Legal Insights
Shane Warne Foundation under investigation
The financial practices of The Shane Warne Foundation are under investigation by Consumer Affairs Victoria.
The Foundation is listed on the Australian Charities and Not-for-profits Commission register as a public ancillary fund that is a deductible gift recipient entitled to GST and FBT concessions and is exempt from income tax. Established in 2003, the Foundation has the charity subtype of advancing social or public welfare, lists its beneficiaries as youth with chronic illness and disabilities. It has revenue of $250,000 to $999,999 per year putting it in the medium sized charity category.
High Court denounces sham independent contractor arrangements
The High Court has unanimously ruled that an employer breached the Fair Work Act 2009 (FWA) when it misrepresented to its employees that they were engaged as independent contractors and not employed as employees.
RESPONSIBLE PLANNING OR PLAYING HARDBALL IN RELATION TO ESTATE PLANNING?
The Full Court of the Tasmanian Supreme Court has decided that a solicitor who failed to warn his client about a potential claim against his estate and what steps might be taken to undermine the claim is negligent.
Important new changes to Fair Work Act 2009
Important amendments to the Fair Work Act 2009 have now come into effect. While several proposed amendments were jettisoned in the Senate, the Bill as finally passed does result in significant changes. Employers in particular should take note of the following amendments.
Health risks see workplace tobacco use go up in smoke
The Fair Work Commission (Commission) has upheld a company’s smoking ban following a challenge by the Construction, Forestry, Mining and Energy Union (CFMEU). Commissioner Tony Saunders held that the employer’s direction to ban smoking at its workplace, a complex which was comprised of two open cut mines and a coal handling and preparation plant (CHPP), was lawful and reasonable.
A TIMELY REMINDER FROM THE FEDERAL COURT IN THE LEAD UP TO CHRISTMAS
In the lead up to the festive season, the Federal Court has confirmed that Chrisco’s lay-by agreement included an unfair contract term in breach of the Australian Consumer Law (ACL).
ACNC revokes charitable status of 169 organisations
The Australian Charities and Not-for-profit Commission (ACNC) has revoked the charitable status of 169 organisations for failing to comply with their reporting obligations for two or more consecutive years. This means that these organisations will lose access to all Commonwealth tax concessions, such as exemption from income tax, to which they were previously entitled.
General limited partnership business structures under review by ATO
In Taxpayer Alert TA 2015/4 (Alert) the Commissioner has issued a warning that the Australian Taxation Office is actively investigating arrangements involving a general limited partnership structure that are being used as a vehicle to minimise the tax liability of individual stakeholders involved.
Owners Corporation rules cannot stop office to apartment conversions
A recent decision of the Victorian Civil and Administrative Tribunal has confirmed further restrictions on the ability of Owners Corporation rules to regulate the use of lots. This decision follows an earlier ruling that Owners Corporations are unable to stop short term leasing of apartments.
Good news for charities – ABR and ACNC to data share
The Australian Charities and Not-for-profits Commission and the Australian Business Register (ABR) have signed an agreement to transfer information between the ABR and the Charities Register. This means there will now be continuous data sharing between the registers and inconsistencies between them will be reduced.
RESTRUCTURE ROLLOVER MEANS GREATER FLEXIBILITY FOR SMALL BUSINESS
The Federal Treasury has released for public comment Exposure Draft legislation, the Tax and Superannuation Laws Amendment (2015 Measures No 6) Bill 2015: Small business restructure rollovers to amend the Income Tax Assessment Act 1997, to enable small businesses to defer tax consequences arising in relation to the transfer of capital gains tax assets, depreciating assets and trading stock revenue assets that occur in the context of a business restructure.
NEW IDENTITY REQUIREMENTS FOR TITLES OFFICE DOCUMENTS
From the 9 November 2015 Victoria joins Western Australia and South Australia in requiring the identity of signatories to all documents lodged at the Titles Office, and for those who are given custody of a certificate of title, to be verified.
ACNC calls for comment on their Regulatory Approach Statement
Charities have been invited to comment on the exposure draft of the “Commissioner’s Interpretation Statement on Withholding or Removing Commercially Sensitive Information from the ACNC Register” (Exposure Draft).
Failure to pay proper notice incurs hefty fine
Both a HR Manager, as well as the company she worked for, were fined in the Federal Circuit Court in Adelaide as the result of a failure to pay to an employee proper notice.
Senate gives ‘green’ light to fair work amendments
This week the Senate has passed a number of amendments to the Fair Work Act 2009. While the amendments are significant, not all changes put to the Senate in early 2014 have gained the support from the government cross-benchers.
Possible CGT exemption for startup investors
A spokesperson for Treasurer Scott Morrison has confirmed that the government will consider abolishing the Capital Gains Tax on investments in startup companies. The policy was proposed by back-bencher David Coleman as a way of encouraging investment in innovation.
Fair Work Commissioner warns against “first and final” warnings
In a decision of the FWC handed down this week, Fair Work Commissioner Bissett decided that an employee who had been dismissed for a breach of his employer’s zero tolerance drug and alcohol policy was unfairly dismissed, because of reliance placed by the employer on an previous “first and final” warning which was found not to be warranted.
90 day “PPS Lease” Abolished
From today, 1 October 2015, the Personal Property Securities Act will no longer operate to automatically give rise to a security interest in serialised goods (e.g. motor vehicles, motorhomes, aircrafts etc.) that are leased or bailed for a term of less than 12 months.
This is in contrast to the now outdated law which provided that leases or bailments of serialised goods for a period of more than 90 days, automatically created a security interest in the goods in favour of the lessor or the bailor. This meant that a lessor or bailor had to register a security interest on the Personal Property Securities Register (Register) to protect their interest in the goods.
Do your commercial documents work?
It is an integral part of doing business to have the following documents in place:
Terms of trade
Credit Application
Guarantee and Indemnity
These documents generally provide a level of security for a business when providing goods or services on credit terms. This security is usually provided through the Personal Property Securities regime and/or by requiring a Guarantee and Indemnity from the directors of the customer.