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

Joel Robinson

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

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

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

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

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

Parcel delivery is joining the apartment amenity checklist

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

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

Foreign Investment

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The Office of State Revenue (NSW) are hosting free information sessions on surcharge purchaser duty and surcharge land tax.
These will focus on surcharge purchaser duty which applies to foreign persons who acquire residential land, and surcharge land tax which applies to foreign persons who acquire or already own residential land.
The definitions of foreign persons and residential land will be explained, as well as exemptions, calculations and more.
Session will be run from various locations around New South Wales;
<ul>
<li>Sydney CBD - 2 November</li>
<li>Bondi Junction - 9 November</li>
<li>North Sydney - 14 November</li>
<li>Wollongong - 15 November</li>
<li>Newcastle - 17 November</li>
<li>Parramatta - 21 November</li>
<li>Queanbeyan - 22 November</li>
<li>Wagga Wagga - 23 November</li>
<li>Dubbo - 29 November</li>
<li>Orange - 30 November</li>
<li>Campbelltown - 1 December</li>
<li> </li>
</ul>
You can register online at:
<a href="https://www.osr.nsw.gov.au/info/seminar/online">www.osr.nsw.gov.au/info/seminar/online</a>
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jchancellor-FAypfDUnLy

Property 101: Foreign surcharge information sessions for NSW

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<img src="https://counter.theconversation.edu.au/content/65092/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Prime Minister Malcolm Turnbull recently said:
“China has more freedom to invest in Australia, indeed all foreigners have more freedom to invest in Australia, than almost any other country.”
But is this true? We asked two experts to discuss the evidence for and against this statement.
Gennadi Kazakevitch argues Turnbull is right given Australia’s ranking as a free and open market, while Jeffrey Wilson presents evidence to show Australia’s foreign investment regime has become much more closed in recent years.
Gennadi Kazakevitch:
I think Mr Turnbull is right.
One measure to support this is the well-established inter-country comparison of economic freedom regularly published by the Heritage Foundation and Wall Street Journal. This measure also looks specifically at foreign investment freedom.
The economic freedom measure ranks countries according to rule of law, government size, regulatory efficiency and – of most relevance to this discussion – market openness. This includes trade freedom, investment freedom, and financial freedom.
In terms of general economic freedom, Australia ranked fifth behind Hong Kong, Singapore, New Zealand, and Switzerland in 2016. Within the “Open Market” component of the index, Australia scores 80 out 100 for investment freedom, putting us among the most free of the 200 countries ranked.
To score a perfect 100, according to the index, a country would have to have no constraints on the flow of investment capital. Individuals and firms would be allowed to move their resources into and out of specific activities, both internally and across the country’s borders, without restriction.
Points are deducted for different sorts of freedom “imperfections”. For Australia, one “imperfection” is the regime of foreign investment reviewwhich requires government approval of investment amounts above a particular level. But Australia’s current review regime does not discriminate against China or indeed any other country.
Jeffrey Wilson:
Australia’s foreign investment regime is more open than many other countries. However, it also remains the case that it has become much more closed in recent years.
Since taking office in September 2013, the Liberal-National Coalition government has imposed several new barriers to foreign investment coming into Australia. These policies include:
<ul>
<li>
The introduction of fees for FIRB applications, and an expansion of the range of sanctions and fines applied to breaches.
</li>
<li>
Instituting new and very low FIRB screening thresholds for investment in the rural sector, including A$15 million for agricultural land and A$55 million for agribusinesses. The threshold had previously been A$255 million.
</li>
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The establishment of a register of ownership of agricultural land. While this is ostensibly designed to “increase transparency”, Deputy Prime Minister Barnaby Joyce explained the intention was to produce a map that would allow people to “see who owns what”.
</li>
<li>
The appointment of two new FIRB Members – David Irvine and David Peever – in order to add further “national security expertise”to the board.
</li>
<li>
Extending the application of the Foreign Acquisitions and Takeovers Act (Cth, as amended) to infrastructure sales made by state governments.
</li>
</ul>
The LNP Coalition government has also rejected a number of foreign investment applications on controversial grounds:
<ul>
<li>
Archer Daniels Midland (US) takeover bid for GrainCorp, 2013. The former head of the FIRB has claimed the deal was killed for political reasons.
</li>
<li>
