The Estate Agent - August 2023

INSIDE THE RENTAL CRISIS

Submission outlines the REIV’s position on this important issue

Manage your CPD

It’s never been easier to record your professional development activity

Fighting cyber crime

Steps you can take to protect your business from being a target

Well-being front of mind

All REIV Members can now access quality online resources

PRESIDENT’S REPORT

I would like to highlight some of the key activities undertaken in recent months.

One of the significant endeavours underway is the review of our constitution. Recognising the need to adapt to the changing times and align our governance practices with best industry standards, we have initiated a comprehensive review of our constitution. The objective is to modernise and enhance it to reflect the current needs and challenges faced by our organisation. We will be working closely with legal experts and governance specialists to ensure that the revised constitution promotes transparency, inclusivity and effective decision-making. Your feedback and input are vital in this process. We encourage you to actively participate in the consultation sessions and provide your valuable insights.

In line with our commitment to optimising resources and meeting the evolving needs of the REIV, a decision has been made to sell our Camberwell office. After careful consideration, it was determined that the current space no longer adequately serves our requirements. The proceeds from the sale will be reinvested in the acquisition of modern office infrastructure, long-term investment and leveraging technological advancements to enhance Member services. We are actively exploring alternative office spaces that provide greater flexibility, accessibility and collaboration opportunities for our Members. Rest assured, we will keep you updated on the progress and ensure a smooth transition.

We have embarked on a comprehensive Listening Tour across regional Victoria to engage with Members and understand their unique challenges and aspirations. Our recent visits to Shepparton, Horsham and Mildura were incredibly insightful and fruitful. We had the opportunity to connect with local agents, brokers and industry professionals, gaining valuable insights into the regional real estate landscape. The feedback received has already influenced our advocacy efforts and will continue to shape our strategic initiatives. I am delighted to announce that we have upcoming visits planned to Traralgon, Ballarat, Warrnambool and Wodonga, where we look forward to further engaging with our regional Members.

IT HAS BEEN A DYNAMIC AND EVENTFUL PERIOD FOR OUR ORGANISATION, MARKED BY VARIOUS ACTIVITIES AIMED AT FURTHERING OUR STRATEGIC VISION, ENHANCING MEMBER EXPERIENCE AND MODERNISING THE REIV.

Andrew Meehan, REIV President

Our commitment to advocating for our Members’ interests remains steadfast. We have been actively involved in various advocacy initiatives, including attending Budget events and presenting at the government inquiry on Land Transfer Fees. We continue to strongly advocate against rent caps, rent freezes and increases to Land Tax. These opportunities allow us to represent the collective voice of our Members and contribute to important policy discussions. By engaging with policymakers and key stakeholders, we’re working towards creating a favourable operating environment for the real estate industry. We will continue to monitor legislative developments, collaborate with industry partners, and advocate for policies that support a sustainable and thriving real estate sector.

In addition to these key activities, we have been proactive in organising professional development programs, industry events and networking opportunities to foster knowledge sharing and professional growth among our Members. We are continually exploring innovative ways to deliver

high-quality services, leveraging technology and digital platforms to enhance Member experiences and facilitate seamless access to resources.

As we progress on our journey to modernise the REIV and strengthen our position as the leading voice of Victoria’s real estate industry, I want to express my gratitude to each and every Member for your continued support, engagement and commitment. Your valuable contributions and feedback are integral to our success.

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We have embarked on a Listening Tour across regional Victoria to engage with Members

We had the opportunity to connect with local agents, brokers and industry professionals, gaining valuable insights into the regional real estate landscape

July 21 was National Property Managers Day and in the thick of a rental crisis fuelled by a lack of housing supply and persistent market headwinds including rising interest rates and a regressive taxation policy, my thoughts are with the property managers in dealing with this. Property managers have been on the frontline of the rental crisis, dealing with the impact of rising rental prices on tenants and interest rate rises on landlords. This has not only created significant challenges for property managers, but it has also had a significant impact on their mental health and well-being.

In the coming months, we will continue to work diligently to implement the necessary changes and drive initiatives that benefit our Members and the broader real estate community. We encourage you to actively participate, provide your feedback, and collaborate with us as we shape the future of the REIV.

Thank you, once again, for your unwavering dedication. Together, we will navigate the ever-changing landscape, seize new opportunities and drive the real estate industry forward. As always, I encourage Members to reach out to me anytime with your ideas, suggestions or just for a chat over the phone or coffee.

Andrew Meehan, President, Real Estate Institute of Victoria

Property managers have been on the frontline of the rental crisis

CEO REPORT

Quentin Kilian OAM, REIV CEO

The key areas we are working on are the land tax changes brought about through the Victorian State Budget, Residential Tenancy Act review and the Greens-led inquiry into rental and housing affordability crisis in Victoria, which is weighed down by the possible introduction of rent freezes or rent caps.

Earlier this year, we made a submission to a Parliamentary inquiry into land transfer duties where the REIV provided strong arguments to support the case for a full review of property taxes. Both REIV President Andrew Meehan and I were invited to appear as ‘witnesses’ to the inquiry.

We’ve led a very strong campaign against the Government’s decision to lower the threshold for land tax from $250,000 to just $50,000; increase land taxes; and add a COVID Recovery Levy for the next 10 years to properties valued at more than $250,000.

This is perhaps one of the most short-sighted and disastrous policy decisions we have seen from a government that is having to deal with a housing

crisis of its own making. The REIV Member survey found that the number of rental providers looking to leave the rental market is extremely concerning.

While the Government has managed to legislate these changes, in a very short time, we will continue our campaign to get them wound back before their implementation in July 2024.

The current major concern is addressing the lunacy of the Greens with their rampant desire to further decimate an already fragile rental market in Victoria through the introduction of rent freezes. While the Government had indicated, initially, that they were not supportive of this, the Premier has since publicly stated his willingness to consider this.

The REIV has made a submission to the current Parliamentary Inquiry on this matter and is again looking forward to appearing as witnesses to the inquiry. At the same time, we have launched a strong media campaign against this proposal.

We have also made a detailed submission to Consumer Affairs on issues our Members have identified with the Residential Tenancies Act (RTA) and changes we feel must be made to rebalance the Act. Our lobbying of the Minister on this has led to a ‘roundtable’ being scheduled for coming months. It is unclear what form this will take and how much change we can expect from it, but this is a step in the right direction as before this undertaking, the Government had refused to entertain any review.

AS THE FAMOUS QUOTE GOES, “MAY YOU LIVE IN INTERESTING TIMES”. THAT CERTAINLY SUMS UP THE ADVOCACY ENVIRONMENT WE FIND OURSELVES IN SINCE THE START OF THIS YEAR.

The REIV team is very excited about this coming year and the transformations that we will be delivering to our Members

We have also presented the Minister with an argument to restore Section 55 legislation back to a workable piece of legislation. This appears to have been well received by the Minister and we will continue following up to progress this. Away from legislative matters, we have some very exciting changes coming to the REIV and its offerings to Members this year. Firstly, as you would have seen from our recent announcement, the REIV Board has agreed it is time for us to find a new home. By the time this article is published we hope to be well progressed on this path.

We are well advanced on the build and introduction of our new website which will have a range of innovations and new features, and will be coupled with an upgrade to our Member database and a new Learning Management System for training and CPD.

Our VicForms and PDOL products are currently getting a major facelift and a range of new features which will make them not only the only fully compliant forms in Victoria, but also the most innovative and intuitive forms.

It’s been a busy few months with the Auctioneering Championships, the Leadership Academy launch in August, and the REIV Awards for Excellence in October. Also, following the great response this year, the REIV Conference will return in March 2024.

Keep a lookout for a renewed range of professional development resources and short courses rolling out through the year. We’ve already started with courses in Commercial and Residential property management, plus we have courses for Buyers Advocates, Business Broking and OC Managers in the wings. In addition, we’re adding to the already popular Members-only event series @ The REIV.

The REIV team is very excited about this coming year and the transformations that we will be delivering to our Members. As always, please talk to us about any ideas or suggestions you have.

