A full-scale Sky Homes prototype apartment for <a href="https://www.apartments.com.au/new-apartments/zeste-at-the-orchards-norwest-104-fairway-drive-norwest-nsw-2153">Zeste</a> has been opened by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a>, offering buyers a look at the final residential release within The Orchards masterplan in <a href="https://www.apartments.com.au/developments/norwest-nsw-2153">Norwest</a>.

The prototype launch coincides with buyer demand for larger apartment living continuing across Sydney’s Hills District.

David Lee, Sales Manager, Apartment &amp; Mixed-Use Developments at Sekisui House Australia said it was evident from the preceding four stages at The Orchards that a large number of buyers were local owner occupiers or downsizers specifically looking for oversized apartments with additional living spaces.

“The majority of buyers prefer to touch, feel and physically sight a full-scale completed apartment, rather than imagining the living spaces from floor plans," Lee says.

"The prototype apartment provides greater clarity and buyer confidence. We expect this will increase sales momentum for Zeste and the Sky Homes in particular.”

[smartcode_project:default project_id=150510 project_image_fid=351878]

Positioned within Stage 5’s Zeste project, the Sky Homes form part of the final opportunity to purchase within the award-winning master-planned community, which will ultimately deliver approximately 1,300 apartments.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a>, Zeste comprises two residential buildings, Essence and Eden, providing 209 apartments surrounded by extensive landscaping, resort-style amenities and community spaces.

Ben Pomroy, Principal at Rothelowman said Zeste explores a reinvention of the traditional house, in the orchard, synthesising the nostalgic story of the orchard homestead of yesteryear with a contemporary aesthetic inspired by the landscape.

“Natural light and ventilation are key to the design, contributing to a higher quality of life at the human scale. Across all Rothelowman projects, our ethos of ‘a generous eye for life’ drives our consideration of the human experience as the central point of focus of our design process.”

Pomroy says a&nbsp;notable design element is the cathedral glass light boxes incorporated in the joinery, inspired by the idea of wandering the orchard homestead with a lantern in hand, something familiar and nostalgic.

"We took this narrative and gave it a contemporary twist that is both beautiful and functional, creating unique features that unify the kitchen and bathrooms design.”

[smartcode_project:default project_id=150510 project_image_fid=351874]

In addition to the two residential buildings, Zeste comprises a single-story community amenity pavilion nestled in the landscape between Essence and Eden.

“The communal pavilion is a distinctive feature designed to foster a deep sense of community, with nature at its heart," Pomroy added.

"Whether it is watching the football grand final or hosting a family BBQ, the pavilion is designed as a place where residents can create memorable moments with friends, family and neighbours.

Since launching Essence, the first building within Zeste, buyer demand has remained strong with more than 30 per cent of residences already sold. Sky Homes have accounted for nearly 40 per cent of all sales achieved since launch.

“Purchasers are responding positively to the oversized layouts, diverse apartment configurations and the vast range of community facilities that will be available at completion,”David Lee noted.

Zeste Sky Homes represent approximately 35 per cent of the entire Stage 5 offering and are available across both Essence and the yet-to-launch Eden building. Prices for the Sky Homes range from $1,135,000 with one car space through to $1,500,000 for two car spaces.

Apartments across the broader Zeste release start from approximately $715,000, with generous floorplans ranging from 59 to 144sqm. Select residences also feature integrated ‘Max’ spaces, designed to function as flexible areas for home offices, children’s playrooms or additional storage.

Zeste also continues Sekisui House Australia’s sustainability partnership with Altogether Group, delivering integrated water, power and data services alongside passive design initiatives including cross-ventilation, landscaping and water features.

Early purchasers are currently able to access a selection of premium upgrade options, with VIP buyers receiving one complimentary upgrade package. A 2.5 per cent deposit is available for a short time.

Sekisui recently commenced its pre-construction phase. They are expecting an early 2028 completion of Zeste.

[smartcode_project_cta:default project_id=150510]

Joel Robinson

Zeste Sky Homes prototype opens as buyer demand surges for oversized apartment living

Having recently announced its entry into the booming Gold Coast new apartment market with <a href="https://www.apartments.com.au/new-apartments/aere-chevron-island-18-20-mawarra-street-surfers-paradise-qld-4217">Aere Chevron Island</a>, developer Martello™ is offering generous stamp duty savings for buyers before June 30.