Dakang Holdings and Pengxin Group (China) bids for Kidman cattle properties, 2016. The bidders appear to have been rejected simply because no Australian buyer made a competitive offer.
</li>
<li>
China State Grid bid for Ausgrid in NSW privatisation program, 2016. Treasurer Scott Morrison refused to explain the full reasons for the rejection, citing national security and confidentiality concerns.
</li>
</ul>
Tellingly, in its entire six-year term in office, the Rudd/Gillard ALP governments rejected only a single large foreign investment application: A bid by the Shanghai Stock Exchange to acquire the ASX in 2011.
As a result of these policy changes and investment decisions, the Australian foreign investment regime is now less open than it has been for over 20 years.
The prime minister’s claim was about the freedom of Chinese companies to make foreign investments into Australia. Unfortunately, there is no quantifiable metric that measures the openness of a country’s foreign investment regime specifically. The Economic Freedom statistics Gennadi cites are instead a broader measure of economic openness and transparency. Thus, they cannot be used to evaluate the prime minister’s claim.
Gennadi Kazakevitch:
The investment freedom component of the economic freedom index is not a perfect measure, but it is sophisticated. It allows for comparing “apples with apples” based on eight qualitative characteristics: national treatment of foreign investments; transparency; policy implementation; restrictions on land ownership; sectoral restrictions; expropriation of investments without fair compensation; foreign exchange controls; and capital controls. For each of those characteristics, there is a breakdown into several levels of restrictions, rules or practices.
It is true that in the most resent years (2012-2016) the investment freedom score for Australia has decreased from 83.7 to 80. But it is also true that Australia remains within a cluster of free economies.
It would be easy to attribute the decline in Australia’s score to the recent changes to regulation rules and practices. However, those changes have not critically affected the investment freedom index for Australia, nor are they discriminatory against a particular country. Therefore, Mr Turnbull’s statement is quite justified.
The six years of Rudd/Gillard ALP governments Jeffrey is referring to was business as usual as far as foreign investment was concerned. However, it is not business as usual any anymore. The most recent cases, such as the Port of Darwin, the Kidman station, and the Ausgrid power transmission business in NSW, have alerted the government and public to national security issues, and rightfully so.
As I proposed in my submission to the Senate inquiry on the foreign investment review framework, the world has changed dramatically since the current regulation was established in 1975.
Until the late 1980s, Australia’s investing partners were mostly persons and companies from developed market economies with similar values and similar foreign investment perceptions of independent entrepreneurship. Economic transition in communist countries, market reforms in one-party controlled countries, and emerging developing market economies have created a variety of economic systems with very different sovereign involvement in running economies and companies. Therefore a “foreign interest independence test” and security risk assessment should be done that takes into account which country the foreign investor is from.
If Australia eventually goes down this path, freedom of investment might be further compromised. If so it will arguably be for a good reason.
Jeffrey Wilson:
It is certainly true Australia’s foreign investment partners have changed many times through history. Prior to the 1950s the main foreign investor was Great Britain, which remains a major investor to this date. But progressive waves of new investors have also arrived: America during the 1960s; Japan in the 1970s; Singapore and Hong Kong in the 1990s; and more recently Chinese investors since 2005.
The arrival of each of these groups has presented Australia with distinct political tension. American investors faced accusations of “neo-imperialism” and threats to Australia’s independence in the world. Japanese investors faced considerable xenophobia, particularly as a result of “war memories”. And today, we are dealing with the fact that many Chinese investors are state-owned corporations, which pose their own unique political and regulatory challenges.
However, these are arguably issues to be managed rather than reasons to reject foreign investment. Australia is a small open economy, which depends on foreign investment to bring in the capital, technology, skills and marketing channels critical for 21st century industries.
In each previous wave, Australian governments have had to devise novel solutions for how to remain open to foreign investment, while managing their distinct political sensitivities. This has been successful in previous years, and there is no reason it should not be possible with Chinese investors today.
Jeffrey Wilson is fellow of the Asia Research Centre, Murdoch University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/jeffrey-wilson-12717" target="_blank">here</a>. Gennadi Kazakevitch deputy head, Department of Economics, Monash University and author for The Conversation. He can be contacted <a href="https://theconversation.com/profiles/gennadi-kazakevitch-90201" target="_blank">here</a>.
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Do foreigners have more freedom to invest in Australia than in almost any other country?

