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what’s news in property, planning & environment?

3 june 2008

 

This issue, published by our property & projects group, is a national summary of the latest news, cases, articles and legislative changes affecting property, planning and environment.

 

latest news - national

Goal posts move again for developers
20 May 2008
Opinion: Changes to the way the margin scheme operates on the sale of real property announced with the Federal Budget will cause problems for developers who are buying or have bought land under a GST-free or non-taxable supply. This change will affect developers where, the developer bought the property from a vendor registered for GST; the supply of the property to the developer was GST free or input taxed; and the developer wants to sell the property using the margin scheme. Subject to whether the changes will be made retrospectively and whether transitional relief is provided and in what form, there may be an incentive for developers to expedite land acquisitions and sales before the changes become law.

Renewables target still needed with carbon scheme: Turnbull
23 May 2008
The Opposition says a renewable energy target will still be needed once a carbon emissions trading scheme starts. The Commission argues that if the Government keeps its 20 % renewable energy target when the trading scheme comes in, the economic effect would be to make electricity more expensive but would mean no extra greenhouse abatements. more...

Govt buys back 35b litres for Murray-Darling Basin
23 May 2008
Government has secured an extra 35 billion litres of water to be returned as environmental flows to the Murray- Darling Basin. Under the water buyback, the Commonwealth has spent $50 million purchasing licences from irrigators in 7 of the basin's 18 catchments. more...

Construction growth highlights need for coordination: ACA
22 May 2008
A record high is forecast for the total value of private sector construction in 2009, according to the Australian Industry Group (Ai Group), Australian Constructors Association (ACA) Construction Outlook survey. The survey predicts that the total value of engineering and commercial construction work will increase by 12.5% in 2008, with particular strength expected in infrastructure and mining based activity. more...  

Drop in affordability, reform now urgent
21 May 2008
A surge in interest rates in the first quarter of 2008, combined with complex planning laws and exorbitant property charges and taxes have contributed to yet another record low for housing affordability. The HIA-CBA First Home Buyer Affordability Index fell by 3.5 % during the quarter to be more than 10 % lower than a year ago. more...

Brian Burke turns on ex-client Australand
20 May 2008
Disgraced lobbyist Brian Burke is suing property developer Australand over a contractual agreement the former West Australian premier claims is worth more than $1million. more...

Too little national action to unclog cities
15 May 2008
Australia’s infrastructure providers have called on the states and federal Government to bring a new urgency to the country's worsening infrastructure problems by fasttracking projects and to stop blaming labour shortages for the problems. Chief executive of John Holland, who has just overseen the construction of Melbourne's $2.5 billion EastLink motorway project, said the Rudd Government should be commended for committing $20 billion to the Building Australia Fund. more...

ANZ forest test for Gunns' pulp mill
15 May 2008
ANZ, Gunns' banker and a proposed financier of the $2 billion project, earlier this month adopted a policy committing it to "avoiding" support for projects that destroy high conservation value forests. ANZ spokeswoman Sherelle Murphy said the bank was assessing the mill, proposed for the Tamar Valley north of Launceston, through the "filter" of its new forest policy. more...

Lobbyist register and code of conduct
13 May 2008
Cabinet Secretary, Senator John Faulkner, today announced that the Government has adopted a Lobbying Code of Conduct and established a Register of Lobbyists. Senator Faulkner released an exposure draft of the Lobbying Code of Conduct for public comment on 2 April 2008. more... 

current articles - national

 

Show me the money
Author: Nevill, Jackie
Source: Property Australia, Vol 22(8): May 2008; pp24 -29
Subjects: The current financial crisis and how lending policies have changed in the world’s biggest market and the effect on the property industry.

Infrastructure moves into the 21st century
Author: Romain, Michelle
Source: Property Australia, Vol 22(8): May 2008; pp46-49
Subjects: The new Federal Government has hit the ground running with the introduction of Infrastructure Australia, an initiative that  could change the pace and structure of infrastructure development.

