Germany’s pension fund association, the aba, has called for national or European bodies to support the industry’s investment in infrastructure by assessing the risk associated with individual projects.Responding to a report by the European Parliament’s committee on economic and monetary affairs (ECON) report examining the long-term financing of the Continent’s economy, the association said that bodies such as the European Investment Bank (EIB) could potentially support Germany’s occupational pensions (bAV) sector, as they so far had little experience of infrastructure investment and were unlikely to become experts in the “niche area” in the near term.The position paper said: “The new assets in the field of long-term investment require more credit analysis and greater credit-analysis skills than existing assets, such as low-risk securities.”Echoing PensionEurope’s own position paper on European Long-Term Investment Funds (ELTIF), the aba also said it would be helpful if the EIB stepped in and guaranteed certain projects. The call comes shortly after asset manager Mirova suggested that fund managers behind ELTIFs should be bound by a ‘comply or explain’ approach on their socially responsible investment strategy.The aba further called on the Parliament to accept that, if the European Commission were to introduce capital requirements for pension funds – as long proposed through the revised IORP Directive – it should also call for an investigation into the impact of the regulation on long-term investing, similar to the one underway to investigate the impact of Solvency II on insurers.The association also reiterated its dislike of the financial transaction tax, saying it “should be avoided for the bAV sector in general – and not only in regard to long-term investments”.“Reductions in the pensions payable in Germany of an estimated 3-8% as a result of the introduction of the proposed financial transaction tax are not acceptable,” it said.,WebsitesWe are not responsible for the content of external sitesLink to the aba’s position paper on long-term financing of the European economy
Interested parties should state performance, net of fees, to the end of 2013.The closing date for applications is 6 March.The IPE.com news team is unable to answer any further questions about IPE-Quest tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE-Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email [email protected] A “Swiss-UK” pension fund has tendered a $50m (€36.5m) global hedge fund mandate using IPE-Quest.According to search QN1398, the investor will consider replicator strategies only.The passive mandate will target a “minimum tracking error” based on the Barclay Hedge Fund, Credit Suisse Hedge Fund or HFRI FoF indices.Asset managers should have at least $1bn in assets under management and a minimum track record of five years.
The obligation to use mark-to-market accounting and benchmarks are “diseases in the capital market”, according to Eric Breval, director of Switzerland’s first-pillar pension fund AHV. Speaking at the Swiss Leadership Pensions Forum in Zurich, Breval said he was convinced that, without these two “diseases”, it would be “absolutely feasible” for a Swiss pension fund to produce an annual return of 3% in Swiss francs.For a long-term investor, he said, volatility in bond investments “should not matter”, as long as the invested money plus interest is returned after the duration ends.“But, with mark-to-market valuation, you see every loss and profit during the period,” he said. However, Breval conceded that most Pensionskassen, including the AHV, could not avoid the mark-to-market approach completely.“All we can do is diversify,” he said.At the same event, Vera Kupper Staub, vice-president at the country’s top supervisory body OAK, detailed the institution’s plans for a new approach to assessing pension funds’ investment risk.The OAK is looking at four different risk parameters, including funding levels, return/interest rate promises, recovery strength and investment risk.Using those key figures, the supervisor will derive an overall picture of the second-pillar system’s health.For the assessment, to be initiated early next year via an online questionnaire, the OAK aims to “completely overhaul” the way it considers investment risk, Kupper Staub said in her keynote speech.“Currently, we focus more on qualitative parameters, but, from next year, we will focus on volatility risks,” she said.This assessment will be derived from the basic portfolio information, with rough figures on allocations to basic asset classes such as bonds, equities and real estate.“However, those Pensionskassen that voluntarily report more detailed information on their portfolios will get a more accurate risk assessment,” Kupper Staub said.She stressed that this would not be mandatory.She also took pains to emphasise that individual Pensionskassen should refrain from using the OAK’s risk assessment to make any strategic decisions.“It is a view of the whole system for which we have to make simplifications, and it is no representation of the individual situation of each Pensionskasse, as each fund has to take different additional risk parameters into account,” she said.Kupper Staub said that, on the one hand, risk in the second pillar had decreased in recent years, as capital markets had performed better.On the other hand, she said, those pension funds with above-mandatory assets had taken advantage of their “leeway” to minimise risk and adjust technical parameters.“But the Achilles heel of the system is its reduced ability to restructure successfully,” Kupper Staub said.“This makes it crucial for its stability that actuarially correct parameters be applied.”The debate surrounding the conversion rate – which is to be cut from 6.8% to 6% under the Altersvorsorge 2020 reform – is a heated one, as experts have warned that the 6% rate would be too high once the reform took effect, and that many funds had already fallen below that threshold.
