Repeat buyers are one of the strongest measures of confidence in any apartment development.

At <a href="https://www.apartments.com.au/new-apartments/era-newcastle-west-124-126-bull-street-newcastle-west-nsw-2302">ERA</a> in Newcastle West, some purchasers are returning to <a href="https://www.apartments.com.au/developers/gwh">GWH</a> after living at the developer's One Apartments. Their decision to purchase again was driven by the quality of life they found after moving into their first GWH home.

Keith Wilton had spent years living in a house in East Maitland before deciding it was time for a change. Apartment living had always been on his radar, but he was selective about what he wanted.

<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/FH_1EzB-1vs?si=XScVlP1ERsTDJoME" title="YouTube video player" width="560"></iframe>

"I had some boxes I wanted to tick," he says.

Keith points to the open-plan design, generous outdoor areas and considered inclusions as key reasons One Apartments worked for him.

“One of those things was a nice indoor open plan area, but also I wanted a nice outdoor open area that I could entertain on in summer or Christmases or birthdays,” he says.

He also found value in the smaller details, from integrated appliances to shared resident spaces including the pool, cinema and rooftop areas.

[smartcode_project:default project_id=135096 project_image_fid=356818]

After comparing several developments, he chose One Apartments because of GWH's longstanding local reputation and his own experience working with the developer on a commercial project more than a decade earlier.

"I knew that they were local, that the quality of the build was going to be up there. I'd looked at other apartment complexes around and close by, and I just knew that here was a better decision location wise."

Today, Keith says the move has completely changed how he experiences Newcastle.

"I enjoy living in this location because it's more of a lifestyle change. That Newcastle city living where you can walk to restaurants and bars and even beaches and parks and even shopping across the road."

[smartcode_project:default project_id=135096 project_image_fid=356828]

Beyond the location, he says it's the sense of community that has surprised him most.

"Everyone loves living here because they chose to live here, but everyone looks out for each other. It's a real great community feel here."

For Aimee and Lyle Goodman, the journey started almost by chance.

<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/tsioMLcnjas?si=zq-ys3JuWpfa5hFv" title="YouTube video player" width="560"></iframe>

The couple happened to be having coffee in Newcastle when they noticed the site where One Apartments was about to begin construction.

"We were aware GWH was planning a development," Aimee says. "We made one phone call and things moved pretty quickly after that."

As busy business owners, they initially thought apartment living would simply reduce the maintenance that came with larger homes. Instead, it fundamentally changed how they spent time together.

"We actually catch up more as a family now," Aimee says.

"We've had homes with big yards and lots of space, but everyone ended up in different rooms. Here we'll have dinner together, the kids can play, and we spend far more quality time together."

[smartcode_project:default project_id=135096 project_image_fid=356829]

Lyle says their confidence came from GWH's reputation within Newcastle's building industry.

"I know people who've worked across different apartment projects, and whenever GWH came up the feedback was always the same. They're rock solid. They're quality."

That confidence only grew throughout the buying process.

"One of the things that really impressed us with GWH was the whole process, was the communication," Lyle says. "It was consistent, it was regular, there was no problem if we had some weird questions, there was no problems in getting answers."

[smartcode_project:default project_id=135096 project_image_fid=351104]

Aimee says one moment stood out.

"The project actually finished on time. We realised we needed to hurry up and sell our house because everything was happening exactly when they said it would."

The positive experience at One Apartments ultimately gave all three buyers the confidence to purchase again with GWH, this time at ERA.

Their confidence reflects what many buyers are seeking in today's apartment market. Location remains important, but so too does certainty around delivery, quality and long-term liveability.

[smartcode_project:default project_id=135096 project_image_fid=356822]

ERA builds on those foundations with 280 one, two and three-bedroom apartments across two landmark towers in <a href="https://www.apartments.com.au/developments/newcastle-west-nsw-2302">Newcastle West</a>.&nbsp;

Designed by <a href="https://www.apartments.com.au/architects/fk-australia">Fender Katsalidis</a>, the project will include more than 2,000 square metres of resident amenities, including a resort-style pool, gym, sauna, private cinema and rooftop entertaining spaces overlooking the harbour and coastline.&nbsp;

The development is also within walking distance of the Newcastle Interchange, Honeysuckle, Darby Street, the harbour foreshore, restaurants, retail and the city’s beaches, continuing the walkable lifestyle that existing GWH buyers say has transformed how they live.

[smartcode_project:default project_id=135096 project_image_fid=356826]

For Keith, the appeal remains straightforward.

"You feel at home even before you've moved into your home."

For Aimee, the change is measured in time.

“I just felt like I had more time,” she says.

[smartcode_project:default project_id=135096 project_image_fid=351102]

Construction at ERA is now underway, with more than half of the residences already sold and limited two and three-bedroom apartments remaining in the East Tower release. Priced from $980,000 for two-bedroom residences and $1.46 million for three-bedroom residences, buyers can secure an apartment with a 10 per cent deposit, with premium homes offering ocean views from Level 8 and harbour views from Level 10.

ERA is also backed by Resilience Insurance's 10-year Latent Defects Insurance policy, providing protection against structural or waterproofing defects for 10 years after completion. The project is anticipated to be completed in early 2028.

[smartcode_project_cta:default project_id=135096]

Joel Robinson

From ONE to ERA: Why buyers are choosing GWH again in Newcastle West

Virgate Property Group is preparing to commence construction of Verdé, its new apartment development in Melbourne's Arts Precinct at Southbank, following a strong run of sales that has seen more than half of the project's 173 apartments secured.

Verdé has attracted a broad mix of first home buyers, owner-occupiers upgrading from nearby inner-city suburbs and investors, with younger owner-occupier couples aged between 28 and 45 accounting for the strongest enquiry. Many are already living in Southbank, South Melbourne, Albert Park, Port Melbourne, South Yarra and the CBD.

"Verdé is located in one of the most desirable pockets of southern Melbourne," Blair Property Group Director Darren Blair, who is managing sales at Verdé, said.

"It's within walking distance of the Arts Centre, Royal Botanic Gardens, Albert Park Lake, and Southbank's restaurants and retail. It's a great lifestyle location with strong amenity and liveability, which made it a very attractive choice for the project."