Risky business with margin scheme rules Author: Fogarty, Peter; Cridland; Matthew
Source: Property Australia, Vol 22(8): May 2008; pp66-67
Subjects: A recent Federal Court decision, Brady King Pty Ltd v Commissioner of Taxation [2008] FCA 81, has thrown into question the availability of the margin scheme for residential developments (and other stratum developments).

cases - national  

Commissioner of Taxation v Reliance Carpet Co Pty Limited [2008] HCA 22
Taxes and duties - goods and services tax - Taxable supply - A New Tax System (Goods and Services Tax) Act 1999 (Cth) ("the Act"), s 9-10 - contract for sale of land - whether there is a taxable supply when a deposit held as security for the performance of a purchaser's obligations is forfeited for failure by the purchaser to perform its obligations. Vendor and purchaser - deposit - characteristics of deposit - whether payment of deposit was "in connection with a supply" by vendor taxpayer for the purpose of s 9-15(1) of the Act - whether forfeited deposit treated as consideration for a supply under s 99-5 of the Act. Words and phrases - "consideration for a supply", "deposit", "grant, assignment or surrender of real property", "in connection with a supply", "real property", "supply", "taxable supply". A New Tax System (Goods and Services Tax) Act 1999 (Cth), ss 9-5, 9-10, 9-15, 99-1, 99-5, 99-10. Property Law Act 1958 (Vic), s 49(2). Sale of Land Act 1962 (Vic), s 26(1)(a).

 

latest news - victoria

Project probed over councillor link claim
22 May 2008
Allegations of undisclosed links between councillors and developers in a civic project at Ballarat have prompted a formal investigation by the State Government. In particular, the former councillor alleged there were a string of irregularities in the council's handling of the redevelopment of its Civic Hall precinct, including its failure to table a probity audit on the tender process. more...

State’s move on planning under attack
22 May 2008
Councils and community groups have slammed the State Government's move to seize planning control of Melbourne's biggest commercial and retail precincts in its bid to stimulate large-scale residential development. The Government will establish Development Assessment Committees for 26 designated activity zones, after targeting 5 centres, Preston, Camberwell, Coburg, Doncaster and Geelong, this year. It will also simplify planning controls, with the introduction of activity centre zones, while new housing targets will be set for each municipality. more...

Blast over planning blueprint
22 May 2008
The State Government has copped a blast from its own review team for failing to enact its planning blueprint Melbourne 2030. A panel of experts found the 5-year-old policy had not failed, rather it had not been fully implemented. more...

Shopping centre monopolies the real problem with planning laws: ARA
20 May 2008
Retailers have dismissed claims that relaxing town planning laws will increase competition and slash the price of groceries and household appliances by up to 30%, saying the real problems with the regulations lie more with the monopoly they create for shopping centre owners. more...

Victorian Government to review online sales laws
19 May 2008
A Growing trend in online property auctions on Australian eBay has prompted the State Government to review land sales laws. Consumer Affairs Minister Tony Robinson will review current legislation and could move to amend property laws in Parliament as the current laws do not extend into protecting people involved in online property sales. more...

Melbourne 2030 Audit Government Response - Planning for all of Melbourne
The Victorian Government has released its response to the Melbourne2030 Audit Report, Planning for all of Melbourne. TheGovernment's Response was informed by the independent Audit Expert Group's Report, Whole of Government analysis, 2006 Census data and over 200 public submissions. The conclusion of the audit marks a new stage in the Government's plan for all of Melbourne. View the Government's Response, Fact Sheets and the Audit Expert Group's Report at the Planning for all of Melbourne page.

Bay dredging tests positive
21 May 2008
The independent group monitoring the dredging of Port Phillip says early environmental results have been positive. more...

Tourism industry to benefit from licence improvements
21 May 2008
Holidaymakers, tourists and tour operators who use Victorian public land are set to benefit from improvements to the tour operator licensing system being rolled out over the next 18 months. Environment and Climate Change Minister Gavin Jennings launched the improved licensing system for tour operators on Victorian public land at Skyhigh restaurant, Dandenong today. These improvements will ensure that Victoria is fostering tourism and conservation partnerships while maintaining access for all Victorians to our parks, forests and reserves. more...

Water entitlements
15 May 2008
The Commonwealth has granted $3.6 million to 55 irrigators affected by falling levels of water in aquifers in the La trobe Valley in Victoria. The amount combined with a similar amount from the Victorian government, is intended to assist them to access their groundwater entitlements.

