to lose travel expense tax claims: 2017 Budget

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The 2017 Budget sees rules being tightened around what can be claimed by property investors, specifically around depreciation deductions.
Under new rules coming into effect from July 1, depreciation deductions for plant and equipment items such as washing machines and ceiling fans will only be allowed if the investor actually bought them.
Of the nation's 2 million landlords, about 1.3 million are negatively geared.
It is described as an “integrity measure.”
It is intended to address concerns that items are being claimed as tax write-offs by successive investors in excess of their actual value.
It is calculated to claw back $260 million over the next four years of the budget.
The changes will apply to any items purchased after budget night, May 9, but existing investments will be grandfathered.
"Acquisitions of existing plant and equipment items will be reflected in the cost base for capital gains tax purposes for subsequent investors."
Those investments will continue to give rise to deductions for depreciation until the investor no longer owns the asset or the asset reaches the end of its effective life.
Assets purchased after budget night will attract a deduction over the effective life of the asset but subsequent owners will not be able to claim deductions on that asset.
Investors will also no longer be able to claim <a href="/expert-insights/69959-property-investors-to-lose-travel-expense-tax-claims-2017-budget" target="_blank">tax deductions for travel expenses</a> “related to inspecting, maintaining or collecting rent for a residential rental property” from July 1.
The government expects the travel changes to bring in an extra $540 million in revenue over the next four years.
It intends to use the “integrity measure” to fund a first-home buyers’ scheme, which will allow $30,000 to be salary sacrificed into a superannuation account at a concessional tax rate.
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Property investors to lose depreciation deductions on furniture: 2017 Budget  

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Treasurer Scott Morrison's Budget focusses on freeing up more land for building homes as part of the measures to address affordability issues in major capital cities.
As part of the move to free-up Commonwealth land, 127 hectares of defence land in the Melbourne suburb of Maribyrnong would be earmarked to allow for 6000 new houses, according to the Herald Sun. The suburb is just 10 km north of the city.
The median house price in Maribyrnong was $940,000, while for units it was $460,000, according to www.realestate.com.au which cited CoreLogic RP Data.
The range of measures announced in the Budget include working with states and territories to reform planning and zoning laws, and setting up a $1 billion National Housing Infrastructure Facility to “address infrastructure chokepoints that are impeding housing development in critical areas of undersupply”.
The decision to unlock defence land for housing development comes amid rising affordability in and around the Melbourne CBD and adds to the state government's earlier measures to ease the situation.
Aside from that, regional Victoria is also set to benefit from a $472 million growth fund to help communities adapt to the changes economy.
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Budget 2017 to free up defence land in Melbourne's Maribynong for 6,000 homes

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<img src="https://counter.theconversation.edu.au/content/77316/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
It’s unsurprising that in the lead-up to this year’s federal budget there was a lot of discussion about housing affordability as its centrepiece.
Over the past 20 years price-to-income and price-to-rent ratios have doubled. Sydney’s price-to-income ratio is over 12, making it the second-least-affordable city in the world. Melbourne is in fourth place.
And in a budget tableau as bland as this one, it wouldn’t have taken much to really play up the housing affordability policies.
Yet the measures in this budget involve not much more than tinkering.
On the minus side, the biggest announcement was a “first home super saver scheme”, which would allow voluntary contributions of A$15,000 per annum and A$30,000 in total (per person if in a couple) to superannuation for prospective first home buyers from July 2017. These could be withdrawn and taxed at 30 percentage points below the normal marginal rate and used for a deposit.
This will cost the government A$250 million over four years and do absolutely nothing to help first home owners. We have seen this movie before, with 50 years of first home owner grants in one form or another. All that happens is that this subsidy goes into the price of existing housing. Sellers benefit, buyers get no joy.
It’s bad economics, somewhat costly, and a cruel hoax on prospective home buyers who are struggling with an out-of-control housing market.
But the biggest minus of all was the absence of any measure whatsoever to address negative gearing and CGT exemptions for rental properties. Sorry, there is one: you now won’t able to deduct an airfare to the Gold Coast to “inspect” your rental property. The government has boxed itself in on this, with Labor having taken a plan to the last election to tackle both of these issues (full disclosure, the Labor plan bears a good deal of resemblance to my McKell Institute plan).