[smartcode_project:default project_id=4661 project_image_fid=372549]

Virgate was already familiar with the precinct, having previously delivered the successful Domain House development in neighbouring South Melbourne. That experience gave the developer confidence to acquire the Coventry Street site and continue expanding its presence in Melbourne's inner south.

"We had been keeping an eye on the site and the broader precinct for a few months before deciding to move forward with the acquisition," Virgate said.

The project was ultimately secured in 2020 following feasibility studies, planning assessments and due diligence, with the brief centred on delivering "a high-quality, considered design that feels both refined and fit for purpose."

[smartcode_project:default project_id=4661 project_image_fid=314259]

Designed by <a href="https://www.apartments.com.au/architects/bruce-henderson-architects">Bruce Henderson Architects</a>, Verdé comprises 173 one, two and three-bedroom apartments priced from $599,000. The architecture is distinguished by a faceted glass façade that responds to both the site's outlook and Melbourne's changing light conditions.

According to Bruce Henderson Architects, the coloured glazing gives the building a distinctive identity while also providing privacy and solar shading, with residences oriented to capture views across the bay, city skyline and surrounding parklands.

Inside, <a href="https://www.apartments.com.au/interior-designers/designoffice">DesignOffice</a> has created interiors focused on natural light, efficient planning and enduring materials. Apartments feature engineered oak flooring, natural stone benchtops, floor-to-ceiling glazing and SMEG appliances, while a restrained material palette aims to complement the expansive outlooks rather than compete with them.

[smartcode_project:default project_id=4661 project_image_fid=372550]

Resident amenity has also been designed around everyday functionality rather than occasional use. Facilities include a concierge-serviced lobby, residents' lounge with fireplace, library and co-working space, gym, terrace garden with barbecue facilities, ground-floor café, and package delivery management.

The project's location continues to be one of its strongest drawcards. Positioned on Coventry Street, Verdé sits within walking distance of the National Gallery of Victoria, Arts Centre Melbourne, Royal Botanic Gardens and Albert Park Lake, while Southbank's dining precinct, Sturt Street trams and the new ANZAC Station are all nearby. The surrounding education catchment also includes Melbourne Grammar, Melbourne Girls Grammar, Mac.Robertson Girls' High School and several major university campuses.

The sales team says buyers have responded particularly well to the combination of location, design quality and long-term liveability.

"They're responding really positively to the quality of the design, premium resident amenities and the uninterrupted views. Many also appreciate the location and how connected it is to everything they need."

The ability to secure stamp duty savings before completion has also been a key factor for purchasers, alongside the opportunity to personalise finishes ahead of settlement.

With construction set to commence soon and more than half the apartments already sold, Verdé enters its next phase as one of the Arts Precinct's more established apartment developments, offering remaining buyers an opportunity to secure a residence before construction advances further. Expected completion is scheduled for late 2027.

[smartcode_project_cta:default project_id=4661]

Virgate's Verdé Southbank moves toward construction as sales fly past halfway stage

Downsizer-focused apartment development Kooyongkoot in Hawthorn has been recognised at the 2026 Better Future Melbourne Design Awards, taking home Gold and Silver awards in two categories.

<a href="https://www.apartments.com.au/new-apartments/kooyongkoot-hawthorn-1-kooyongkoot-road-hawthorn-vic-3122">Kooyongkoot</a>, currently being delivered by developer PQD and designed by Cera Stribley, received Gold in the Interior Design – Proposed category and Silver in the Architecture – Proposed category.

The dual recognition reflects the design approach behind the boutique development on prestigious Kooyongkoot Road, where the focus has been on creating homes for downsizers seeking the space, quality and functionality of a detached house within a low-rise apartment building.

Rather than maximising apartment numbers, <a href="https://www.apartments.com.au/developers/pqd">PQD</a> and <a href="https://www.apartments.com.au/architects/cera-stribley-architects">Cera Stribley</a> limited the development to just 18 residences, allowing for larger floorplans, greater privacy, generous landscaping and expansive communal spaces.&nbsp;The majority of the apartments also benefit from corner aspects, allowing for dual sources of natural light.

Now around 70 per cent complete and on track for completion in November 2026, Kooyongkoot will comprise a mix of garden residences, ter​race apartments, sub-penthouses, and is crowned by two half-floor penthouses with direct lift access and private rooftop terraces.

[smartcode_project:default project_id=102717 project_image_fid=355297]

The Silver Award for Architecture recognised the way the building responds to its prominent corner position at the ent​rance to Hawthorn's Scotch Hill precinct, one of Melbourne's most established residential neighbourhoods.

Rather than competing with the grand homes that line Kooyongkoot Road, the architectural approach focused on restraint and longevity, using curved brickwork, generous landscaping and carefully considered proportions to integrate with the existing streetscape.

"The form feels fluid and timeless, as though shaped by the landscape itself – architecture that belongs, rather than competes," said Chris Stribley, Co-Founder and Managing Principal of Cera Stribley.

The judging submission also highlighted practical innovations throughout the building, including lift cores servicing only nine homes each, a central landscaped lightcourt designed to bring daylight and ventilation into the building, and fully enclosed private storage rooms with lighting, power and shelving to better accommodate residents transitioning from larger family homes.

[smartcode_project:default project_id=102717 project_image_fid=355293]

The Gold Award for Interior Design recognised the project's focus on long-term liveability rather than display-home aesthetics.

According to the awards submission, the interiors were designed from the inside out, prioritising how homes would function over decades of daily use through generous proportions, practical storage, durable natural materials and flexible layouts.

The specification includes natural stone throughout, upgraded acoustic glazing, V-ZUG appliances and fully enclosed storage rooms, alongside an amenity offering focused on wellness, entertainment and everyday convenience.&nbsp;

Residents will have access to a gym and yoga studio, a wellness centre featuring traditional and infrared saunas, a cold therapy shower and treatment room, as well as a residents' lounge and golf simulator/cinema room for entertainment.&nbsp;Kooyongkoot has also considered the everyday convenience of its residents by offering a private carwash and pet wash facilities on site as well as dedicated parcel lockers and oversized fully enclosed storage rooms.&nbsp;

[smartcode_project:default project_id=102717 project_image_fid=355303]

The project's attention to detail has already resonated with buyers. Earlier this year, Kooyongkoot recorded one of Boroondara's highest apartment sales when an $8 million penthouse was purchased by a Melbourne CEO downsizing from a nearby family home.

