Management Rights Market Update: Insights from ARAMA’s Industry Experts

Holmans Shares Key Financial and Taxation Insights for 2025

Holmans was proud to be a featured contributor in ARAMA’s recent “Update from the Professionals” webinar. The session brought together leading experts from finance, law, valuation, and accounting to share timely insights into the management rights and accommodation sectors. Below is a summary of the key takeaways, including expert commentary from Holmans Director and taxation specialist, Tony Rossiter.

Watch the Full Webinar

Missed the live session? You can watch the full ARAMA webinar right here:

 

If you have specific questions following the video, feel free to get in touch with us.

Market Outlook: Stability and Confidence

Across the board, 2025 has delivered a continuation of strong performance in both the long-term letting and leisure sectors. Holmans’ clients are seeing financial outcomes on par with 2024—a standout year in its own right. Forward bookings heading into the July school holidays look particularly strong, suggesting the positive trend will continue.

Valuation experts echoed this sentiment, with consistent transaction activity in Brisbane, the Gold Coast, and Sunshine Coast. Permanent letting businesses in Brisbane are experiencing record demand and high multipliers.

Seasonal Trends Returning

While post-COVID trading evened out many traditional seasonal fluctuations, 2025 has seen a return to familiar patterns. February and May were softer months for leisure businesses, but this underperformance has been balanced out by stronger results in peak periods—leading to a more predictable annual cycle.

Tax-Time Tips and Regulatory Essentials

With the end of financial year approaching, Holmans recommends the following key actions:

• Super Contributions: The concessional cap is now $30,000 per individual. Consider making contributions before June 30 to reduce taxable income.
• Wage and Super Changes: From 1 July 2025, award wages rise by 3.5%, and the superannuation guarantee increases to 12%. Ensure payroll systems are updated accordingly.
• Trust Account Compliance: The Office of Fair Trading continues to focus on:
  • Incorrect handling of non-trust monies (especially for manager-owned units)
  • Outdated or ambiguous Schedules of Charges
  • Poorly defined cancellation policies and unclear commission recovery procedures

Cyclone Alfred & Election Impacts

Despite being moderate in terms of severity, Cyclone Alfred caused major disruptions for some operators, with cancelled bookings and long-term property damage still impacting income streams. Holmans is assisting affected clients in normalising financial figures where appropriate—particularly in March. The federal election period also led to a brief dip in booking activity.

Stronger Demand, More Sensitivity

High-performing assets continue to command premium prices, but buyers are increasingly ROI-conscious. Operators must consider both the management rights business and real estate asset when preparing for sale. A low overall ROI, driven by inflated unit prices, can reduce buyer interest and lower achievable multipliers.

Final Thoughts

Holmans remains dedicated to supporting management rights operators with specialist accounting, taxation, and advisory services. As highlighted, proactively managing compliance and financial strategy ensures operators stay ahead of the curve and maximise long-term business value.

For personalised advice, feel free to get in touch with our team.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Holmans Noosa: (07) 5430 7600 or email info@holmans.com.au
Holmans Maroochydore: (07) 5451 6888 or email infohm@holmans.com.au