A third decision was made to reinvest the principal payments on the securities purchased under the asset purchase programme as they matured for as long as necessary.“This will contribute to favourable liquidity conditions and an appropriate monetary policy stance,” Draghi said, adding that technical details would be given later.The central banker made a fourth policy decision to admit regional and local government bonds into the QE programme.“We decided to include euro-denominated marketable debt instruments issued by regional and local governments located in the euro area in the list of assets eligible for purchase by the respective national central banks,” he said.The bank also decided to continue its main refinancing operations and the three-month longer-term refinancing operations as fixed rate tender procedures with full allotment for as long as necessary and at least until the end of the reserve maintenance period of 2017.“Our new measures,” Draghi said, “will ensure accommodative financial conditions and further strengthen the substantial easing impact of the measures taken since June 2014, which have had significant positive effects on financing conditions, on credit and on the real economy.”European stocks rose in early trading today on hopes the ECB would cut rates and announce an increase in the pace of QE.The rate cut was in line with money market expectations.Markets are also keeping a keen eye on US rates, which could be changed by the Federal Reserve at its committee meeting on 15-16 December. The European Central Bank (ECB) is cutting its key deposit rate by 10 basis points to minus 0.30% with effect from 9 December and extending its quantitative easing (QE) programme in several ways, following the meeting of its governing council today.While the size of the asset-buying programme is to be kept at its current pace of €60bn a month, rather than being expanded as some market participants had hoped, the central bank announced several measures to effectively increase it.The deposit rate was the only key rate to be changed, with the interest rate on the ECB’s main refinancing operations, as well as the rate on the marginal lending facility, remaining unchanged at 0.05% and 0.30%, respectively.Mario Draghi, president of the ECB, told a press conference: “The monthly purchases of €60bn under the asset purchase programme are now intended to run until the end of March 2017 or beyond if necessary, or, in any case, until the governing council sees a sustained adjustment in the path of inflation consistent with its aim of achieving inflation rates below but close to 2% over the medium term.”
Railpen, Standard Life/Aberdeen, Franklin Templeton, CDC, FRR, Foreningen NLP, Westerbrink, Folksam Liv, AMNT, SFAMA, Northern Trust, AXA IM, FRC, La Francaise, FCA, AGH, Aon HewittRailways Pension Scheme (Railpen) – The multi-employer scheme for the UK’s railways industry has named Leo George as head of sustainable ownership, replacing Deborah Gilshan who will leave to join Standard Life at the end of March. George joined the pension scheme in 2009, and has overseen asset allocation for pooled funds, thematic investment research, and investment strategy. In his new role he will be responsible for “integrating sustainable ownership considerations” for public and private market investments, Railpen said. Railpen also plans to hire an additional “senior governance professional” to its sustainable ownership team.Standard Life/Aberdeen – The two asset managers, who announced a merger on 6 March, have moved to clarify how their respective chief executives will co-operate when they begin sharing the role post-merger. It followed questions raised in the media coverage of the deal about whether Martin Gilbert, CEO of Aberdeen, and Keith Skeoch, CEO of Standard Life, can successfully work together as co-CEOs.According to a statement released by the companies, Skeoch will be responsible for the day-to-day running of the combined business, including its investment, pensions, and savings businesses. He will also oversee insurance joint ventures in India and China, as well as operations, finance, human resources, “risk and regulatory culture”, legal, and secretariat functions. Gilbert’s responsibilities will include “international activities, distribution including client engagement and business development, marketing, and corporate development”, the companies’ statement said. The pair will share responsibilities as members of the executive committee, developing strategy and objectives, and monitoring performance.Franklin Templeton – Mark Mobius, veteran emerging markets investor and executive chairman of Templeton Emerging Markets Group, is to step down as named manager on 12 of the US-based asset manager’s suite of funds in the next two months. The group said the move was part of the “ongoing evolution” of the company. Most of the fund managers taking on official responsibilities have been the lead decision makers on the funds for some time.Caisse des Dépots et Consignations (CDC) – The pension division of the French state-owned investment group has made two new hires. Anne-Laure Genty will be joining as senior specialist for