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Chinese investors have been forced to sell a multimillion-dollar trophy home in Brighton after being caught breaching foreign investment rules.
The owners of 73 Roslyn St, a five-bedroom mansion with a court and pool, were forced to put their $5.6 million home up for February auction. No resale price has yet emerged.
The Herald Sun reported the ATO has focused on a group of migration agents in Sydney and Melbourne as it widens enforcement activities.
From December last year, foreign owners who buy Australian real estate outside the rules will now lose their windfall profits when they are forced to sell — and will be hit with a penalty of 10 per cent of the purchase price.
But these vendors got to keep the estimated $900,000 profit they made on the sale — and avoided a $560,000 fine.
Revenue and Financial Services Minister Kelly O’Dwyer confirmed a Brighton home was one of 30 the Government had so far ordered to be sold after an investigation found the owners had breached foreign investment rules.
She said the value of the property ordered to be sold had so far reached $78 million.
The Brighton property was owned by a Mt Waverley-based company, Jin Ding International Investments Pty Ltd, which was incorporated in December 2012.
The officeholders and beneficiaries are named as Beijing-born Bai Jingwei, Zhang Jie and Zhu Yuhuan.
The house was sold under orders from the ATO and FIRB in February having been bought for $5.6 million several year's earlier.
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jonathanchancellor-7SQnKwU6yx

Foreign investment breach sees Brighton trophy sold

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Be warned if you are buying or selling your $2 million plus home in NSW, there's new onerous tax paperwork obligations.
The Federal Government has introduced what they dubbed was a foreign residents’ capital gains withholding tax - with the worthy aim to catch foreigners selling up and taking off with all the proceeds.
But is is actually causing severe inconvenience and costly impacts on Australians in suburbia.
The laws makes buyers de facto tax collectors - and the wide tax net being cast will not just catch those few tricky foreigners on their mostly profitable exit from our shores.
It basically requires the purchaser, where the vendor is a foreign resident, to hand over 10 percent of the purchase price towards the Australian Tax Office who will then assess the foreigner's full tax obligations.
But every Australian resident vendor also needs to provide a clearance certificate otherwise 10 percent will head off to Canberra for a time.
The obligation is on the purchaser to ascertain if the vendor is foreign, and if so, then have your solicitor and bank, direct 10 percent to the ATO on settlement. 
It comes with penalties as any purchaser who fails to correctly withhold will pay an administrative penalty equal to the amount of tax they should have remitted to the ATO.  
Where a certificate is provided, the purchaser has no requirements.
Ideally it ought be included by the vendor in the contract on auction day, but the online Clearance certificate application for Australian residents form only became available on ato.gov.au/FRCGW from late June which didn't help its introduction.
Solicitors, who have had to hike conveyancing fees, tell me there have been long delays in obtaining a certificate. 
This means some resident vendors are having rightful funds temporarily withheld from sale proceeds. Chaos if your are off to buy something else.
Any likely prestige vendor this spring ought apply asap to the ATO for a clearance certificate even before the property gets listed for sale as it lasts 12 months.
And also if you think there's a chance the house or apartment will likely fetch $1.9 million, but might fetch $2 million on auction day.
Also get your tax returns in for the past two years because that will assist in the process. If the property ownership and revenue is part of the black economy then expect it to be detected once it goes onto the ATO data base.
If the vendor is an Australian resident, the aim is for a certificate to be issued electronically within days, but data irregularities will trigger weeks of delay.
Any withholding does not affect the transfer of ownership, but it may prudent for a special condition in the sales contract that delays completion until obtaining an ATO certificate.
This all dates to 2012 with the legislation finally becoming law in February this year to take effect from July 1 for property including vacant land, buildings, residential and commercial property, leaseholds and strata title schemes. The government website suggests the $2 million figure ensures the vast majority of residential house sales will be unaffected, though CoreLogic has the number of Sydney suburbs with a median value in excess of $2 million doubling in the space of just a year to 40.
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Foreign residents' withholding tax to leave locals short for property upgrades

