<a href="https://www.apartments.com.au/developers/consolidated-properties">Consolidated Properties Group</a> (CPG) is approaching the launch of its latest Brisbane riverfront development, Castile, on the dress circle Skyring Terrace in Newstead.

VIP buyers are now being engaged, with a full public sales launch coming later this year.

Positioned as the final opportunity to secure a new absolute riverfront residence on the East bank of Newstead, Teneriffe or New Farm, Castile at 47 Skyring Terrace has been designed by <a href="https://www.apartments.com.au/architects/woods-bagot">Woods Bagot</a> as a timeless addition to the Brisbane skyline.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371113]

The name Castile draws on themes of permanence, sophistication and legacy, reflecting a broader vision centred on enduring architecture and timelessness in the rarest of riverfront positions.&nbsp;

CPG Chairman and CEO Don O’Rorke said the project had been envisioned as a future Brisbane icon.&nbsp;

“With 47 metres of direct river frontage and never to be built out views, 47 Skyring Terrace is the definitive address on the Brisbane River,” O’Rorke said.&nbsp;

[smartcode_project:default project_id=150489 project_image_fid=371114]

“Rather than following trend-based apartment design, Castile draws inspiration from Brisbane’s great heritage buildings, reinterpreting classical architecture into a contemporary riverfront landmark designed to stand proudly for the next 100 years,” he said.&nbsp;

The approved development will comprise 227 apartments across a 25-storey tower alongside a boutique six-storey riverfront building of just 12 residences.&nbsp;

Construction is scheduled to commence in September 2026.

[smartcode_project_cta:default project_id=150489]

Joel Robinson

CPG unveils Castile Newstead ahead of upcoming sales launch

Australia’s online shopping habits have shifted dramatically over the last decade. As eCommerce volumes surged, so too did the frustrations that came with traditional parcel delivery: missed deliveries, long Post Office queues, parcel theft and the challenge of being home during business hours.

Australia Post’s Parcel Lockers emerged as one of the more practical responses to that changing consumer behaviour.

What started as a relatively niche delivery option has evolved into a nationwide network of more than 1,400 self-service Parcel Lockers positioned at train stations, shopping centres, supermarkets and Post Offices across the country. The system allows Australians to send, collect and return parcels 24 hours a day, fundamentally changing how many people interact with deliveries.

The appeal is relatively straightforward: flexibility.

Instead of waiting at home for a delivery driver or rushing to a Post Office before closing time, users can direct eligible parcels to a Parcel Locker location of their choice. Once the parcel arrives, Australia Post sends a notification with a collection code or QR access through the AusPost app, allowing customers to retrieve their package at any time within the collection window.

For apartment residents in particular, the system has become increasingly valuable.

Higher-density living has created logistical challenges around deliveries, especially in buildings without concierge services or secure parcel rooms. Missed deliveries are common, while parcel theft has become an increasing concern as online shopping volumes continue to rise.

Australia Post itself has repeatedly highlighted the growing issue of “porch pirates” during peak shopping periods, encouraging customers to use Parcel Lockers as a safer alternative to unattended home deliveries.

That security aspect is one of the key reasons the Australia Post Parcel Locker network has grown so rapidly.

Parcel Lockers are positioned as secure, monitored collection points that reduce the risk of theft while also improving delivery efficiency for Australia Post. Instead of multiple redelivery attempts, parcels can be consolidated into a single secure destination.

The Parcel Lockers themselves are free to use through a MyPost account and support a range of parcel sizes up to 16 kilograms and dimensions of approximately 35 x 44 x 61 centimetres.

Beyond receiving parcels, the system has increasingly become integrated into the broader eCommerce ecosystem.

Customers can now use Parcel Lockers to return online purchases, while retailers have embraced the model as a way to improve delivery success rates and reduce friction in the shopping process. Australia Post has actively expanded partnerships with major retailers and promoted Parcel Lockers as part of a broader out-of-home strategy.

The timing of that expansion aligns with broader changes in Australian shopping behaviour.

The acceleration of online retail during and after the pandemic placed enormous pressure on delivery infrastructure. Parcel volumes reached record highs, particularly during Black Friday and Christmas periods, with Australia Post delivering more than 100 million parcels during peak festive seasons.

That growth forced logistics providers to rethink the “last mile” of delivery, widely regarded as the most expensive and operationally difficult stage of the process.

Parcel Locker systems have increasingly been viewed as part of the long-term solution.

The concept itself is not unique to Australia. Parcel Locker networks have become common globally, particularly across Europe and Asia, where dense urban environments and apartment living create similar logistical challenges. But Australia’s geography and suburban sprawl made adoption slower initially.

Now, however, the convenience factor is driving mainstream usage.

For commuters, Parcel Lockers near train stations allow parcels to be collected on the way home from work. For apartment dwellers, they remove the uncertainty around access and missed deliveries.

The rise of the AusPost app has also streamlined the experience, centralising notifications, tracking and Parcel Locker access into a single platform. Australia Post has increasingly pushed customers toward app-based delivery management, partly as a way to combat phishing scams and fake delivery notifications, which have become more sophisticated in recent years.

The Parcel Locker model is also beginning to influence property development itself.

