Expanded resilience rating scheme can save heaps on insurance
Major banks CommBank and NAB are joining other banks in the government-backed resilience rating scheme by offering cheaper insurance to certified households that have made resilience upgrades.
The scheme, launched in October 2023 by the Resilient Building Council (RBC), received a government investment of $3.2 million to help people make their homes more bushfire resilient and therefore qualify for cheaper insurance.
Consumers can complete a free self-assessment through the Bushfire Resilience Rating App, which is then certified by the council.
The government said more than 63,500 households across 324 local government areas have already completed their home assessments, saving up to $840 a year through the scheme. Some households have reduced the bushfire risk component of their premiums by up to 60 per cent.
NAB Insurance, underwritten by Allianz, and CommBank Insurance, underwritten by Hollard, will join NRMA Insurance and Suncorp, which already offered the scheme.
RBC chief executive Kate Cotter said Australia is the first country where households can measure their resilience for a reduced insurance premium.
“There are many low-cost actions households can take today to reduce risk to their home, like sealing gaps around doors and windows, installing ember screens on vents and moving combustible materials away from walls and windows. We encourage everyone to use the free app to find out what will make a difference for their individual home.”
Ministers involved in the announcement included Minister for Emergency Management, Kristy McBain, Assistant Treasurer, Dr Daniel Mulino: Assistant Minister for Emergency Management, Josh Wilson.
Insurance Council of Australia chief executive officer Andrew Hall said the system was “now being studied globally as proof that household-level risk reduction can help improve insurance affordability”.
CapGains threats to renewables
Oopsie, looks like another misstep on the capital gains tax reforms from the recent federal budget. This time it’s the renewable superpower Australia is looking to become that could be stifled by the reforms thanks to the disincentive they’re likely to create for foreign investment in the clean energy sector.
Frankie Muskovic who earlier this year was appointed executive director at Investor Group on Climate Change after a long stint at the Property Council of Australia said Australia needs to be “all taps on” on the race for new renewables investment.
“It would be a bizarre act of self-sabotage for the government to pursue changes that repel investment in proven lower-cost renewable energy generation while we seek to replace ageing and increasingly unreliable coal-fired power stations,” Muskovic told The Australian Financial Review.
The CapGains reforms round up foreign investors of critical infrastructure, including mining, energy and infrastructure such as rail, ports, airports and heavy machinery, with no grandfathering for existing investments.
The Business Council of Australia joined a bunch of other interests to argue for change on grounds that they will “chill critical investments in priority areas” such as the energy transition. The government offered a four year transition period at a lower 15 per cent tax rate and continuing to fund investment vehicles like the Clean Energy Finance Corporation, but clean energy companies argue this is insufficient for long term investments made under a different tax regime.
The government has a target of 82 per cent renewable energy in the grid by 2030 but is already struggling to attract enough investment in the sector to meet this goal, especially for large scale wind farms. About 70 per cent of all investments in the sector come from foreign companies, including from Canada, Denmark, the Netherlands and the UK.
Independent MP Nicolette Boele said the reform could trigger a “fire sale” on renewable assets “at the exact moment we’re supposed to be hitting our renewable energy targets”. “If they walk away, no one will fill that hole.”
NSW government announces two new grant programs in support of MMC
The New South Wales government has announced two new grant programs to accelerate the uptake of Modern Methods of Construction (MMC), which will support new design approaches and build homes faster. The initiatives include almost $4 million for the Housing in Construction Fund and Housing Innovation Network Grants Program.
The Housing in Construction Fund will provide funding ranging from $20,000 to $150,000 for up to 50 per cent of a co-contribution to help commercial manufacturers adapt MMC for mid- and high-rise housing. The Housing and Innovation Network Grants Program will offer competitive grants of up to $250,000 to pilot digital tools, building materials and service innovations for public housing in collaboration with Homes NSW. The government has committed up to $1.8 million to the program, which will run for up to 12 months.
Applications for both grant programs are now open and available at the official NSW Government website.
Mixed use models moving forward
The long standing blueprint of traditional office towers with ground floor retail developments is no longer a guaranteed pathway to commercial value, according to new research from architects Hassell.
Key findings show developers are responding to weaker office demand in the post-pandemic remote-work world with more selective capital, choosing only to invest in projects that respond to local market, policy and community needs. Projects are also becoming increasingly dependent on government as a risk-sharer, long-term partner or anchor tenant.
Key findings of the report show weaker office demand in the post pandemic remote work world, increased capital selectivity as one-size-fits-all masterplans are abandoned, and more complex operating environments for large precincts that can no longer rely on slow, long-term growth.
The report recommends three development models for this new era:
- a neighbourhood ecosystem with self-sustaining community economies ready-made to pivot with a flexible urban environment rather than fixed master plans
- a civic-commercial hybrid with social infrastructure, with the government as a risk-sharer
ARM and the power of architecture in Adelaide
ARM Architecture has opened its new Adelaide studio at 241 Pirie Street. The opening marks 10 years since the firm started working on projects in South Australia. SA Minister Nick Champion, who attended the opening, acknowledged the role the firm has played, and continues to play, in shaping the city and the state.
Champion said projects led by the firm that connect architecture to social outcomes, such as the one in Bowden, are making a difference in how people live.
“When you meet the young people who are either buying in there or renting in there, it transforms people’s lives. That’s the power of architecture.”
“We need architects, we need builders, we need governments, and everybody to think about the really small things that often make a huge difference in whether a project adds up.”
