HOW does Meriton hold so much sway with the Federal Coalition?
From the property development sector: “The largest single donor was property developer Meriton donated $285,000 to the Liberal Party, including a $200,000 donation to the NSW branch of the party.” Search for Michael West: ‘Quid pro quo: donations data shows billionaires and corporations fix politicians for another year’
THE latest PRECINCT PROJECT is with MERITON resubmitting plans for its controversial Macquarie Park Site along Talavera Road.
The initial proposal which featured a 63-storey tower, was rejected by the council after 400 public submissions opposed the development.
MERITON has now resubmitted plans for towers of: 59, 44 and 37 storeys alongside its ‘Destination’!
“We are also now seeing the re-emergence of overseas students, investors chasing stronger yields and migrants back into the country.” Triguboff said.
With increased competition, and ‘Hot Money’ pushing up home prices …
READ MORE! Meriton Resubmits Plans for Controversial Macquarie Park Site
At the end of last year only a handful of homes – mostly tiny apartments – were priced at or near $800,000, the price cap for Sydney buyers using the federal government’s first home loan deposit scheme –
SO we at CAAN have come up with some suggestions for aspiring First Home Buyers and the Bank of Mum and Dad and …. and the only hope we have is for the voting public to WAKE UP and get rid of this current lot in government who are only looking after the CAPITALIST narrative. They have lost the plot, they are CROOKS, and SHYSTERS!!!! ….
Every policy is contrary to the policies that were put up by the Opposition, and here we are wondering what on earth we have done to housing affordability?
,… it is OUR FAULT. WE PUT THEM IN!!!…. Remember the GST???,…the NEVER EVER GST?? … Well we got it,.
WE VOTED FOR IT….(we DIDN’T…by the way) others did ……. and it has been the worst tax ever to burden the poor.
INFLATION is UP and RISING. More about how the RBA addressed inflation from Alan Kohler:
We need a change in government, and for the new government … LABOR … to get in and do a BACKFLIP!!!!!
As the HOWARD GOVERNMENT used to do … LIE after they get in …. but this time it will be for GOOD intentions …. GET RID OF TAX PERKS and increase TAXES on the wealthy, and those that earn more than the poor mug next door, and indeed implement the policies they put up at the last election. It is up to us to BACK THEM and give them the SUPPORT and tell them what we want!
However, if the constituency puts Sc.mmo back there is absolutely no hope!
We know who the leader of the pack (deve-lopers) is … it loves Australia … and buyers who fly in … and buy and …
The combination of almost zero borrowing costs, higher returns than cash or shares, and untaxed capital gains makes this farce unstoppable. Even though it is a gross distortion both of markets and social justice.
COMMENTATOR: Not one major party has a policy to deal with rampant house prices and rental inflation. Vested interests are in charge.
CAAN: We would say, the LABOR party put policies on the table last time in an effort to do something about housing inequality, but was lampooned by a tsunami of campaigns that MISREPRESENTED the facts.
Now, understandably they have walked away …. and appear not to have the constitution to re-visit the policies that are so desperately needed to fix the issue. It is a very sad situation we are in!
Read more about ‘The Sydney suburbs within reach of First Home Buyer Budgets’ … FHBs will have to get in quick before House Portfolio Investors outbid them!
What can you do about this? A good start would be if you were to share this to help turn things around through more awareness about how Our Youth have been done over!
With the purchase of this very run-down semi in Camperdown fetching an outrageous price of $1.485M! One could smell the damp coming up through the black ink ….
**The tightly held home sold $235,000 above reserve to an INVESTOR from Camperdown who outbid several upgrading young families.**…….
Does this investor figure that house prices will continue to escalate … the house is so run down even if he uses seconds to ‘dress it up’ it will still cost a fortune to renovate …
….CRY FOLKS, Sydney is out of control and is affecting the rest of the country. Australia, an island country, close to the South Pole, should avail the cheapest housing!
Instead, has the most expensive housing market in the world.
WHY? … The list of reasons is long, and getting longer, negative gearing, Foreign $$$$$$’s, 50% reduction in CGT ,… Family Trusts, property spruikers, and various others, including a cultural shift towards housing as a means of wealth creation, we’ve gone BONKERS …….. MAD.
Interest rates are too low, and have been for too long. It all favours those with COIN, it is as simple as that.
The wealth divide is HUGE, by pure virtue of the HOUSING MARKET. ****
IT IS CROOK****.