Parcel management has become a growing consideration in apartment building design, particularly as online shopping becomes embedded in everyday life. Many new residential developments are now incorporating dedicated parcel rooms or Parcel Locker systems into foyers and communal spaces.

For developers, parcel management is increasingly viewed as part of the broader resident amenity offering, alongside gyms, wellness spaces and communal work areas.

That reflects a wider evolution in how residential buildings are designed.

Apartment buyers are placing greater emphasis on convenience, security and operational functionality, particularly in higher-density urban environments. Parcel delivery, once considered a minor operational detail, has become an increasingly important part of that equation.

Australia Post’s Parcel Locker network sits at the centre of that behavioural shift.

What began as a simple alternative delivery option has evolved into a key piece of infrastructure supporting Australia’s growing eCommerce economy and changing urban lifestyles.

And as online shopping continues to expand, the role of Parcel Lockers is likely to become even more embedded in how Australians live, shop and receive goods.

How Australia Post Parcel Lockers changed parcel delivery convenience in Australia

Perth’s new apartment market recorded its strongest quarter of sales since Q4 2021, with 412 apartments sold in Q1 2026 and a record quarterly sold value of $537 million, according to Urbis’ latest Apartment Essentials results.

Urbis said the March quarter result reflects strong, highly product‑specific demand across both ends of the market, from more attainable projects delivering at scale, through to premium stock being absorbed by equity‑rich downsizers.&nbsp;

David Cresp, Partner at Urbis, said the key story in Perth is not demand, it is the market’s ability to convert demand into delivered housing.&nbsp;

“This is the strongest sales quarter since Q4 2021, and it reinforces that demand in Perth is real and it’s local,” David Cresp said. “But the task now is delivery, turning that demand into projects that can actually be built and completed.”&nbsp;

[smartcode_project:default project_id=110291 project_image_fid=302785]

<h2>Affordable product leads, premium demand remains resilient</h2>

Sales in Q1 were led by more affordable projects, with The Boulevard (SKS Group) recording 115 sales in the quarter, the presentation noting this is only the second time a single project has surpassed 100 quarterly sales. The project was able to offer more affordable housing product right next to a train station.&nbsp;

Palmyra West (Finbar) also delivered strong results with 28 sales in Q1, following 84 sales in Q4, with an average price of under $800,000, underscoring depth of demand for well‑located, attainable new stock.&nbsp;

At the premium end, Urbis said downsizer demand is continuing, with the results highlighting Romeo (Applecross, Finbar) recording 75 sales and reaching almost 50% sold in one quarter.

Jual (Shenton Park, Celsius Property) also posted a strong quarter with 28 sales, reaching 39% sold in one quarter.

Urbis noted that Perth apartment demand is not speculative, not investor‑led, and not uniform, describing it as localised, often equity‑driven and highly product‑specific, a pattern reflected in the polarisation between strong “attainable” performers and premium downsizer product.&nbsp;

[smartcode_project:default project_id=148957 project_image_fid=364102]

<h2>Prices underpinned by costs, and the delivery risk is growing</h2>

Urbis said pricing pressure is cost not demand‑driven: construction costs and delivery risk are now a central constraint, with the results noting build costs remain elevated and volatile, and that energy, fuel and labour uncertainty weigh on feasibility.

David Cresp said a growing challenge for private Build‑to‑Sell developers is simply securing a builder in the current environment.

“Developers are really feeling the pressure from a building market that was operating at capacity and securing a builder is challenging,” David Cresp said, adding that even where a builder can be secured, “trying to get to the price that makes the development financially viable is incredibly challenging in the current market.”&nbsp;

Urbis’ broader WA commentary also notes that industry remains at or above capacity with lot and housing creation, and that many builders are limiting new sales to manage stretched workforces and fixed‑price contract pressures, conditions that flow directly into apartment feasibility and delivery timing.

[smartcode_project:default project_id=108869 project_image_fid=317905]

<h2>Supply: improving later, but still constrained, and Perth lags eastern benchmarks</h2>

While near‑term supply remains constrained, Urbis’ forecast shows completions lifting “Supply is forecast to be back above 1,500 apartments per annum for the first time since 2019”, with 1,775 completions forecast for 2026, and volumes remaining above that level over the following years.&nbsp;

Looking further ahead, completions are forecast to reach 2,500 in 2028, with the report noting 32% of that total is social/affordable, reflecting the role of government‑supported delivery in rebuilding the pipeline.&nbsp;

However, Urbis said Perth remains behind comparable markets on pipeline scale. In a national comparison of projects under construction, the report shows under construction Perth Build‑to‑Sell (BTS) at 3,446 apartments versus the Gold Coast at 7,922. Mr Cresp said “The challenge for Perth is how to we grow the delivery pipeline”.

Urbis’ conclusion is that Perth’s market is increasingly defined by product discipline and delivery certainty, with the research identifying “delivery certainty is key” and calling out builder risk and procurement models as core success factors, alongside “timing and staging”.&nbsp;

Perth apartment sales hit strongest pace since late 2021 as builder capacity tightens

<a href="https://www.apartments.com.au/developers/sammut-developments">Sammut Group</a> has secured development approval for its latest Brisbane apartment project, marking the Sydney developer’s next step in expanding its Queensland pipeline following the success of its debut Gold Coast development, Coast.