Quentin Kilian OAM, CEO, Real Estate Institute of Victoria

MEMBER REWARDS

Are you taking advantage of the deals, discounts and special offers available to all REIV Members? Save on cars, fuel, grocery, gift cards, electronics and even holidays – whatever you next purchase, check the REIV Member Rewards portal for deals and discounts that could help you save.

THE REIV CONFERENCE READY24

After the success of READY23, we have commenced planning for the 2024 conference which will be held in March next year. It’s the perfect opportunity to support your entire team’s professional development and stay up to date with your REIV CPD Hours requirements. Keep an eye out for more details.

SECURE INDIVIDUAL LOGINS ON VICFORMS

Now, unique login credentials can be created for each user under your Office REIV VicForms subscription – no more sharing credentials! This new feature provides better security for you and your business. It saves time and better protects your VicForms subscription by managing access for individuals rather than updating the main account access details every time you wish to limit access to someone.

This enhancement is just the beginning with more to come. Individual access will soon allow agents to only access their own forms. The OIEC will retain full access and visibility across all forms created by individuals using your Office VicForms subscription.

Vicforms is an REIV Member-only product. Find out more

View REIV Member Rewards

IN-PERSON SHORT COURSES

Face-to-face CPD short courses are back!

After moving to online-only short-course delivery during COVID, in-person classes are back at the REIV. A range of short courses have already commenced, with more to follow. Visit the REIV –Program Directory for the upcoming courses.

View upcoming courses

PROGRAM DIRECTORY

Intermediate Residential Property Management

Provides an in-depth understanding of the core responsibilities of a property manager.

Intro to Commercial Property Management

Develop the fundamental skills and knowledge required to practice commercial property management.

Introduction to Auctioneering

Develop the confidence and skills needed to call a public auction.

Job Ready – Residential Property Management

A practical program designed for people new to the property management sector.

Multi-Unit Development – Sales Fundamentals

One-day professional development course focusing on the fundamentals of property development, specifically local multi-unit developments.

Inquiry into the rental and housing affordability crisis in Victoria

SUBMISSION BY THE REAL ESTATE INSTITUTE OF VICTORIA INTRODUCTION

Established in 1936, the Real Estate Institute of Victoria Ltd (REIV) is the peak representative body for real estate professionals across metropolitan and regional Victoria.

This submission to the Legislative Council Legal and Social Issues Committee’s Inquiry into the rental and housing affordability crisis in Victoria (Inquiry) outlines the REIV’s position on this important issue.

There are a large number of factors contributing to the low availability and high cost of rental properties in Victoria, and they all ultimately relate to supply and demand.

The single best solution for the state’s current so-called ‘rental crisis’ is to increase housing supply. Now.

The ecosystem that the Victorian rental market currently operates in has led to a shortage of available rental properties and increased competition. To address this, there is a need to encourage more investment and increase the supply of available rental homes to meet rising rental demand.

The single best solution for the state’s so-called ‘rental crisis’ is to increase housing supply

The REIV understands that a fundamental error being made in efforts to resolve this issue is, the disproportionate focus on just one rental market stakeholder, the renter. Whereas, the entire rental ecosystem must be considered if a solution is to be identified for now and future generations. While it’s essential to ensure that tenants are not unfairly burdened with rising rental costs, it’s equally important to provide a fair return on investment for the owners who play a critical role in providing much-needed rental properties. By providing incentives to invest in rental properties in Victoria, the Victorian Government can help address the current rental shortage by stimulating supply.

This submission demonstrates the complexity of the residential accommodation system, and that a seemingly

Governments need to consider the impact of all their decisions

positive action in one part of the system can have a negative impact on other parts of the system.

If the right to adequate shelter is a human right, then governments at all levels need to consider the impact of all their decisions on the supply of, and access to, adequate residential accommodation.

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UNDERSTANDING THE PRIVATE RENTAL MARKET

No amount of rental regulations and enforcements will move the needle, in fact they will only drive the mum and dad investors who currently offer housing (rental providers) out of the market and dissuade new investors from considering property as an investment option.

Some of the factors discussed in the submission include:

• The need for a reasonable reward for the provision of a service

• Increasing cost of maintenance and diminishing rental yield

• Regulatory complexity has increased the cost of property management

• Impact on self-funded retirees

• Over-reliance on property taxes

• Planning limitations impeding supply

• Inadequate protections and support for rental providers

• Government policy and messaging

• Impact of short-stay accommodation

A SNAPSHOT OF THE VICTORIAN RENTAL MARKET

681,419 occupied private dwellings in Victoria were rented in 2021 accounting for 28.5 per cent of all dwellings. This is a 55.2 per cent increase from 439,000 rental homes in 2006, almost double the growth rate of owner-occupied dwellings during the same period.

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Source: ABS Census 2006-2021

No amount of rental regulations and enforcements will move the needle

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RENTAL SUPPLY

More than 89 per cent of renters rent from private rental providers.

72.6 per cent of rental properties were rented through a real estate agent.

According to the Australian Tax Office (ATO), 72 per cent of private rental providers in Victoria only had one investment property.

Across Australia, 68.6 per cent of singleproperty landlords have an annual income below $100,001.

Owned

Rented

Other/Not stated

Real estate agents/private

State or territory housing

Community housing

Other

Source: ABS Census 2006-2021

Community housing

Public housing

Private rentals

Source: Renting in Victoria, Snapshot 2021. Commissioner of Residential Tenancies.

NEW LETTINGS

The number of new lettings provides an indicator of the overall availability of rental housing for a specific period. A new letting can result from two main sources: turnover in existing rental housing or new additions to the stock of rental housing.

Across the state in the 2023 March quarter, the total number of new lettings was 61,150, a decrease of 14.7 per cent on the same quarter of 2022. In Metropolitan Melbourne, new lettings decreased by 16.7 per cent on

the state, the total number of new lettings was 61,150

the same quarter of last year and, in regional Victoria, they decreased by 1.8 per cent. Metropolitan Melbourne accounted for 85.1 per cent of all new lettings in Victoria. Source:

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WHO IS RENTING?

It

People often rent before home ownership, but they also rent in other periods of their lives, including due to:

• Employment relocation;

• Relationship breakdown;

• Natural disasters; and

• Home renovation or construction.

Some people may choose to first purchase an investment property before purchasing their first home.

STATE OF THE MARKET – RENTAL Rental Listings

Over recent years there has been a significant decline in the number of properties available for rent. Over the 12-month period ending May 2023, there was a 4.7 per

It should not be assumed there is a progression from renting to firsthome ownership or that people never rent again once they’ve made their first-home purchase

should not be assumed there is a progression from renting to first-home ownership or that people never rent again once they’ve made their first-home purchase.

cent fall in new rental listings and a 17.9 per cent fall in total rental listings. In May 2023, the number of new listings of properties to rent in Victoria was 14.4 per cent less than in March 2020 at the start of the pandemic. The total number of properties available for rent across Victoria in May 2023 was 21.8 per cent less than March 2020, with a 24.1 per cent falls in Melbourne and a 10.6 fall in regional Victoria.

The reduction in stock available for rent reflects the tight rental market conditions and is making it harder for renters to find somewhere to live.

Enquiry per listing

REA Group defines enquiry as any of these four actions, phoning an agent, emailing an agent, SMSing an agent or saving an inspection time via the platform.

In May 2023, the number of enquiries per rental listing in Melbourne was 41.2 per cent higher than in May 2022 and 140 per cent higher when compared to March 2020.

The uplift in enquiry per listing reflects the shrinking supply of rental stock as well as the uplift in demand for rentals.

Days on site

As at May 2023, the typical property for rent in Melbourne was staying on realestate.com.au for 20 days, down from 23 days a year ago. It is also evident that inner city areas are where rental pressures are greatest with these markets seeing the shortest rental days on site and the largest declines in days on site over the past year.

WANT TO LEARN MORE?

Your can read the rest of the article via the link below.

View full article

WHAT DOES THIS MEAN FOR VICTORIAN RENTERS?

Almost 90 per cent of renters are renting from private residential providers.

Data and feedback demonstrates that mum and dad property investors are re-assessing the value of investing in rental property. This is highly likely to lead to an unprecedented shortage of supply in the rental market.