Martello™ says the incentive creates a more accessible entry into premium apartment living.

"While incentives in property are nothing new, today’s stamp duty contributions arrive at a particularly important moment," the developer says.

"Buyers are not only seeking quality homes and strong locations; they are also looking for smarter financial entry points. Reducing or offsetting stamp duty can represent tens of thousands of dollars in savings - funds that can instead be directed toward furnishing a home, reducing mortgage pressure, or simply providing peace of mind during the transition into ownership."

[smartcode_project:default project_id=143932 project_image_fid=367517]

Aere is one of the more boutique new developments on Chevron Island, with just 33 apartments across 18 storeys on Mawarra Street

The developer has placed a strong emphasis on wellness, briefing architecture firm Raunik Design to embed this philosophy into the project.

<a href="https://www.apartments.com.au/developers/martello">Martello™</a>&nbsp;has positioned Aere as a continuation of its human-centric development approach, with a focus extending beyond amenity to the fundamentals of layout, natural light, and spatial planning.

[smartcode_project:default project_id=143932 project_image_fid=368446]

To bring a heightened level of confidence to the project, <a href="https://www.apartments.com.au/developers/martello">Martello™</a>&nbsp;has already appointed Promax Construction to build the tower. They are expected to start construction in the coming months.

Martello™ says that in any market cycle, confidence matters.

"Buyers who may have been waiting on the sidelines are now reassessing their timing as developers and vendors introduce meaningful incentives designed to support decision-making. For owner-occupiers, it creates an opportunity to secure a premium residence with reduced upfront costs. For investors, it can improve the overall acquisition equation at a time when rental demand remains exceptionally strong across many key markets."

&nbsp;

[smartcode_project:default project_id=143932 project_image_fid=367507]

Aere offers a mix of two-, three-, and four-bedroom apartments, the latter of which occupy half a flor. These layouts prioritise separation between living and sleeping zones, along with increased privacy and storage, features more commonly associated with detached housing than traditional apartment product.

Aere’s private resident amenity spaces centre on wellness. A rooftop level will incorporate a heated swimming pool, sauna and spa, alongside a residents’ lounge, dining areas and barbecue spaces, while additional shared facilities throughout the building include a gym and yoga area.

[smartcode_project:default project_id=143932 project_image_fid=367515]

&nbsp;

"What we are seeing now is a market that rewards readiness," Martello added.

"Buyers who are informed, financially prepared, and willing to act decisively are finding opportunities that may not exist once conditions shift again. Incentives such as stamp duty contributions are typically limited in duration and allocation, particularly within tightly held developments where demand remains high.

&nbsp;

Offer available on selected residences at Aere Chevron Island only. Stamp duty contribution provided by the developer at settlement and cannot be exchanged for cash or combined with any other offer unless approved by the developer. Offer valid for contracts signed on or before 30 June 2026. The developer reserves the right to amend or withdraw the offer at any time without notice. Terms and conditions apply.

[smartcode_project_cta:default project_id=143932]

Martello™ offers limited time stamp duty concessions at Aere Chevron Island

New development specialists Lachlan Cottee and Ben Dalgleish have unveiled their new development firm, Dalcott, following several successful projects delivered under the Pyco banner across the region.

Pyco is currently delivering Atelier in nearby West End, Nouveau in Albion, and Onde at Kirra, its debut Gold Coast apartment development in the booming Kirra Beach precinct.

Its first plans under the new Dalcott banner are in South Brisbane, which has been Brisbane’s most enquired-on suburb so far in 2026, while neighbouring West End has also continued to record strong demand.

The developer already has approval for an 11-storey building with 65 apartments on Browning Street, however has recently acquired the adjoining 910 sqm site at the rear, creating a combined 2,746 sqm footprint that will now allow for two 11-storey buildings with 92 large-scale apartments, a configuration Cottee and Dalgleish have focused on across their local portfolio.

The project, known as <a href="https://www.apartments.com.au/new-apartments/marrone-south-brisbane-39-browning-street-south-brisbane-qld-4101">Marrone</a>, will comprise 84 three-bedroom apartments, 16 of which will include an additional multipurpose room, and just eight two-bedroom residences.

DAH Architecture has led the design of Marrone, which will include more than 330 sqm of communal open space and rooftop recreation areas.