sustainability, leaving a role in the French environment ministry. François Tirmarche, meanwhile, will join as deputy to Caroline Le Meaux, head of delegated management at CDC. Tirmarche is currently fixed income director at Fonds de Réserve pour les Retraites (FRR), the French pension reserve fund.LD/Foreningen NLP – Lars Wallberg, finance director at Denmark’s LD pension fund, has been hired by Foreningen NLP (NLP Association) – a fund which owns 25% of Nordea Life & Pension – as its new chief executive. Wallberg will take up the post on 1 June. He has been in his current job at LD since 2011, and was previously CFO at LD and finance director at Sampension. Wallberg will be responsible for managing the association’s assets of more than DKK8bn (€1bn) for its members and charitable activities, as well as building up the association’s secretariat.Westerbrink – Pensions lawyer Hans van Meerten is to join pensions consultancy Westerbrink as partner in April. At Westerbrink, Van Meerten is to focus on national and international individual defined contribution. At year-end, Van Meerten left law firm Clifford Chance, where he had worked since 2011. Van Meerten said that he would also keep on being active for law firm Coupry, and that he will also stay on as professor for international pension law at Utrecht University.Folksam Liv – Lars Ericsson, chief executive of the Stockholm Consumer Cooperative Society (Konsumentföreningen Stockholms), has been proposed as the new chairman of the board of Folksam Liv. Nominations will be voted on at the company’s AGM on 20 April.Association for Member Nominated Trustees (AMNT) – Leanne Clements has been appointed “Red Line Voting” campaign manager, effective from April. Clements was previously the responsible investment manager at the Pension Protection Fund (PPF). She resigned from her role at the PPF last autumn. Clements will support the adoption and implementation of the Red Line Voting policies, a set of voting instructions covering a range of environmental, social and governance issues.SFAMA – The Swiss asset management association has a new board member: André Bantli, managing director, head of retail-wholesale business for Switzerland, the Middle East and Africa at BlackRock in Switzerland. Bantli is also a member of BlackRock Switzerland’s executive committee.Northern Trust – The service provider has made a number of changes to senior roles in its institutional business. Penelope Biggs is now chief strategy officer for corporate and institutional services, alongside leading the group’s global marketing. Toby Glaysher has been named head of global fund services international, and Clive Bellows takes the same role for Europe, the Middle East, and Africa. Jon Dunham is now head of global sales, having previously led the sales team in the Americas, and Robert Frazer has transferred from leading Northern Trust’s UK pensions business to country head for the Middle East.AXA Investment Managers (AXA IM) – Andrew Douglas has joined as an associate director to the asset manager’s UK institutional sales team, focusing on insurance clients. He joins from BMO Global Asset Management where he was a senior sales associate.Financial Reporting Council (FRC) – Paul Cox, an adviser to the National Employment Savings Trust, has joined the auditing watchdog’s audit and assurance council, along with Olivier Beroud, a consultant and former head of Moody’s in Europe.La Francaise – Kay Scherf has been hired to lead the asset manager’s sales team in Germany. He previously worked for AXA Investment Managers for 10 years, latterly as director of wholesale. Prior to AXA IM, he was a trader and portfolio manager at JP Morgan Asset Management. At La Francaise, Scherf will help expand on what the company sees as “considerable growth opportunities” in the German market, particularly for fixed income.Financial Conduct Authority (FCA) – Nick Stace has been appointed non-executive director to the board of the UK regulator for a three-year term from 1 April. He is currently chief executive of the Royal College of Veterinary Surgeons, but has held senior roles at several consumer groups, including Which? in the UK and Choice in Australia.AGH – Pensions provider Administratie Groep Holland has appointed Peter Krul in the newly created position of director for operational affairs. He will become responsible for ICT as well as investments and integral risk management. Krul joined from the €18bn provider and asset manager SPF Beheer, where his roles included head of automation, operational director, and ICT director during 10 years at the company. AGH has extended its business after taking on the industry-wide schemes for butchers (Slagersbedrijf) and millers (Molenaars) as new clients.Aon Hewitt – The consultancy firm has named Marlon Sahetapy as principal consultant in a new position at its global retirement and investment practice. He will be tasked with extending the company’s position in the fiduciary market in the Netherlands. Sahetapy has been an independent consultant for the past four years, serving asset managers and pension funds on business and product development, focusing on non-listed investments.