The REIV submission will focus on supporting and understanding the issues impacting the supply of housing to 90 per cent of the Victorian renting population.

Investor activity

Realestate.com.au is recording a historically high number of new listings being advertised for sale that have been identified as likely to be rental properties.

In May 2023, 51.8 per cent of new listings in Melbourne were for rental properties, up from 37.9 per cent a year earlier and in regional Victoria the share has risen from 29.2 per cent a year ago to 49.7 per cent currently.

Melbourne-Inner, the largest rental market in the country in terms of listings, is seeing the greatest share of new for sale listings of rental properties, rising significantly from a year ago. In May 2023, the share of sales of rental properties in Melbourne was 30.4 per cent vs 25.2 per cent a year earlier and in regional Victoria it was 20.2 per cent vs 16.1 per cent a year earlier.

Source: REA Group, realestate.com.au

Are you using the VCAT Residential Tenancies Hub?

OUR INFORMATION TEAM SPEAK WITH MANY MEMBERS EACH WEEK AND HAVE NOTED THAT SOME PROPERTY MANAGEMENT OFFICES ARE NOT USING THE VCAT RESIDENTIAL TENANCIES HUB.

We encourage all property management offices (big or small) to register for this free service and enjoy the benefits it presents to property managers.

Once registered, subscribers can perform the following functions:

• Create notices: Create notices such as vacate notices, breach notices, notice of entry, and rent increase notices. The Notice will be generated for you to download as a pdf document. Print, sign and serve on the respondent accordingly.

• Lodge an application: Create and lodge an application

for a tribunal hearing. If the application is based on a previously created notice, you simply need to enter the notice number to retrieve the details already entered. The completed application form will be generated for you to print and serve in the normal manner (there is no need to send a paper copy to VCAT). When possible, the system will set the hearing venue, date and time and inform you immediately of these details via the portal.

• Automatically pay for relevant fees: Once your account is set up any relevant fees for your applications to VCAT can be automatically charged and paid at the time of lodging your application. Warrants of Possession can also be paid for in this manner.

• Search previous matters: Search facility enables you to view and print a previously created notice or application, related hearing notices and any Orders that have been made.

• Create request to principal registrar: Renew proceedings on a previous hearing that might have been adjourned, purchase a warrant of possession following VCAT Orders, seek an extension on a warrant of possession, and withdraw an application that had previously been made using the Hub.

The Hub can help improve accuracy and efficiency by serving the appropriate notices that align correctly with the Residential Tenancies Act. In addition, you will also be confident of honouring the correct number of days for relevant notice periods.

It is reasonably straightforward to set up an agency account – simply follow the link below to access the downloadable registration form and follow the directions.

Chris Snell Jim Lourandos

REIV Information Officers

REIV INFORMATION OFFICERS

JIM LOURANDOS

A name well-known to REIV Members as one of the most knowledgeable, helpful and respected names in real estate, Jim Lourandos has been assisting Members for over 22 years at the REIV. Jim joined the REIV in 2001 following extensive experience working in Melbourne’s northern suburbs as a licensed real estate agent.

As the REIV Technical Services and Compliance Officer, prior to a recent change in title to Information Officer, Jim has been supporting Members on matters relating to real estate and property law.

Wearing multiple hats, Jim is also a qualified REIV Trainer, teaching students completing a real estate qualification or upskilling on matters such as risk management, documentation and business sales. Jim regularly visits real estate agencies and provides in-house training to Members on matters relating to legislation and compliance.

CHRIS SNELL

The REIV welcomed Chris Snell to the team in early 2023 in the Information Services team. Chris has become an integral part of the Member Services team supporting Members on a range of real estate queries.

Chris began his career in the real estate industry in 1992. Chris has enjoyed a broad experience of agency work including the operation of his own business in Melbourne for eight years. With expertise and hands-on experience in residential sales and leasing, property management, marketing property, business and risk management, and staff management, Chris is well equipped to assist Members.

If you haven’t already spoken to Chris, you will find that he is most happy to help with any questions you may have.

WINDFALL GAINS TAX

The Windfall Gains Tax in Victoria commenced on 1 July, 2023. While it is not the place of any real estate agent to be providing advice to property owners about any tax liabilities, it is important for real estate professionals to understand these matters.

For more information, log in to access the Information Sheet via the link below.

View information sheet

The Windfall Gains Tax is a Victorian state tax on increases in property land value following a zoning amendment. A property owner may encounter an uplift in value, a windfall gain, after a rezoning takes effect. The tax is to be calculated on the Capital Improved Value (CIV) basis before and after a rezoning.

The dollar value of the property before and after the rezoning as determined by the Valuer-General creates a “windfall” where the land increases in value because of the rezoning. A windfall gains tax shall apply when an uplift in value exceeds $100,000. Property owners that are affected will receive a Windfall Gains Tax Assessment Notice from the State Revenue Office of Victoria.

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Both Jim and Chris are available to take your calls during office hours on 03 9205 6666.

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LAND TAX AND THE COVID DEBT LEVY REPAYMENT PLAN

The Victorian Government’s Covid Debt Repayment Plan to raise additional tax revenue includes a new surcharge and an increase in the land tax rates every year for the next 10 years, commencing in 2024 and expiring in 2033. At the conclusion of the 10-year period on 30 June 2033, these changes are expected to be reversed. State Government forward estimates suggest additional revenue of $4.7 billion will be raised.

Current land tax exemptions such as the principal place of residence will continue to be exempt from land tax. The additional surcharge and increase in land tax rates is far reaching and includes a temporary decrease in the land value tax free threshold to $50,000 (previously $300,000). Additional varying fixed charges (surcharges) and an increase in the percentage tax rate will also apply to many property owners. Many Members will find that their Residential Rental Providers will be directly impacted by these additional taxes.

Furthermore, the absentee owner surcharge is an additional amount payable over the general and trust surcharge rates of land tax. Since the 2020 land tax year, a 2 per cent absentee owner surcharge on land tax applies. Effective in the 2024 land tax year that rate will increase to 4 per cent AND; the tax free threshold will reduce from $300,000 to $50,000. Many Members will find that their residential rental providers living abroad will be directly impacted by these changes and possibly for the first time.

Making it easier to manage your CPD

ONGOING PROFESSIONAL DEVELOPMENT HAS ALWAYS BEEN A CORE PURPOSE OF THE REIV AND IT HAS NEVER BEEN EASIER TO MANAGE AND RECORD YOUR PD ACTIVITY.

For the 2023/24 CPD period, the requirements have been simplified to directly align with hours spent on professional development.

The biggest change for you is that the CPD requirement is now 10 CPD hours annually, of which up to 5 CPD hours can be completed via external activities when reported to us.

This change should make it easier for Members to track and understand their CPD obligations, and make it easier for you to achieve your CPD requirements with the professional training you may be already undertaking.

PROFESSIONAL DEVELOPMENT ACTIVITIES

AND ACCUMULATION OF HOURS

Who needs to comply?

CPD requirements must be met by all REIV Licensed and Representative Members. This includes Honorary Life Members, who are also Licensed Members.

How many CPD hours do I need?

A minimum of 10 CPD hours must be achieved in a CPD year. This must include the prescribed REIV Ethics Module for the year. Up to 5 CPD hours can be accumulated from professional development undertaken outside the REIV.

What contributes to CPD hours?

CPD hours can be attained through a variety of initiatives. This includes activities undertaken with the REIV as well as those undertaken externally. Any activity or service that extends your real estate skills or supports your business compliance, will be eligible for recognition as CPD hours. Refer to the REIV CPD Table for CPD-approved activity.

View the REIV CPD table

What is the CPD Year?

1 April – 31 March

I am a new Member. Do I still need to achieve 10 hours? New Members who join between 1 January – 31 March are exempt from CPD requirements for that CPD year. New Members joining between 1 April – 31 December will be required to achieve the prorated CPD hours for that CPD year (i.e. Member joining in October will be required to achieve 5 REIV CPD hours by 31 March).