Nonetheless, it is reflective of the state of our politics that the one thing that could really help the most (and which the PM has agreed with very publicly in the past) is off the table.
But the measures aren’t all bad. On the plus side, there were incentives for people over 65 to downsize by allowing A$300,000 of the proceeds of a sale of their main residence to go into their superannuation, above the controversial A$1.6 million cap announced in last year’s budget.
Will the budget encourage older Australians to downsize? Maybe. One measure of how powerful an incentive it will be is that it costs only A$30 million over the four-year forward estimates period. This is not a big government spend.
It’s also unclear whether it will be a large enough financial incentive to overcome the emotional and psychological barriers to moving from the family home after many years in it. There was also a conspicuous absence of reforms to stamp duty, which is a major impediment to downsizing.
There was also good news on affordable housing with the establishment of the National Housing Finance and Investment Corporation (NHFIC). It will provide A$63.1 million over four years to operate a so-called “bond aggregator” that aims to provide cheaper financing for community housing providers. This is a good idea that should have a positive effect, and help address the high cost of funds that often plagues financing of housing for low-income earners.
Consistent with the recent populist policy announcements by this government, foreign purchasers of Australian properties were targeted in this budget. There will no longer be a capital gains tax (CGT) exemption for primary residences of foreign and temporary tax residents, and the grandfathering will only last until June 30 2019. There will also be a lower threshold for CGT withholding (A$750,000, down from A$2 million) on foreign tax residents, and the rate will be increased from 10 percent to 12.5 percent.
There were some wishy-washy words about the crucial issue of housing supply. The government has definitely identified the key role that supply plays. They are proposing a variety of “city deals” to provide incentives for zoning reform — especially in western Sydney. That’s all good, but whether it is anything more than the budget-summary feel-good headline - “Working with the states to deliver planning and zoning reform” - remains to be seen.
There was also the announcement of a tax on foreign owners who leave their properties vacant. This is supposed to raise A$16.3 million over four years — which is a rounding error in the scheme of things.
We had a housing affordability crisis before this budget, and we will have one after it. If the first step to recovery is acknowledging that one has a problem, then the government is still on step one.
<a href="https://theconversation.com/profiles/richard-holden-118107" target="_blank">Richard Holden</a> is a Professor of Economics and PLuS Alliance Fellow at UNSW and author for <a href="https://theconversation.com/au" target="_blank">The Conversation</a>.
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jchancellor-FAypfDUnLy

Government tinkering with housing affordability in 2017 Budget: Richard Holden

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GUEST OBSERVER
The 2017-18 Budget has a welcome focus on housing affordability and infrastructure.
Subdued wages growth is keeping revenue collection down contributing to a slight deterioration in near term deficit projections (a deficit of $29.4bn for 2017-18) but a return to surplus is still projected for 2020-21. 
This year’s Budget should be positive for confidence.
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.24.06%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.24.06%20AM.png" alt="">
The impact on the RBA and the shares is likely minimal. 
The 2017-18 Budget has much to make it popular. In fact, the goodies make it almost feel like a pre-election rather than a post-election budget. The transformation from the austerity to end “the age of entitlement” of the 2014 budget to the “fairness, security and opportunity” of this Budget has been profound.
Key budget measures
As always, most of the key new measures were pre-announced or leaked. On the spending front, the goodies include:
A further ramp up in infrastructure spending (by an additional $20bn over the forward years) including Western Sydney Airport, inland rail &amp; various road projects.
Extending the small business $20,000 asset write-off scheme and working with states to remove red-tape.
A housing package: first home buyers can save via their super for a deposit out of pre-tax income (up $30,000), retirees who downsize get exemptions from super limits, more stringent rules on foreign investors (eg, vacant home tax), encouraging the supply of low cost community housing and rewarding states for boosting supply.
Increased spending on health through committing to fully fund the National Disability Insurance Scheme and reintroducing Medicare rebate indexation. 
Removal of the “zombie” welfare cuts.
$18.6bn over ten years in extra school funding (Gonski 2.0). This has been offset by various savings, including:
Increased university fees.
An increase in the Medicare levy by 0.5 percent from 2019.