Specialist pension insurer Just Group has agreed a £158m (€179.8m) buy-in transaction with the pension fund of pharmaceutical company Wyeth Group, part of Pfizer.The deal covered 1,200 pensioners, according to a statement from Just Group, and marked “a key step in the work of the scheme’s trustees in the long-term aim to de-risk the scheme’s liabilities”.Rob Mechem, head of defined benefit business development at Just Group, said: “This is a well-funded scheme with a trustee board that was fully engaged in the details of every aspect of the process, and was very well prepared in terms of data cleansing and benefit specification.“To ensure they had found the right home for the members’ benefits the trustees were very thorough and even undertook a site visit to review our administration capabilities.” Debbie Berney, trustee of the Wyeth Group Pension and Life Assurance Scheme, added that the deal was “a big step forward in ensuring the scheme is able to meet the full costs of its future pension payments to all members”.Apollo agrees to fund pension scheme to aid takeover bidPrivate equity company Apollo has agreed a funding deal worth more than £50m with the trustees of the RPC Containers Pension Scheme.It follows Apollo’s proposed £3.3bn purchase of RPC, a UK listed packaging company, last month.In a notice to the stock exchange, RPC said Apollo had signed a memorandum of understanding to finance contributions of £5.2m a year for five years and nine months, increasing by 3% annually from April 2020. In addition, the parties had agreed to a £25m contingent assets deal, giving the scheme security over real estate assets. This will reduce to £12m from 2024.In connection with the bid, Apollo has also agreed funding arrangements with two other schemes sponsored by RPC, announced last month.JP Morgan takes stake in DC master trust Defined contribution (DC) master trust provider Smart Pension has secured an investment from US banking giant JP Morgan.The minority equity stake formed part of a new funding round, which has so far raised roughly £50m as Smart Pension seeks to grow its business in the UK and other auto-enrolment markets.As part of the deal, Anne Lester, global head of retirement solutions at JP Morgan Asset Management, will take a non-executive seat on Smart Pension’s board.Lester said: “Smart Pension has demonstrated how financial technology can have a positive impact by making it easier both for people to save for retirement and for companies to offer pension plans to their employees.”UK insurer Legal & General also owns a minority stake in Smart Pension, purchased in 2016. Last year the two providers agreed a partnership to develop a retirement income product.In October, Smart Pension was awarded a mandate to develop a “pensions technology platform” for New Ireland Assurance, while last month it took over Corporate Pensions Trust, a £12.5m master trust run by financial advisory firm Lighthouse Group.Will Wynne, Smart Pension co-founder and managing director, added that the company was in “early stage conversations” with other companies to provide technology to financial institutions as they “grapple with regulatory change and legacy technology”.
The chief executive of Iceland’s Pension Fund for State Employees (LSR) is to step down later this year after 37 years at the fund.LSR said Haukur Hafsteinsson announced his decision to resign at a staff meeting on Friday, but had previously told the fund’s board of directors that he intended to go.Hafsteinsson said: “I will be 65 in the autumn of this year and think that now is the right time for a change.”Unnur Petursdottir, chair of the ISK826bn (€6bn) fund’s board, said Hafsteinsson’s decision had come as a surprise. Haukur HafsteinssonShe said he was one of the most experienced leaders in the pension system in Iceland and had wealth of information about government pensions in particular.He was leaving a gap that would not be easy to fill, she said.Hafsteinsson has worked with the pension fund since graduating from the University of Iceland in 1982. He first worked at the State Social Security Institute, which then handled several pension funds, including the government staff pension fund.LSR said it would advertise for a new chief executive later this month.According to information from the Icelandic Pension Funds’ Association, Hafsteinsson is the longest-standing leader in the sector alongside Árni Guðmundsson, chief executive of Gildi pension fund.This article was updated on 8 March to update LSR’s assets and amend the penultimate paragraph “For years, Haukur has been the driving force, the epicentre and the face of the Pension Fund for State Employees, always concerned about the welfare of the fund and its members,” Petursdottir said.