MANAGING YOUR CPD

Managing your CPD is as simple as logging in with your individual Member ID and password to the REIV Member Portal. Here you can check your current hours, or report any external activities that may be eligible for REIV CPD Hours.

Visit the REIV Member Portal

These changes will be automatically applied and no action is required by Members. Any CPD earned since April 1 has been automatically recorded as hours.

The CPD requirement is now 10 CPD hours annually

A short guide to selling an industrial business

THE SALE OF AN INDUSTRIAL BUSINESS SUCH AS MANUFACTURING, WHOLESALE, IMPORT, DISTRIBUTION AND B2B WILL GENERALLY GIVE RISE TO DIFFERENT LEGAL ISSUES TO THE SALE OF A RETAIL BUSINESS

DUE TO THE NATURE OF THE ASSETS BEING SOLD, THE STRUCTURE OF THE SALE, AND THE FINANCING AND VALUATION OF STOCK.

ASSET OR SHARE SALE

It’s important to determine from the outset whether your business is to be sold by way of a sale of the business’ assets (Asset Sale), or a sale of the shares in the company which owns the business (Share Sale). This can have important implications for both parties.

By acquiring the shares in a company, a purchaser indirectly becomes the owner of everything that the vendor company owns, but it also inherits its liabilities. For this reason, it’s not necessary to specify all of the assets and liabilities in the sale agreement in order to effect a change of ownership.

Conversely, if you are selling the assets of a business, the sale agreement (which will take a different form to a share sale agreement) will need to clearly stipulate which assets are to be sold. In most instances, historical debts and liabilities of the vendor will not transfer to a purchaser.

In theory, at least, a share sale merely involves the signing of share transfer forms from the existing shareholder(s) to the purchaser. However, in practice, the issues associated with due diligence and obtaining consent from third parties with respect to key contracts can make the transaction as convoluted as an asset sale.

Whether the sale proceeds as a Share Sale or an Asset Sale will have a significant bearing on how the transaction is conducted, and will result in a different tax outcome. As such, you should discuss this with your selling agent, lawyer and accountant from the outset of the transaction.

DETERMINING THE PRINCIPAL TERMS OF THE PROPOSED SALE Confidential Information

The protection of confidential information is of critical importance to a vendor during any sales process. It’s for this reason that your selling agent should seek your consent before releasing any confidential information to a prospective purchaser, and require them to enter into a confidentiality agreement. This is designed to

protect you from the improper disclosure or reliance on confidential information.

Contract Documents

Once the basic commercial terms have been agreed, the selling agent will generally require the parties to enter into a heads of agreement which sets out the principal terms of the proposed sale.

Once a heads of agreement has been signed, and the due diligence has commenced, the vendor will usually engage a lawyer to prepare the sale agreement. The form of agreement will depend upon whether it is structured as a Share or an Asset Sale.

The sale agreement should be carefully negotiated by your lawyer. The lawyer’s role is to ensure that the agreement accurately reflects the agreed terms and protects your legal interests. Your lawyer will need to carefully consider the following issues:

• Are the assets of the business accurately defined in the sale agreement? What assets are subject to leasing or hire purchase arrangements?

• What intellectual property is to be transferred? This might include patents, industrial designs, trademarks, copyright.

• Are the proposed warranties and indemnities appropriate having regard to the interests of the vendor?

• Are all licences and permits in order? If a licence is to be transferred, what conditions need to be met?

• How are employee entitlements (e.g. annual leave, long service leave, personal leave) to be dealt with at settlement?

• Can the lease and any key contracts (e.g. management agreements, licence agreements, supply

agreements etc.) be validly assigned to the purchaser? Or is consent required?

• Will the sale be subject to GST? Or will it qualify as the sale of a going concern?

• Is all plant and equipment in good working order and compliant with all applicable occupational health and safety regulations?

Unlike a tenant under a retail lease, a tenant under a nonretail lease is not entitled to an automatic release on the assignment date. For that reason, it’s important for your solicitor to specifically seek a formal release on your behalf.

If structured as an Asset Sale, it’s important to determine what assets are to be transferred with the business. Whilst each business is different, most business sales would include:

• The business name;

• All licences and registrations required to operate the business;

• All rights attaching to the Lease;

• Goodwill;

• Work-in-progress and stock-in-trade;

• Customer/supplier lists;

• Intellectual property (e.g. trademarks, patents, copyright etc.); and

• The plant and equipment.

DETERMINE WHAT ASSETS ARE TO BE TRANSFERED Stock

There are two main ways that stock-in-trade and workin-progress (WIP) are dealt with in the context of a business sale:

• “Walk-in, walk-out”– this means that the business is purchased inclusive of any work-in-progress (WIP) and stock or

• “Plus WIP/Stock-in-trade” – this means that the business is purchased without the WIP or stock included in the purchase price. It is usually the case that stock will be payable in addition to the purchase price and capped at a specified value.

Stock will generally include raw materials, materials used in manufacture, packaging materials, components,

It’s important for your solicitor to specifically seek a formal release on your behalf

work-in-progress, finished goods, goods under manufacture, inventories and other stock in trade owned by the Vendor, including goods in transit and stock ordered and paid for by the Vendor but not received by Completion. A clear definition of what is “excluded stock” should be included.

The procedure for valuing stock is a critical issue in most wholesale/import businesses given the relative value of stock to the overall sale price.

Unlike most retail businesses, which only require for stock to be valued based on the last invoiced cost price of goods, an importer/wholesaler will typically need for stock to be valued at its “landed cost”, which includes the last invoiced cost price to the Vendor converted to AUD (including GST) plus duty, freight and landing charges. The standard form contracts do not generally provide for this.

WHEN DOES VENDOR FINANCE OCCUR?

Vendor Finance

The provision of vendor finance in the context of industrial businesses is relatively common, particularly with respect to the purchase terms for stock.

Vendor finance occurs when a vendor agrees to fund (usually a part of) the purchase price and/or the value of the stock. An initial amount will be paid by the buyer at settlement, with the balance, plus interest, repaid over an agreed period.

The provision of vendor terms provides risks to a vendor. It is for that reason that it is important that all terms are properly documented, and that adequate security is provided for the repayment of the monies. This might include:

• A mortgage over specific assets of the business (e.g. chattel mortgage);

• A charge over the assets of the purchaser’s company (also known as a registered security agreement); or

• A mortgage over the lease or other freehold owned by the buyer

The terms will typically be contained in the sale agreement, or documented in a separate loan/security agreement. However, it’s important to ensure that any potential form of security is adequate in the event that it needs to be relied on by the vendor.

Conclusion

The terms will typically be contained in the sale agreement, or documented in a separate loan/security agreement. However, it’s important to ensure that any potential form of security is adequate in the event that it needs to be relied on by the vendor.

It’s important to ensure that any potential form of security is adequate in the event that it needs to be relied on by the vendor

Matthew Baker- Johnson – Principal, Avery Lawyers Matthew is an experienced commercial and corporate lawyer who advises on a broad range of business, property and private client matters.

Victorian Land Tax changes

PART

2023-24 BUDGET,

The Government centralised valuation assessments to achieve better consistency of application and with increased valuations (maybe attributed to COVID) and no change to the progressive rate scales of 10 years ago huge rises in Land Tax are forecast. Tax increases of 300 per cent in some cases – many have doubled.

What does this mean for the real estate profession and the markets they play key roles in?

Prospective or active vendors should now look at how they can afford this annual tax? Quite often Land Tax is levied on ‘holiday homes’ receiving no rental income to help pay the bills, a luxury for some. In an actual example – a modest holiday home on the Mornington Peninsula (valued in 2019 at $1,080,000 and currently $2,440,000) – estimated land tax over the years would be:

• 2019: $3,615

• 2020: $4,415

• 2021: $4,575

• 2022: $6,815

• 2023: $19,295

AS

OF THE

THE VICTORIAN GOVERNMENT HAS PROPOSED SIGNIFICANT LAND TAX INCREASES.

Now there is an additional impost announced in the Victorian State Budget, the latest announcement adds another $3,415 to this property.