A 0.6 percent levy on the major banks with liabilities over $100bn.
More measures to curtail the cash economy and improve the integrity of the tax and welfare system.
Little change to the deficit outlook
Despite a temporary boost to corporate tax revenue from a bounce in the iron ore price, extra spending and soft personal tax collections on the back of weak wages growth means the near-term budget deficit outlook is a bit worse than MYEFO and $2.3bn worse over four years compared to last year’s budget.
The return to surplus has been maintained for 2020-21 and looks better at 0.4 percent of GDP. After a 2016-17 budget deficit of $37.6bn, the deficit for 2017-18 is forecast to be $29.4bn (1.6 percent of GDP). 
With the Government offsetting all new spending with savings, the actual policy impact on the economy this year and next is trivial (see the red figures in the table above). However, the projected decline in the budget deficit in the years ahead means that fiscal policy will still be acting as drag on growth. 
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.25.02%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.25.02%20AM.png" alt="">
Economic assumptions
The major economic assumptions underpinning the Budget are shown in the next table. Most of the assumptions look reasonable, except that the assumption that wages growth rises to 3.75 percent over the next four years looks too optimistic given unemployment is not expected to fall much. The iron ore price is still expected to average $US55/tonne over the next four years. This looks reasonable albeit the recent volatility in the iron ore price highlights the uncertainty around it. 
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.26.08%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.26.08%20AM.png" alt="">
Assessment and risks
The goodies and the focus on fairness in the Budget should provide a bit of a boost to confidence and spending. But the risks around the projected return to surplus remain huge. Australia still has a budget deficit problem.
Government spending surged 25 percent between 2006-07 and 2008-09 to combat the GFC and this has never been unwound. While our net public debt to GDP ratio is low compared to the US, Europe and Japan, comparing ourselves to a bad bunch is dangerous. The Budget is projecting a 12 year run of deficits totalling 27 percent of GDP which swamps the deficits of the 1980s and 1990s.
And this is without the deep recessions of the early 1980s and 1990s! Rather we have achieved this thanks to a combination of ramping up spending on a whole range of things without facing up to how they will be paid for.
Unfortunately after 102 quarters without a recession there is no support for hard-nosed economic reform in Australia and this also applies to reforms to limit spending growth. So we continue to rely inordinately on assuming the best to drive revenue up.
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.27.14%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.27.14%20AM.png" alt="">
 
This is evident in the Budget’s projections for average revenue growth of a whopping 6.7 percent per annum over the next four years. Such optimistic assumptions have disappointed in recent years and the biggest risk now is that wages don’t accelerate as assumed leading to continuing poor personal tax collections.
While the Budget still projects a return to surplus by 2020-21, it remains pretty thin and the budget deficit projections over the next two years actually take us further away from a surplus not closer. The trouble is we don’t have a lot of flexibility to provide stimulus should the economy turn down. While the 2017-18 Budget should help us keep our AAA sovereign rating for now, the risk remains high that we lose it at some point. 
On infrastructure, the Budget has much to commend it. Infrastructure spending can help short term growth, boost long term productivity and can actually “crowd in” private investment. Increased public investment is helping to offset weak private investment (see the next chart) and the infrastructure commitment in the Budget will help ensure this continues. 
In this regard, the move to report a “net operating balance” in this year’s Budget is welcome and there is much merit in focusing debt on capital spending and not recurrent spending. But debt is still debt and there is always the risk some of the infrastructure projects turn out to be white elephants resulting in “good debt” becoming “bad”.
Finally, it’s commendable to see housing affordability being a key part of this Budget. Certainly the measures are to be welcomed, particularly those helping first home buyers, downsizers and measures to boost supply. Getting housing supply up on a sustainable basis is critical so the key is for the Federal Government to follow through with its plan to incentivise states to meet housing supply targets.
Implications for the RBA
While this Budget should provide a boost to confidence (albeit not for university students), ongoing fiscal tightening will act as a mild drag on growth in the years ahead. As such, it’s hard to see major implications for the RBA. In fact recent data on trade and retail sales continues to point to more risk of a rate cut than a rate hike in Australia this year.