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GUEST OBSERVER
It doesn’t take much to comprehend how many residential apartments are being constructed across south-east Queensland. 
There are a huge number that will be crying out for buyers over the next couple of years and, despite the fact some of these buyers are sure to be investors from either interstate or offshore, the Palaszczuk Government has introduced a 3 percent stamp duty charge for foreign buyers looking to invest in the state.
New South Wales and Victoria have both introduced the same surcharge in recent months, which gave Queensland a fantastic opportunity to stand out in the crowded Australian property market.  Had Queensland bucked the trend, foreign investment in the Sunshine State would undoubtedly have increased.  
Attractiveness is key for Queensland. The number of residential apartments set to come online over the next 12 months means the state needs a point of difference. Currently, it still imposes duty on a number of things that other states do not, which, put simply, makes it a less desirable jurisdiction to set up business. 
Instead of imposing a foreign investor surcharge, Queensland could have presented itself as one of the few jurisdictions that does not impose a foreign investor surcharge and used that to attract foreign investment, leveraging its point of difference to other states.
New South Wales set a fantastic example in its June budget, proving there are ways to counteract the introduction of this surcharge. 
Treasurer Gladys Berejiklian announced a 4 percent foreign investor surcharge on purchases of residential properties; this is a greater charge than the Palaszczuk Government’s 3 percent. 
However, Ms Berejiklian also announced the duty on transfers of business assets will be abolished. The Palaszczuk Government chose not to abolish this duty.  
This decision makes the foreign investor surcharge in New South Wales far more palatable. Even if New South Wales does see a decline in foreign investment it will be countered by the new businesses setting up shop. 
Compare that with Queensland, which has kept both charges, and the state is becoming less attractive a jurisdiction for either business or foreign investment when pitted against a state like New South Wales. This demonstrates that for businesses and investors it is really about the overall tax mix, not just changes to individual taxes. Getting the mix right is crucial to ensuring ongoing investment to drive growth.
While ’foreign investment’ can be a scary term for some to digest, the reality is it’s a completely viable and logical way to handle any oversupply in the residential property market which, based on recent advice, appears to be a real possibility.
But it’s not all doom and gloom. Queensland can take solace that regardless of any other duties or charges, it still has a lower charge for foreign investors than New South Wales’s 4 percent and Victoria’s 7 percent. This, coupled with Queensland’s more competitive house prices, should hopefully minimise the impact of the surcharge on foreign investment in Queensland.
<div>
Hung Tran is private clients partner with BDO Brisbane and Leisa Rafter is tax partner. They can be contacted <a href="https://www.bdo.com.au/en-au/brisbane" target="_blank">here</a>.
</div>
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Property 101: QLD foreign buyers surcharge