<img alt="Marrone" data-entity-type="file" data-entity-uuid="7eeea1a0-be23-47c8-80fb-3409428241fd" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-21%20at%209.36.38%E2%80%AFAM.png?VersionId=pZW7o.tB7oJovYCRIFSxrZbMr6QdpHy." />

Cottee told Apartments.com.au the project reflects a gap in Brisbane’s apartment market.

"It is an area we know well with Atelier, another development which focuses on large apartments, less than 300 metres away," Cottee says.

"There's limited supply of large-scale apartments of this size in a single building in Brisbane. The majority of apartments in this category are in considerably smaller buildings, on the water, and are only really accessible to the deepest of pockets.

"Marrone will offer the same size and scale, but with greater amenity and at a much more realistic price point for the market."

The architectural approach reflects the continued evolution of South Brisbane’s higher-density residential character. Renders show a heavily landscaped façade composition with curved balconies, textured brickwork, deep recesses, and integrated planting aimed at softening the scale of the twin towers.

The revised proposal builds on the design narrative established in the original scheme. In the earlier submission, Gatehouse Architects described the project as a continuation of Browning Street’s long-term urban transformation.

“The proposal echoes the spirit of early developments like Watson Terrace (built in 1888), by contributing to the growth and diversification of the local population,” the original design statement noted.

“Just as Watson Terrace played a role in the area’s early gentrification, this development continues that trajectory, delivering contemporary housing that addresses the evolving needs of South Brisbane’s expanding community.”

The updated proposal, designed by DAH Architecture, spans a 2,746 sqm corner site with frontages to Browning and O’Connell Streets. The development will comprise two 11-storey residential buildings delivering 92 apartments, replacing the previously proposed 65-unit scheme.

The apartment mix has shifted further toward larger owner-occupier residences, continuing Dalcott’s established strategy across South East Queensland. The plans include 68 three-bedroom apartments, 16 three-bedroom apartments with multipurpose rooms, and eight two-bedroom residences. Two basement levels will provide 142 car spaces, alongside bicycle parking for 115 bikes.

The larger Marrone proposal arrives amid sustained redevelopment momentum across South Brisbane and the wider Kurilpa precinct, where developers are increasingly targeting owner-occupiers seeking larger apartments close to the CBD, cultural precincts, and riverfront amenity.

The site sits within walking distance of South Bank, the Queensland Performing Arts Centre, Brisbane State High School, and several major transport connections, while nearby Fish Lane and West End continue to drive demand for higher-end inner-city apartments.

Cottee is expecting Marrone to launch around August with Realm Projects.

Exclusive: Dalcott doubles down on South Brisbane with twin-tower Marrone plans

<section data-scroll-anchor="false" data-testid="conversation-turn-2" data-turn="assistant" data-turn-id="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" data-turn-id-container="request-WEB:9894702f-d5ab-4186-930d-8f794421c3c4-0" dir="auto">
<a href="https://www.apartments.com.au/developers/doma-group">DOMA Group</a> has unveiled plans for Newcastle Quay, a major waterfront precinct set to reshape Newcastle’s harbourfront and further cement the city’s evolution into one of Australia’s fastest-growing urban destinations.

Positioned on a prominent site within the Honeysuckle Precinct, Newcastle Quay will span both sides of Honeysuckle Drive, connecting directly to the Foreshore Promenade and sitting within walking distance of Newcastle Interchange.

The mixed-use precinct is planned to include around 1,000 apartments, more than 28,000 sqm of commercial office space, 6,000 sqm of retail, and a 180-room hotel anchored by a 500-seat conference and exhibition centre, a move expected to significantly lift Newcastle’s ability to attract major business and tourism events.
</section>

<img alt="DOMA Group unveil Newcastle’s future with transformative Newcastle Quay Precinct" data-entity-type="file" data-entity-uuid="0642ca09-67cc-4920-8a7e-d18df9729b4e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/%3D.png?VersionId=CnDmZxQnOV5LN0ePu7jaFBXC9tPGTrWm" />

The proposal builds on DOMA’s growing Newcastle pipeline, where the developer has already delivered 866 apartments and more than 19,000 sqm of commercial and retail space since entering the market in 2013. A further $2 billion pipeline is also in the works across the city.