<a href="https://www.propertyobserver.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.28.13%20AM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/05/10/Screen%20Shot%202017-05-10%20at%208.28.13%20AM.png" alt="">
Implications for Australian assets
Cash and term deposits – with interest rates remaining low, returns from cash and bank term deposits will remain low.
Bonds – a major impact on the bond market from the Budget is unlikely. With five year bond yields at 2.2%, it’s hard to see great returns from sovereign bonds over the next few years.
Shares – the potential boost to confidence from this Budget could be a small positive for the Australian share market. Overall, the Budget’s impact is unlikely to be huge. Construction stocks may be beneficiaries and banks losers.
Property – the Budget’s housing affordability measures may have an impact on home prices over time if they incentivize states to ramp up supply, but it’s likely to be marginal in the short term. We continue to expect momentum in the Sydney and Melbourne property markets to slow.
Infrastructure – the ramp up in infrastructure spending should in time provide more opportunities for private investors as many of the resultant assets are ultimately privatised.
The $A – the Budget alone is unlikely to have much impact on the $A. With the iron ore price falling back again, the interest rate differential in favour of Australia continuing to narrow and the $A still too high, the downtrend in the $A is likely to resume.
Concluding comments
The 2017-18 Budget has a sensible focus on housing affordability and infrastructure. The main risks remain around the revenue assumptions and when we will get back to surplus. 
<a href="https://www.propertyobserver.com.au/https://plus.google.com/110172465327488162875?rel=author">SHANE OLIVER</a> is head of investment strategy and economics and chief economist at <a href="https://www.ampcapital.com.au/home">AMP Capital</a> and is responsible for AMP Capital's diversified investment funds.
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After 102 quarters without recession pragmatism and fairness rule in 2017 Budget: Shane Oliver

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First home buyers will receive preferential tax treatment in the budget tomorrow night to enable them to save for a deposit.
Sources have confirmed the budget will introduce its own version of first home saver accounts which will resemble a superannuation account.
First home buyers will receive concessional tax treatment on contributions by being able to salary sacrifice, The Australian Financial Review advised.
The earnings will be taxed at a concessional rate. 
There will no contributions from the government.
There will be caps on the amount that can be contributed annually and an overall cap on the size of the fund.
There will be no age limit on who can set up such a fund but it can only be used for the purchase of a first home.
Couples with individual accounts would be able to pool their accounts.
Despite the government's policy having both annual and global caps, the Australian Financial Reviews suggested its still risks being criticised as fuelling demand, a key reason why there was widespread opposition to enabling people to use their superannuation to buy houses.
"I think on budget night, I don't want to raise expectations too much, but anyone who is saving for a deposit for their first home will be pleased with the steps by the government," Assistant Treasurer Michael Sukkar told Sky News.
"By the time you save the money for a deposit the market has moved on and now you need 60 or 70 thousand."
The policy will be one of a handful on budget night aimed at improving housing affordability but the government won't be tackling demand-side factors such as negative gearing and capital gains tax concessions.
On the supply side, it will encourage retired couples to downsize from the family home.
People who downsize will be able to use the proceeds to bolster their retirement by being offered exemptions from the annual $100,000 cap on on on-concessional superannuation contributions and the $1.6 million cap on retirement accounts. However, the proceeds from downsizing are not expected to be exempt from the pension assets test.
The government will also encourage a national scheme in which investors will be taxed for leaving properties vacant.