"Every detail feels deliberate, from the overall design down to the smallest touches," the purchaser said.

"The level of quality and refinement is exceptional, but what really sold it was how liveable it felt... It felt like a place where everything had been considered, not just a luxury building."

[smartcode_project:default project_id=102717 project_image_fid=355304]

Sustainability also formed a key part of both award submissions. Kooyongkoot is targeting a minimum 7.5-star NatHERS rating across all residences, supported by passive design principles, high-performance glazing, EV charging infrastructure, water reuse systems and a wellness model focused on lower-energy dry facilities rather than pools and large wet areas.

Located within walking distance of Scotch College, Methodist Ladies' College, Koo​yong Lawn Tennis Club, Aubur​n Village and Camberwell Junction, Kooyongkoot continues to target owner-occupiers looking to remain in Melbourne's inner east without compromising on space or quality. A limited selection of two, three and four-bedroom residences remains available, with prices starting from $1.9 million.

[smartcode_project_cta:default project_id=102717]

Kooyongkoot wins Gold and Silver at Better Future Melbourne Design Awards

New apartment supply has become increasingly constrained across <a href="https://www.apartments.com.au/developments/parramatta-nsw-2150">Parramatta</a> in recent years, with fewer projects progressing through to completion as development conditions have become more challenging.

It makes <a href="https://www.apartments.com.au/developers/novm">NOVM</a>'s 2021-completed <a href="https://www.apartments.com.au/buildings/the-lennox-parramatta-12-phillip-street-parramatta-nsw-2150">The Lennox</a> one of the most recently completed residential towers on the Parramatta River, and among the newest apartment developments in Sydney's second CBD.

With the project largely completed before the sharp escalation in construction costs and inflation following the pandemic, The Lennox is now offering pricing that would be difficult to replicate in a comparable new development in Parramatta today, or across much of Western Sydney.

The majority of the 413 apartments at The Lennox sold before and shortly after completion. A limited release of the remaining apartments has recently been brought to market by capital partner <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a>, with entry-level pricing from $700,000 and two-bedroom apartments available from under $1 million.

Rising above the Parramatta River at 12 Phillip Street, The Lennox comprises one, two, three and four-bedroom apartments, appealing to first home buyers, young professionals, families, downsizers and interstate investors seeking a completed apartment in one of Australia's fastest-growing economic centres.

[smartcode_project:default project_id=5743 project_image_fid=372394]

Rather than positioning Parramatta as an alternative to Sydney's CBD, Equitifund believes the city has reached a point where it stands on its own merits.

"Parramatta is no longer simply an alternative to Sydney CBD, it's becoming a destination in its own right," Equitifund Executive Chairman Greg Huxley said.

"The Lennox captures that evolution with a level of quality and amenity that's difficult to match at its price point."

[smartcode_project:default project_id=5743 project_image_fid=953]

Designed by <a href="https://www.apartments.com.au/architects/marchese-partners">Marchese Partners</a>, the tower responds directly to its riverfront setting through expansive glazing and open-plan layouts that maximise views across the Parramatta River and city skyline. Interiors feature engineered timber flooring, stone benchtops, stainless steel appliances and floor-to-ceiling glazing, while generous balconies extend the living spaces outdoors.

Marchese Partners says the project was conceived to balance high-quality apartment living with practical, long-term functionality, pairing larger, efficient floorplans with amenities more commonly associated with five-star hotels.

That emphasis continues through the resident facilities, which include a 20-metre rooftop swimming pool, fully equipped gym and wellness spaces, full-time concierge, a residents' lounge, function room, private lifts, secure basement parking and rooftop communal areas overlooking the Parramatta River. Ground-floor boardwalk retail and dining further activate the riverfront and integrate the building into the surrounding public realm.

[smartcode_project:default project_id=5743 project_image_fid=925]

Australian housing and finance group Equitifund has secured the remaining apartments, believing there are few completed apartment opportunities in Parramatta that offer the same combination of location, amenity and pricing.

Equitifund National Sales Director Ben Hamblett says buyers are increasingly recognising that premium apartment living no longer needs to come with Sydney CBD pricing.

"The Lennox is where aspirational living becomes attainable," Hamblett said.

"Wake to river and mountain views, step into Sydney's Second CBD, and arrive home to resort-calibre amenities, all without the harbour price tag."

Hamblett says owner-occupiers are also attracted by the convenience of having Westfield Parramatta, Church Street's dining precinct, Parramatta Park, Riverside Theatres, Western Sydney University and major transport connections all within walking distance.

"At The Lennox, lifestyle is not an afterthought, it is the foundation."

[smartcode_project:default project_id=5743 project_image_fid=5374]

The Lennox places residents within walking distance of Parramatta Square, Westfield Parramatta, Church Street Eat Street, Parramatta Station, the ferry wharf, Light Rail, the future Sydney Metro West, Parramatta Park and CommBank Stadium, reinforcing Parramatta's position as one of Australia's most connected metropolitan centres outside Sydney's CBD.

Equitifund says buyers visiting the display suite consistently comment on the quality of the finishes, generous floorplans, river and skyline views, and the walkability of the location. The project has attracted a broad mix of local professionals, upsizers, downsizers, buyers relocating from Sydney's inner suburbs and interstate investors seeking long-term growth opportunities.

That demand aligns with Parramatta's continued evolution as an economic powerhouse. Equitifund Research and Market Insights specialist John Bekiaris says sustained population growth, infrastructure investment and expanding employment opportunities continue to support long-term housing demand across the city.

"Parramatta has evolved from a satellite city into one of Australia's most important economic centres. Population growth, infrastructure investment and employment are all supporting sustained long-term housing demand."