As a refresher for real estate agents the new rates announced are:

General land tax rates

• For taxable landholdings between $50,000 and $100,000 — a $500 flat surcharge will apply

• For taxable landholdings between $100,000 and $300,000 — a $975 flat surcharge will apply

• For taxable landholdings over $300,000:

• A $975 flat surcharge

• An increased rate of land tax by 0.10 %

Other land tax amendments proposed include:

• The threshold at which taxable land is assessed has been lowered from $300,000 to $50,000

• Absentee owner surcharge rate will increase from 2 per cent to 4 per cent

• The land tax exemption for principal places of residence under construction or renovation will be expanded to provide the Commissioner of State Revenue with discretion to extend period by two years if the builder goes into liquidation.

• A new land tax exemption will apply to land owned by an immediate family member and used as the home of an individual eligible to be a beneficiary of a special disability Trust, including where a special disability trust has not been established.

A common question from prospective or active vendors is when is the right time to sell? Perhaps these pending Land Tax changes will lead to an increased supply of ‘holiday homes’ in certain markets. The well-versed real estate agent will be best place to answer the age old question for the right time to sell and along with consulting with other professionals to consider all the factors, Capital Gains Tax, interest rates, general repair of the property, etc, to deliver the best result for the vendor.

MVA BENNETT – YOUR FUTURE OUR BUSINESS

MVA BENNETT is a Chartered Accounting firm in Melbourne and a REIV strategic partner. Our belief is that YOUR FUTURE is OUR BUSINESS arising from a rich history that dates back to our founding in 1941. Our capabilities are delivered by a team of eight partners and fifty staff governed by the profession’s quality controls.

Why engage MVA BENNETT?

We strive to differentiate ourselves from other accounting firms by seeking to:

• Develop agreed goals, by identifying and aligning mutual values and obligations that will underwrite our relationship

• Continually meet expectations, with strong communications throughout our engagement

• Use cutting edge skills and tools to achieve our deliverables, and

• Practise what we preach

For future information please contact – Nicholas Rodier – Partner – MVA BENNETT Chartered Accountants – nicholas@mvabennett.com.au – 03 9642 8000.

Level 5, North Tower, 485 La Trobe Street, Melbourne mvabennett.com.au

THE NEW CERT IV –WORTH THE HYPE?

OVER MY 15 YEARS AS A TRAINER/ ASSESSOR WITH THE REIV, THE QUESTION I GET ASKED THE MOST IS EITHER ABOUT GETTING AN ESTATE AGENT’S LICENCE OR, IN MORE RECENT TIMES, THE DIFFERENCE BETWEEN THE NEW AGENT’S REPRESENTATIVE CERTIFICATE IV AND THE SUPERSEDED 3-UNIT AGENTS REPRESENTATIVE ACCREDITATION.

The 3-unit accreditation course was very dated as it had been running for well over 30 years (in various formats). It consisted of just one property management unit, one sales unit and one basic work in the industry unit.

Three decades on, the public has become much more educated in the mechanics of the industry and demands and deserves much more from a real estate professional. Following a long period of discussion, consumer feedback and advocacy by the REIV, the real estate education requirements were overhauled in 2020.

The review took well over two years where it was identified that most states around the country were considering a similar approach. Parity at a national level would make it easier to implement mutual recognition guidelines and transfer a licence between states. It presented an opportunity to recognise various disciplines within the real estate sector such as, buyers advocacy which were not catered for in the previous course. However, a like for like licensing model (national licence) was unlikely to be achieved due to the geographic and demographic make-up of Australia as a whole.

The new Agent’s Representative Course consisting of 18 units of competency was introduced as a Certificate IV in Real Estate Practice. To qualify for an Estate Agent’s licence, you are now required to complete the new Agent’s Representative Course and the 12 units of the Diploma of Property (Agency Management).

Although the jump from 3 units to 18 units was a big leap forward, it presents a Certificate IV qualification that is of much higher academic value over the long-term, as compared to a Certificate of Competency received after completion of the 3-unit accreditation.

David Priest CAR, Trainer/ Assessor at the REIV

Individuals completing the new Agents Representatives Course are better informed about key areas of real estate practice

As an employer, when I see a CV with a Certificate IV in Real Estate Practice attained at the REIV, it tells me a lot about their knowledge of the sector and the commitment they have demonstrated by completing the course.

Individuals completing the new Agents Representatives Course are better informed about key areas of real estate practice as they now must complete units of competency in trust accounting, VCAT, buyer relationships as well as auctions, sales and property management, giving them a much wider exposure to the business.

The REIV is approved to provide subsidised training under the Skills First contract, delivered with Victorian and Commonwealth Government Funding. Government funded courses at the REIV are:

• Certificate IV Real Estate Practice (CPP41419)

• Diploma of Property: Agency Management (CPP51122)

Contact us to confirm your eligibility

Please note, eligibility criteria for skills first funding have been expanded. Upskilling is no longer an eligibility requirement for skills first funding.

2023 Senior Auctioneer of the Year

CONGRATULATIONS TO GREG BRYDON, THE REIV 2023 SENIOR AUCTIONEER OF THE YEAR.

Greg Brydon Ray White Cheltenham

Greg will now have the opportunity to represent Victoria at this year’s Australasian Auctioneering Championships being held in Auckland from 17-19 September. Greg will also have the privilege of calling the annual Good Friday Appeal Charity House Auction in 2024.

RUNNER-UP

Luke Banitsiotis

Woodards Blackburn

Congratulations to the 2023 Senior Auctioneering Competition Runner-up Luke Banitsiotis. Luke will join Greg in representing Victoria at this year’s Australasian Auctioneering Championships.

PARTNERS JUDGES

Thank you to all our Judges, Bidders and to everyone who came to show their support.

Tonya Davidson - Judge - Heat/Final

Adam Docking - Judge - Heat/Final

Gary Giritharan - Judge - Heat/Final

Justin Nickerson - Judge - Heat/Final

Michael Wood - Judge - Final

Phil Peros - Bidder - Heat/Final

Brian Te - Bidder - Heat

Eddie van Pamelen - Bidder - Heat/Final

James Doherty - Bidder - Final

Scott Patterson - Bidder - Final

VicForms makes life even easier

WE’RE EXCITED TO SHARE AN EXCITING NEW PHASE

PLATFORM, EFFORTLESSLY BRINGING ALL YOUR PROPERTY DETAILS AND ACTIONS TOGETHER IN ONE INTUITIVE SPACE, LOGICALLY ARRANGED AND EASILY ACCESSIBLE.

All documentations related to a property address can be found, in one place, organised under the Property Card. Effortless, simple and effective. From renewal of rental agreements to creation of sales contracts, every action is just a click away, right from the Property Card.

Communication is a breeze. Key contacts for each property are visible so contacting relevant parties is as simple as a click. VicForms ensures your connections are always at your fingertips.

And, if you need to reference any forms related to a property, they’re just a tap away. Your complete agreement history, in one place, always accessible.

The unveiling of the Next Generation VicForms Platform is just around the corner. Stay tuned to step into a new era in real estate, where convenience and efficiency are no longer a luxury, but the norm.

For more information contact VicForms

LEADERSHIP ACADEMY

THE REIV LEADERSHIP ACADEMY IS A SPECIALISED TRAINING PROGRAM, DELIVERED IN PARTNERSHIP WITH SWINBURNE UNIVERSITY AND THE VICTORIAN CHAMBER OF COMMERCE AND INDUSTRY (VCCI), TO USHER IN THE NEXT GENERATION OF LEADERS IN REAL ESTATE.

WHAT IS INVOLVED?

REIV Leadership Academy students will take part in a series of courses that are specially designed and delivered by both Swinburne University and the VCCI to cover a broad range of essential business leadership topics.

Courses with multiple days will be split between two weeks and half days courses will be combined for a total of 9 training days, with no more than 1 training day per week.

A bespoke syllabus designed by the REIV and delivered in collaboration with the experts at Swinburne Edge and VCCI.

ELIGIBILITY CRITERIA

• Individual financial REIV Member for a minimum of 2 years *

• Individual REIV Member for at least 2 years

• A REIV business leadership role for 3 years or less

• Nominated by a business leadership role of a REIV Member office

• REIV CPD compliant

• Clear REIV, CAV, civil and criminal record

APPLICATION

Contact the REIV Membership team on membership@reiv.com.au for an application form.