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When you buy or acquire a property in Victoria, you must pay land transfer duty (otherwise known as stamp duty) unless an exemption applies.
If you are a foreign purchaser and you acquire residential property, you must pay additional duty of 3 percent on the dutiable value of your share of the property (prior to the application of any concessions). This is, generally, the price you pay for the property/land. This additional duty applies to contracts, transactions, agreements and arrangements entered into on or after 1 July 2015.
For example, you will not pay the additional duty if you entered into a contract to purchase residential property on 30 June 2015 that has a settlement date of 30 September 2015. 
Where you have entered into a contract to purchase residential property before 1 July 2015 but nominate a foreign purchaser to take a transfer right of the property on or after 1 July 2015, additional duty may apply to the transfer.
The Victorian Government announced in its 2016-17 Budget that the rate of this additional duty will increase from 3 per cent to 7 per cent for contracts, transactions, agreements and arrangements entered into on or after 1 July 2016. 
Received a letter from us?
If you buy or acquire any land in Victoria, you must complete and lodge a Form 62 Purchaser Statement even if you believe you are not a foreign purchaser.
Please read our foreign purchaser frequently asked questions for more information. 
<h2>When does additional duty apply?</h2>
The additional duty applies to any arrangement or transaction that involves the transfer of interest in residential property. These include:
<ul>
<li>Buying a residential property at, for example, auction or by private sale,</li>
<li>Being given a residential property as a gift,</li>
<li>Certain leasing arrangements,</li>
<li>Transfers of interests in a deceased estate</li>
</ul>
The duty applies even if you only acquire part of, or a part interest, in the property. It also applies to relevant acquisitions in a landholder that holds residential property.
Where a foreign purchaser is exempt from paying land transfer or landholder duty, that purchaser will also be exempt from paying additional duty. Foreign purchasers are not entitled to a duty concession or a concessional rate of duty in respect of the additional duty payable.
Example A: Exemption applying in respect of additional duty
In his last will and testament, Joe has bequeathed all his assets, including two properties in Victoria, to his sister Joan, who is a foreign natural person.
The transfer of the two properties to Joan pursuant to Joe’s will is exempt from land transfer duty. Joan will also be exempt from paying additional duty.
Example B: Duty concession not applying when additional duty is payable
Kate, a foreign natural person, is transferred residential property bought off-the-plan for $500,000 which she intends to occupy as her principal place of residence (PPR). Kate is eligible for the PPR and the off-the-plan concession on the land transfer duty payable.
Additional duty is payable even though a concession may apply. Kate will be liable for the additional duty calculated at the rate of 3 per cent on the dutiable value of the property of $500,000.
<h3>Nominations and sub-sale events</h3>
Additional duty will apply where a foreign purchaser is nominated to take a transfer of residential property and that nomination is executed on or after 1 July 2015 and the nomination triggers a sub-sale event. This is the case even if the sale contract was entered into before 1 July 2015.  
Where a person is nominated to take a transfer under an off-the-plan contract this arrangement will trigger a sub-sale event (as there has been land development). In this situation land transfer duty is, generally, only charged on the transfer to the nominated person. Therefore, where a foreign purchaser is nominated to take a transfer of residential property under an off-the-plan contract and that nomination occurs on or after 1 July 2015, additional duty will apply.  
Where a nomination does not trigger a sub-sale event (i.e. no additional consideration and no land development) the transaction will be considered to have been entered into on the date of the contract and not the date of the nomination. In this case, additional duty will not apply in respect of a nomination made in respect of a contract entered into before 1 July 2015.
Complete a purchaser statement
<h2>Calculating additional duty</h2>
The additional duty is calculated at the rate of 3 per cent the dutiable value of your share of the residential property. This is, generally, the price you pay for the property/land. 
You can calculate the additional duty using these three steps:
<ol>
<li>Calculate the land transfer duty in the usual way, applying any relevant concessions</li>
<li>Calculate the additional duty at 3 per cent of the dutiable value of the property (prior to the application of any concession)</li>
<li>Add the land transfer duty amount in step 1 to the additional duty amount in step 2 to determine the total duty amount payable for the transfer
</li>
</ol>
When you make a relevant acquisition in a landholder, duty is charged on the unencumbered value of the total landholdings of the landholder. If you make a relevant acquisition as a foreign purchaser, the duty surcharge will only apply to the interest you acquired in the landholder proportional to the landholder’s landholdings which comprise residential property.
<h2>Residential property</h2>
Residential property is:
<ul>
<li>Land that has a building on it that is designed and constructed solely or primarily for residential purposes and may be lawfully used as a place of residence,</li>
<li>Land that is vacant but will have residential premises built on it</li>
</ul>
Importantly, if you are a foreign purchaser who acquires property that is not residential property, but intend to make, or later decide to turn it into residential property, the additional duty may still apply. In this case, you must advise us of your intention in writing.
<h2>Dual-purpose property(s)</h2>
Sometimes, a property can be used for both residential and commercial purposes.
If a property is primarily used for residential purposes, then it is a residential property. If so, the additional duty is applied to the foreign purchaser’s share of the dutiable value of the whole property, including the part that is not used for residential purposes.
<h2>Foreign purchasers</h2>
You will be a foreign purchaser if you are a foreign natural person, a foreign corporation or a trustee of a foreign trust.
<h3>Foreign natural persons</h3>
You are a foreign purchaser if you are not:
<ul>
<li>A citizen or permanent resident of Australia,</li>
<li>Or a New Zealand citizen with a Special Category Visa (Subclass 444)</li>
</ul>
<h3>Foreign corporations</h3>
A foreign corporation includes:
<ul>
<li>Corporations incorporated outside Australia, and</li>
<li>Corporations incorporated in Australia if a foreign natural person, another foreign corporation or trustee of a foreign trust has a controlling interest in those corporations </li>
</ul>
<h3>Foreign trusts</h3>
A foreign trust is a trust where a foreign natural person, foreign corporation or in the trustee of another foreign trust, has a substantial interest in the trust estate of that trust.
<h2>Controlling interest in a corporation</h2>
A foreign natural person, foreign corporation or the trustee of a foreign trust has a controlling interest in a corporation (either alone or with an associated person) when that person or entity:
<ul>
<li>Is in a position to control more than 50 per cent of the votes (voting power or potential voting power),</li>
<li>Has more than 50 per cent of the issued shares in that corporation, or</li>
<li>Has (in the Commissioner's opinion) the ability to influence the outcome of the decisions about the corporation’s financial and operating policies, taking into account certain factors (the practical influence a person can exert in addition to any rights the person can enforce, any practice or behaviour affecting the corporation’s financial or operating policies, even if that practice or pattern of behaviour involves the breach of an agreement or breach of trust)</li>
</ul>
An "associated person" can be any of the following:
<ul>
<li>A relative of the foreign purchaser,</li>
<li>A partner in a partnership,</li>
<li>Another corporation with the same majority shareholder as the foreign corporation, or</li>
<li>A trustee of the trust in which the foreign purchaser is a beneficiary</li>
</ul>
Note: the associated person does not have to be a foreign natural person, foreign corporation or the trustee of a foreign trust.
<h3>Voting power and potential voting power</h3>
The voting power in a corporation refers to the maximum number of votes that might be cast at a general meeting of the corporation.
Potential voting power in a corporation refers to the voting power based on the assumption that the votes might be cast at a general meeting of the corporation including each vote that:
<ol start="1">
<li>Might exist in the future because of the exercise of a right (whether actual, prospective or contingent), and</li>
<li>If it came into existence, might be cast at a general meeting of the corporation</li>
</ol>
<h4 class="rteindent1">Example 1: The transferee corporation is a foreign purchaser</h4>
XYZ Pty Ltd purchases land in Victoria. XYZ Pty Ltd is a corporation incorporated in Australia. Its shareholders are A Pty Ltd as to 45 per cent and B Pty Ltd as to 55 per cent.
B Pty Ltd has two shareholders, both of whom are foreign natural persons. As a result, B Pty Ltd is a foreign corporation who has a controlling interest in XYZ Pty Ltd which makes XYZ Pty Ltd a foreign corporation.
<h4 class="rteindent1">Example 2: The transferee is a foreign purchaser because there is a foreign natural person corporation or trust in the transferee’s corporate structure</h4>
XYZ Pty Ltd purchases residential property in Victoria. XYZ Pty Ltd is a corporation incorporated in Australia. XYZ Pty Ltd has two shareholders, A Pty Ltd as to 45 per cent and B Pty Ltd as to 55 per cent. B Pty Ltd has two shareholders, Danny and Elizabeth. Danny holds an Australian permanent visa and has 35 per cent of the shares in B Pty Ltd. Elizabeth is a foreign natural person who has 65 per cent of the shares in B Pty Ltd.
Elizabeth has an interest in more than 50 per cent of the issued shares in B Pty Ltd and so has a controlling interest in B Pty Ltd. B Pty Ltd holds more than 50 per cent of the issued shares, and therefore a controlling interest, in XYZ Pty Ltd. This makes XYZ Pty Ltd a foreign corporation which means that XYZ Pty  Ltd will be liable for the additional duty payable by foreign purchasers of residential property.
<h2>Substantial interests in a trust</h2>
A foreign natural person, foreign corporation or foreign trust has a substantial interest in a trust (either alone, or with an associated person) when that person or entity:
<ul>
<li>Has a beneficial interest of more than 50 per cent of the capital of the estate of the foreign trust, or</li>
<li>Has (in the Commissioner's opinion) the capacity to determine or influence the outcome of the decisions about the administration and conduct of the trust, taking into account certain factors (such as the practical influence the person can exert in addition to any rights the person can enforce, and any practice or behaviour affecting the trustee’s administration and conduct of the trust, even if that practice or pattern of behaviour involves the breach of an agreement or breach of trust)</li>
</ul>
For discretionary trusts, a person or member of a class of persons, is taken to have a beneficial interest in the maximum percentage of the capital of the foreign trust estate that the trustee of the discretionary trust is empowered to distribute to that person.
<h4 class="rteindent1">Example 3: The transferee trust is a foreign purchaser</h4>
ABC Pty Ltd acts as trustee for the ABC Unit Trust which has two unitholders, Joe and Elena. Joe is an Australian citizen who holds 40 per cent of the units in the unit trust. Elena is a foreign natural person who holds 60 per cent of the units in the unit trust.
Elena has a substantial interest in the ABC Unit Trust, which makes it a foreign trust.
<h4 class="rteindent1">Example 4: The transferee is a foreign purchaser because there is a foreign natural person, corporation or trust in the transferee’s trust structure</h4>
ABC Pty Ltd as trustee of the ABC Unit Trust buys residential property on its behalf. The ABC Unit Trust has two unitholders, Steve and Z Pty Ltd. Steve holds an Australian permanent visa and 40 per cent of the units in the unit trust, whilst Z Pty Ltd is a corporation incorporated in Australia which holds 60 per cent of the units in the unit trust.
The sole shareholder of Z Pty Ltd is Poli, a foreign natural person. Poli has an interest in more than 50 per cent of the issued shares in Z Pty Ltd and so has a controlling interest in Z Pty Ltd. Z Pty Ltd holds an interest in more than 50 per cent of the capital of the trust estate of the ABC Unit Trust and therefore has a substantial interest in the unit trust. This makes the ABC Unit Trust a foreign trust which means ABC Pty Ltd on behalf of the ABC Unit Trust will be liable for the additional duty payable by foreign purchasers of residential property.
<h2>Application for exemption </h2>
Corporations and trusts may, in some circumstances, be eligible for an exemption from the additional duty. The Treasurer has gazetted guidelines outlining the basis on which exemption decisions will be made. 
The exemption is intended to apply to those corporations or entities whose activities in the development or re-development of property adds to the supply of housing stock in Victoria. The effect of an exemption is that the foreign corporation or foreign trust in which the person has a controlling or substantial interest, will not have to pay the additional duty.
The Treasurer has a delegable power to determine applications for this exemption and has delegated the power to make this exemption decision to the Commissioner.  While this delegation is in force, the Treasurer no longer has the power to make exemption decisions. All applications for exemptions must be directed to the SRO.
If you wish to apply for an exemption, please submit an application before the completion of your transaction.
<h2>Notification requirements</h2>
If you are a purchaser or transferee of property in Victoria and you enter into a contract, transaction, agreement or arrangement on or after 1 July 2015, you must complete and lodge a purchaser statement with your other land transfer documents.
Failure to accurately identify as a foreign purchaser, or that residential property is being acquired, will attract penalties under the Taxation Administration Act 1997 (Vic) as well as the additional 3 percent duty.
For more information, <a href="https://www.sro.vic.gov.au" target="_blank">click here</a>.
 