[smartcode_project_cta:default project_id=5743]

The apartment price gap drawing Sydney buyers west

A luxury beachfront apartment at Rainbow Bay has more than doubled in value since it sold off the plan six years ago, setting a new local apartment record in the process.

The three-bedroom apartment in the Flow development on Petrie Street, the first of four new projects locally by Paul Gedoun's S&amp;S Projects, has sold for $7.4 million, after originally selling for $3.27 million when the project launched in 2020.

The seventh-floor apartment, comprising 187 sqm of internal living space and a 54 sqm balcony overlooking Froggies Beach and Snapper Rocks, was purchased by a local family.

The transaction was negotiated by Pezet Matheson director Kerry Pezet and equates to more than $30,000 per sqm.

Pezet said the sale reflected the limited opportunities to buy into the boutique beachfront development.

"The sale highlights the rarity of opportunities within the boutique beachfront development, where residences seldom become available," Pezet said.

"Flow is one of the Gold Coast's most tightly held buildings. Buyers from our database move quickly when residences become available, and achieving an off-market sale at $7.4 million demonstrates the depth of demand for property of this calibre."

<img alt="Flow" data-entity-type="file" data-entity-uuid="c585b206-2130-4eee-a50c-3f27c51a7c70" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-06%20at%208.33.25%E2%80%AFPM.png?VersionId=m3pHRDV62Y3fvN.XQuQHq.52ilTWpRLf" />

Flow was the first of four luxury apartment developments delivered by Paul Gedoun's S&amp;S Projects at Rainbow Bay and was completed in 2023.

Positioned on the beachfront overlooking Snapper Rocks, the residence includes three bedrooms, three bathrooms, a powder room and views stretching north along the coastline towards Surfers Paradise.

Pezet Matheson Residential principal Mitchell Lambert said buyers continued to prioritise quality beachfront apartments in tightly held locations.

"Flow Residences offers a rare combination of elevated beachfront positioning, architectural excellence, comprehensive resident amenity and premium finishes, which is exactly what discerning purchasers are seeking," Lambert said.

"The transaction further reinforces Rainbow Bay's reputation as one of Australia's premier coastal lifestyle destinations, where limited supply and growing demand continue to support strong market performance."

Pezet Matheson originally marketed and sold out Flow off the plan, making the latest transaction a return to one of the project's original buyers.

Paul Gedoun is selling his third project, <a href="https://www.apartments.com.au/new-apartments/radia-rainbow-bay-271-boundary-street-coolangatta-qld-4225">Radia Rainbow Bay</a>, after recently completing, and selling out, <a href="https://www.apartments.com.au/buildings/esprit-217-227-boundary-street-coolangatta-qld-4225">Esprit</a>. He has plans for a <a href="https://www.apartments.com.au/news/qld/first-look-s-s-projects-proposes-88-apartment-wellness-tower-at-coolangattas-boundary-street">fourth building</a>, 88 apartments on <a href="https://www.apartments.com.au/new-apartments/209-213-boundary-street-coolangatta-qld-4225">Boundary Street</a>.

Rainbow Bay apartment doubles in price since off the plan sale during pandemic

Superannuation

<html><body>
Whose super did better than everyone else’s?
There was an average super return of 9.8% for the 2014-15 financial year, as calculated by Chant West.
They ranked the top-performing fund as Queensland’s public sector scheme QSuper, the second-biggest super fund in the country.
It returned 12.3% for its members.
Second placed was MTAA Super, the industry fund for the motor trades returning 11.7% for its members.
While most super funds took a beating in the GFC, Chant West director Warren Chant said the damage has been more than repaired.
“Since the GFC low point at the end of February 2009, growth funds have now delivered an impressive 88 per cent, putting them 37% above their pre-GFC high of October 2007,” he told TheNew Daily.
The full list of the top 10 is below, made up overwhelmingly of industry funds, with just one public sector fund and two retail funds making the list.
Overall, not-for-profit funds – which include industry, public sector and corporate funds (such as Telstra or Qantas) – returned on average 10.2%.
Retail funds, which are generally owned by banks on a for-profit basis, returned 9.6% on average.
The top 10 super funds for 2014/15
1. QSuper – 12.3%
2. MTAA – 11.7%
3. Statewide Super – 11.5%
4. AMP Future Directions – 11.5%
5. VicSuper – 11.1%
6. UniSuper – 11%
7. HOSTPLUS – 11%
8. Intrust Super – 10.9%
9. MLC Horizon – 10.9%
10. AustralianSuper – 10.9%
 
The top 10 super funds 2005-2015
1. REST Industry Super – 7.7%
2. Telstra Super – 7.6%
3. Commonwealth Bank Group Super – 7.4%
4. CareSuper – 7.4%
5. AustralianSuper – 7.3%
6. Catholic Super – 7.2%
7. Cbus – 7.2%
8. QSuper – 7.2%
9. UniSuper – 7.2%
10. HOSTPLUS – 7.1%
</body></html>

jchancellor-FAypfDUnLy

CBUS sits in 7th place on past decade top 10 super funds

<html><body>
The Federal Court of Australia has made declarations and ordered Superannuation Warehouse Australia Pty Ltd (SWA) to pay a penalty of $25,000 for false and misleading “Free SMSF Setup” advertising.
The statements were made on two websites operated by SWA.
SWA, which provides online accounting and administration services for self-managed superannuation funds (SMSF), admitted that the statements were false and misleading. 
It consented to the declarations and additional orders requiring SWA to:
<ul>
<li>implement a compliance program;</li>
<li>post notices on the websites about the proceeding; and</li>
<li>notify consumers who applied to SWA for the free SMSF setup service about the proceeding.</li>
</ul>
The Federal Court found that between 22 January 2014 and 8 May 2015, the "Free SMSF Setup" statement on the websites was false, misleading and deceptive because it represented that SWA would set up an SMSF at no cost when in fact:
<ul>
<li>SWA’s online application form for the free SMSF set up service could not be submitted without authorising SWA to be the fund administrator for which there was a fixed monthly fee;</li>
<li>SWA requested applicants to put in place a payment plan for monthly payments of administration fees when it set up the SMSF; and</li>
<li>SWA charged monthly fees for its SMSF administration services.</li>
</ul>
These matters were not clearly or prominently disclosed on the websites.
In addition, between 22 January 2014 and 5 August 2014 applications for SMSF set up with a corporate trustee required a payment of $950 to be made to SWA, without this being clearly and as prominently stated on the websites where “Free SMSF Setup” was advertised.
In the judgment, His Honour Justice Beach found that the "Free SMSF Setup" representation was false or misleading in that:
"a)      the administrator consent was required for the “Free SMSF Setup”;
b)      the administrator consent affected the costs of the “Free SMSF Setup”; and
c)      monthly fees were required to be paid to SWA for its services.
In the circumstances the setup was not 'free'.”
ASIC Deputy Chair Peter Kell welcomed the decision saying establishing a self-managed superannuation fund is a significant financial decision. 
"Consumers should not be misled by advertising, including online.  
"ASIC considers that terms such as "free" convey a strong impression to consumers and should not be used where there is any charge or cost associated with the product or service advertised."
</body></html>