For USS, this means around 320 private markets assets will be accessible, which include infrastructure, property, private debt and private equity.These assets include a substantial investment in on- and offshore windfarms and major stakes in critical UK infrastructure such as Heathrow, Thames Water and NATS, the air traffic control business, it said.Bill Galvin, USS group chief executive officer, said this initiative wiil not only give the fund’s DC members “access to a range of private market assets where USS’s approach has led the pension fund market,” but it also highlights the innovative ways in which “we continually look to enhance our offering to members.”The private markets portfolio is run by a dedicated team in the scheme’s investment management subsidiary, USS Investment Management Limited. The private markets group was first established in 2007 and has a portfolio worth more than £17bn.Having in-house investment capabilities through its investment management subsidiary, USS has developed a solution which is anticipated to enhance the return profile of the Default Lifestyle Option with no increase in cost to members or to their employers, it said.“We have always been clear that any DC investments must be within stringent cost boundaries that demonstrate value-for-money to our members and employers,” Galvin said, adding that this change is being done at no additional cost to members and “in line with our overall investment philosophy.”A UK government consultation in February 2019 was unveiled, aimed at increasing workplace DC schemes’ investment in so-called illiquid assets.Six months later UK asset managers proposed a new fund structure aimed at local authority pension funds and DC schemes to support investors looking to access illiquid assets.The Investment Association (IA), the industry trade body, presented its plans last summer for a new fund structure specifically designed to invest in illiquid asset classes.The fund said its move demonstrates that organisations with the scale and capabilities of USS can provide access for members to these investments at a reasonable cost. Universities Superannuation Scheme, the UK’s largest private pension scheme with £63.6bn (€75.3bn) in total assets, has moved to allow members of its defined contribution (DC) “Investment Builder” funds access to its private markets investments.The move comes as its DC assets under management have exceeded £1bn, a statement has revealed.The fund said private market assets have been difficult to provide to DC members in the UK because they are not traded daily and incur high charges, in addition to being highly illiquid investments.From March, around 85,000 DC members will see the investment remit of their funds in the Default Lifestyle Option expanded to include an allocation to private markets – the fastest-growing part of the USS investment portfolio – which have hitherto only been available in the defined benefit (DB) section.
A Luxembourg-based asset owner, which happens to be a fund management company (ManCo), has issued a request for proposals via IPE Quest for provision of a multi-asset class investment risk management system as well as an investment restrictions monitoring system for its fixed income and equities investment funds.According to search QN-2620, as of end of June 2020, the ManCo managed an umbrella fund with several sub-funds. It mainly invests in government debt instruments issued by emerging and frontier countries, being in hard or local currencies.One sub-fund is only dedicated to investment in equities, mainly blue chips. Derivatives are mainly linear and used for hedging purposes, at the exception of one sub-fund where options are used for speculative purposes, the notice clarified.The risk system, however, should be able to cover a wide range of asset classes in order to cope with the ManCo’s future projects (emerging and frontier corporate fixed income assets for instance). Another important element will be abilities for respondents to demonstrate their expertise and experience in offering multi-asset class risk systems and investment restrictions monitoring services on behalf of ManCos over the past five years.Regarding the risk management system, teh asset owner expects the following coverage:Leverage calculation (sum of notional and commitment as defined by ESMA guidelines 10-788 and CSSF circular 11/512);Value at Risk (compliant with requirements of ESMA guidelines 10-788 and CSSF circular 11/512);A dirty and clean back testing program;Statistical tests such as Kupiec and Christoffersen;Stress tests (historical and hypothetical);Liquidity risk calculations in line with CSSF circular 19/733 and ESMA guidelines 34-39-882;Calculation of SRRI values;Ability to support adhoc regulatory and client risk report risk.Regarding the investment restriction monitoring system, it expects:Coverage of legal rules set by Chapter 5 of the 2010 Law;Coverage of prospectus rules;Impact assessment in case of breach;Eligibility of assets controls.The deadline to participate is 9 September 2020 at 5pm UK time.Swiss pension fund tenders $200m high yield mandateA pension fund based in Switzerland has issued a tender through IPE Quest.The $200m (€167.8m) US high yield mandate – which will be managed as a single investor fund – will follow the Bloomberg Barclays US High Yield 2% Issuer constraint Index as benchmark.According to search QN-2619, the deadline for applications is 4 September at 5pm UK time. Applicants should state performance data to 30 June 2020, gross of fees.Interested managers – which should have a minimum track record absolute of eight years amd a minimum of $2bn of assest under management for this strategy – can respond to the tender in either English or German, the notice said.The IPE news team is unable to answer any further questions about IPE Quest, Discovery, or Innovation tender notices to protect the interests of clients conducting the search. To obtain information directly from IPE Quest, please contact Jayna Vishram on +44 (0) 20 3465 9330 or email [email protected] read the digital edition of IPE’s latest magazine click here.