Those making the decisions on interest rates have been on the side of the INVESTOR and obviously, anyone with LOADS OF $$$$$$$$$$$’s, and they haven’t a clue what to do now, least of all the constitution to fix it.
Interest rates must be raised, and they must be raised DRASTICALLY for INVESTORS.17.5 % sounds like the shot…...
…. that would make a difference! A quick fix alone.
And the implementation and enforcement of the second tranche of the Anti-Money Laundering Laws would make a big difference …. currently a whole Cohort of our Youth are locked out to face life-long tenancy because of this …
This ‘Hot Money’ Market has been facilitated through temporary migration and visa manipulation with foreign buyers lured by the prospect of buying a home to gain a “permanent resident visa”!
Which government exempted the Real Estate Gatekeepers from the second tranche of the Anti-Money Laundering Laws? The Sc.mmo Govt in October 2018 …
A corner captured of Macquarie Park high-rise development …. CAAN photo; December 2021.
Today in a report in the SMH: ‘Developers slam state government for favouring urban sprawl over tall towers’ Urban Taskforce chief executive Tom Forrest alleges that the State Government has presided over a “dramatic downturn” in high-rise approvals and “there was a clear preference for greenfield development”. And defining those opposed to high-rise residential apartment towers as selfish and myopic.
WHO are selfish and myopic?
NOT DEVE-LOPERS who landbank, and per$uade some like-minded councillors to rezone for higher density developments robbing the neighbourhood of its amenity … to build storey upon storey … as high as 40, 60. 70 storeys … to make a motza?
AND market their ‘new homes‘ to South East Asia esp. China, Singapore, Malaysia, India et al?
WHAT would bring about a downturn in high-rise approvals?
That would not be a consequence of high-rise falling down, would it? … Yet despite this so-called downturn more high-rise precincts are underway in Macquarie Park, Carlingford, Epping, Lidcombe, Parramatta and … across the Central Coast. But this Mob always want more … far more …
WHAT areSydney’s other defective towersaside from the Opal Tower, and Mascot Towers?
To list somethat come to mind …
–‘Aya Eliza’, 93 Auburn Road, Auburn … its developer, Goldenia Developments, and sole director Merhis has been handed orders to fix its serious defects!
-2 Parramatta apartment towers by developer Merhis Group in the CBD and Hassall Developments issued with a prohibition order
–Centenary Park, 81-86 Courallie Street, Homebush West, Sydney.
–World Tower by Meriton
–45 Bowman Street, Pyrmont, Sydney; cladding
-another high-profile construction group, Ganellen, placed one of its companies into administration , midway through a court battle over defects
–Icon Construction Australia (NSW) Pty Ltd was placed into voluntary administration in November.
-Named as a “related entity” to Icon Co (NSW) Pty Ltd, The former of the companies is being chased over alleged defects in apartments it built at Rosebery, Waterloo, Hurstville, Bondi, Lane Cove, Greenwich and Five Dock.
CAAN copies here some Tradie comments about the Building Industry in July 2021 …. we will include them anonymously …
-“I left the building industry when I went to do the underfloor plumbing of a house to find the pad was half poured, when they realized they stopped and tryed to put big foam blocks in in the hope US plumbers and electricians could dig them out and do our services. Vorticon plastic had to be breached it was the biggest mess I’ve seen I feel so sorry for the owners I wish I could have told them. I did one apartment block, when I arrived they showed me a system for sewer that was noise resistant. They showed me the pipe bracketing and I couldn’t understand the concept the pipes were loose in their bracket this could only create noise. A dampener was on the pipe 300mm up from the bracket it was meant to sound absorb but was installed incorrectly. They gave me a brochure on the product and I came in the next day and taught them that the shock absorber was meant to be mounted directly above and on the sloppy brackets acting as a absorber so noise wasn’t transmitted through the bracket fixing creating noise when water went down the stack. They couldn’t believe it they always wondered how it worked and I showed these people who installed this product for 2 years wrong and it passed the plumbing inspectors eyes every time and the building inspector what a joke. They then pointed to the 100 apartment block across the road and said that job was bracketed in sloppy bracket with 2mm play rattling around every time someone used the toilet. Ignorance is bliss my stories could go for ever its embarrassing to be involved in construction.”
-“Being a boilermaker for the past 22 years I can tell you these days the quality is gone, imported junk not enough checking or inspections etc.extremely dangerous and a lot of ticking time bombs all over Australia.”