The masterplan and executive architecture are led by <a href="https://www.apartments.com.au/architects/sjb-architects">SJB</a>, with building concepts developed alongside Stewart Architecture, Architecture AND and Curious Practice, and landscape design by <a href="https://www.apartments.com.au/landscape-architect/turf-design">Turf Design Studio</a>. More than 11,000 sqm of open space is planned, including a new waterfront park known as Honeysuckle Green, upgrades to Tree of Knowledge Park, and new pedestrian and cycling links throughout the precinct.

At the centre of the development will be the heritage-listed Wickham School of Arts, which DOMA plans to reposition as the civic and cultural heart of the precinct through restaurants, bars, events and public gathering spaces.

The broader vision is to create a genuine day-to-night precinct, blending residential, hospitality, retail, commercial and cultural uses in a way Newcastle has yet to experience at this scale.

DOMA Group Managing Director Jure Domazet said the aim was to create a precinct that becomes synonymous with Newcastle itself.

“Our vision is to create a precinct that not only delivers high-quality commercial, residential, and cultural spaces, but also defines Newcastle’s waterfront for generations to come,” Domazet said.

DOMA’s Chris Farrington said the project would fundamentally change how Newcastle is perceived nationally.

“Newcastle Quay is more than a waterfront precinct, it is a national announcement for this city,” Farrington said.

“A world-class Conference and Exhibition Centre will open Newcastle and the Hunter Region to a national and international audience for the first time, delivering something this city has long deserved.”

The project is expected to generate more than 4,000 full-time equivalent jobs and act as a major economic driver for the Hunter region through tourism, business events, hospitality and commercial investment.

&nbsp;

&nbsp;

Minister for Planning and Public Spaces Paul Scully said the final parcel of harbourfront land will be a "true mixed-use precinct destination that includes housing, hospitality and entertainment, commercial spaces, retail, economic and social outcomes."

DOMA Group unveils 1,000-apartment Newcastle Quay precinct

ASX-listed developer Stockland is continuing to ramp up its return to the apartment market.

In late 2024, <a href="https://www.apartments.com.au/developers/stockland">Stockland</a> announced it would resume apartment development after a 13-year absence, launching with Stanton Place in Rosebery, a 144-apartment project now under construction.

Last week, the developer unveiled plans alongside the NSW Government for a <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-nsw-gov-unveils-plans-for-3-300-home-waterloo-south-renewal">3,300-home precinct in Waterloo</a>.

Now, Stockland has shifted its focus in St Leonards, lodging a State Significant Development Application (SSDA) to replace an approved 42-storey office tower with a 52-storey residential development comprising more than 500 apartments.

<img alt="Stockland" data-entity-type="file" data-entity-uuid="8979095e-9072-432b-a7da-58b180cf994d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.36%E2%80%AFPM.png?VersionId=_jbRXYOafCSHjwsz.yQCNIymMyCj8zkF" />

An existing 14-storey commercial office building would make way for a 264.5-metre tower designed by <a href="https://www.apartments.com.au/architects/bates-smart">Bates Smart</a>. The project would deliver 538 apartments, including 30 affordable housing units, alongside retail and commercial uses at the podium and ground plane.

It will rise from&nbsp;<a href="https://www.apartments.com.au/new-apartments/601-pacific-highway-st-leonards-nsw-2065">601 Pacific Highway</a>, a prominent 2,844 sqm triangular site adjoining Mitchell Plaza and fronting Pacific Highway.

The development is being pursued under the Housing Delivery Authority pathway after Stockland’s proposal was declared State Significant Development earlier this year.

<img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="67f40f35-0458-47ab-80c0-a4e98a31838a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%201.png?VersionId=rxXe3njr.auuGDuiR0k42uI8Zr4K.gZA" />

The apartment mix includes 217 one-bedroom apartments, 191 two-bedroom apartments, 122 three-bedroom apartments, and eight four-bedroom residences. Six basement levels would accommodate 300 car spaces, bicycle parking, loading areas, and building services.

Bates Smart said the project has been shaped around a series of urban design principles intended to improve the pedestrian experience and respond to the evolving character of St Leonards.

“With a boundary length of almost 75m along Pacific Highway and 70m along Atchison Street to the north, complying simply with the LEP envelope and required setbacks would result in a very wide tower form on the skyline,” the architects noted in the Design Report.

“We propose breaking the tower form into two defined volumes rather than a singular form.”

The podium has similarly been articulated into separate forms to reduce perceived bulk and create a finer-grain response to Mitchell Plaza and Atchison Street. Retail tenancies would activate the lower levels, while commercial space is proposed across the podium floors.