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Federal Budget 2017: First home buyers to get preferential tax treatment

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GUEST OBSERVER
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<div class="column">The Department of Finance released the March monthly financial statements on Friday.</div>
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<div class="column">This note examines the latest data.</div>
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 Budget improves: In the twelve months to March 2017, the Budget deficit stood at $38.6 billion (around 2.3 per cent of GDP), up from $37.53 billion deficit in the year to February but better than the average deficit over the past year of $39.3 billion. Average growth in company tax revenues in the last three months has been the best in 41⁄2 years.</div>
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 Lower-than-expected deficit: The Department of Finance says the “the underlying cash balance for the financial year to 31 March 2017 was a deficit of $38,907 million, which is $1,361 million lower than the 2016-17 Mid-Year Economic and Fiscal Outlook (MYEFO) profile deficit of $40,267 million.”</div>
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<div class="column">The Federal Budget remains on track to meet Government forecasts. Not only are rolling annual aggregates showing improvement, so are the so-called ‘profile’ positions estimated by the Department of Finance.</div>
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<div class="column">The Government continues to exercise spending restraint. In fact expenses or payments were $1.5 billion below the so-called ‘profile’ level or government estimates for this point in the year. Revenue also is lifting, $335 million above government forecasts. And the rolling annual level of revenues is growing at a 6.2 percent annual pace, faster than growth in payments for the 23rd straight month.</div>
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<div class="column">The Budget is currently in a stronger position than the government’s finance boffins have estimated. The good news is that improvement is coming from both sides of the balance sheet.</div>
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<div class="column">GST revenues are also lifting, currently at record highs for a 12-month period. Spending is growing faster than the growth rate of retail trade suggesting that businesses and service sectors are doing better than goods-dependent operations.</div>
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<div class="column">What do the figures show?</div>
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<div class="column">The underlying Budget deficit for the twelve months to March 2017 stood at $38.6 billion (around 2.3 percent of GDP), up from $37.53 billion in the year to February.</div>
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<div class="column">Smoothed revenues (twelve months to March) were up 6.2 percent on a year ago just down from 6.3 percent in January which was the fastest growth in 42 months.</div>
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<div class="column">Expenses rose by 4.3 percent over the same period.</div>
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<div class="column">In terms of the fiscal balance, the Department of Finance noted: “The fiscal balance for the year to 31 March 2017 was a deficit of $37,365 million, which is $6,381 million lower than the 2016-17 MYEFO profile deficit of $43,746 million. The difference results from higher than expected revenue and lower than expected expenses.”</div>
<div class="column"> </div>
<div class="column">Revenues: “Total receipts were $334 million higher than the 2016-17 MYEFO profile.”</div>
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<div class="column">Expenses: “Total payments were $1,516 million lower than the 2016-17 MYEFO profile.”</div>
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<div class="column">The Government currently expects an underlying deficit of $36.514 billion for 2016/17 (around 2.3 per cent of GDP).</div>
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<div class="column">Receipts from the Goods and Services Tax stood at a record $62.0 billion in the twelve months to March, up 5.7 percent on a year ago, and above the 5.4 per cent growth over the last twelve months. The Government has forecast GST receipts of $62.41 billion for the entire 2016/17 year.</div>
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<div class="column">Actual GST receipts for the nine months to March stood at $46.331 billion, just below the Budget ‘profile’ of $46.349 billion.</div>
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<div class="column">What is the importance of the economic data?</div>
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The Department of Finance releases the Government Financial Statements (Niemeyer Statement) almost every month. The statement allows investors to track the current Budget position and provides insights into the effectiveness of fiscal policy. 
What are the implications for interest rates and investors? 
The Federal Budget is on track to meet forecasts. Spending restraint is driving the improvement. Fiscal policy is more neutral at present, as is monetary policy.</div>
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<div class="column">There is no room for complacency. The Budget may be showing cyclical improvement, but in 2017 all political parties need to stay focused on fundamental tax reform to drive medium-term improvement in the fiscal position.</div>
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<div class="column"><a href="https://www.propertyobserver.com.au/images/2017/05/08/Screen%20Shot%202017-05-08%20at%208.05.21%20AM.png" target="_blank">Click to enlarge</a></div>
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 One missing ingredient in recent times has been the absence of growth in company tax revenues. But average growth in the last three months has been the strongest in 41⁄2 years. </div>
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Company tax revenues lift: Craig James

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GUEST OBSERVER
Determining funding for the right housing measures in the upcoming Federal Budget (May 9) would be much easier if the Government had a national housing plan and a Minister for Housing according to the managing director of a leading community housing provider and housing commentator.
Budgets should be developed to meet strategic and operational plans.  It makes no sense that Australia does not have a national plan nor a Minister responsible for something as fundamental as housing.
Housing, including social and affordable housing, needs to be viewed as part of Australia’s social and economic infrastructure and integrated with other infrastructure planning. He agreed with the treasurer, The Hon Scott Morrison, that there is no silver bullet to the housing crisis but says with rising social housing waiting lists, high capital city house prices and an increasing number of working people experiencing housing stress, action is long overdue.  