The approved project at <a href="https://www.apartments.com.au/new-apartments/44-glen-road-toowong-qld-4066">44 Glen Road, </a><a href="https://www.apartments.com.au/developments/toowong-qld-4066">Toowong</a> will deliver a 15-storey riverfront apartment building with 42 residences, significantly increasing the scale of the site’s previous approval for a smaller luxury scheme. Designed by Bureau^proberts, the development will comprise a mix of predominantly four-bedroom and two-bedroom apartments positioned to maximise Brisbane River and city views.

Sammut Director Julian Sammut said the group had been actively searching Brisbane for several years before identifying Toowong as the right fit.

“Brisbane was the right step for Sammut,” Sammut said.

“With the success of Coast we thought we should definitely look to do more in Queensland alone. We then pushed up to look at Brisbane. We've been looking for I'd say two to three years actually and it was hard to find the right location.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_75/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-12-23%20at%203.27.14%E2%80%AFPM.png?VersionId=dYAVIL7qdcGA8ojvkslSrLjczXFejSSx" />

Sammut said suburbs including New Farm and Teneriffe were considered before the group ultimately focused on Toowong due to its strong downsizer demographic and limited supply of developable riverfront land.

The site was acquired off-market after what Sammut described as a lengthy negotiation and planning process, with the developer pursuing an uplift to the original approval.

“We are DA approved now which is very exciting,” Sammut said.

“We've had our change approval come through and we've obviously doubled the height, 15 storeys plus rooftop. We've got 42 amazing apartments that are going to be coming to market soon.”

<img alt="Sammut makes Brisbane apartment play" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,dpr_2.0,q_auto:good/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-12-23%20at%203.27.26%E2%80%AFPM.png?VersionId=ohkRkY0dIZlqdfME2EZePsCQavRiBadE" />

Bureau^proberts said the design responds to Toowong’s evolving urban character, balancing contemporary apartment living with the area’s established residential identity.

“A place where traditional Queensland living has taken place for centuries; Toowong is seeing a shift of contemporary influence, commercial and retail hubs mixed with well-considered residential offerings – all the while maintaining its character and charm,” the architect noted in planning documents submitted to Brisbane City Council.

The architecture practice said the project’s form was shaped by its riverfront setting, flood considerations, neighbouring building scales, and view corridors.

“They said the mix of four and two-bedroom apartments capture the ‘fundamental qualities of Queenslander living,’ translated into the context of a contemporary subtropical building.”

The development sits just off Coronation Drive within walking distance of Toowong’s retail precinct and the upgraded Regatta ferry terminal, while also benefiting from proximity to the incoming green bridge connection to West End. Sammut said the accessibility and amenity offering were central to the site’s appeal.

The approval adds to growing residential activity along the Toowong riverfront, joining nearby projects including Consolidated Properties’ Monarch Residences and Spyre Group’s ARC Residences.

Sammut secures approval for debut Brisbane apartment development in Toowong

Developer Lanevick is heading back into Sydney’s apartment market after focusing more heavily on the luxury townhouse and terrace sector in recent years.

Lanevick, founded and directed by Steve Maroun, is expecting to receive approval in the coming months for a new apartment development in Gladesville, with the aim to launch it to the market later this year.

The 51-apartment project, designed by Studio Johnston, will comprise a mix of one-, two-, and three-bedroom apartments positioned toward the Hunters Hill downsizer market.

“Traditionally it’s been difficult for people in that market to downsize because there just hasn’t been the right product available,” Maroun said.

“We’re targeting buyers who might have 30 to 40 per cent of their house value sitting in the bank after downsizing.

“They still want good spacious entertaining areas, they still want quality design, but they also want flexibility and the ability to enjoy life a bit more after working hard for a long time.”

The project sits near Boronia Park and within close proximity to the Parramatta River foreshore, an area Maroun says offers more of a Hunters Hill lifestyle than a traditional apartment precinct.

“From a lifestyle perspective, it’s really more Hunters Hill than Gladesville,” Maroun said. “You’re close to the foreshore, close to parklands, and still connected back into the village precinct.”

From level four and above, apartments will capture water views&nbsp;toward Sydney Harbour. Communal amenity will include rooftop entertaining areas, wellness spaces, and a gym tailored toward owner-occupier buyers.

“We’ve really designed these apartments around that buyer coming from the Hunters Hill LGA and what they’re actually looking for in their next chapter.”

The proposed development has also been designed to respond to the changing character of the broader Gladesville town centre, where a growing number of mixed-use and residential proposals are expected to emerge over the coming years.

“Gladesville presented a rare opportunity to deliver a genuinely design-led residential project within an evolving lifestyle precinct, just moments from the growing Gladesville town centre, and we’ve approached the project with a strong focus on architecture, liveability and long-term community value,” Maroun said.

Maroun said Lanevick saw a first-mover advantage within the precinct as planning controls continue to evolve to accommodate greater housing density.

“We think there’s a real opportunity there that hasn’t really been serviced properly yet,” he said.