<img alt="First look: Stockland plans 52-storey mixed-use tower with 538 apartments in St Leonards" data-entity-type="file" data-entity-uuid="90149990-0551-40d2-bd48-14b69a015d12" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/stockland%202.png?VersionId=MJC2KIIWFvU9FPGr3IVq09gkRN_gX3m8" />

The design also places a significant emphasis on communal amenity and environmental performance. Residents would have access to landscaped terraces, wellness areas, flexible workspaces, and rooftop communal facilities, while the all-electric building is targeting an average 7-star NatHERS rating. Bates Smart said the project incorporates passive design measures including natural ventilation, integrated shading, and lightweight façade systems.

Planning documents note the site is around 350 metres from St Leonards Station and 400 metres from the metro entrance, placing it within one of Sydney’s most connected emerging residential precincts.

The project arrives amid a wave of large-scale redevelopment proposals reshaping the St Leonards and Crows Nest skyline. Several nearby sites have recently been approved, lodged, or declared under the Housing Delivery Authority pathway as the precinct absorbs significant residential density uplift tied to transit-oriented development policies.

<img alt="Stockland" data-entity-type="file" data-entity-uuid="7805bd7c-dfd7-4b35-8e15-ec4a8bf8e61b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-20%20at%204.27.26%E2%80%AFPM.png?VersionId=iY12K2m2bQ6EeDnshqfZC9rbLx_oEugP" />

Bates Smart’s report describes St Leonards as transitioning away from its historical commercial identity toward a more mixed-use urban environment.

“In recent years, the character of St Leonards has started to evolve, driven by new development trends along the Pacific Highway corridor,” the report said.

“These projects have increasingly focused on residential accommodation, marking a shift from its purely commercial roots.”

Sekisui House Australia is currently selling Waterstone down near Newlands Park, in a pocket being branded "St Leonards South." Hyecorp recently completed Audrey in the same pocket.

First look: Stockland plans 52-storey, 538-apartment St Leonards tower

Financial System

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GUEST OBSERVATION
Australians have A$2.6 trillion in superannuation assets. We conducted a study of Australian women who influence or make decisions about how these assets are invested. Research shows gender-diverse investment teams lead to better investment returns. Yet women report being subject to sexist and unequal treatment in their industry.
While women are now the majority of finance graduates at some Australian universities, they remain a minority at all levels of investment management. They comprise 17% of Australian investment managers. On average they experience a 33% gender pay gap. This is almost 10 percentage points bigger than the gap across all industries.
The gender pay gap is particularly pronounced because discretionary bonuses make up a substantial portion of pay packets in investment management. Women are less likely to be in roles that are paid bonuses. The also report being paid lower bonuses than male equivalents.
Our survey and interview data from 127 women show investment management remains a “boys’ club”. Our findings mirror those of studies of women in Australian finance conducted since 1991. Little has changed over 30 years.
The women in our study were ambitious and passionate about working in investment management. They talked about the strong sense of purpose their jobs provided. They wanted more women making career decisions to be aware of the financial and intellectual rewards.
Most study participants were relatively senior, and most agreed they were treated with respect and had sufficient flexibility over work hours. But only half agreed their workplace treated men and women equally. A significant minority had experienced sexual harassment, offensive remarks or behaviours, and exclusion from important work-related events.
Working mothers have it hardest
Lack of accommodation of working mothers was the key problem identified.
More than half agreed working flexibly or part-time compromised career opportunities. Women described only limited access to flexibility and maternity leave, and stalled careers as a result. Women who took extended leave or “downshifted” were paid less than men in their cohort. This led to a widening pay gap over the course of their careers.
Other problems were identified:
<ul>
<li>
an “ingrained” culture of sexism and gender discrimination; this included stereotyped views of women being best suited to administrative roles, and that their primary role was that of family carer
</li>
<li>
unconscious and conscious biases screening women out of recruitment processes and preventing their advancement
</li>
<li>
disillusionment that men across the industry were only paying “lip service” to gender equality
</li>
<li>
an absence of support, sponsorship and mentoring from direct managers throughout their careers.
</li>
</ul>
Diversity promotes accountability
Finance-sector organisations are under pressure to improve their accountability and performance following the banking royal commission. Having more diverse decision-making is key to this. Cognitively diverse teams are less likely to engage in group think or risky behaviours.
It’s important the leaders of investment management organisations show genuine commitment to improving diversity. It’s equally important this commitment is enacted by managers at all levels.
At the team level, managers should provide support and equal opportunities for women to “stretch” themselves and build their potential for promotion. We found women given the same career-advancing assignments as male colleagues advanced to senior levels and recruited more women at levels below.
One catalyst for change might be to link managers’ pay, bonuses or promotion prospects to achieving key performance indicators for supportive and equitable management practices.
At an industry level, superannuation funds such as HESTA are measuring gender diversity in the firms that manage their assets.
The research points to a need for organisations to “de-bias” all people management processes to ensure gender-equal outcomes in recruitment, allocation of assignments, development opportunities, promotions and remuneration.
To accommodate working parents, organisations should redesign jobs to allow for reduced workloads and career advancement. They need to develop strategies that minimise the impact of maternity leave on career trajectories. They should also encourage men to work flexibly and take extended parental leave, so this becomes a cultural norm.<img src="https://counter.theconversation.com/content/103319/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
Sarah Oxenbridge, Research Fellow, University of Sydney Business School, University of Sydney
Rae Cooper, Associate Dean, University of Sydney Business School, co-Director Women, Work and Leadership Research Group, University of Sydney, University of Sydney
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/for-the-sake-of-our-retirement-savings-its-time-to-reform-the-investment-management-boys-club-103319" target="_blank">original article</a>.
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j.ballantyne1990-6AQqhLzZaK