Court fines company for dumping garbage in bay
12 May 2008
The owner and master of Hong Kong registered container vessel MV Sky Lucky were found guilty of illegally disposing of garbage into Port Phillip Bay, when they appeared in the Melbourne Magistrates' Court today. Owners Tian Ren Company Ltd and Master Zhu Hanjie pleaded guilty to one charge of disposal of garbage into State waters, under the Victorian Pollution of Waters by Oil and Noxious Substances Act 1986. The company was convicted and fined $35,000. 

cases - victoria

Bloomingdale Holdings Pty Ltd v 63 Buckley Street Pty Ltd [2008] VSC 168
Contract - joint venture for property development - dispute amongst joint venturers - settlement agreement - whether procured by duress - duress not established - affirmation of settlement agreement in any event. Contract - contract not executed by all named parties - whether concluded agreement reached - part performance - subsequent conduct - enforceable agreement established. Contract -abandonment - no abandonment found. Corporations law- non-compliance with company constitution - procedural irregularities - whether irregular share transfer, resignation of director and appointment of director should be declared not invalid - declarations made - Corporations Act 2001 (Cth), s 1322(4)(a). Trade practices - misrepresentation as to a future matter - whether misleading - whether failure of another person, knowing of the misrepresentation, to correct it constituted false or misleading conduct - false or misleading conduct established - Fair Trading Act 1999 (Vic), ss 4(1), 9(1).

Wade v Barwon Region Water Authority (Real Property) [2008] VCAT 907
S16 Water Act, sewage overflow into dwelling, “water”, “land of a person”, public authority’s duty, owner’s responsibility. more...

Holkirk Investments Pty Ltd & Anor v Dean & Ors (Retail Tenancies) [2008] VCAT 906
Retail Tenancies List - retail tenancy - rectification of renewed lease - common intention of the parties - whether discretion should be exercised to refuse rectification - exercise of option. more...

Moore v Roads Corporation (Land Valuation) [2008] VCAT 838
Land Acquisition and Compensation Act 1986; compensation for compulsory acquisition of land; ‘Craigieburn Bypass - Hume Link’; before and after value; hypothetical zoning; likely timing of zoning/development; Pointe Gourde principle; extent of freeway ‘scheme’ and access to be considered in ‘before’ analysis; comparable sales vs. ‘hypothetical subdivision’ valuation methodology; severance. more...

latest news - new south wales

Private sector projects set to top $92b
24 May 2008
A record high of about $92.3 billion is forecast for the total value of construction by the private sector next year, according to the Australian Industry Group (AI Group), and Australian Constructors Association (ACA) Construction Outlook survey.The survey predicts that the total value of engineering and commercial construction work will increase by 12.5% this year and growth in engineering construction was expected to be led by the sectors of road and rail infrastructure, power generation, water supply, mining, oil and gas processing facilities and other civil project and telecommunication developments. more...

Planning laws to protect major NSW Ports
20 May 2008
The 3 major ports, Newcastle, Botany and Port Kembla, are proposed to be identified as State Significant Sites to recognise their economic importance and provide greater consistency of operation. Planning Minister Frank Sartor said the proposed State Significant Site (SSS) listings detail projects on the 3 port sites that would automatically come to the Government for assessment under the State’s major projects legislation. more...

Minister calls for resignation of Ku-ring-gai Mayor after court upholds planning panel
21 May 2008
Planning Minister Frank Sartor today called for the resignation of Ku-ring-gai Mayor Nick Ebbeck after the Land & Environment Court dismissed the Council’s expensive challenge to the NSW Government Ku-ring-gai Planning Panel, on all grounds. The Court’s findings are an unequivocal vindication of my actions in appointing the Ku-ring-gai Planning Panel to oversee a number of Council’s planning functions. more...

NSW wind farm
13 May 2008
A 63 turbine wind farm at Queanbeyan will provide Sydney's desalination plant with 100% renewable (green) energy. Babcock & Brown Wind Partners and Babcock & Brown Power has been selected by Sydney Water as preferred tenderer to power the Desalination Plant. more... more...

Nassif & Ors v Caminer; Caminer v Nassif & Ors [2008] NSWSC 412
Contract - real property - contract for sale of land - claim by purchaser for part of purchase price to be set aside - vendor did not rescind and refused to set aside part of purchase price - whether purchaser's claim a claim under cl 7 of the standard contract for sale of land (2005 ed.) - whether special conditions excluded claim - whether purchaser validly terminated for vendors' anticipatory breach - whether vendor validly terminated for purchaser's repudiation by purported termination - claim for repayment of the deposit.