“There’s going to be a broader evolution of the whole Gladesville village precinct over time, particularly with more activation and mixed-use outcomes.”

The Venus Street proposal will include a commercial and retail component at ground level designed to contribute to that evolving streetscape activation.

“A big part of the thinking was how do you activate that area properly and create more vibrancy and amenity, which is what Hunters Hill has been looking for,” Maroun said.

Lanevick’s focus since 2020 has largely been on smaller-scale luxury townhouse and terrace developments. The developer recently completed Royale Randwick, also designed by Studio Johnston, where prices reached $3.65 million. The project was featured in the UDIA NSW 2026 Professional Development Prospectus and was also named a finalist for Development of the Year.

&nbsp;

Lanevick to cater for Hunters Hill downsizers with new Gladesville apartment development

Land Tax

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The NSW Land Tax system is crippling investors as tenants struggle to pay rent and must be completely overhauled, according to Urban Taskforce CEO Tom Forrest.
“Land Tax relief is critical for the survival on many companies that are being forced to pay taxes on land which is delivering little or no return at all”, Mr Forrest said.
“When land is re-zoned, land tax is levied on the new `higher use’ potential of that re-zoned land. However, the NSW Planning system, the slowest in Australia for every category of development application, levies land tax on the highest and best use related to the new zoning while investors and property developers wait, in some cases years, for development approvals.
“Worse – with COVID 19 having resulted in the shut-down of many businesses, no relief has been offered to land-lords”, Mr Forrest said.
Land Tax is being charged based on the highest and best use for the land, assuming the full economic potential of the land zoning is being realised.
“Where land has been re-zoned, but a new DA approval is stuck in the planning system, Land tax should be based on the old (lower value) zoning or waived altogether.
“If deferrals are contemplated by the NSW Government, interest must not be charged on the unpaid land tax”, Mr Forrest said.
Mr Forrest called on the NSW Government to waive land tax where land-owners can show they have been impacted by COVID 19.
“These simple changes would give much needed relief to property owners who rely on rental income for the viability of their business.”
TOM FORREST is the CEO of Urban Taskforce
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Land tax overhaul needed during shutdown; Urban Taskforce CEO Tom Forrest

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EXPERT OBSERVER 
Queensland’s property industry is calling on the State Government to scrap significant increases to land tax, following the Commonwealth Government decision to bring forward $650 million in major project funding for Queensland, and deliver $680 million in new funding. 
The land tax increases announced in June’s State Budget were an attempt to plug a Budget hole that will now no longer exist. 
This is a very welcome announcement by the Federal Government and comes at a critical time for the local economy.
The Queensland Government should use this opportunity to scrap its economically damaging land tax increases in order to further support local jobs growth.
June’s Queensland State Budget introduced a sizeable increase to the general business rate of land tax, and introduced a new surcharge for overseas companies and trusts that will effectively double their land tax liability.
In her Budget speech and subsequent media comments, the Treasurer outlined that the land tax measures were a reluctant result of “Canberra’s cuts” and committed to repeal them if Canberra restored “Queensland’s fair share.
The Federal Government’s new commitment will be a big boost to the State’s balance sheet, and affords Queensland the opportunity to avoid imposing these harmful new taxes.
The Office of State Revenue has been devising an exemption framework from the overseas surcharge for economically significant investments since June’s Budget. While the Government has been working to finalise this framework,<a name="_GoBack" href=""></a> no land tax has been collected from overseas entities. 
The Treasurer could make the decision today to repeal the overseas land tax surcharge and issue these entities with their normal land tax assessments.
If this tax is imposed, Queensland will face a substantial competitive disadvantage against southern jurisdictions for the retention and attraction of investment.
We will also see many Australian investors liable to pay the new foreign surcharge, and rents increasing for many Queensland businesses.
Chris Mountford is the Executive Director of Property Council Queensland.
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j.ballantyne1990-6AQqhLzZaK

Canberra cash should spell the end of Queensland’s land tax grab:  Chris Mountford 