For the sake of our retirement savings, it’s time to reform the investment management boys’ club

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GUEST OBSERVATION
In the 2017 budget lockup - when then-Treasurer Scott Morrison announced his outrageous bank tax/heist - I heard one well-known journo remark to another “Boy, it’s a f…ing bad day to be a banker”.
And so one might say today that it’s a bad time to be a central banker.
The big debate going on at the moment is whether the “inflation-targeting” framework followed by the United States Federal Reserve, Reserve Bank of Australia and other central banks, is up to the job in a post-2008 world.
Inflation targeting is where central banks try and keep inflation within a certain range. But they have recently been struggling to achieve their targets.
It’s pretty clear the real interest rate consistent with financial stability in advanced economies is lower than it has been in the past. This means GDP growth rates with a two in front of them are the new normal.
How should monetary policy change - if at all - in light of this?
Inflation targeting in both the United States and Australia dates to the (early/mid) 1990s. Central banks saw a tradeoff between inflation that was either too high or too low. The US Federal Reserve (to this day) summarises it as follows (emphasis added)
"Over time a higher inflation rate would reduce the public’s ability to make accurate economic and financial decisions. On the other hand, a lower inflation rate would be associated with an elevated probability of falling into deflation… a phenomenon associated with very weak economic conditions. Having at least a small level of inflation makes it less likely that the economy will experience harmful deflation if economic conditions weaken."
At the time the Fed settled on a 2% target and the RBA on a 2-3% band.
The question is, are these useful targets today?
As former US Treasury Secretary and NEC Chair Larry Summers put it when commenting on the tradeoff and how it might have changed (emphasis added):
"I do not see much that has changed that bears on the cost of higher inflation in making it harder for economic agents to plan. On the other hand there are compelling reasons to believe that the risks of deflation have increased. First, the world has seen a substantial amount of deflation or very low inflation over the last 20 years. In Japan and significant parts of Europe, deflation has taken place over several year periods. And there were moments during the financial crisis when deflation appeared a real risk for the United States. Second, deflation scenarios occur when the economy falls into the liquidity trap where short term safe nominal rates cannot be reduced any further even though there is economic slack and inflation rates are declining. On any reasonable calculation this is a much greater risk than it could have appeared in the mid-1990s."
The risk is these frameworks are beneficial precisely because they provide certainty to markets and economic actors, and anchor inflation expectations. If one changes the framework too readily or too often then disaster looms.
Changing the mandate
Having said that, there’s a good case to be made for a nominal GDP target rather than the kind of inflation target we currently have. A number of distinguished scholars have advocated this position.
Whatever the new framework is - and there surely needs to be a new one - should almost surely involve nominal interest rates around 5% in normal times. This would permit monetary policy to respond to sharp economic downturns.
How that is achieved is a tactical, not a strategic question. And I say that with all due chiding.
To me, the deep and hard question is how we transition to such a framework without a large loss of credibility. That surely involves making the case - in a compelling fashion - that the world has changed.
US Federal Reserve chair Jay Powell and RBA governor Phil Lowe need to have this discussion very publicly.
Thus far the RBA has not really been on the field, but it pulled out its strongest intellectual weapon on Wednesday, with deputy governor Guy Debelle delivering a detailed speech on inflation in Brisbane.
He offered some suggestions about why inflation has been low - perhaps unusually so - of late, and then concluded with something that sounded an awful lot like the party line (emphasis added):
"Our current forecast for inflation is broadly unchanged from earlier forecasts. We did revise down our expectation for inflation in the current quarter for reasons I have just discussed. Beyond the September quarter, we continue to expect inflation to be around 2¼% over the next couple of years as above-trend GDP growth reduces spare capacity in the labour market and there is an associated pick-up in wages growth. We expect most of these other forces that have contributed to the recent low rate of inflation to abate but there is uncertainty about how much longer they will persist. We would like to be more confident that inflation will be sustained at a rate consistent with the target."
The RBA can call it their “house view”, and we observers can call it other things. But one thing is for sure, the RBA cannot duck the question of what the appropriate monetary-policy framework is for a secular-stagnation world much longer.