Jainran Pty Ltd v Boyana [2008] NSWSC 468
Vendor and purchaser - contract for sale of land subject to lease to Service Station - operation of misrepresentation stated in terms of contract and warranties implied under Conveyancing Act s 52A and Regulations to ground rescission - consideration whether contract disclosed adverse affectation (road widening proposal) - consideration of statement in contract that vendor not aware of “legal proceedings which might or will affect the property” when there was pending litigation by tenant claiming damages - held rescission effective, deposit recoverable. Trade practices - brochure given by Agent to Purchaser described property as outstanding investment, referred to rent and positive characteristics of tenant, did not disclose disputes and pending litigation with tenant who claimed he agreed to the rent under the influence of misrepresentations - earlier forms of Draft Contract contained notification of extended rent holiday granted to tenant in addition to rent holiday in lease - this generated inquiries from prospective purchasers and was withdrawn from Draft Contract given to Purchaser - numerous factual issues - held misleading conduct, damages being deposit paid to vendor and not recoverable awarded against principal of vendor and against Agent. Consideration of - nondisclosure as misrepresentation - Agent as mere conduit - puffery - operation of Proportional Liability in CLERP legislation which took effect after deposit was paid - numerous incidental issues.Conveyancing Act 1919; Corporate Law Economic Reform Programme (Audit Reform and Corporate Disclosure) Act 2004 (Cth). Property, Stock and Business Agents Act 2002 s 55(1); Real Property Act 1900. Roads Act 1993 ; State Roads Act 1986. 

Chief Commissioner of State Revenue v Rafferty's Resort Management Pty Ltd (in liq) [2008] NSWSC 452
Corporations - voluntary administration - whether directors of company abused provisions of Part 5.3A so as to warrant order for termination of administration - whether, when administrators are appointed after filing of winding up proceedings and subsequently administration is terminated and winding up order is made, s 447A authorises Court to make an order "backdating" the s 513C day to the date of filing of winding up proceedings - winding up by court - identification of date of commencement of winding up, s 513C day and relationback day. Whether, under s 513A(b), company is under administration "immediately before" making of winding up order if Court orders termination of administration and then orders winding up.

Jones and anor v Commissioner for Fair Trading, New South Wales Office of Fair Trading [2008] NSWADT 140
Property, Stock and Business Agents Act - Real Estate agent - cancellation of licence.

North Sydney Council v Moline; North Sydney Council v Tomkinson (No 2) [2008] NSWLEC 169
Prosecution - carrying out development not in accordance with development consent - whether each accused proven to be a person who so carried out such development. Environmental Planning and Assessment Act 1979 s 76A, s 96(1A), s 125. Home Building Act 1989 s 7A.

practice notes/directions - new south wales

Amended Planning reform Bills submitted to Parliament
15 May 2008
Landmark reforms tabled in NSW Parliament will create an efficient and transparent planning system for the 21st Century. The changes include:

  • Deleting a proposal allowing land to be compulsorily acquired for the purposes of urban renewal;
  • Deleting a proposal allowing accredited certifiers to approve minor non-compliances;
  • Clarifying that libraries and community centres, along with volunteer rescue and emergency services, are “key community infrastructure” that councils can automatically levy for;
  • Retain permanent legislative protection to prevent new development in Sydney’s drinking water catchment unless it has a neutral or beneficial effect on water quality;
  • Expanding the range of people who can be appointed to the Planning Assessment Commission (PAC) to include those with legal, engineering, traffic and transport, and tourism backgrounds; and
  • Allowing only the Department of Planning to appoint planning arbitrators. more...

latest news - queensland

Growth of online house auctions prompts probe
19 May 2008
The growing use of online auction sites to buy and sell property is being investigated after concerns were raised with the Victorian State Government about how public auction laws apply in cyberspace. One website based in Queensland has a dozen online auctions listed, its first sale was a Sunshine Coast home that went under the electronic hammer for $890,000, and is looking at expanding in Victoria. more...

Around 900 homes built on contaminated land: expert
22 May 2008
A researcher who pioneered the study of lead levels in Mount Isa says hundreds of children have been living on contaminated land for years. A former Mount Isa health officer yesterday revealed he warned the city council of high lead levels in local children more than 2 decades ago.more...

Are we ready for twin towers?
23 May 2008
2 matching towers designed by the architect responsible for Dubai's Burj Al Arab hotel will soar above inner Brisbane's new French Quarter development. The design of 2 towers by Tom Wright of Atkins has been selected from a field of 5 international architectural firms which were vying for the honour. Apartments in the development will be priced from $1.5 million. Prices will reach $15 million – the most expensive apartments ever to be marketed in Brisbane. more...

West End: Newman backs high-rise
23 May 2008
Developers have been given the green light for high-rise buildings of more than 30 storeys on the city fringe. Brisbane City Council this week voted unanimously for greater heights and densities in West End, Fortitude Valley, Woolloongabba, South Brisbane and the Kurilpa precinct. more...

