Family Business, Tax, Property Law Harwood Andrews Family Business, Tax, Property Law Harwood Andrews

Profit from the development and sale of a commercial property by a private family group found to be on capital account

The Administrative Appeals Tribunal (AAT) recently held in FLZY and Commissioner of Taxation that profit arising from the sale of a building by a family trust that was part of a privately held family group (Group) gave rise to a discount capital gain despite the wider property building, development and investment activities undertaken by the Group. The decision demonstrates the importance of considering a taxpayer’s purpose and intention when acquiring and developing real estate within the broader factual context of the activities undertaken by a taxpayer and any related entities.

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Property Law Harwood Andrews Property Law Harwood Andrews

VCAT opinion restricts recovery by landlords of costs of essential safety measures and repairs and maintenance

On 1 May 2015, the President of the Victorian Civil Administrative Tribunal (VCAT) issued an advisory opinion in response to the Victorian Small Business Commissioner’s request as to whether a landlord of commercial premises can pass on the costs of Essential Safety Measures (ESM) and certain repair and maintenance obligations for retail premises to tenants.  The term ESM covers measures prescribed by building law for safety and fire protection.

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Conveyancing, Property Law Harwood Andrews Conveyancing, Property Law Harwood Andrews

Electronic conveyancing is coming

The coming of electronic conveyancing has been touted for over 10 years.  Initially planned to provide an online platform for conveyancing commencing with enquiry with an estate agent to final settlement, the reality is a more modest electronic settlement facility.  It will be the equivalent of the Australian Stock Exchange for property settlements.

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