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EXPERT OBSERVER
<h3 class="post-title entry-title">
<a href="https://petewargent.blogspot.com/2019/01/hows-act-land-tax-going"></a>Canberra rents surge </h3>
<div id="post-body-7598088234210480051" class="post-body entry-content">
<div>I've been consistent on this point (often wrong, but never in doubt!): taxes in the Australian Capital Territory (ACT) are far too high for landlords to invest there en masse, which will lead to a rental shortage as the population steadily grows. </div>
<div> </div>
<div>There are a lot of 'well, in theory...' type comments made about this point, however, including by me, so let's stick to the hard data for today.</div>
<div> </div>
<div>Rental vacancy rates fell from 2½ per cent in 2014 when rate rises were first introduced to 0.6 per cent in October 2018. </div>
<div> </div>
<div>Rental markets are seasonal in the ACT and often tighten through the early months of the calendar year, and in turn Canberra could take out Hobart in Tasmania for title of most undersupplied capital city rental market in 2019, which is is some feat (click to expand): </div>
<div> </div>
<div class="separator"><a href="https://3.bp.blogspot.com/-vT1xNQ-Dd80/XDbv-FMFELI/AAAAAAAAt3c/cYKMVTIhmYgYm33-es2Bb-k5EyZiZE-ygCEwYBhgL/s1600/SQM2.jpg" target="_blank"><img src="https://3.bp.blogspot.com/-vT1xNQ-Dd80/XDbv-FMFELI/AAAAAAAAt3c/cYKMVTIhmYgYm33-es2Bb-k5EyZiZE-ygCEwYBhgL/s640/SQM2.jpg" width="640" height="350" data-original-height="797" data-original-width="1453"></a></div>
<div> </div>
<div>Asking rents for houses in Canberra are now up by more than 26 per cent over the past three years alone. </div>
<div> </div>
<div>A major issue is that rates are often far too high on units as well, despite the relatively low land value content of this property type. </div>
<div> </div>
<div>The asking rent for 2-bedroom units in Canberra is also up by more than 23 per cent over the same time period!</div>
<div> </div>
<div>In Canberra! </div>
<div> </div>
<div class="separator"><a href="https://4.bp.blogspot.com/-qPJMlBBFvq8/XDbv93SNgdI/AAAAAAAAt3g/ybb9rzPeXyQohtoeTKB8Ta16YaZc7WzGACLcBGAs/s1600/sqm1.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-qPJMlBBFvq8/XDbv93SNgdI/AAAAAAAAt3g/ybb9rzPeXyQohtoeTKB8Ta16YaZc7WzGACLcBGAs/s640/sqm1.jpg" width="640" height="188" data-original-height="229" data-original-width="777"></a></div>
 <div>Source: SQM Research</div>
<div> </div>
<div>
If you don't like asking rents - and you may not - then Domain's actual rental report figures this week were similar. Domain reported that Canberra is now a more expensive city in which to rent a home than even Sydney, with rents spiralling as high as the Black Mountain Tower. 
</div>
<div> </div>
<div>Dr. Nicola Powell:</div>
<div> </div>
<div>"With investors slugged with higher rates and land taxes, it is likely landlords are passing on the additional costs to tenants, or opting for high yielding short-term leases in order to recover costs."</div>
<div> </div>
<div>On the plus side there have been some significant apartment projects approved for construction, but one questions which landlords are going to buy them and rent them out. </div>
<div> </div>
<div>Politicians seeking tax deductions, perhaps. Foreign investors won't supply the rentals any longer, having already been taxed out of the market. <div class="separator"><a href="https://4.bp.blogspot.com/-SLAOdeLo-_w/XDb2yteH7-I/AAAAAAAAt38/-gvstrSWvQgPXqqff-6uw_xnFupyVf8EwCLcBGAs/s1600/China.jpg" target="_blank"><img src="https://4.bp.blogspot.com/-SLAOdeLo-_w/XDb2yteH7-I/AAAAAAAAt38/-gvstrSWvQgPXqqff-6uw_xnFupyVf8EwCLcBGAs/s640/China.jpg" width="640" height="128" data-original-height="146" data-original-width="729"></a></div>
</div>
<div>Some people are even campaigning for high land taxes, and the ALP negative gearing reforms, and a doubling of capital gains tax (all of this on top of the changes made to foreign investment, interest-only lending, restrictions on Division 40 depreciation, disallowance of travel expenses etc etc.). </div>
<div> </div>
<div>There's nothing much to say but best of luck with that!</div>
<div>
 It's a small city, which grows in population by less than 10,000 per annum. Way to go!</div>
<div> </div>
<div>PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank">blogger</a>.</div>
</div>
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pwargent-M4siyDbqQY

How's the ACT land tax going? And what it means for property investor supply: Pete Wargent