Those over 65 who sell their family home can contribute $300,000 of the profit into their superannuation from July 1. Picture: AAP Image/Joel Carrett. QUEENSLAND Queensland has the biggest number of changes impacting the property sector this new financial year.In a bid to cash in on the massive surge in foreign buyers, the Palaszczuk Government put in place an Additional Foreign Acquirer Duty (AFAD) — basically a transfer tax applying to foreign purchasers of Queensland property. From July 1, the tax will rise from the current 3 per cent to 7 per cent. The duty applies to foreign individuals, corporations and trusts.A new land tax category for holdings over $10m also comes into force July 1, which will see individuals charged 2.25 per cent on their holdings, while trusts, companies or absentee landholders would be charged 2.5 per cent.A waste disposal levy of $70 per tonne will also add to costs, according to the Property Council.The Queensland First Home Owners’ Grant also decreases by $5,000 to $15,000 for new build homes from July 1.More from newsParks and wildlife the new lust-haves post coronavirus18 hours agoNoosa’s best beachfront penthouse is about to hit the market18 hours ago Inside Gold Coast’s most expensive rental AFL legend sells Coast home Buyer quick to snap up $500K town Data collated by Queensland Economic Advocacy Solutions expected to see good news for regional parts of the Sunshine State come July, with electricity bills set to go down. Residential customers were generally expected to see a 1.3 per cent drop while business ones were to get 3.4 per cent. Apparently in South East Queensland, Origin Energy had committed to cutting electricity bills by 1.8 per cent. Council rates were also expected to rise, with QEAS expecting Brisbane to rise 2.5 per cent, Gold Coast 1.7 per cent, Sunshine Coast 3.5 per cent, Moreton Bay 2.9 per cent, Ipswich 3 per cent and Cairns 1.7 per cent.Utility costs were also expected to rise, QEAS said, up 2 per cent in Greater Brisbane via Queensland Urban Utilities, 0.6 per cent in Sunshine Coast and Noosa and 0.5 per cent in Moreton Bay via Unity Water. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality LevelsAudio TrackFullscreenThis is a modal window.Beginning of dialog window. 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This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreen00:00 Bulk water costs in water and sewerage bill were also set to rise with SEQ council areas to hit $3.12 per kilolitre by July 1, 2020. Places where costs were lower can expect to see annual rises in the region of 6 per cent for the Sunshine Coast and Noosa, 7.3 per cent for Redland, and 3.5 per cent for all other SEQ councils annually “until they reach that price”, according to QEAS’ director Nick Behrens. NEW SOUTH WALES Come July 1, eConveyancing will replace paper and manual processes in property transactions in NSW. “All stand-alone transfers and caveats must be lodged electronically from this date,” according to the Property Council. Local Infrastructure Levy caps will be increased to $40,000 for greenfield areas and $30,000 for infill areas not funded by the Local Infrastructure Growth Scheme. SOUTH AUSTRALIA The state’s off-the-plan stamp duty concession measure ends on June 30, 2018.As well SA enters the final phase of the full abolition of commercial stamp duty. ACT Stamp duty will be abolished for first home buyers who earn less than $160,000 for new or existing homes.It will coincide with the abolition of first home buyers grant. FOLLOW SOPHIE FOSTER ON FACEBOOK Anyone buying new houses, units or subdivided land will have to ensure they pay the GST element of the transaction direct to the ATO and not to the developer.BIG changes are afoot in the property market starting July 1 — and here’s your quick guide to it all from buyers collecting tax for ATO to higher land taxes. FEDERAL GST The biggest change starting July 1 is that buyers of new houses, units or residential land blocks effectively become tax collectors for the government, that is, they become responsible for paying the GST element of their deal direct to ATO.Shoddy developers who “phoenix” have caused the change, according to the Property Council of Australia — “phoenixing” is when a person starts a new company doing the same business after deliberately liquidating another company to avoid paying its debts including taxes.Property Council chief executive Ken Morrison said “under this change, buyers of new residential properties or subdivision of potential residential land will be responsible for remitting the GST amount to the ATO on or before settlement”. Inside absurd $250m mansion Tide has turned for Brisbane units Brisbane to lead housing growth “Previously, this was done by the developer. The overwhelming majority did the right thing and passed the GST they collected through to the ATO, but this measure has been introduced to deal with the minority who didn’t through so-called ‘phoenixing’,” he said.This change is best discussed with a solicitor or settlement agent, and the federal government has a contingency plan for people who bought their new property before July 1 but will settle after it. Super contribution Another big federal change, Mr Morrison said, was that those aged 65 or over would from July 1 be able to pay $300,000 from the sale of the family home into superannuation accounts. Super first home voluntary contribution Individuals making voluntary contributions into superannuation for their first home deposit will be able to access that from July 1. The savings measure started a year ago with a limit of $15,000 for individuals and $30,000 in total for a property.