The REIV will subsidise more than 50 per cent of the course fees with each applicant only contributing $2,500. Find out more

Stability in the face of economic pressures

FOLLOWING TWELVE INTEREST RATE RISES OVER 12 MONTHS, GROWTH IN THE HOUSING MARKET HAS SLOWED ACROSS THE COUNTRY, BUT WE HAVEN’T SEEN THE EXTREME FALLS THAT WERE FEARED BY MANY ECONOMISTS.

Victoria residential real estate has recorded varying levels of impact. Metropolitan houses recorded a drop for the sixth consecutive quarter with 1.1 per cent in June quarter 2023 while units recorded 3.2 per cent increase over the same period. Homes in regional Victoria finished the quarter ahead by 0.6 per cent and a 2.6 per cent decrease in median unit prices.

The price stability in the current economic environment demonstrates the sustained buyer demand in a market with relatively low supply.

TOP PERFORMING AFFORDABLE METRO SUBURBS IN FINANCIAL YEAR 2022-2023

Over the 12 months to June 2023, many suburbs have recorded growth, notable of those being the more affordable areas with median house prices under $700,000. Cobblebank and Harkness, in the City of Melton, with a 8.3 per cent and 6.3 per cent annual increase in the median house price and Hastings and Caroline Springs with at least 13 per cent annual growth in the unit median price.

TOP PERFORMING AFFORDABLE REGIONAL SUBURBS IN FINANCIAL YEAR 2022-2023

Swan Hill is the top performing regional town for houses with over 30 per cent annual growth on its median price, while remaining below $500,000. For units, Bairnsdale has shown significant increases with 37 per cent annual growth to $368,500.

Kyabram in Campaspe recorded great results for the year with both house and unit median prices growing more than 20 per cent.

AUCTIONS INCREASING IN POPULARITY

The average auction clearance rate in Victoria in 2023 so far is 76 per cent, higher than the average for first six months in 2022 (74 per cent) and all of 2022 (72 per cent). Looking at suburbs that have held at least 5 auctions in the first six months of 2023, REIV records show ten suburbs that have already surpassed their total number of auction sales in 2022, with another six months of this year still to go. Suburbs in Outer Melbourne dominate this trend towards, led by Bonnie Brook. Bellfield is the only suburb within 10 kilometers from CBD that has achieved the feat with an impressive clearance rate of 92.3 per cent.

This trend is spread across Melbourne with Bonnie Brook and Thornhill Park in the west, Donnybrook in the north and Baxter in the Mornington Peninsula. Three suburbs are located in southeast region with both Hallam and Lynbrook in Casey and Carrum Downs in Frankston area. Regional Victoria is part of this trend too with Romsey and Cohuna.

CONTINUED ON PAGE 38 >>

TABLE 1 TOP PERFORMING AFFORDABLE METRO SUBURBS IN FINANCIAL YEAR 2022-2023

TABLE 2 TOP PERFORMING AFFORDABLE REGIONAL SUBURBS IN FINANCIAL YEAR 2022-2023

DAYS ON MARKET – PRIVATE SALES

The days on market for private sales listings in metropolitan Melbourne has remained relatively stable over the past year at 38 days in June 2023. On the other hand, regional Victoria homes have struggled a bit with 48 days on market in the same month as compared to days on market at below 40 days over December 2020 to April 2022.

Hastings from Mornington Peninsula is the best performing suburb in the state when observing the improvement on time taken to sell a property. Twelve months ago, it took 59 days to sell a private listing in Hastings dropping to just 25 days on market in June 2023. The median prices for Hastings are also affordable with both house and unit sitting at $682,000 and $510,000 respectively. Three towns in regional Victoria recorded quicker selling times. Swan Hill in the northwest

Victoria slashed 26 days over the year, now it only takes 21 days to sell a property via private treaty – second shortest day on market among regional towns behind Wangaratta (20 days).

SUBURBS RETURNING TO THE $1 MILLION MEDIAN HOUSE PRICE GROUP

REIV data shows 169 metro suburbs with a quarterly house median price of $1 million or more, none of these suburbs are new entrants. In fact, the list below shows suburbs that have returned to the $1 million median mark after dipping below this threshold in recent times.

Price stability prevails across Victoria’s property market despite macro-economic and policy pressures, with attractive selling and buying windows opening for participants in both metropolitan and regional.

TABLE 3 SUBURBS THAT HAVE RECORDED SIGNIFICANT INCREASE IN AUCTION SALES IN 2023

TABLE 4 BIGGEST IMPROVEMENT ON SELLING TIME VIA PRIVATE TREATY IN JUNE 2023

Metropolitan Melbourne Regional Victoria

TABLE 5 SUBURBS RETURNING TO THE $1 MILLION MEDIAN HOUSE PRICE GROUP

Cyber crime in the real estate industry

in the real estate industry entails, how agents can prepare their businesses, and how Cyber Insurance can help.

WHY ARE REAL ESTATE AGENTS AT RISK?

Cyber crime has been estimated to cost the Australian economy $42 billion per year, and a few aspects of real estate businesses make them a particularly appealing target. Below we provide an overview of what cyber crime

Firstly, you’re likely to hold a lot of personal information on your clients, including bank account details and forms of identification. This type of information is valuable for cyber criminals as it provides them with an easy avenue for identity theft, where cyber criminals steal personal

CONTINUED ON PAGE 42 >>

WHY CYBER CRIMINALS MIGHT TARGET REAL ESTATE AGENTS, AND HOW YOU CAN PROTECT YOUR BUSINESS.

information to, generally, steal money or gain other benefits. Another reason for real estate businesses being a lucrative target is their involvement in facilitating high-value transactions, with large amounts of money passing through various accounts through settlement platforms. In addition, small businesses tend to be an easier target for cyber criminals as they may not have the resources to protect their assets and data compared to larger organisations. The combination of these factors has created the ideal environment for cyber criminals to hone in on unsuspecting real estate agents in their attempts to infiltrate their networks and systems.

WHAT COULD GO WRONG?

To demonstrate a few examples of how real estate agents may fall victim, here are a few of cyber attacks on Aon’s clients1:

An employee at ABC Real Estate2 received an email which looked like it was from their energy provider. When the employee clicked on the link in the email, malicious malware in the email proceeded to lock down the agency’s computer network.

Homey Real Estate2 sent an email to their client asking for bank account details to transfer money for a deposit. The agency received an email that appeared to have come from the client with bank account details and transferred the money into this account. It turned out that the email chain had been compromised by a hacker in the US, and the money had in fact been transferred to the hacker’s account.

STEPS FOR PREVENTION

Aon’s real estate insurance expert, Peter Lynch outlines three sensible measures to reduce the likelihood or severity of cyber crime:

1. Network security: This is the first line of security that any computer system must provide to stay protected from malicious attacks. It covers the way computers are connected to the internet and protects all networkconnected equipment including laptops, servers, printers even smartphones. Common features of network security are firewalls which regulate how internet traffic can be handled or blocked from third parties.

2. Staff education: educating staff during the onboarding process and at regular intervals can help them understand the importance of cybersecurity, recognise potential threats, and adopt good security habits to help protect themselves and the company from cyber threats.

3. Multi-factor authentication: A security mechanism that requires one or more additional verification factors on top of username and password. This is an extra layer of security, making it more difficult for attackers to access sensitive information.

HOW CAN CYBER INSURANCE HELP?

Cyber insurance is designed to help protect businesses against financial losses arising from cyber crime and is important to consider for any small business with digital exposure. Every company’s insurance needs are different, so it’s essential to carefully review the potential cyber risks that your business faces.

Aon is proud to be a partner of the Real Estate Institute of Victoria

information contained in this article is general in nature and should not be relied on as advice (personal or otherwise) because your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular product is right for you, please consider your personal circumstances, as well as the relevant Product Disclosure Statement (if applicable) and full policy terms and conditions available

Personal well-being resources for you and your team

THE REIV RECOGNISES THE IMPORTANCE OF EMPLOYERS BEING ABLE TO SUPPORT THEIR TEAM’S EMOTIONAL AND PSYCHOLOGICAL HEALTH.