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Property 101: Foreign purchases of property in Victoria from July 1 2016

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GUEST OBSERVER
Where the land, or the interest in the land, is worth $2 million or more, the new law requires the purchaser to withhold 10 percent of the purchase price and send it to the ATO unless the vendor has obtained a ‘clearance certificate’ from the ATO and provided it to the purchaser prior to settlement.
This obligation arises regardless of whether the vendor is a foreign resident or not.
Parliament recently passed legislation amending the taxation law to impose withholding obligations on the purchasers of certain Australian assets – generally property purchased from a non-resident.  However, the changes will affect most purchases of property in Australia!
The amendments impose a 10 percent withholding obligation on purchasers of ‘Taxable Australian Real Property’ (generally, this means an interest in Australian land) from certain foreign residents, as well as certain ‘indirect Australian real property interests’ (such as shares in companies that own a lot of land) and options to acquire such assets.
The amendments will generally apply where the contract to purchase an applicable asset is signed on or after 1 July 2016.
Example
On 1 August 2016, Harvey enters into a contract to purchase a residential property in an affluent Sydney suburb for $2.5 million, with settlement proposed to occur on 1 October 2016.  He does not know whether the vendor is a foreign resident.
Despite many requests from Harvey’s lawyer, the vendor refuses to obtain a clearance certificate from the ATO to give to Harvey.
As Harvey is acquiring Australian land with a market value greater than $2 million and he has not received a clearance certificate from the vendor by the time settlement occurs, Harvey will be required to withhold and pay to the ATO $250,000, whether or not the vendor is an Australian resident.
The vendor will be able to apply for the certificate online BUT it is the purchaser’s responsibility to request it from the vendor. Ultimately, the purchaser is relying on their agent or solicitor to organise everything for them. Makes us wonder how many will forget so make sure you have a good one.
For more information, click <a href="https://xperion.com.au" target="_blank">here</a>.
 
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Property 101: Seller and buyer obligations with $2 million plus clearance certificates

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The National Australia Bank has joined the three other big Australian banks in restricting its lending to foreign property buyers without any domestic income. 
The bank had previously reduced the amount of "foreign source" income that it will include in loan assessments, to 60 percent, from 80 percent.
Westpac, the Commonwealth Bank and ANZ previously changed their rules over the last two months. 
NAB told The Australian Financial Review it would only consider foreign home loan applications to applicants who have existing Australian income. 
“NAB continually reviews its policies to ensure we continue to lend responsibly, and respond to changing market conditions and regulatory requirements,” a spokeswoman said. 
"NAB has limited appetite for this segment, which comprises only a small percentage of NAB’s lending book.”
“Under these changes, applicants will need to provide evidence of existing Australian income in order to be eligible for home lending application purposes.”
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NAB blocks foreign property buyers without local income