Free SMSF setup claims cop Federal Court fine

<html><body>
The Royal Commission has heard the unpaid, unsolicited endorsement of Scott Pape, the Barefoot Investor, has created a $2.5 billion boost for the funds under management held with industry super fund, Hostplus.
The revelation came during proceedings of Kenneth Hayne's royal commission, when HostPlus chief executive David Elia referred to the "Scott Pape" effect, which, he divulged, had resulted in a $2.5 billion funds under management influx.
"The fund has actually grown by $14 billion over the course of the last two years," Elai told the commission.
"The Scott Pape effect... that accounts for about $2.5 billion.
"So if you take out the Scott Pape effect in terms of funds under management, there’s about $11 and a half billion dollars of growth that’s largely attributable to – well, it’s attributable to a number of things, investment performance.
"Hostplus, for the year ending 30 June 2017, delivered a 25 rate of return – I think it was – we were the best performing fund of 13.2 per cent."
In his last book, Pape points out he shut down his SMSF to instead invest in "the lowest cost fund in the world", the Hostplus Indexed balanced Fund, which charges a management fee of 0.06 per cent to track the ASX200 combined with a similar, indexed approach to global stocks. 
"This boring fund has beaten the pants off most stock-pickers", he wrote. 
His Barefoot Investor book also revealed he also invests in ChoicePlus', a HostPlus funds that lets you pick the specific investments within your superannuation portfolio.
The commission also heard Elia's testimony on corporate hospitality spending.
Elia said it was a necessary evil and absolutely met the legal requirement for superannuation funds to act in the best interests of members.
Hostplus spends hundreds of thousands of dollars entertaining employers at the Australian Open each year, the commission heard.
The bill for the tennis last year came to $260,000, which equated to less than 1¢ per member per week, Mr Elia said.
Hostplus gets most of its new members because it is listed as the default fund in workplace deals. 
Counsel assisting the commission, Eloise Dias, said the regulator had raised concerns about Mr Elia's spending after a report from a whistleblower.
The royal commission is examining whether spending on advertising and sponsorship is in the best interests of members.
Hostplus fees are comparatively low, at $87 a year, or $1.50 week, but its members have low balances vulnerable to erosion by fees and insurance premiums.
A review by Rice Warner in 2017 found claims by Hostplus members aged under 25 are very low and as a cohort they are "over-insured", Ms Dias said. 
Pape recommended Hostplus twice in his recent 280 page The Barefoot Investor book pointing to his own membership.
He mentioned he and his wife used to have a self-managed super fund (SMSF)..."because that's what wealthy, sophisticated people do, right?"
One of the reasons he shut it down was that he wanted simplicity.
"I love investing. But Liz? Not so much.
"And given that she's younger than me, and fitter than me, the chances are she'll outlive me. And an SMSF would be a technical and administrative nightmare for her."
The other key reason for snapping his own fund was Paps reckoned he'd found the lowest cost fund in the world
"It's also been one of the top-performing funds over the years.
"It's the Hostplus Indexed Balanced Fund, and it charges a tiny investment management fee of 0.02 per cent.
"In other words, 2 cents for every $100 invested (plus a $78 a year admin fee).
"There's no minimum balance," Pape noted.
Pape made his views known under the headline: The SMSF Lite that I use
He noted he had SMSF Lite with Hostplus (because he was already invested in their ultra-cheap Index Balanced Fund for his super).
"They call it 'ChoicePlus'. and it allows you to invest in any of Australia's biggest 300 companies on the stock exchange, together with a range of term deposits and ETFs." 
ChoicePlus needs a minimum of $10000 to kick things off, and costs $180 a year, "versus thousands for a traditional SMSF from an accountan," Pape advised.
By combining ChoicePlus with the Indexed Balanced Fund, Paps suggested he got the best of both worlds: "the cheapest super fund in the country together with the opportunity to pick and choose my own shares!" 
Property Observer noted HostPlus was recently named as the top performing super fund over three, five, seven and fifteen years.
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Unpaid, unsolicited Scott Pape endorsement triggers Hostplus bonanza 

