📈 Today's Commercial Property & SMSF News
SMSF Association Proposes Tax System Reforms to Reduce Compliance Burden
The SMSF Association has presented recommendations to the Board of Taxation's Red Tape Reduction Review. Their submission suggests several technical adjustments that could be implemented swiftly to address unforeseen issues and lessen the regulatory complexity and associated costs within the tax system. The association supports the government's efforts to streamline tax compliance for businesses, anticipating that such measures would stimulate economic activity. The focus is on reducing administrative hurdles related to tax provisions impacting SMSFs, specifically mentioning Division 293.
Source: www.smsfadviser.com
Understanding Restrictions on Amending SMSF 291-70 Notices
An expert from Advisers Digest, Peter Johnson, highlighted specific conditions concerning the amendment of 291-70 notices. He noted that the Australian Tax Office (ATO) will reject claims where an individual seeks to deduct more than their total taxable income. Johnson further explained the financial implications of claiming tax deductions that push taxable income below the tax-free threshold, detailing how contributions tax and the low-income super tax offset would eventually balance out such scenarios. This clarifies important rules for SMSF members managing their superannuation contributions.
Source: www.smsfadviser.com
Costco Outpaces Aldi in Profitability Amidst Australian Expansion
Costco has demonstrated superior profitability compared to rival Aldi in Australia, driven by Australian consumers' preference for bulk purchasing. The American warehouse club recorded nearly $12.6 billion in sales over the last year, as shoppers increasingly seek value across various retailers. Operating 15 stores nationally, Costco plans further expansion with two new locations slated for 2027 in Victoria and Western Australia, ultimately aiming for a total of 35 warehouses, signifying substantial investment in Australian commercial retail property.
Source: www.theage.com.au
Australian Inflation Moderates in November, RBA Rate Outlook Remains Unclear
Australia's monthly Consumer Price Index (CPI) indicated a cooling of inflation in November, with the annual rate dropping to 3.4 per cent from 3.8 per cent the previous month. The underlying trimmed mean inflation also saw a slight decrease to 3.2 per cent. Despite this positive development, the inflation rate continues to sit above the Reserve Bank of Australia's target band. Economists are divided on whether this data will influence the RBA to hold or hike interest rates at its upcoming February meeting, with market sentiment still leaning towards a potential increase.
Source: www.abc.net.au
📊 Yesterday's Key Developments
November Inflation Drop Signals Potential Relief for Australian Mortgages
Australia's annual inflation rate experienced a more significant decline than anticipated in November, providing some respite for households facing financial pressures. The Consumer Price Index (CPI) for the 12 months ending in November decreased to 3.4%, a notable improvement compared to the 3.8% recorded in October. The underlying trimmed mean inflation figure also saw a slight reduction to 3.2%, although it remains just above the Reserve Bank of Australia's (RBA) target range of 2-3%. While economists, such as one from REA Group, acknowledge this positive trend, they caution that inflation levels are still elevated. This latest economic data follows a difficult period for borrowers in the latter part of the previous year, which saw unexpected inflation increases in September and October. The new figures are also likely to be welcomed by the RBA, which had previously faced criticism regarding its inflation forecasting accuracy.
Source: www.realestate.com.au
South Australian Units Outperform Houses in Price Growth
Recent property market analysis indicates a significant shift in South Australia, where the value appreciation of units has surpassed that of detached houses throughout 2025. This trend, observed in both Adelaide's metropolitan area and regional parts of the state, is largely attributed to growing demand for more affordable housing options. PropTrack data highlights that Adelaide's median unit value saw a 14.1% increase, reaching $680,000, while house prices grew by 12.5% to $983,000. Similarly, regional SA experienced a 14.6% rise in median unit prices to $462,000, compared to an 11.5% increase for houses, which now stand at $493,000. Industry experts suggest that the increasing focus on affordability is a primary catalyst for this unexpected market performance.
Source: www.realestate.com.au
Australian Population Surges Past 27.6 Million, RBA Considers 2026 Rate Hike, ACCC Alerts on Energy Prices
Australia's population has now surpassed 27.6 million, with a significant increase of 420,000 individuals in the quarter ending June 2025, primarily driven by immigration rather than natural growth. Concurrently, the Reserve Bank of Australia has indicated it is openly discussing the potential for an increase in the cash rate during 2026, citing persistent inflationary pressures. Furthermore, the competition regulator has urged consumers to compare electricity offers, revealing that long-term customers often pay a 'loyalty tax' and advising them to seek better deals.
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RBA May Lift Interest Rates This Year Amid High Inflation, Driving Up Australian Dollar
With inflation continuing to track at elevated levels, there is a strong possibility that the Reserve Bank of Australia could implement an interest rate hike within the current year. This prospect of monetary tightening has already had an impact on the currency market, pushing the Australian dollar to its strongest position in several years.
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Published: Thursday 08 January 2026 | Fresh Articles: 28 | Sections: 8 | RunID: 2026-01-08T08:13:56+11:00
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