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To paraphrase former prime minister Paul Keating, walk into <a href="https://www.smh.com.au/politics/federal/plenty-of-bark-any-bite-20101028-175mv" target="_blank">any pet shop in the country</a> and you’ll find the resident galah saying we should swap stamp duty for a land value tax.
Just about every economic think tank in the land thinks it’s about the best value tax change there is, among them the <a href="https://theconversation.com/abolish-stamp-duty-the-act-shows-the-rest-of-us-how-to-tax-property-105378" target="_blank">Grattan Institute</a>, <a href="https://percapita.org.au/our_media/replacing-stamp-duty-with-broad-based-land-tax-could-increase-revenue-to-11-2-billion-by-2047-new-report-shows/" target="_blank">Per Capita</a>, the <a href="http://www.tai.org.au/sites/defualt/files/P149_Tax%20the%20need%20for%20change.pdf" target="_blank">Australia Institute</a>, and the <a href="https://www.cis.org.au/commentary/articles/dominic-perrottets-reforms-are-welcome-but-the-government-must-break-its-addiction-to-this-bad-tax/" target="_blank">Centre for Independent Studies</a> as well as <a href="https://www.thepolicyspace.com.au/2015/25/58-five-ways-to-reform-state-taxes" target="_blank">a swag of academics</a>, the Treasury in its work on the <a href="http://bettertax.gov.au/files/2015/03/08_GST-and-State-Taxes.pdf" target="_blank">draft white paper for tax reform</a> and the <a href="http://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/Papers/Final_Report_Part_2/chapter_g2-2.htm" target="_blank">Henry Tax Review</a>.
Among the benefits of what I will call SD4LVT are said to be greater ease in upsizing and downsizing, a more mobile population (less reluctant to buy and sell houses) and a more reliable source of revenue for state governments.
One state, the Australian Capital Territory, has already begun a <a href="https://www.revenue.act.gov.au/tax-reform" target="_blank">20-year</a> phase out of stamp duty and a 20-year build up of land tax.
But beneath the near universal enthusiasm for SD4LVT are layers of bad economics.
It is extremely frustrating to me that the leading minds in Australian policy have put their heads together and decided that the best reform they can think of is to replace a good tax on property with another good one that would be even less popular.
The more thoughtful among them don’t even bother to claim that SD4LVT will make housing more affordable, yet still put it forward as the “holy grail” of tax reform.
It is bad economics because of four key points its proponents miss or overlook.
<h2>Price effects</h2>
Stamp duty comes out of what the buyer is prepared to pay. This means that if you remove it, all other things equal, prices will rise by exactly the amount of the duty removed.
If the average home price is A$500,000, and buyers pay a 5% stamp duty, taking the total to A$525,000, then when stamp duty is removed the price will immediately increase to $525,000 being what the buyer was prepared to pay.
If you replace the stamp duty revenue with revenue from land value taxes, the effects on price are less clear. The change could push them up (enriching sellers) or it could push them down.
Imagine an example economy with:
<ul>
<li>20 houses</li>
<li>Turnover of one house each year (a turnover rate of 5%)</li>
<li>An average home price of A$500,000</li>
<li>Total stamp duty revenue of A$25,000 per year</li>
</ul>
Replacing the A$25,000 stamp duty revenue with a land value tax requires taxing all 20 homes at A$1,250 per year each.
Whether the market price of homes rises or falls depends on whether buyers think the cost to them of A$1,250 per year is lower or higher than the A$25,000 upfront stamp duty they avoided. If they thought it was about the same, SD4LVT wouldn’t much affect prices.
But what if turnover was half that, say 2.5%, which in this example would be where one house was sold every two years? In that case, the total stamp duty to be replaced would be A$12,500, which would be only A$625 per house in land tax.
The new buyer could pay A$512,500 for the house plus A$625 per year in land tax and be equally as well off as paying A$500,000 for the house plus A$25,000 in stamp duty.
The net effect would be a 5% price increase from A$250,000 to A$262,500.
If that happened nationally it would mean a transfer of almost A$200 billion to existing owners.
Whether or not that did happen would depend on the turnover and buyer’s views about the future value of money. In short, the price effects of a SD4LVT are ambiguous.
<h2>Mobility</h2>
While it is said that stamp duties deter Australians from changing addresses and switching jobs, there is little evidence that they are not changing enough.
Most people who relocate for work <a href="https://www.rba.gov.au/publications/bulletin/2017/mar/pdf/bu-0317-3-housing-market-turnover.pdf" target="_blank">don’t buy and sell homes in order to do it</a>.
They rent first, becoming both a renter and a landlord for a while, perhaps selling their first home later, but not quickly.
When they do sell, often for a healthy profit, stamp duty ensures they pocket less than would have, grabbing back some of what might otherwise be an untaxed capital gain.
Lower housing turnover from stamp duties mainly falls on the nearly half of sales involving investors who buy speculatively to capitalise on short bursts of capital growth before selling, in the process fuelling the boom and bust price cycle.
To me, anything that slows down real estate turnover and captures capital gains seems like a good idea.
<h2>Revenue stability</h2>
It is claimed that stamp duty revenues are much more volatile than other taxes. During a boom, they climb more than proportionally to prices since they also depend on turnover. During a bust, they fall more quickly than prices.
If I was to think in the abstract about what sort of taxes are good for the economy, I would say it is those that are pro-cyclical, meaning they automatically increase takings during a boom, and wind them back during a bust.
On this measure, stamp duty is a good tax for stabilising the economy, something important given how much our economic cycles are tied to housing markets.
The land value tax that SD4LVT proponents would replace stamp duty with would make the tax system as a whole less stabilising.
<h2>Odd modelling</h2>
You might have seen a chart like the Treasury graph below, with stamp duties presented as having enormous flow-on economy-wide costs compared to other taxes. In this example, land tax which is presented as having an economic benefit.
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<iframe src="https://datawrapper.dwcdn.net/i78qD/3/" frameborder="0" scrolling="no" width="100%" height="400"></iframe>
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The problem with the graph is that modelling used to prepare it (computational general equilibrium modelling) can’t directly account for transaction taxes because it doesn’t model transactions.
Instead of using a better tool for the job, the modellers assume that stamp duties increase cost of housing to all buyers and renters. It’s this assumption that drives a conclusion they describe as merely “<a href="http://www.policypartners.com.au/assets/treasury---economic-incidence-of-taxes-(2015).pdf">illustrative</a>”.
<h2>To sum up</h2>
Stamp duties don’t push up the cost of housing. The claim that they impede household mobility is overblown. They do reduce asset churn, and as a result they help maintain price stability.
Their “revenue instability” is actually a huge positive for the economy as a whole. And the modelling that has underpinned the talk of high economy-wide costs is as good as made up.
Yet SD4LVT remains the apparent holy grail of Australian tax policy.
Our best policy wonks continue to push our politicians to use up the precious capital to swap one very good property tax for another, for no obvious economic gain.<img src="https://counter.theconversation.com/content/106841/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;">
<a href="https://theconversation.com/profiles/cameron-murray-172480" target="_blank">Cameron Murray</a>, Lecturer in Economics, <a href="http://theconversation.com/institutions/the-university-of-queensland-805" target="_blank">The University of Queensland</a>.
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/stamp-duty-fever-the-bad-economics-behind-swapping-stamp-duty-for-land-tax-106841" target="_blank">original article</a>.
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Swapping stamp duty for land tax is bad economics: Cameron Murray