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The Federal Government scheme that aims to incentivise baby boomer home owners aged over 65 to downsize from their largely empty homes began this month.
The spruikers are ready in wait.
The elderly will be able to put the proceeds of the sale of their home into a superannuation fund tax free, up to $300,000 each or $600,000 per couple.
Research suggests the overwhelming majority of retirees own outright, having no mortgage, so their prospect of surplus funds is real. The estimated value of pensioner home equity at $625bn.
The new scheme, announced in the 2017 budget by Federal Treasurer Scott Morrison, means the elderly, including the baby boomers still way off retirement, will need to carefully consider the sale of their home to potentially utilise the opportunity.
Morrison's thinking was to encourage ageing homeowners to downsize to free up more affordable exisiting stock for young families.
The initiative was first floated three years ago by Morrison when he was social services minister with the government having advice from the Productivity Commission that estimated 15 per cent of older Australians wanted to move.
Of course Scott Morrison can't force older Australians to move house, given the emotional and financial investment in family homes, but the incentive offers some encouragement.
It must have been the home for the past decade, and it can only happen the once.
The superannuation break comes with no requirement it is into a smaller home. It could see them entering the rental market or relocating to an aged-care facility.
The downsizer contribution can only come from the sale proceeds, so, if a couple sold their home for $500,000, their combined downsizer contributions would be limited to $500,000.
Those most likely to benefit from the scheme will be self funded retirees who are excluded from receiving a government pension due to exceeding the income and/or assets tests.
There are still big impediments the government has not addressed on why the elderly stay in large homes long after their children have left.
For many the super downsizer contribution will reduce, even eliminate the age pension and associated pensioner cards. Staying put which has come with the prospect of huge gains from property price growth and the maintenance of their pension often outweigh the advantages of moving.
There will likely be many opening a new superannuation account in which to make the downsizer contribution which must be done within 90 days of settlement.
I worry that the elderly will become vulnerable to what will be a new industry spruiking retiree smsfs. After all it's not that the SMSF arena is full of clean skins currently.
Last month Australian Securities and Investments Commission (ASIC) advised around 90 percent of financial advice on setting up smsfs did not comply with relevant laws.
And ASIC identified a growing use of 'one-stop-shops' where there was an increased risk of getting poor advice that did not take account of personal circumstances or was not given in their best interests.
These are among the many factors to consider so professional financial advice should be sought.
This article first appeared in The Saturday Telegraph
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Spruikers will take advantage of retirees in new SMSF downsizing contribution scheme

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The nation’s largest super fund, the $140 billion AustralianSuper, has unveiled a contingency plan warning members it will freeze property funds for up to two years in the event of a crisis.
AustralianSuper will also prevent members from investing more than 70% of their savings in its property portfolio option, to which investors have flocked in recent years chasing high returns.
The fund has changed its rules, giving it the right to freeze any attempts at withdrawing savings from the $1.7 billion property ­option, prohibit the switching of funds out of the option, and stopping any new contributions into the option for a period of up to two years “in exceptional circumstances in response to a market stress event”.
The Australian reported the "surprise policy changes", which take effect from November 19, rank as the first sizeable industry fund to make the change.
It noted UK market panic triggered by the Brexit vote in 2016 saw a financial volatility, where UK property funds, such as those run by Aberdeen Asset Management, Aviva Investors and Standard Life Investments, were unable to sell the underlying commercial property assets quickly enough to meet demand for investors pulling their funds.
Then, when the funds were unfrozen, property values had fallen to such an extent that investor savings were in jeopardy.
AustralianSuper group executive Paul Schroder said the changes were being made to “manage risk and protect all members’ interests” after consulting members.
“This is a prudent step designed to ensure all members can continue to exercise investment choice over the long term and in all market conditions,” Schroder said.
“The fund is committed to the property option but these changes were necessary to ensure other members are not disadvantaged in the event of a significant ­property market correction in the future.”
AustralianSuper surveyed more than 1000 members who were invested in property about the types of rules they would be most willing to accept.
“Direct property assets can’t be easily bought and sold at short notice,” AustralianSuper told its members in policy update,” Schroder said. 
“If the market experiences a stress event which causes lots of investors to sell property assets at the same time, or makes it more difficult for investors to finance transactions, we may not be able to find willing buyers at reasonable prices.
“Having the ability to freeze the option provides a safeguard by allowing some time for the market to recover before selling property assets.”
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Property fund freezes part of AustralianSuper's crisis contingency plans

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People who invest in real estate through a self-managed superannuation fund should have an exit strategy in mind for their property from the time they acquire it, even if they plan to hold the investment for the long term and pass it down through the family.  This exit may be based on performance criteria as you would do with any other asset, or may be based on income requirements.  It also needs to include the considerations for a number of unexpected circumstances.
There are many scenarios in which an SMSF’s trustees may wish to sell a property. They may identify a better investment opportunity elsewhere and want to realise a capital gain on the property.  They have identified their funds have a better opportunity to out perform the market in another property investment.
The fund may need to pay out pension benefits to retired members and find its income is insufficient to cover the payments. Or, one or more of the members may die, requiring the fund to make a lump sum inheritance payment. 
Whatever the reason for a sale, the fund should have plans in place for disposing of the investment.
For real estate, this starts with the capital growth drivers that increase the performance of the property and filters down through to the property selection. 
The location, type and features of the property should appeal to other buyers, as well as to tenants.
The demographics, economy and employment prospects in the local area will affect buyer demand. Homes in large cities and towns typically sell more quickly than those in regional areas as there is a larger pool of buyers. 
In general, residences that are close to transport and amenities such as shops and schools will be easier to both rent and sell than those in less convenient locations. A well-maintained home with parking, practical living spaces and a tidy kitchen and bathroom may be easier to sell than an awkwardly laid out property that needs work. 
There are many dimensions to buying well for income and capital gain. People purchasing property through an SMSF, like other property investors, should do their research and consider what will appeal to other buyers as well as to tenants. 
Timing
The timing of a property sale will be driven by a range of personal and market factors. 
Assuming the SMSF’s trustees have control over the timing – rather than being forced to sell due to a member’s unexpected death for instance.  While the most tax effective option is usually to continue to hold the property in the fund until the members have retired, there may be performance criteria that drive the timing of an exit.
After the members have retired and converted the SMSF into a pension, all fund income, including capital gains, is tax free. Before the members’ retirement, capital and income on investments in the fund are taxed at 15%. 
Property owned through an SMSF, like property held directly outside of superannuation, qualifies for a capital gains tax discount if the asset has been held for more than 12 months. The CGT discount for property owned inside an SMSF is one third of the gain. That means the fund pays 15% tax on two thirds of the capital gain if it is sold before its members retire.
Say an SMSF sells a property making a capital gain of $120,000 before its members have retired. The fund will incur a tax bill of $12,000 if it has held the property for more than 12 months. That tax bill could be avoided by timing the sale to settle after the members’ retirement.  However changes in a property market’ stength need to be considered.  In a bear market changes can easily wipe $12,000 from a sale price 
Multiple generations
Strategies that involve for holding property through an SMSF across multiple generations of a family are more complicated. 
Planning for what will happen when a fund member dies needs to take a variety of factors into account. These include whether the property will be sold after a member’s death; whether there is debt on the property; whether it is positively or negatively geared; how the fund is structured; how fund member are related to one another; and whether they are dependants of the deceased, as defined under superannuation law.
Some SMSF trustees decide to sell the property if one of the members dies. That way any debt can be repaid out of the sale proceeds and the deceased fund member’s share of the remaining equity can be paid to their beneficiaries or estate. 
If the trustees would prefer to keep the property after the death of a fund member, the plan should consider how the beneficiaries will be paid their inheritance. It should also consider how the fund will make loan repayments and meet other costs associated with the property without that member’s contributions to the fund. 
Superannuation regulations restrict how property can be transferred when used as a vehicle for holding properties over multiple generations. There are tax consequences for each course of action. 
Trustees should seek specialist legal and tax advice on the best options for their fund.
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admin-TPy8csjoDs