This is why we have joined hands with EAP Assist to provide individual Members, agencies and their entire staff and families with a suite of resources to combat mental health issues and promote wellbeing both inside and outside the workplace.

EAPs (or Employee Assistance Programs) are a valuable resource that take a proactive, preventative approach to workplace mental health.

All REIV Members can now access quality online resources that will help businesses improve:

• Performance and productivity

• Reduce absenteeism, conflict and occupational stress

• Improve staff morale, employee retention and recruitment

• Reduce workers compensation and other costs

• Improve employee satisfaction

• Enhance employer/employee relationships

EAP Assist resources for Members include:

• Evidence-based, clinically tested wellness apps that address a comprehensive range of mental health issues, including depression, anxiety and stress as

well as many wellbeing issues, including resilience, confidence and sleep.

• Online digital programs for mental health designed to help employees identify, understand and improve psychological difficulties like stress, anxiety, depression and insomnia as well as well-being issues like grief, substance abuse, financial concerns and pain management.

• Daily wellness posts aimed at proactively managing an employee’s mental and physical health before potential issues occur.

• Access to Virtual Care Solutions that are composed of a valid and reliable mental health screening test designed to provide more information about your employee’s mental health and detect warning signs of a mental illness. This is supported by further suggestions on what the employee’s next steps should be based on the results.

• Access to fun, flexible wellness challenges that are designed to foster healthy habit-forming behaviours from healthy eating to mindfulness, to team building, to fitness challenges and more.

• EAP Assist Resilience Program is designed to help develop coping skills they can use to endure tough times and quickly bounce back, face change head-on and come out in a better place.

Please note: This service is provided as part of a partnership with EAP Assist. Please refer to any terms and conditions, guidance that EAP Assist provides. The personal consultation service is not included in the REIV Membership Benefits.

Employee Assistance Programs are a valuable resource that take a proactive, preventative approach to workplace mental health

CONTINUED FROM PAGE 44 >>

WHO CAN ACCESS IT?

All REIV Members can access the resources as part of their membership benefits. Office Members are encouraged to share these resources with their entire team.

ARE THERE ANY COSTS?

All online resources, including the short courses are available to REIV Members at no additional cost. Please note, the Member access code is required to access many of the resources.

For those who wish to access any personalised support, costs should be discussed directly with the provider.

WHAT IS THE ACCESS CODE?

Please contact the REIV Membership team for the access code. Email membership@reiv.com.au

The code is also distributed to all Members at the annual renewal cycle.

WHAT ABOUT PRIVACY?

The REIV, any other Member or employer will not have any access or visibility on any individual’s usage of the resources. All interaction between individuals and the EAP Assist website is limited to the individual and EAP Assist.

REIV information will be strictly limited to only the overall assessment of use of the portal to understand whether Members value the service.

EAP Assist services should be utilised by all employees, not just those struggling with mental health issues, to make a positive impact on their personal and professional lives. EAP Assist is a full well-being model focusing on helping all employees feel better, feel less stressed, be more resilient and more confident by providing a very broad range of professional wellness services.

Investing in super using empowering super rules

PEOPLE SOMETIMES THINK OF SUPER AS A CLOSED BOX. BUT IT’S ACTUALLY THE OPPOSITE AS AUSTRALIAN SUPER RULES ARE VERY EMPOWERING FOR INDIVIDUALS.

Your super could be the investment you have that may offer you a favorable tax treatment over time, and there are two super rules you might be able to take advantage of right now, and into the future, to financially benefit you. Depending on your financial situation, these two rules could be used together, or singly.

As with any financial situation, be sure to seek financial and tax advice to inform your decisions. Don’t forget that super is an investment in itself with many advantages, and you have the power to direct it.

CATCH UP ON CONTRIBUTIONS (BEFORE TAX)

If you have a total super balance of less than $500,000 from the previous financial year, you can carry-forward any unused concessional caps on a rolling 5-year basis.

This means if you don’t contribute the maximum annual allowable amount into your super, you can increase your contributions in following years by those unused amounts (for a maximum of five years, after which they will expire) by using the carry-forward rule.

This rule applies from 1 July, 2018. This means that the 2020 financial year is the first year in which you can top-up your super contributions by the carry forward amount.

Annual concessional contribution caps (or limits):

Financial year

Contribution cap

2018 - 2019 $25,000

2019 - 2020 $25,000

2020 - 2021 $25,000

2021 - 2022 $27,500

2022 - 2023 $27,500

BRING-FORWARD RULE (AFTER TAX)

Those under 65 years old can bring forward future annual non-concessional (after tax) contributions cap entitlements, based on their total superannuation balance as at 30 June the previous financial year. This could mean up to $330,000 – or three times the 2022-23 $110,000 annual non-concessional contributions cap – into your super in one financial year.

Annual non-concessional contribution caps (or limits):

Financial year

2022 - 2023

Non-concessional contribution cap

$110,000

Amounts over the non-concessional cap are taxed at 47 per cent for the 2022-23 financial year. Essentially, those who use the rule are ‘bringing forward’ their next two years of caps into the current year.

It’s worth noting, if you trigger the bring-forward rule, the concessional contribution cap for the financial year that it was triggered will still apply, even if the following year (e.g. 2022-23) the concessional contribution cap increases.

The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129. May 2023.

This could mean up to $330,000 into your super in one financial year

New Members

Kate Abdulovski

Zelman Ainsworth

Roxanne Angus

Peter Argiriou

Tey Ashjaee

Rod Askew

Tracey Atkins

Heath Bedford

Adam Bettiol

Poonam Bhansali

Nat Briggs

Jillian Brooke

Fiona Butler

FROM 1 FEBRUARY, 2023 TO JUNE 30, 2023 WE WELCOMED 180 MEMBERS TO THE REIV COMMUNITY. BUILDING NEW RELATIONSHIPS THROUGH NETWORKING IS AN IMPORTANT ASPECT OF REIV MEMBERSHIP. PLEASE FIND THE TIME TO REACH OUT TO THE NEW MEMBERS.