An effective plan will only be realised if the Commonwealth Government recognises that housing is a fundamental human right and the responsibility of the national Government and a national Minister, not just the states and territories.
The Government’s national co-ordination and responsibility must include direct investment in social and affordable housing.
There are less public housing dwellings now than last decade despite around 200,000 people on public and social housing waiting lists and a general acceptance that Australia has a shortfall of between 200,000 and 400,000 dwellings.
Australia was in a similar situation in 1945s when the national Government took action in conjunction with the States.
Back then there was a need for austerity but there was also acknowledgement that workers needed housing and that constructing housing would stimulate the economy and get people working.
With the current downturn in manufacturing and mining we have many workers for whom constructing housing is a realistic use of their skills; another example of housing’s integration with social infrastructure.
This way, more social and affordable housing becomes possible on the back of economic infrastructure investment and job creation rather than as welfare subsidy.
If we had another “Affordable Housing Commission” type policy response the housing built could eventually sold by Government, as it was previously.
One example of possible integration of housing and other infrastructure planning was high speed rail links. He said such infrastructure is already being proposed and would create new commuter towns between those capital cities, taking pressure of capital city housing demand and boosting regional Australia’s economy.
 A rising tide can lift all ships and makes the provision of affordable housing and housing subsidies more sustainable.
A number of housing and community organisations, economists, academics and other experts have done considerable work to help the Government to create a national plan.
Where are Australia’s long term plans for infrastructure and housing? It is time for such plans rather than one off political cycle centric planning and initiatives.
You can budget for a plan.
Greg Budworth is a managing director of Compass Housing group and co-chair of the United Nations Habitat program’s civil society partner constituent group. he can be <a href="https://www.compasshousing.org" target="_blank">contacted here</a>.
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Infrastructure and housing plan needed before budget initiatives: Greg Budworth

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Days before the Federal Budget in which Treasurer Scott Morrison is expected to announce housing affordability measures, the Treasurer has said that the apartment market has peaked and regulatory controls on investor lending are working.
"The apartment market is already turning," Morrison said in a pre-budget interview with The Australian Financial Review. "To the extent that we're going to have a landing in the Sydney housing market depends on a lot of the choices we make over the next little while."
His comments came a day after property analytics firm CoreLogic said dwelling values increased by just 0.1% across the combined capital cities in April, with housing market conditions slowing in both Sydney and Melbourne.
Corelogic’s head of Research, Tim Lawless noted that the April results mark the weakest monthly change in dwelling values across the Sydney market since December 2015, when CoreLogic reported a 1.2 percent fall in Sydney dwelling values. 
But at the same time, he advised caution, saying “We need to be cautious in calling a peak in the market after only one month of soft results.”
Morrison, however, was more upbeat and took a swipe at Labor, saying further measures such as cutting negative gearing or capital gains tax breaks as the opposition party proposes could risk crashing a market that is already slowing. 
"Labor's approach would give us a hard landing, potentially a crash landing. We're obviously going for a much more smooth process and that means you don't do things which potentially overreact, over-respond,” he told the AFR.
Emphasising the effect of APRA's tighter credit rules on property lending, Morrison sought to play down expectations of federal government intervention to improve housing affordability. 
Morrison said any changes to tax breaks were "enormously complex”. 
Labor is pushing for the curbs on investor demand and said last month it would bar SMSF borrowing to invest in property.
The property industry opposes any change to SMSF property tax breaks.  
Morrison, however, also rejected the idea that Howard-era changes making it easier for super funds to invest in property had stimulated demand.
"Bricks and mortar was already encouraged," Morrison said. "The thing about it, you've had Sydney house prices rise by 18 per cent. Who was getting 18 per cent in their self-managed super fund? It commends itself."
Tighter regulator-driven curbs on lending to foreign buyers had also slowed the apartment market, he said.
CoreLogic said Sydney units fell 1.2 per cent in value in April while houses gained just 0.2 per cent. Apartment values in the nation's second city, Melbourne, fell 0.9 per cent while detached houses gained 0.6 per cent. 