-“Don’t blame builders, blame poor regulations that allow them to do what they do”
-“To restore buyer confidence in a soft market”. What kind of prescription painkillers allows you to see this as a soft market? It’s still too hard for young people to jump onto the propery ladder, or rather, elevator. Why am i calling it an elevator? Because it’s moving up so fast that old players get better whilst new people can’t get a grip.“
-“nobody should be allowed to buy off the plan. people should buy only when buildings are finished and inspected. let us remember those buildings at olympic park and near the airport, the last one built by aland, aland refuses to fix it and people lost millions and millions.”
SO what is the cause of the collapse in housing supplyand massive rise in House Prices?
HAS the NSW Government reached its limits with deve-lopers infrastructure of roads, sewerage and fresh water? What an incredible proposition that this alone is the cause of the collapse in housing supply and massive rise in housing prices?
APART from government grants, and low interest rates, and increased competition from investors, the PRICE HIKE, of course, has nothing to do with the competition from the overseas marketing, visa manipulation, and Hot Money awash in our real estate … because the Real Estate Gatekeepers are exempt from the Anti-Money Laundering Laws …. cough … cough …
IS this report from the Urban Taskforce, ‘Standing Tall‘, to be believed when an earlier report in The Conversation by Jago Dodson: ‘The Carbon Devil in the Detail on Urban Density’ refutes what the UT puts:
Extract:
“Alan Perkins and colleagues’ work in Urban Policy and Research, for example shows that on per-capita analysis, attached low-rise dwellings perform best in terms of CO2, with suburban and high-rise successively worse.
Such patterns arise because any valid assessment must account for all energy use. This includes energy ’embodied’ in a building during construction, plus energy used in ongoing operations. While residents of detached houses use high levels of energy to get around, because of their greater car reliance, their overall energy use per capita tends to be lower than high-rise residents.
This is because detached dwellings can consume less embodied and operational energy and that use is divided among a higher average occupancy rate (detached dwellings generally house more people than apartments).
The relationships between building type, urban form and CO₂ emissions become even more complex when income – or “lifestyle” – factors are included in the analysis. But it seems that high-rise urbanism exacts a high carbon cost.
The Australian carbon consumption atlas, prepared for the Australian Conservation Foundation by Chris Dey of the University of Sydney and colleagues, provides a striking illustration of this pattern.
Their work shows the highest per capita residential environmental consumption occurs in the higher density inner urban areas of Australian cities. The 37 tonnes of total CO₂ consumed per person each year by downtown Sydney residents is, for example, more than double the 16 tonnes produced by residents of Blacktown. There’s a carbon devil in the detail on density.
Such findings fundamentally confound the simple “high density good, low density bad” assumptions in current debates. High-rise apartments are far less of a solution to our urban environmental challenges than the prevailing consensus suggests. Even if better design could improve high-rise performance, so too could it improve that of other building types.”
WHY would UT push for more High-Rise? Why would they want 34, 58, 60, 70 Storeys?
WHY … because storey upon storey they make a hell of a lot more, and they can source their buyers from across the World … no matter that this is the ‘driest continent on Earth’ …
Associate Professor Philip Oldfield, head of the School of Built Environment at the University of NSW:
“In general taller buildings require more materials, and so have a higher embodied carbon,” he said. “They often rely on mechanical airconditioning, and have all-glass facades, so can have higher operational emissions as well.” …
Further, that there is an obvious profit motive for developers.”
WHO has been selfish?
Developer Lobby Groups, The Urban Taskforce and the Property Council of Australia and those allied since 2011 and particularly since 2013 with the Federal Liberal Coalition, and through the Foreign Investment Review Board ruling that allowed them to sell 100% of ‘new homes’ to foreign buyers … locking out Australian First Home Buyers …
SO why was the second tranche of the Anti-Money Laundering Laws for the real estate gatekeepers shelved for more than a decade and then the Morrison Government exempted real estate agents, lawyers and accountants in October 2018 from these laws? If it were not to create a huge demand by allowing money laundering in Australia’s property market? And facilitating what appears to be a never-ending demand for high-rise?
THIS has meant not only are our families locked out by dirty money, but our quality of life has deteriorated with the loss of Our Heritage, and Our Urban Bushlands to make way for development. Our public transport, hospitals and schools are all full-up at Taxpayers expense!
Myopic … indeed Housing has never been more unaffordable since the introduction of high-rise, high density and high immigration. Boomers were never faced with 10 years or more to save for a home deposit! FFS!