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The first Liberal government state budget in 16 years will see South Australian treasurer Rob Lucas cut land tax rates.
The cuts will apply to higher-end residential and commercial property investors.
Rob Lucas, who was the treasurer when the last Liberal Government was in power in SA 17 years ago, told The Australian Financial Review he wanted to attract more investors to the state through the land tax reform measures to compete with Sydney and Melbourne.
The first step of the land tax reform is set to see land tax drop from 3.7 percent to 2.9 percent on properties over $1.2 million.
There will also be incentives at the lower end of property investing. The threshold, where land tax applies on properties, will rise from $369,000 to $450,000.
Land tax isn't paid by people on their principal place of residence in South Australia, but does apply to property investors.
 
 
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jonathanchancellor-7SQnKwU6yx

Property investors to benefit in SA land tax cuts

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The Santa Barbara, United States based former 1956 Olympian Jon Henricks - who was 100 metre freestyle swimming world record holder - has sold his Balmoral slopes house after 48 years for about $5.2 million.
The dual Melbourne Olympic gold medallist was recently outspoken about how the state government’s recently introduced land tax surcharge for foreigners forced him to list the <a href="https://www.realestate.com.au/sold/property-house-nsw-mosman-128255974" target="_blank">Mosman home</a> he and his American wife Bonnie purchased in 1969.
The non-resident land tax rate was raised this year from 0.75% to 2%, with the changes meaning the couple would have to pay up to $60,000 a year.
Following the hike, Henricks listed through McGrath’s Michael Coombs with a $5 million to $5.5 million guide ahead of Saturday’s scheduled auction.
The Plunkett Road home sold inside the guide pre-auction on Thursday.
“Little by little the land tax has grown and up until to last year we were able to keep the home afloat with money from renting it out when we’re not around,” he said.
“This is absolutely devastating to deal with, there has been so many memories at the home and it has been good to us, it is all very bittersweet and devastating for us,” Henricks said.
The home has been the Henricks Australian home for nearly 50 years.
This article first appeared in The Sunday Telegraph.
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firstname1-iYD4UYzvBa

Olympic gold medal winner and world record holder Jon Henricks sells Mosman home

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Stamp duty is a tax that discourages the buying and sale of homes. 
It provides the NSW State Government with a fairly reliable income.
There are two debates running ahead of the upcoming state budget. One is on the rate of the tax, the other on whether it should be phased out and replaced with another tax.
This week the Real Estate Institute of New South Wales (REINSW) really lashed out having long failed in their lobbying efforts to persuade the government to respond to the stamp duty bracket creep that has been in place for more than three decades.
It was time for the NSW government to amend the 1986 stamp duty brackets, according to the REINSW president Leanne Pilkington, who said the Government’s conduct was "nothing less than unconscionable”.
Pilkington noted the second reading to the 1986 Bill noted the increased rates for conveyances only affected properties worth more than $300,000 "and thus will not affect the average home purchaser”. 
The median house price in Sydney is now at $1.1 million, costing $46,000 in stamp duty.
Last financial year more than $7.3 billion was collected in stamp duty.
Up until February this year the government has raised $4.7 billion, so is on par with last financial year.
That's despite first home buyers being able to buy property up to $650,000 without having to pay stamp duty, and homes up to $800,000 seeing a discounted stamp duty.
Any adjustment to the standard stamp duty threshold rate would be simple, though likely at cost to overall revenues.
However the revenue could potentially go higher, and certainly be more stable, if the NSW government took the braver decision to phase in a broad based land tax that spreads the income across all land owners rather than only on those buying homes.
Many economists, and Ken Henry, author of the 2010 Henry Tax Review, have long argued that a broad based land tax is the most equitable way to tax property owners.
Earlier this month CEDA, the Committee for Economic Development of Australia, raised the issue in its report on inequality, How unequal? Insights on inequality. 
Unlike stamp duty which imposes a huge up-front financial burden upon only home buyers, a broad-based land tax, paid annually and spread over a wider base of people, provides a steady income stream to government to fund infrastructure.
It also would not stymie listings because many more homes would be listed by elderly downsizers if they weren't facing the repurchasing stamp duty burden.
John Daley, the chief executive of independent think tank the Grattan Institute, calculates an annual tax of $1 per every $1000 of a home's value would cost the median Sydney household $845 a year in tax.
I would however question the estimate due to the low reliability of NSW land valuations, which remain a flawed system. Any shift would require a fresh equitable modern revaluation of the state.
This article first appeared in The Daily Telegraph.
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jchancellor-FAypfDUnLy

Is it time to consider a wider land tax?