Colleen Bye

Michelle Caldwell-Shaw

Sally Cantarella

Maxine Cappelli

Anthony Cementon

Jessica Chea

James Cherry

Lucas Chesterton

Ree Chettri-Powell

Jessica Chong

Gabrielle Christie

Lauren Clingan

Ed Cooper

Bec Coward

Sunil Dahiya

Peter Dang

Andrew D’Aprano

Salameh Dayoub

Glenda Del Pilar

John Deo

Avi Dhillon

Jesse Dolcetta

Taylor Dow

Kelsey Drake

Mia Duan

Johnny El-Halabi

Norma Evans

Jay Everall

Rory Farley

Shay Farrall

Terri Fellows

Simone Flechsig

Mark Flinn

Justin Fried

Anil Gandhi

Jordan Gardner

Kurt Georgiou

Paul Gervasi

Christina Gianniosis

Jayden Gleeson

Syzana Gregory

Brett Griffith

Lillian Yaxin Guo

Danny Han

Bella Hargest-Slade

Christine Hatges

Yue He

Phea Heang

Eddy Hsu

Alex Hui

Syed Hussain

Jenny Jia Jia

Hugh Jones

Chrissy Jones

Sahil Kakar

Omair Khan

Monica Kim

Lindsay King

Terry Kiriakidis

Miranda Koroknai

Taran Arora Kumar

Amanda Laine

Alice Le

Ernest Lee

Jarrod Leonard

Michael Liew

Yi Liu

Leon Liu

Luis Lopez-Monter

Jae Lukey

Yili Ma

MARY Maatouk

Meeckie MacRae

Justin Maher

Jayden Manno

Kelly Marks

Adam Martin

Kay Matthews

McCraw

Patrick McCurry

Samara McMahon

Johanna Melin

Cindy Meng

Royce Menzies

John Merchan

Gabby Mercuri

Helen Milsom

Craig Missell

Hamish Mitchell

Lucy Morley

Dez Mujcic

Waran Naidu

Bo Natoli

Emma Nelson

Dih Ng

James Nicolaou

Rebecca Nooy

Abd-Ullah Nouh

Sherryn Orr

Corey Pabst

Rajesh Parwani

Craig Patterson

Nicole Payne

Matt Poustie

Mandeep Premi

Sophie Pritchard

Yun Chang Qian

Oliver Quinn

Amanda Ramsay

Deb Riley

Ben Rose

Stella Rose

Wendy Ruane

Lisa Samulski

Anurag Saxena

Mark Seeliger

Mark Seneviratne

Lei Shang

Shuai Shao

Goldy Sharma

Matt Sharp

Vijeth Shetty

Harry Sidhu

Samanpreet Sidhu

Colin Simkin

Manny Singh Singh

Kanwal Singh

Sukhdeep Singh

Ben Smith

Phoebe Soeteman

Hemant Solanki

Stan Song

Rosie Starr

Bryce Stickland

Cahyadi Sugiharto

Ross Sullivan

Suman Suman

Ash Sumpter

Chris Swifte

Lachlan Taffe

Ritesh Tandon

Amar Thakkar

Kellie Thomas

Mushi Tlhabane

Alan Tran

Charles Tran

Vorinder Tuen

James Upham

Neeru Vimal

Sarah Voigt

James Wang

Jiang Wen

Dave White

Vicky Whittaker

Leor Wong

Alison Wong

John Woodham

Jialu Xu

Xander Yeo

Chetan Zabde

Ryszard Zagrzejewski

Jimmy Zhang

Chensi Zhang

Koning Zheng Zheng

Joe Zhou

Emma Zhu

Annie Zhu

Milestones

WE CONGRATULATE THE MEMBERS WHO COMPLETED IMPORTANT MILESTONE MEMBERSHIP ANNIVERSARIES DURING MAY-AUGUST, 2023.

50 YEARS

Kevin Crow

40 YEARS

Ronald Newton

30 YEARS

Anthony Collopy

Tonya Davidson

Michael Hall

Tim Stickley

Richard Earle

Matthew Morley

Peter Kleeman

Sarina Mancini

John Hoskins

Steven Pantelios

Anthony Hanna

James Redfern

David Marks

Paul Farrelly

20 YEARS

Pat Weatherley

Bill Stavrakis

Bill White

Kylie Cruthers

Kathy Walker

Alex Flamm

Jason Sharpe

Geoffrey Brown

Kaan Ristic

Patrick O’Reilly

Mark Staples

Larissa Tvarkovski

Rochelle Butt

Matt Cox

Greg Earney

Shane Robinson

Jenny Newman

Jason Swift

Anna Delany

Jim Derzekos

10 YEARS

Peter Sowersby

Terry Taylor

Billy Schroeder

Colin Lane

David Favero

Jonathon O’Donoghue

Phillip French

Will Walton

Egidio Poci

Fiona Garraway

George Vrakas

Troy Nelson

Peter Sagar

Travis Milton

Stephen Ericksen

Stephen Kelly

Matthew Dewan

Mario Pizarro

Philip Mollard

Michelle Skoglund

Jacob Caine

Stephanie Hunter

Sharon Coates

Damien Tangey

Poppy Setiawan

Anthony Casey

Tanya Tanner

Silvana Masalkovski

Paul Caine

Susan Duncan

Indi Tillakaratne

Ross Eva

Milan Be-Hanna

Glenn Rea

Terry Ginnane

Tammy Wilson

Sara Skate

Michael Hill

Chris Manolopoulos

Frank Forti

John Verduci

Daniel Broadbent

Liam Jackson

Graeme Hannan

PETER THOMAS – STOCKDALE & LEGGO RETIRES

A real estate professional for 50 years and an REIV Member for 42 years, Peter has handed over the reins of Stockdale & Leggo to the very capable hands of his son Ben Thomas and CEO Charlotte Pascoe.

Peter purchased Stockdale & Leggo from Ian Stockdale & Russel Leggo in 1986 and built it into one of Victoria’s successful franchise networks. Peter’s real estate career began when he was 20, working as a sales agent at TG Newton in Springvale. Following a well-deserved break to travel overseas, Peter joined his father’s real estate business Stockdale & Leggo in Dandenong and built a strong working relationship with him.

When the opportunity arose, Peter expanded his father’s business by purchasing all five Stockdale and Leggo offices in 1986 and starting the journey to build one of the first real estate franchises in Victoria.

Peter is most proud of his franchisees, all who became friends, and they continue to be friendships he treasures today. Supporting his franchisees and watching them grow their own success has brought great happiness to Peter over the years.

RAOUL SALTER OAM

An REIV Member for more than 20 years, Raoul Salter was awarded the OAM at the 2023 King’s Birthday Honours. Raoul received the honour in the General Division for his service to the community through a range of organisations. Some of his notable work includes services to organisations such as the Royal Children’s Hospital, Saltpillar Theatre, King David School and other community organisations, together with his contribution to the Property Council of Victoria and the REIV.

When asked what the award meant to him, Raoul said: “I am humbled and overwhelmed at the level of acknowledgment received. I was raised to always be aware of where I came from and to give back wherever and whenever I can.”

Raoul is an active member of the REIV Auctioneering Chapter as a Committee Member and a key contributor to the annual REIV Auctioneering Competitions. We congratulate Raoul on this accolade.

VALE BARRY WATERS OAM

Long-standing Member Barry Waters OAM passed away in early July.

Barry started his real estate career as a young whippersnapper, collecting rents while riding his bike through the streets of Coburg, Brunswick and Pascoe Vale. Barry was a charming smarty-pants, with a round which included morning tea at the Misses Griffin in Grantham Street, Mrs Armstrong in Collings Street, West Brunswick for a ham sandwich for lunch, before scones and jam and cream at Mrs Lucas’ further up in Pascoe Vale on his way back to the office. His leather satchel would be full of cash and he would be well nourished to pursue his after-work sporting activities. This is where he met his wife Edna and where together they created Barry Waters and Associates Pty Ltd, which would later become Brad Teal Real Estate.

The family business in Bell Street, Pascoe Vale, and Sydney Road, Coburg had long-term employees and long-term clients.

Barry mentored many. He gave and received immense trust and loyalty. He was well known and greatly respected by the wider real estate community.

Barry was one of the last of the multi-disciplined gentleman real estate practitioners whose technical equipment was a small spiral notepad in his top pocket, a mechanical pencil, a tape measure and a slide rule when back in the office and, of course, competent and patient personal assistants. His professional competence – and willingness to share that with his clients, staff, charitable interests and friends – was renowned.

Barry was elected the Chairman of the Multiple Listing Bureau in Victoria in 1962 and was instrumental with others in bringing that concept of marketing property into Australia.

He remained an involved and keen contributor to the activities of the REIV until his retirement.

He was an integral member of the first Real Estate Public Company, E.M. Purdy Ltd, together with other Victorian real estate luminary names such as Burnham, Sheehan, Stockdale, Reid and Thomson. They were well and truly before their time.

Barry was the Chairman of the Asia Pacific Real Estate Federation before it merged with the International Real Estate Federation and had many journeys to South East Asia in that role. He had many colleagues in the region and was a master diplomat navigating the somewhat tricky politics.

In the early 1980s, Barry became Chairman of Real Estate World, a real estate marketing group which later merged with the Real Estate Professionals, of which Barry became National Chairman. Barry drove office membership throughout Australia and New Zealand.

Barry was a patron for the Coburg charity The Helping Hand Association, which is now called Carinya Society. The charity was close to his heart. Barry’s pro bono work in acquiring property on their behalf, alongside his fundraising efforts, has meant the organisation has a solid real estate portfolio. This allows it to stay in place and continue to service the needs of the community and help the many families who use Carinya’s services. Carinya named a building after Barry and a hall after his wife Edna.

Barry was recognised by the Rotary Club of Coburg as a Sapphire Paul Harris Fellow and was awarded an OAM for services to real estate and the community.

Barry will be greatly missed by his family, friends and colleagues. He lived an extraordinary life.