They may be able to keep the cash rate on hold, but this debate cannot be kept on hold.
Richard Holden, Professor of Economics and PLuS Alliance Fellow, UNSW<a href="http://theconversation.com/institutions/unsw-1414"></a>
This article was originally published on <a href="http://theconversation.com">The Conversation</a>. Read the <a href="https://theconversation.com/vital-signs-its-time-to-discuss-a-new-framework-for-central-banking-101978">original article</a>.
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rh-YsoTT2xMuQ

 It’s time to discuss a new framework for central banking: Richard Holden

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Comparison website RateCity has welcomed the federal government’s decision to hold a Royal Commission into Australia’s financial sector.
RateCity CEO Paul Marshall said the only way to restore public trust in our financial sector was through a Royal Commission.
“Australians rely on financial products every single day," Marshall said.
"They hold the keys to our homes. They are the keepers of our retirement.
“We all agree banks are a fundamental to our economy but they are also fundamental to our society. We expect our banks to lend responsibility and help us manage our finances.
“Every Australian is entitled to financial products that are honest and fair. The government is right to focus on this point.
“We would like to see changes that make financial services more transparent and easy-to-understand. Any recommendations should focus on increasing competition and reducing costs for consumers, not the reverse.
“Australia’s big banks have been at the forefront of a long list of scandals and wrongdoings for too long. We’re well past the mea cupla stage.
“It’s time to look at the culture inside our banks and make sure it is in line with community values,” Marshall said.
Mr Turnbull’s announcement comes after the chief executives of the big banks, the Commonwealth, Westpac, National Australia and ANZ banks requested the government step in to  aunch an inquiry.
It was in an email sent to Treasurer Scott Morrison yesterday.
Treasurer Scott Morrison dubbed the Royal Commission a “regrettable but necessary action”.
Leader of the opposition Bill Shorten took to Twitter to take a dig at Prime Minister Malcolm Turnbull.
He tweeted "Is Malcolm Turnbull the last person in Australia who doesn't see the need for a Banking Royal Commission?"
Heritage Bank welcomed the Royal Commission into the banking sector, however Heritage Bank CEO Peter Lock said that the customer-owned banking sector, which included Heritage, should not be dragged into an inquiry based on the alleged wrong doings of the big banks. 
“The whole issue of the need for an inquiry into the banking sector has been used as political football for far too long,” Mr Lock said. 
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jonathanchancellor-7SQnKwU6yx