AS Professor Oldfield said: “A strategy for Sydney should be significant amounts of new four-to-eight storey mid-rise, suburban intensification and strategically placed tall buildings where there is access to infrastructure such as mass rapid transit.”
HOWEVER, at CAAN we suggest what needs to happen is a reversal of the FIRB Ruling allowing the 100% sale of our homes overseas; a cut to migration to a more sustainable annual 70,000 permanent migrants; rather than luring 400,000 – 500,000 temporary migrants with permanent residency on purchasing a home … and then just maybe our Families could raise a deposit for a detached home on the fringes if they so chose … having been priced out by the Gatekeepers from buying a home in the suburbs where they grew up!
The NSW Government could then possibly catch up with the infrastructure to meet current population demands! AS the property sector returned to buildingquality homes to Australian Standards!
IT is not only the SMH DOMAIN that is attempting to Pull the Wool over our Eyes about foreign buyers of Australian Real Estate but more is being spun by …
Pandemic stifled foreign home purchasing – report
Foreign spending on Australian property plummeted with the arrival of COVID-19, new figures show
AND in ‘The Australian’ where this appears to have emerged …
Pandemic cut foreign home purchasing $1.5bn
The emergence of Covid-19 quickly dampened the appetite of foreign buyers for Australian residential property, as spending fell $1.5bn in the 2019-20 financial year to $6bn.
WHY would the property sector be trying to Pull the Wool over our Eyes?
MEANWHILE all over Sydney and beyond there is much excavation and construction now underway …
WHO are these ‘new homes’ being built for? Cough … cough … as the media talks about the return of International Students … Visa Workers … and Migrants ….
AS our Families remain locked out … they still have not got a Pay Rise … there is talk of a 3% pay increase … three fifths of nothing … as the cost of housing continues to escalate … to be met by competing money launderers …
CAAN Photo: It appears Australia has been “Sold Out’ from under us!
HOW long before Domain readers join the dots? Through media reports like this we have constantly been fed that foreigners can only buy ‘new homes’ or vacant land. So how come 85.6 per cent of the properties bought by foreigners were new dwellings or vacant land yet at the same time we read or view reports of ‘foreign buyers’ acquiring Harbourside mansions in and around Double Bay in Sydney and the North Shore, or Toorak in Melbourne or expensive inner-city apartments for their offspring … ?
AND many other reports that allege because the foreign buyers have left the Australian Housing Market due to COVID-19 that they were not the cause of the 2021 House Price Boom?
HOW much longer will the property sector be able to pull the wool over our eyes?
WHODA THOUGHT that Foreign Buyers of Australian Real Estate are no longer “foreign” once they have purchased an apartment under $1M and gained a“Permanent Resident Visa”?
COULD our Property Sector led government be turning a blind eye to this? HAS this got the SCOmochio paws all over it?
AND that these overseas buyers more than likely have avoided paying extra fees as a foreigner because they applied and gained a PR Visa prior to purchase?
THAT such avenues have enabled how many thousands of ‘New Residents’ to go on real estate buying sprees for Family members … their extended families … and laundering ‘Hot Money’ because they can … afterall the Australian Real Estate Gatekeepers are exempt from the second tranche of the Anti-Money Laundering Laws since the Morrison Government introduced this exemption in October 2018 …
DESPITE the fact that we are seeing before our very eyes that many suburbs across Sydney and Melbourne … and obviously Brisbane … the Sunshine Coast are increasingly being occupied by ‘new residents’ …
WHO are no longer ‘Foreign’ but newly ridgy-didge, and that the extent – no doubt in the many $ Billions of investment in Australian Real Estate – has been covered up ….
… and the ‘new residents are staying long term’ with the added Benefits of Australian Free Education and Medicare paid for by decades of Australians … Why wouldn’t they?
Not only are they from the PRC Mainland, but Hong Kong, Singapore, India, Cambodia, Indonesia and Malaysia … and despite the Pandemic and its repercussions for the Australian people and our businesses, property prices escalated by some 30% over 2021 … as we were fed that this was due to housing shortages … low interest rates … Government Grants – all too true!
BUT what the grubment did with the support of its allied media was to feed the populace with these alleged causes of the housing price spiral, and to minimise awareness of money laundering in our property market …
IT would seem with numerous reports in DOMAIN and elsewhere of ‘foreign buyers’ acquiring Harbourside mansions in and around Double Bay in Sydney or Toorak in Melbourne or expensive inner-city apartments for their offspring that AMP Chief Economist had to concede that it would be amazing if these overseas buyers were in fact concentrating on apartments priced at less than $1M …
IN FACT it appears they have it both ways!