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New withholding rules no the sale of property by foreign residents, coupled with additional real estate taxes in NSW and Victoria will attract more foreign money to South East Queensland according to Angus Raine, executive chairman of Raine &amp; Horne.
The new withholding rules apply to property contracts of $2 million or more that are entered into on, or after 1 July 2016. Where the purchase value is $2 million or more from a foreign resident seller, a 10 percent withholding will be incurred at settlement. The withheld amount is credited against any capital gains or income tax payable by the seller on the sale.
He said these new withholding rules come into play at a time when the NSW and Victorian governments are hiking up the stamp duty impost for foreign buyers as well as imposing increased land tax charges.
Raine &amp; Horne Surfers Paradise Clarke Brackenridge, said that the new withholding rules will encourage foreign buyers to consider property markets such as the Gold Coast longer-term where it’s possible to secure quality real estate, which is priced well below the withholding threshold.
“It is early days for this new ruling, and foreign buyers are just starting to absorb the longer-term ramifications of this additional red tape,” he said. 
“Notwithstanding the new withholding requirements, we are already seeing more foreign money starting to find its way to the Gold Coast, with new stock very popular with overseas buyers.
“At the same time, with a median apartment price in Surfers of $345,000 and yields above 5 percent, this is much better value than you’ll get Sydney or Melbourne – so it makes sense that with or without the new withholding laws, overseas buyers are starting to take the Gold Coast market seriously.”
Raine &amp; Horne Chermside principal Kim McHardy said the introduction of the withholding regulations for foreign vendors will help us attract more overseas buyers longer-term, particularly when you can secure new apartments for about $450,000, which are producing yields of 4-5 percent
“Other features that will tick the boxes for foreign buyers include a growing pool of new apartment stock in Chermside, excellent proximity to the CBD and Brisbane Airport, exceptional public transport, along with a magnificent upgrade of the local Westfield shopping centre that will make it the biggest in Australia,” he said.
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Angus Raine says withholding laws and property taxes attracts foreign investors to SEQ

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Taxing foreign buyers, rather than any new hand outs to first home buyers was the focus of the NSW State Government budget.
Treasurer Gladys Berejiklian said she wanted to be cautious when dealing with the property market.
The State Government is not tipping any Sydney property market correction, just a likely easing.
The state budget didn't raise or lower property taxes, other than the much anticipated new taxes on foreign investors.
All foreign property investors in NSW will be hit with a 4 percent stamp duty surcharge when buying homes and apartments and face an ongoing extra 0.75 per cent land tax surcharge on their residential property holdings.
Treasurer Gladys Berejiklian said she was confident the extra costs would not deter foreign buyers given other states had similiar measure.
"Economists say it is an inelastic market," she said, when asked if there could be any fallout.
The NSW Treasurer Gladys Berejiklian's second state budget anticipates a slowing in stamp duty revenues from home sales.
But they will still get $8,777 million in the next financial year, then $9,124 million in 2017-2018.
"I don't apologise for be very cautious when it comes to the property market," she said.
Residential transfer duties are tipped to rise at 4.4 percent annually over the next four years, "significantly more subdued than the pace see in recent years."
There was 13.6 percent growth in the current budget year, and a stunning 40 percent growth when the boom was its most robust in 2013.
The NSW State Budget officially revealed an extra $835 million extra stamp duty purchasing revenue will come from foreign buyers over the next four years.
It also expects $166 million is over the next four years from land tax on foreign investors.
NSW land tax revenues are forecast to rise at a faster rate than stamp duty revenues.
Land tax on investors will yield 8.1 percent higher revenue every year for the next four years, taking revenues from $3,136 million this year to $3,761 million in 2019-20..
The housing boom longevity is not being assumed by the NSW Treasury who suggest price growth was "moderating."
Transfer duty represents 29% of state government revenue. Land tax represents 11%.
The budget papers noted there was potential downside risk of a decline in the broader housing market.
On the upside was "the impact of low, and possibly even lower interest rates leading to stronger housing construction and consumer spending," the budget papers advised.  
There was no change to NSW first home buyer grants in the state budget with the January 2016 reduction from $15,000 to $10,000 triggering a smaller govenment outlay.
Just $96 million was spent on the first home new home scheme this year, down on the $115 million in the 2014-15 year. The first home exemptions and concessions are estimated to sit at $88 million next financial year.
"We are doing every thing we can for first home buyers," Berejiklian said.
"The key thing is to continue to focus on supply," she added noting that there had been record levels of 70,000 new homes in the year to April.
"We are spending on infrastructure in local areas conducive to housing." 
She anticipated any glut in apartment numbers would contribute to housing affordability by putting "downward pressure on prices." 
"I appreciate the challenges people go through to get into the market."
She also signalled her concern at the Federal Labor's negative gearing tax policy. 
"Without being over dramatic I am concerned that the election of a Shorten government will jeopardise conditions in NSW," she said.
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