How to plan your SMSF exit strategy: Forrester Cohen

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The Federal Budget has given seniors a nudge as part of its attempts to ease housing affordability by getting them to downsize. 
From July 1, 2018, people aged 65 and over will be able to make a non-concessional contribution (NCC) of up to $300,000 from the sale of their principal residence into their superannuation, if they have lived there for at least 10 years.
With this move, the government aims to encourage empty nesters to downsize to free up more multi-bedroomed properties.
The downsizing contributions will be outside of existing contribution caps, and both members of a couple will be able to take advantage of the measure from the same home. The scheme is expected to cost the government $30 million in lost revenue over the forward estimates period, News.com.au reported.
The new incentive is in addition to concessions already permitted and will be exempt from the age test, work test and the $1.6 million balance test for the NCC.
The measures apply from July 1, 2018.
The budget measure has been welcomed by the SMSF Association.
Association Chief Executive Officer John Maroney it would allow a couple to contribute up to $600,000 from the sale of their home to superannuation outside of the existing caps and balance restrictions.
"This means people can make a significant top-up contribution to their super funds, allowing them to fund a dignified and secure retirement,” he was cited as saying by moneymanagement.com.au.
"While the measure may not be a significant trigger to encourage downsizing, we welcome the ability for older Australians to top up their superannuation where downsizing their home provides them with funds to do so.”
But there are concerns for down-shifters on how the extra super assets would reduce their part-pension entitlement.
SMSF Association head of policy Jordan George had advised caution about such a move ahead of the budget.
“Incentives to encourage people to downsize their home is a sensible idea,” George told selfmanagedsuper. 
But while the exemption was a good idea in principle, George said it was crucial to consider any ramifications of such a measure for people’s pension entitlements. 
“The assets test for the age pension when people downsize and the profit from downsizing may affect their entitlement to the age pension – that could become a significant issue,” he noted. 
KPMG tax partner Damian Ryan said allowing older couples downsizing to contribute to their super funds was welcome news.
"This will allow some older Australians to sell the family home and contribute some of the proceeds into superannuation,” he said, adding, “Those on the age pension are unlikely to take up this initiative.”
He said the measure would be attractive to a group of members who would like to sell their family home but due to contribution caps would have been prevented from topping up their superannuation balance, essentially transferring funds from one tax-preferred asset to another.
Also, residence requirements for the Age Pension and Disability Support Pension are increasing to 10 years continuous residence, including five of a person’s working life, which will affect about 2,400 people.
 
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j.ballantyne1990-6AQqhLzZaK

Budget 2017 encourages downsizing by pensioners, caution urged on entitlements

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Household net worth increased by $227 billion to $9.64 trillion in the first quarter of 2017. 
Contrary to what you intuitively might expect, the total value of residential housing as a share of the total assets hasn't really changed all that much over recent decades, even today sitting at just a little over half. 
A big part of the reason for that has been due to the popularity and success of compulsory superannuation, while Aussies are also now hoarding some $1.06 trillion in cash and deposits, a thumping 22 per cent of financial assets. 
<a href="https://www.propertyobserver.com.au/images/2017/06/30/HW1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/30/HW1.jpg" alt="">
Average net worth per capita has come absolutely storming back since the March 2009 nadir, rising by an extraordinary 67 per cent to make Australia the world's second wealthiest country after Switzerland in per capita terms.
Now someone will no doubt Tweet me to say that the housing component should be subtracted - you can do it yourself, the numbers are right there above!
Average net worth per capita increased by ~$34,500 over the year to a record high of ~$394,000.
<a href="https://www.propertyobserver.com.au/images/2017/06/30/HW2.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/30/HW2.jpg" alt="">
Housing loan debt also continues to rise to well beyond $1.6 trillion, making households twitchier about increases in mortgage rates than has ever been the case before. 
<a href="https://www.propertyobserver.com.au/images/2017/06/30/HW5.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/30/HW5.jpg" alt="">
Mortgage debt has expanded at a slower pace than asset values, however, bringing the household debt to assets ratio down to 19.5 per cent, while the mortgage debt to land and dwelling values ratio declined again to 26.4 per cent.
<a href="https://www.propertyobserver.com.au/images/2017/06/30/HW3.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/30/HW3.jpg" alt="">
The most noteworthy housing market change in recent months has been mortgage rates being ratcheted higher on interest-only loans.  
Given that the hikes largely took place after the end of March, it's likely that interest payable will rise throughout the remainder of 2017.
<a href="https://www.propertyobserver.com.au/images/2017/06/30/HW4.jpg" target="_parent">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/06/30/HW4.jpg" alt="">
EOFY brings super returns
It's the end of another financial year today!
After an up-and-down sort of a year at times - and assuming the share market doesn't unexpectedly crash this morning - superannuation funds will return about 10 per cent for 2016/17 to notch up an eighth successive year of positive returns, as the share market continues to claw its way back.
From a housing market perspective, almost all commentators are now on board with the notion that the Sydney market has moved into a slowdown phase, which will have knock-on effects to household net worth later in 2017.
Banks will continue to push home loans hard, but investment mortgages will be harder to come by following a raft of tightening measures. 
Yet we also shouldn't ignore that every set of labour force figures released lately has been pointing to a Sydney jobs market that is firing on all cylinders. 
Population growth accelerated to about 91,000 in Sydney in 2016, despite internal migration to Queensland. 
Meanwhile, the unemployment rate has declined to 4.4 per cent, and job vacancies in New South Wales have risen to unprecedented highs, suggesting that many more jobs are being created. 
Anecdotally, I've heard from more than one source that some professional jobs in Sydney are attracting dozens if not hundreds of applications, though whether the applicants are unemployed, under-employed, or from interstate, who can say? 
With first homebuyers sitting out of the market in recent weeks awaiting the introduction of new incentives - applicable to established properties priced up to $800,000 from 1 July - I wouldn't yet rule out a resurgent Sydney housing market later in 2017, at least in the bottom quartile of the market.
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pwargent-M4siyDbqQY