AND what of the Australian Heritage Homes demolished, and the suburban ‘Estate Homes’ a mere 25 years of age or less that cost $1.5M or more shortly after sale are demolished? HOW many Australians would pay that sort of money to demolish? WHY wouldn’t they buy a $2M Plus brand new home in a neighbouring new estate? HOW likely this could be a ‘foreign buyer’ purchase enabling them to qualify for a Permanent Resident Visa when they build a ‘New Home’?
JUWAI – which is described as the #1 Asian and Chinese international property portal, offering exclusive access to an audience of high net worth Asian and Chinese looking to buy property – expects the Australian property market will see an upsurge of these overseas buyers by the end of this year! The avenues are student visas, international travel and inbound immigration.
Of course they are not speculative buyers who flip homes because they are buying Australian homes with benefits, and to secure the future for their families as ours are locked out! WITH even more ‘hot money’ awash in our property market … especially if the ScOmO Government is returned …
NEITHER Ray White nor McGrath, it would appear have any sympathy for the notion of AustralianSovereignty … all they appear to be interested in is pursuing wealth … no matter what!
QUESTION …. Would Expats number anywhere near the possible 4.6 Billion people/foreign buyers across Asia?
As these ‘investors’ are lured and enticed by the prospect of a Permanent Resident Visa!
… This is apart from low interest rates, government grants, and tax benefits for property investors from negative gearing and capital gains tax … together they are all pushing up house prices!
With the first wave from China that began in the late 1990s during the Howard Government enticing the Middle Class Chinese to invest in our education and real estate to gain ‘Flexible Citizenship’ which led to a housing boom in the early 2000s peaking in 2004 … as Refugees were scapegoated …
And so it continued again peaking in 2015 with the high-rise Precincts across Sydney to forever change our low-rise bushland suburbs ..
Then in 2021 the Singaporeans eclipsed the Chinese with $20Bn investment in our real estate
“Singapore REITs double their Overseas Investment to US$12BIL”
‘ … deep liquidity pools in overseas markets like the U.K., U.S. and Australia, as well as more alluring freehold and longer lease terms will maintain the draw of markets abroad, said Natarajan. “We expect this trend of overseas acquisitions to continue.” ‘
PREDICTION that cashed-up Chinese buyers to again swarm our housing market because they can … when the border opens up …. with China’s Evergrande and other developers collapsing as oversupply hits
IT’s obvious, isn’t it, why “the Australian gatekeepers” are exempt from anti-money laundering laws in Australia?
SO that there are no investigations into where the money is coming from … how it was earned? Was it appropriately taxed?
HOW come students earning Visa Worker rates can afford $2M homes? Then gain Permanent Residency and follow up with a ‘Family Visa’ ….
BECAUSE if these AML laws were implemented and enforced the market share for high-rise precincts would evaporate because a whole Cohort of Australians are already locked out …. priced out …
MEANWHILE Our Community rights have gone … deve-lopers can buy up the house next door … the one behind and on the other side and soon the block is demolished, and those stranded have lost their ‘home value’ and their amenity … Our Heritage …. Our Urban Bushlands … and Our Communities with the ‘take-over’ …
WHY wouldn’t these foreign buyers be lured here through access to the Chinese website (Juwai) for buyers of overseas property, which takes advertising from international property marketers, including developers and agents, and their Onshore Proxies here in Australia?
AND with investment in an apartment they too can gain permanent residency, and Taxpayer benefits of our public education and Medicare! Then with a Family Visa a win/win … for their extended family!!
The Financial Times data has revealed that thirty seven per cent (37%) of 1.4 plus Billion Chinese People own more than one home!
Think about the consequences of this … as outlined above, and that this overdevelopment has obviously contributed to global warming with China the largest emitter of CO2 … because concrete, steel and glass emit CO2 in their manufacture and ongoing use …
AND more want to come here … to buy up Australian homes despite having homes in China … as our families are locked out by low wages … and this foreign money laundering competition … to further increase Australia’s CO2 emissions …
READ MORE!
Cashed-up Chinese buyers swarm Australia’s housing market as the collapse of Evergrande looms
THE ‘Court of Public Opinion’ … where does it come from? From Polls conducted by RESOLVE. And influence from Sydney Morning Herald articles like this perhaps based on ‘Resolve’s’ Polls … “Berejiklian’s halo has not slipped, survey shows”
WHO are Resolve?