Tunnel pain for top suburbs
23 May 2008
The Brisbane City Council's planned Northern Link tunnel will burrow under some of Brisbane's most expensive suburbs, raising fears about its impact on home valuations and what compensation will be offered. The council's concept design plan for the 4.7km tunnel will also include ventilation stacks next to the Mt Coot-tha Botanical Gardens at Toowong. more...  

Partner sues CEC
22 May 2008
Jilted development partner Consolidated Properties has launched Federal Court action seeking damages up to $1 million from cash-strapped CEC over their aborted joint venture property deal. Consolidated lodged a statement of claim yesterday seeking recovery of hundreds of thousands of dollars it claims it spent on pursuing a deal with CEC on the proposed joint venture to develop 8,000 residential lots between Townsville and Cairns. more...

Terri Irwin fights mine on 'Croc Hunter' reserve
22 May 2008
Terri Irwin says she will go to court to prevent the Steve Irwin Wildlife Reserve on Queensland's Cape York Peninsula from being mined for bauxite. more...

Court rules miner can survey Irwin land
20 May 2008
Resource company Cape Alumina has won the first step in a legal battle to set up a controversial bauxite mine on a Cape York wildlife reserve. more...

Proposed Gladstone State Development area extension and development scheme amendment
21 May 2008
The Coordinator-General is investigating the declaration of additional land for inclusion in the Gladstone State Development Area. The planned extension will provide land for proposed liquefied natural gas plants and other industry, protect industry by controlling development and provide land for buffer zones and management facilities such as permanent firebreaks. more...

National tenders line up for proposed Central Qld waste contract
22 May 2008
2 of Queensland’s waste management heavyweights JJ Richards and Wanless have been joined by a raft of interstate and overseas tenders for a new combined Central Queensland contract, after the competition watchdog gave it interim approval. In an Application for Approval to the Australian Competition and Consumer Commission in April, the Central Queensland Local Government Association (CQLGA) outlines the lack of local service providers in the area and subsequent competition as a key factor in the push for one unified collection contract. 

Watpac and Seymour Group win $800m Hervey Bay redevelopment
21 May 2008
Deputy Premier and Minister for Infrastructure and Planning Paul Lucas has announced the $800 million project with Watpac and Seymour Group appointed as preferred developer for the redevelopment of Hervey Bay's Urangan Boat Harbour. Watpac/Seymour estimates that the redevelopment will generate in excess of 600 jobs during the 4-year construction phase and approximately 200 jobs once completed. more...

Over 100 new high-rise towers a year for SEQ not feasible: Property Council
22 May 2008
The Property Council is calling for assumptions on infill targets in South-East Queensland’s Regional Plan to be reconsidered. Property Council of Australia’s Queensland Executive Director Steve Greenwood says 104 new highrise towers were needed each year for 20 years if current targets were to be met. more...

Plan for early resumption of stalled Moggill Road upgrade project
20 May 2008
Work on the stalled $14 million Moggill Road upgrade will resume as soon as new contracting arrangements are in place the Main Roads Minister Warren Pitt has announced. At this stage it is likely Main Roads will take over running the project, retaining all the existing subcontractors on the job. more...

Brisbane's $300m Trilogy tower campaign fails
15 May 2008
The campaign to sell the $300 million office component of one of Brisbane's planned super towers, Trilogy, has failed, but developer APH Capital Partners says it will push ahead with the 70-level project. The credit crisis and near collapse of several big property companies in December and January came just after APH went to the market seeking a buyer for its unlet, yet-to-be-built office space. With funding difficult in the wake of the credit crisis, analysts believe many of the developments proposed for Brisbane will fail to materialise. more...

State moves to recoup contamination cleanup costs
15 May 2008
The Queensland Government is to tighten legislation to recover costs incurred from clean up operations following accidents which cause environmental damage and contamination. Legislation will be introduced to make landholders potentially liable for clean up costs as well as any business operating from the site. If the original recipient is a company and fails to comply with the notice, the notice can also be issued to a director or parent company. more... 

cases - queensland

The Chief Executive, Department of Tourism, Fair Trading and Wine Industry Development v King [2008] CCT PD017-07
Professions and trades - disciplinary proceedings - real estate salesperson - convicted of an indictable offence - Property Agents and Motor Dealers Act 2000, sections 450, 496, 497 and 529, Commercial and Consumer Tribunal Act 2003, section 107 - conduct admitted - appropriate orders - condition on registration,disqualification from holding a licence - costs. more...



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The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity.  Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this publication is accurate at the date it is received or that it will continue to be accurate in the future. We are not responsible for the information of any source to which a link is provided or reference is made and exclude all liability in connection with use of these sources.