"You talk to developers in this city and they'll tell you," Morrison said. "At the moment you wouldn't get finance on a development that was expecting more than a quarter or even a third of the sales to go to foreign investors."
Morrison did say, however, housing affordability – particularly for renters – was necessary as this would reduce the country's growing social welfare bill in the long run.
"If you want to get your welfare budget under control then get young people into a job, get homeless people into a house, get people on low income into a rent that they can afford and not get kicked out of a house every six months and their kids have to change schools every time. If you want to deal with a welfare budget, deal with that," he said.
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Morrison says apartment market turning, APRA controls on lending taking effect

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The government is considering incentivising downsizing for retirees to improve housing affordability for the young, with retirees who sell off their family home likely to be offered exemptions from new limits to be placed on superannuation.
Although it is unlikely the sale proceeds will also be quarantined from the age pension assets test, The Australian Financial Review reported, citing sources.
The government has considered exemptions to both the $1.6 million cap on a super retirement fund and the non-concessional amount that can be contributed annually, if the top-up is coming from the sale of a large family home, it said.
Treasurer Scott Morrison will deliver the budget on May 9. The likely May budget package was first floated two years ago by Scott Morrison when he was social services minister, as reported by Property Observer recently.
It is hoped breaking down a few barriers will encourage older Australians to down­size homes, thereby releasing more stock to the market and also unlocking billions in capital.
While the move aims to help improve housing affordability, as promised by the government, by freeing up more stock for young families, it also hopes to help shore up the Coalition's support among its so-called base, which is still fuming over $6 billion in cuts to superannuation tax concessions contained in last year's budget, the AFR reported.
Some people are so cranky that over the weekend it emerged that Melbourne businessmen, led by Jack Hammond, QC, and John McMurrick, a former MP, were advocating a challenge to the preselection of Minister for Revenue and Financial Services Kelly O'Dwyer and replacing her with Tony Abbott's former chief of staff, Peta Credlin.
Credlin said she was not interested and O'Dwyer said she was not afraid of a challenge.
The amount of super people have does affect their eligibility for an age pension. Under the budget proposal, if an age pensioner wants to downsize and top up their super, they could do so but lose some or all of their pension.
Those to be targeted by the government policy are pretty much self-funded retirees who don't receive a pension and would be encouraged to sell their home by being able to bolster their retirement income.
Under the super changes which come into effect on July 1, a retirement account, on which the earnings are tax free, will be capped at $1.6 million. Any excess must remain in an accumulation account which will continue to be taxed at the concessional rate of 15 per cent.
Also under the changes, people aged under 65 can contribute a maximum of $100,000 a year in non-concessional contributions to their super until the $1.6 million cap is reached.
Those aged over 65 can contribute $100,000 a year in non-concessional contributions but only if they meet a work test of having done 40 hours work over 30 consecutive days.
It is believed exemptions to both the $1.6 million cap and the $100,000 non-concessional contributions cap are being considered in the event of lump sum contributions from the proceeds of downsizing. It is unclear whether some or all of the proceeds from downsizing could be used to bolster super.
Labor was the first to propose such a policy. When last in government, it announced a trial scheme in which up to $200,000 in sale proceeds would be exempt from the pension assets test. The trial was scrapped when Tony Abbott won government.
Shadow treasurer Chris Bowen was quoted by the AFR as saying that Labor still favoured the idea and would consider whatever the government put in the budget.
"Labor has supported measures to make it easier for seniors to downsize their housing without penalising them. That's why Jenny Macklin had a pilot program in the 2013 Budget to work on exactly that – a pilot program scrapped by the Liberal Party in 2013," he said.
"If the government wants to help older Australians downsize their home, why did they abolish a Labor program that did exactly that. We're receptive of similar measures subject to our normal policy processes and ensuring the government doesn't botch their implementation."
The Property Council of Australia supports exempting downsizers from the pension assets test, but only for people aged 75 and older to prevent a free for all among retirees.
"We have to reduce transaction costs which lock people into homes that don't suit them and are a big drag on the economy," said council chief executive Ken Morrison.
"As well, pensioners are discouraged from downsizing because of the way the pension assets test is configured. Some small changes to the downsizing rules could see tens of thousands of family homes enter the market."
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