Resolve Research, a company with strong links to the LIBERAL PARTY; founded by Mr Reed, a director of CT Group formerly Crosby Textor
Further described as a political strategy firm, a lobbying firm, providing political consultancy. And social research, corporate strategy and political polling services (for the Liberal Party) FFS!
ASK …
Where was the poll conducted?
Was it in her electorate alone?
Was it conducted with Liberal Party members?
What is the size of the sample?
Will we ever know?
‘Much of the court of public opinion thinks she simply has bad taste in boyfriends, rather than being corrupt.’
Who buys this?
Gladys had a five year affair with Maguire … at least. She would have been in her mid 40s when this began … not a naïve young woman …
Following her high school education she spent several years studying at the campuses of the University of Sydney and NSW … well known for sex scandal ridden colleges. At the very least Gladys would be aware!
At 23, Gladys joined the Liberal Party in 1993, and progressed to become President of the NSW Young Liberals … Campaign Director for the State seat of Willoughby in 1999 … and worked for the Commonwealth Bank as general manager ….
ASIDE from this SMH report based on the Resolve Survey, her alleged popularity would appear to be somewhat contrary to her government record of running roughshod over much of Sydney’s communities … and this is what her ‘hardworking persona’ has meant for these communities!
Her beau Daryl engaged with developers including Chinese-owned ‘Country Garden’ that led the way for the high density high-rise precincts across Sydney with the North Ryde ‘Ryde Garden’ despite community-wide objection …
-the latest … the demolition of WILLOW GROVE!
-Heritage Windsor and the Windsor Bridge demolition to make way for sandmining (for concrete for more high-rise development)
.another community in the Hawkesbury to be impacted by the Richmond Bridge Project
–raising the Warragamba Dam Wall (for overdevelopment)
–Appin and the only chlamydia free Koala Colony threatened with extinction due to mass development and fencing to contain them
-widespread negative impact of WestConnex and NorthConnex across a huge swathe of Sydney; residents subject to compulsory acquisition of homes and businesses at below market rates … cracking in their homes; now privatised toll roads; costing Western Sydney residents some $6,000 per annum
–Sydney light rail bill passes $3 billion; known as the ‘Light Fail’
-the Sydney Metro owned by MTR Hong Kong Consortium; closing much of our public heavy rail network
–high rise high density precincts robbing low rise communities of their amenity; services all full-up!
-the heavy policing of the 12 LGAs with High Covid numbers
Gladys alleged ‘hardworking public servant persona’ put to good use to bury her major error with the ‘Ruby Princess’ when almost 2,700 passengers – some coughing and spluttering – were allowed to leave the ship at Sydney Harbour, catching trains, buses and even overseas flights to get home that led to the spread of Covid across the country!
Three days ago … ‘the leaked email revealing how Gladys Berejiklian split Sydney in TWO – forcing the west into a draconian curfew with soldiers on the streets while the east and north roamed free’
Her government ignored Dr Kerry Chant’s advice to apply the same rules across Sydney
Dr Chant told Brad Hazzard to use consistent restrictions
–‘Disappointing’: Big four banks to skip financial crime inquiry
NOVEMBER 7 2021
The Senate approved a motion by Labor Senator Deborah O’Neill in June to launch a formal inquiry into the effectiveness of laws, regulators and companies tasked with preventing financial crime. The committee has since called on a range of law enforcement, academic and industry participants to participate in two days of public hearings. ….
Senator O’Neill said major banks play a key role in defences against money laundering and terrorism financing and provide AUSTRAC with much of its intelligence.
“It is disappointing that Australia’s major banks have chosen not to appear at a Senate inquiry into the important issue of money laundering, given their prominent role in the Australian economy and involvement in several recent high-profile money laundering scandals,” Senator O’Neill said.
The major banks detailed the level of investment needed to uplift anti-money laundering (AML) processes when appearing before the economics committee in September. “It would be helpful for the inquiry to know how these upgrades are progressing, when they will be completed, how they will continue to be upgraded and how effectively they’re currently operating to prevent criminal activity and money laundering in Australia,” Senator O’Neill said.
–‘Devastating impact’: Austrac warns banks against ditching crypto dealers
NOVEMBER 9 2021
“The effect of debanking of legitimate and lawful financial services businesses can increase the risks of money laundering and terrorism financing and negatively impacts Australia’s economy,” Austrac said in its statement.
“For this reason, Austrac continues to discourage the indiscriminate and widespread closure of accounts across entire financial services sectors.”