Banking royal commission should focus on an honest and fair financial system

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GUEST OBSERVER
The government’s response to the Financial System Inquiry is good news for consumers and will help promote a competitive and diverse banking and financial landscape and we congratulate the government on accepting the majority of Inquiry Chair David Murray’s recommendations, which were handed down in late 2014.
The recent announcement by the government is good news for customers and will continue to enhance the integrity, competition and transparency in our financial system in Australia. 
I’m pleased to see there will be a stronger focus on competition in the sector, through the inclusion of competition in ASIC’s mandate and also through the commitment to review competition in the financial system by the end of 2017. 
CUA hopes this is just the beginning, and that we will see a continued focus on competition going forward, including regular rolling reviews of competition within the financial system.
We welcome the requirement for transparency around vertically integrated financial advice and mortgage broking businesses, owned by larger banks, and for higher standards in financial advice and acknowledge the steps the government and regulators, including the Australian Prudential Regulation Authority (APRA), have already taken in recent months in response to recommendations which came out of the Inquiry.
The government’s decision earlier this year to not proceed with a levy on deposits was a sensible outcome which was in the best interests of Australians and customer-owned institutions like CUA. 
Likewise, I’m pleased to see the government has endorsed the steps already taken by APRA towards requiring the majors to hold more capital against home loans and the release of a discussion paper on capital levels for ADIs. Both of these are positive outcomes for consumers and customer-owned lenders like CUA. 
CUA looks forward to APRA implementing the broader international work on risk weights for mortgages - the so called Basel 4 approach - which could enable our sector to allocate more appropriate levels of capital to customers with lower loan to valuation ratios. This tailored approach has been missing from our repertoire and will be a major step forward for mutuals given our focus on the customer.
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The CUA would seek further details on some of the proposed actions and how they would impact CUA, including changes to the definitions around term deposits. 
We look forward to continuing to work closely with industry stakeholders, regulators and the Government on implementing these measures so Australians can continue to enjoy a strong, secure and competitive financial services landscape. 
 
Rob Goudswaard is Chief Executive Officer, CUA and can be contacted <a href="https://www.cua.com.au" target="_blank">here</a>.
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jchancellor-FAypfDUnLy

CUA applauds measures to promote competition in financial services

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February 29s are a relatively unusual occurrence given the rules that decide leap years: every year divisible by four is a leap year, but every year divisible by 100 is not a leap year, unless the year is also divisible by 400, then it is still a leap year.
As amusing as they are, much can rest on the incidence of the leap year.
Indeed, bankruptcy notices have been set aside because banks didn’t correctly calculate the 366th day in their claims.
The much-feted Sydney developer Andrew Clubb avoided Westpac’s bankruptcy application in a fascinating 1990 Supreme Court ruling – the story still resonates around lower north shore drinking holes.
And a look at the judgement is quite colourful too … for a Federal Court ruling.
“When Julius Caesar decreed that from the year now known as 45 BC onwards there should be adopted the Julian calendar, with its provision for recurring bissextile or leap years, he not only set the scene for a well-known Gilbertian jest; he also set the scene for the problem posed by the present case,” his honour Justice James Burchett said in his 1990 judgement.
“For the basic question is whether, in calculating a proportionate amount of interest due at a yearly rate, the year in question being a leap year, is it permissible to convert the yearly sum to a daily rate by dividing by 365, or whether it is essential to include the intercalary day, thus making the divisor 366.”
Clubb’s bankruptcy notice claimed the sum of $427,938.29, together with $311,000 interest on the balance of the judgment with the obligation to pay interest at a rate, which is stated as a percentage "yearly". There were different daily rates of interest – ranging from 15% to 19.5% - relating to  particular time periods within the period of indebtedness.
The period included a leap year 1988, which had the extra day.
After doing his sums, his honour ruled the total error was $213.
And so given the long precedent that bankruptcy notices are invalid if the sum specified exceeds the amount for which the creditor was entitled, Clubb’s lawyer secured victory.
The bank failed in its contention that the word "yearly" had reference to a common year of 365 days after counsel for the bank cited Halsbury fourth edition volume 45 para.1102, where the expression "common year" referred to a year that consists of 365 days.
His honour suggested it would be a curious anomaly, if applied to a portion of a leap year consisting of 365 days, that the interest for that portion of the leap year would be identical to the interest that could lawfully be exacted for the full year.
“For these reasons, I have concluded that the bankruptcy notice is invalid and must be set aside,” he ruled.
There was another judgement in 1991 where a debt exceeding $100,000 was overstated by $33.19 and the bankruptcy application against the The New York Deli, Double Bay restaurateur Henry Saade was similarly invalid.
None since then that I am aware of, which suggests the banks are alert to the loophole. And there have been two cases – Shaddock and Hodgson – where it’s been ruled in the financier’s favour after the court calculator ran a check over the amounts claimed.
Oh and that bit of Gilbertian jest was The Pirates of Penzance and its character Frederic the pirate apprentice, who was indentured to remain with the pirates until his 21st birthday, but technically going by birthdays was only five, and so  must serve for another 63 years.
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