Mortgage rate tweaks set to bite: Pete Wargent

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GUEST OBSERVER
Australian super members have earned returns of 117% on average since the depths of the Global Financial Crisis (GFC) nine years ago, despite February producing the first negative monthly return since January 2017. Recent data also reveals the risk for members in trying to time the market over that nine-year period and the cost of potentially switching products due to a relatively short period of underperformance.
SuperRatings has reported a return of -0.3% in February for members in a balanced option fund. Over the nine years since the GFC, the median balanced option fund has delivered an average return of 9.0% per annum (representing accumulated growth of 117%). For members in growth option funds (growth assets of 77–90%), the median return has been even higher, reaching 9.9% per annum. or an accumulated 134%.
Our data also reveals that a flight to relative safety in times of volatility can have long-term effects on investment performance. If the volatility of the GFC resulted in a member switching from a relatively riskier growth option to a balanced option during the depths of the crisis in 2009, they would be approximately $17,700 worse o today (assuming a starting balance of $100,000). 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/16/super%20rating%201.jpg" alt="">
The lesson for superannuation members is that a focus on long-term performance is essential. While members may feel unnerved by recent volatility, it is impossible to ignore the significant gains that super funds have delivered since the start of the bull market in 2009.
February’s market correction had a negative impact on super fund returns, but when assessed within the context of long-term performance, the overall effect is negligible. Our estimate is that the median balanced option return for February was -0.3% for accumulation funds and -0.4% for pension funds. Australian shares managed to rebound from early falls, with the S&amp;P/ASX 200 Index 90% recovered by the end of the month. Despite the recent market pullback, superannuation members have good reason to be positive.
Ater nine years, you might say the global share market rally is getting a bit long in the tooth, but this is at odds with the economic data, which is pointing to a strengthening economy.
Market corrections, while they can cause members to panic, are often a necessary check against bubbles. What the recent volatility tells us is that the market is capable of self- re flection, and that investors are focused on valuations as well as the broader economic picture.
Choice of fund matters
Looking back to the start of the bull market, there has been significant dispersion between the best and worst performing balanced funds. The worst performing fund has only managed to outperform inflation since July 2013. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/16/super%20rating%202.jpg" alt="">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/16/super%20rating%203.jpg" alt="">
REST in top spot over 10 years
SuperRatings’ return data for January show that REST has taken first place among balanced option accumulation funds, returning 7.0% per annum. over 10 years, followed by CareSuper, which returned 6.9%. All funds within the top 10 have delivered in excess of CPI plus targets, highlighting the strength and consistency of Australia’s top performers.
Among growth funds, CareSuper was the leader, returning 7.3%, followed closely by Energy Super, which returned 7.3%. While balanced funds still represent the most popular option among members in both the accumulation and pension phase, growth option performance is becoming increasingly relevant. Since 2008, member allocation to higher growth options (including local and international shares, property, and high growth options) has risen from 8.4% to 13.6%, and SuperRatings expects that this trend will continue. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/16/super%20rating%204.jpg" alt="">
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/3/16/super%20rating%205.jpg" alt="">
Kirby Rappell is CEO of <a href="https://www.superratings.com.au/" target="_blank">Super Ratings</a>.
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Super members are in a winning market despite volatility: SuperRatings

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The superannuation fund for the real estate industry has called for stricter controls on the establishment of self-managed superannuation funds (SMSFs) with small account balances.
It follows the release of the Productivity Commission’s draft report on superannuation, which finds that SMSFs with low account balances perform “significantly worse” than APRA regulated funds.
The Productivity Commission’s draft report confirms recent Australian Tax Office data on the performance of SMSFs, which show that very low balance SMSFs are unsustainable – often delivering negative returns – and that a lack of scale is a major risk to members.
REI Super is calling for new rules to make it harder for people with under $200,000 in their super to set up an SMSF.
The Productivity Commission’s draft report found that “many smaller SMSFs (those with balancesunder $1 million in assets) have delivered materially lower returns on average than larger SMSFs.”
It found that “costs for low-balance SMSFs are particularly high, and significantly more so than APRA-regulated funds. These high costs are the primary cause of the poor net returns experienced by small SMSFs on average.” 
It comes on top of devastating evidence before the Royal Commission into the Banking and Financial Services Industry earlier this month, of financial advisers pushing people with small superannuation balances into SMSFs, without considering whether or not it is in their best interest.
REI Super CEO Mal Smith said the ATO data showed that approximately one in five SMSFs have account balances of $200,000 or under. 
“This is a significant proportion of the superannuation industry to be subject to such considerable risk.
“The data is clear, and shows that you need an average of $2 million in your SMSF until you start to match the returns of APRA regulated funds.”
Mal Smith said the fund had recently spoken to several REI Super members who set up an SMSF, only to return to the fund after realising it was a mistake – due to low returns and hidden costs.
“One member with an account balance of $100,000 was advised to go into an SMSF by her accountant.
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“Another member was given bad advice and set up an SMSF with her husband with a combined account balance of $300,000.
“Like the other members we spoke to, they have returned to REI Super, where they have told us they are better off.
“They told us they were not prepared for how hard it was, how much time it took, and how much expertise was required to make informed investment decisions.”
Mal Smith said it shouldn’t be as easy as it is to set up an SMSF when good returns on low balances are on average not achieved.
“Changes to SMSF rules would help prevent financial advisers from encouraging people into an SMSF when it is not in their best interest.”
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