A Senate inquiry into Australia becoming a financial services hub recently heard evidence from small businesses specialising in trading cryptocurrency on the impacts of debanking – a now industry-wide practice.
*A second Senate inquiry into Australia’s anti-money laundering laws is this week hearing evidence from finance industry participants and regulators about whether to expand our transaction reporting regime to include real estate agents, accountants and lawyers.
The head of Transparency International Australia, Serena Lillywhite, says money laundering creates “devastating impacts” for the country.
“Australia has become the destination of choice for illicit financial flows … which too often end up in the property market,” she told a Senate inquiry on Tuesday.
“It can reasonably be argued that it is driving up property prices in Australia and locking Australians out of owning their own home.”
Sudanese generals, Malaysian bankers, Papua New Guinea elites and Chinese high rollers were all signalled as people using the Australian property market to wash funds.
Criminals are able to use family members or other third parties with no criminal record to buy property in Australia in their name.
Australia’s financial watchdog AUSTRAC flagged in one of its analyses $1 billion of suspicious property transactions from Chinese investors, the inquiry heard.
Ms Lillywhite questioned what it would take for Australia to close loopholes being exploited by criminals to launder their money after Crown Casino was able to keep its licence despite adverse findings from a royal commission.
“How much evidence of money laundering in Australia will it take before the law is changed and enforcement ramped up?” she said.
Ms Lillywhite called for the strengthening of the financial watchdog and broadening its scope as well as the closure of legal loopholes that allow criminals to conduct business in Australia.
The hearing was told Australia’s financial markets were attractive to criminals because of the ease at which they could hide funds through the creation of trusts and shell companies.
Labor senator Deborah O’Neill said the evidence shocking, quipping that rock band AC/DC had it right.
“You can do dirty things cheaply in Australia,” she said.
“A $2 company and off you go, no one will know what’s going on.”
–Russia’s shock note as crims use Aussie high-flyers for dirty cash
NOVEMBER 10 2021
Russia has revealed how Australia has ignored money laundering`, as organised crime gangs put $50b through unregulated lawyers, accountants and real estate agents.
-‘Of course there are examples’:Criminals laundering billions throughAustralian housing market
NOVEMBER 10 2021
Austrac national manager intelligence partnerships Bradley Brown said.
“The logical economic consequence of an unequal market means that if a person like you and I was competing next to a person who had illicit proceeds of crime, then it’s an unfair situation,” Mr Brown said, responding to questions from Senator O’Neill.
But allegations that home buyers were potentially competing with crime gangs came as a surprise to the real estate agents lobby group, with the REIA president, Adrian Kelly, saying he had not seen any evidence that Australian real estate was particularly vulnerable to money laundering.
“To suggest that money laundering is pushing house prices up, I’m not sure that’s something that could be substantiated,” Mr Kelly said. He added the REIA was supportive of providing information to agencies to assist in their investigations but the industry was wary of the cost impost of being formally brought within the money-laundering laws given many agencies were small businesses. *
His concerns were echoed by Liberal Senator Paul Scarr who said some of the information being sought from real estate agents could be provided by conveyancing lawyers processing transactions.
… ‘thou doth protest too much’ … ???
Afterall it is the Real Estate Agents who engage with Buyers … whether it be locally at home inspections, with Onshore Proxies and/or Online!
The Foreign Investment Review Board (the FIRB) has facilitated foreign buying of Australian Property AND the Morrison Government has created a large number of Temporary Visas enticing foreigners to invest in our property market to gain a Permanent Resident Visa!
AND the Morrison Government exempted the Real Estate Gatekeepers from the Second Tranche of the Anti-Money Laundering Laws in October 2018!
Those Real Estate Agencies, small businesses, appear to have never flourished so much as they have throughout 2021 with the house price hike of 21% to date in 2021!
Perhaps they could employ an administration person to investigate?
Labor senator Deborah O’Neill said during the hearing that money laundering was costing the economy upwards of $50 billion a year, with funds linked to drug and sex trafficking and child exploitation being legitimised domestically.
“This is quite significant for Australia as an international global citizen that we come to the party and catch up to the game,” Senator O’Neill said.
Australia might be ranked first for money launderers, but for climate policy we are ranked last.
Needless to say, these rankings aren’t something we should be proud of.
–Widespread Money Laundering is contributing to Australia’s inflated Property Prices, a Senate inquiry has heard
NOVEMBER 10 2021
WITH ill-gotten cash laundered through a corporation, a business and secure in a sound investment of housing! Extremely difficult for law enforcement to take it back!
