Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

Superannuation

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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%
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jchancellor-FAypfDUnLy

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

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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."
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Free SMSF setup claims cop Federal Court fine

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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 

<html><body>
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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jonathanchancellor-7SQnKwU6yx

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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