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The New South Wales budget surplus forecast has increased by $600 million.
The NSW Treasurer Dominic Perrottet advised the projection for the 2017/18 year was revised up to $3.3 billion, from $2.7 billion.
The state government’s half-yearly budget review also revealed the first home buyers assistance scheme would cost $461 million this financial year.
“A significant reduction in transfer duty is derived from our first home owners grants and the concessions and tax cuts that form part of that.”
However, an increase in land tax will help offset the loss the government makes from the first home buyer concessions.
Higher than expected property values has pushed up the land tax revenue forecast by more than $100 million.
Land tax receipts from owners of investment properties and holiday homes in NSW are forecast to be $867 million higher than expected over the next three years.
Mr Perrottet said he was confident the Sydney housing market would remain healthy.
“We see the property market remaining strong, we see completions continuing at record levels,” Mr Perrottet said.
Fairfax Media noted the forecast assumes that the average price of residential properties sold in 2017-18 will be around 1.8 per cent above the average price the previous year. 
Stamp duty revenue in the three years to 2020-21 has been revised down by $657 million, largely due to the take up of stamp duty concessions for first home buyers in a housing affordability package announced in the June budget.
Between June and November, 13,672 people have received stamp duty concessions, compared with 3970 people in the same five month period last year.
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NSW property investors to pay $100 million more in land tax as values rise

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The NSW foreign investor land surcharge will increase to 2 percent per annum (from 0.75 percent per annum) with effect from 31 December 2017 for the 2018 land tax year.
The land tax surcharge was introduced in NSW with effect from 1 January 2017 to be imposed on owners of residential land who are 'foreign persons'.
The surcharge also extends to trusts that own residential land which have beneficiaries that are 'foreign persons'.
The land tax surcharge provisions are very broad and will catch discretionary trusts if the trust deed has a broad definition of beneficiaries, which is typical of most discretionary trust deeds.
Lawyers Meyer Vandenberg have warned "in this global age, given the wide class of beneficiaries," there is a high chance that a family member includes someone of international origins who is not an Australian or New Zealand citizen.
If any of these potential family members themselves meet the definition of 'foreign person' or invest in a company that meets the definition of a 'foreign person', and the trust owns residential land in NSW, then the trustee is liable for the land tax surcharge.
"Our federal politicians are having to re-look at their family origins (though to confirm their eligibility for holding office!)," Meyer Vandenberg told its clients.
"It is a timely reminder to also consider reviewing your discretionary trust deed and your family situation.
"If the trust owns residential land in NSW or is considering owning residential land in NSW in the near future, it is worthwhile getting advice."
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NSW foreign investor surcharge increased from December 31, 2017

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Last financial year NSW property buyers paid $9.8 billion in stamp duty after a record 228,000 sales. Close to $3 billion has been paid by buyers since July.
This stamp duty is paid by the already stretched Sydney property buyer to the NSW state government based on the price of their land and the building acquisition.
The tax has been stuck at current 4.5% level since the 1986 Unsworth government, a time when the median stamp duty paid was $1500.
Given the rise in the median Sydney property price over the 31 years, the typical buyer now pays $36,000 duty for a $905,000 median dwelling price acquisition.
Stamp duty affects affordability by making buying a home dearer, especially for first home buyers.
It has emerged over recent times that stamp duty also leads to the inefficient use of housing by constraining the capacity of many to move towards downsizing into a more appropriately sized home or for workers to take advantage of new employment opportunities elsewhere.
Many tax reviews, including the Productivity Commission’s recently completed five year productivity review, have proposed that the one-off stamp duty be removed and replaced by a universal land tax paid annually on all properties. At the moment only some investor pay land tax.
This universal land tax differs from the current situation in that it would apply to all properties, residential and commercial, whether they are owned as an investment or by an owner-occupier.
The Henry Tax Review in 2010 proposed such a land tax.
More recent AHURI research modelling of a universally applied land tax forecast 46% of the land tax revenue would be raised from land plots within 10 kilometres of CBDs where land is most expensive, while only 4% of land tax revenue would come from the urban fringe 30 to 50 kilometres out.
AHURI went further suggesting as a consequence of introducing the tax, overall land values would decline leading to more affordable housing. 
Political reality dictates that changes to stamp duty and land tax would be implemented over a long timeframe. This is happening in the ACT where stamp duty is being abolished progressively over 20 years having started from 2012.
Any move in NSW from stamp duty to land tax would involve transitional arrangements so that landowners would only begin paying land tax if they have not already had to pay stamp duty, i.e. as each property is sold it would move onto the new land tax arrangements.
It has been concluded that during this transitional phase the revenue shortfall experienced by state and territory governments would require bridging finance from the Commonwealth Government, although this revenue shortfall will quickly recede as more and more owner-occupied housing joins the universal land tax base.
Our politicians have yet to bite the bullet, and perhaps never will.
This article first appeared in The Daily Telegraph.
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