AUSTRALIA is at the bottom … non compliant with FATF global standards along with Haiti and Madagascar
The AML Laws were implemented in 2006 Yet the Second Tranche was shelved from then until October 2018 when the Scomo Govt exempted the Real Estate Gatekeepers despite the rise of the dark web transaction exchanges using cryptocurrency!
How burdensome would it be for Agents to employ an Admin person paid $50K a year when they command Sales Commission of $30K plus for each house sale?
The ABA said the ability of banks and Australian law enforcement agencies to detect, deter and disrupt financial crime will be enhanced if the Australian regime is aligned to international standards!
NOVEMBER 11 2021
Transparency International Australia CEO Ms Lillywhite told the Committee:
“It has devastating impacts both in Australia and overseas and can be reasonably argued it is driving up property prices in Australia and locking many Australians out of owning their own home,”
While she noted:
-it would be difficult to track down records or documentation
“We know that we do have this gaping hole in our law, that does mean that Australia is a more attractive destination than others,” she said.
-TI has called for reforms to target Australia’s “weak” anti-money laundering (AML) regime and to introduce a public register of beneficial ownership
–AUSTRAC reaffirmed to the committee that the “use of real estate is an established method of money laundering internationally”
-and reported criminals may also renovate and improve real estate – thereby increasing the value of their properties and potentially profiting if they sell
–Australia is one of a few countries that are yet to introduce the Tranche 2 reforms to its anti-money laundering laws; including lawyers, accountants and real estate professionals
REAL ESTATE AGENCIES ARE TURNING OVER HOW MANY SALES WEEKLY?
SO if there is to be no implementation and enforcement of the Second Tranche of the AML LAWS to return our Housing Market to Our Families … it would seem that the Morrison Government ought lock out Foreign Buyers from residential property in Australia …
Transparency International Australia (TI) CEO Ms Lillywhite told the SENATE Committee:
“It has devastating impacts both in Australia and overseas and can be reasonably argued it is driving up property prices in Australia and locking many Australians out of owning their own home,”
While she noted:
-it would be difficult to track down records or documentation
“We know that we do have this gaping hole in our law, that does mean that Australia is a more attractivedestination than others,” she said.
–TI has called for reforms to target Australia’s “weak” anti-money laundering (AML) regime and to introduce a public register of beneficial ownership
–AUSTRAC reaffirmed to the committee that the “use of real estate is an established method of money laundering internationally”
-and reported criminals may also renovate and improve real estate – thereby increasing the value of their properties and potentially profiting if they sell
–Australia is one of a few countries that are yet to introduce the Tranche 2 reforms to its anti-money laundering laws; including lawyers, accountants and real estate professionals
.only Australia, Haiti and Madagascar
HOWEVER the Real Estate Institute of Australia (REIA) has pushed back against the government implementing the Tranche 2 reforms.
-insisting that the changes could impose burdensome costs on 47,000-odd agencies; which could be passed on to home buyers and tenants
REIA president Adrian Kellyrejected that the cost for each Australian agency would correlate with that of New Zealand practitioners, totalling around $10,000 for Kiwi firms.
-and submitted it would be closer to $50,000 for an Australian real estate agency
The cost of an Admin Staffer annual salary for $50,000 would not be an insurmountable sum for these agencies …
A sample sales fee (agent’s commission) at 1.8% incl GST estimate for a sale at $1.8M = $32,000 … with increased commissions for sales at $2M = $36,000 and more!
Plus marketing costs for the Vendor! Amounting to $Thousands!
REAL ESTATE AGENCIES ARE TURNING OVER HOW MANY SALES WEEKLY?
SO if there is to be no implementation and enforcement of the Second Tranche of the AML LAWS at the Behest of the REIA and the Law Council of Australia what then?
… do Our Families remain locked out of Home Ownership? Do they have to wait for their Parents to die to share in the Family Home (if lucky)?
IT is apparent the MORRISON GOVERNMENT has therefore no alternative but to lock out Foreign Buyersfrom residential property in Australia … so why did this government exclude the real estate gatekeepers from the second tranche in October 2018?
….CRY FOLKS, Sydney is out of control and is affecting the rest of the country. Australia, an island country, close to the South Pole, should avail the cheapest housing!
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COMMUNITY ACTION ALLIANCE FOR NSW (CAAN): HOUSING INEQUALITY WITH AUSSIES LOCKED OUT! 