Legal Insights
Time for action: safe harbour guidelines issued by the ATO for related party LRBA loans
On 6 April 2016, the ATO issued Practical Compliance Guidelines PCG 2016/5 Income tax - arm's length terms for Limited Recourse Borrowing Arrangements established by self managed superannuation funds (Guideline)
New Requirements for Sale or Lease of Property with a Swimming Pool or Spa in NSW
Sale
From 29 April 2016, a vendor selling a property in NSW with a swimming pool or spa pool must include one of the following in the Contract of Sale:
- A valid swimming pool certificate of compliance; or
- A valid occupation certificate issued under the Environmental Planning and Assessment Act 1979 (NSW) that is less than three years old and authorises the use of the swimming pool; or
- A valid swimming pool certificate of non-compliance.
Tax Incentives for Startups
The Federal Treasury has introduced legislation which aims to create tax incentives for investors by encouraging early stage investment in startups (Bill).
The Bill aims to increase the volume of funding available for startups by offering tax concessions to potential investors.
Plaintiff’s access to defendant insurance
A claimant liquidator was allowed to join the defendants’ insurer to the proceeding, in circumstances where the defendants were not going to pursue the insurance claim. This case may open up several new ways to utilise a defendant’s insurance, and Sladen Legal has some creative ways this decision can be used to plaintiffs’ benefit.
Non party’s liability for costs
The Court ordered costs against stakeholders in the plaintiff’s camp and stated that insolvency of a plaintiff insolvency weighs in favour of a cost order against a non-party supporting or directing it.
Non-commercial LRBA loans must be put on commercial terms for the entire 2016 income year
In December 2015 The Australian Taxation Office (ATO) stated that it would not take active steps to review non-commercial limited recourse borrowing arrangement (LRBA) loans prior to 30 June 2016. It was recommended that LRBA loans should be put on arm’s length terms by 30 June 2016. If that occurred then the ATO had stated that it would not actively review such non-commercial LRBAs for prior years.
Fair Work Ombudsman launches proceedings against accounting firm in worker underpayment case
The Fair Work Ombudsman (FWO) has, for the first time, commenced legal proceedings against an accounting firm alleging the firm was knowingly involved in underpaying its client’s workers.
Fair Work Commission research reports tabled
Three Fair Work Commission General Manager reports were tabled in the House of Representatives this week. These reports presented research findings for the period May 2012–May 2015. Key findings of each report are as follows.
Labour hire companies: be alert not alarmed
The Fair Work Commission (FWC) has found a labour hire company (the employer) unfairly dismissed an employee after the host employer told the employer it did not want the worker at its workplace.
Employer gets big tick in termination case
In a recent decision of the Fair Work Commission an employer was praised by the Commission for not rushing to a decision to terminate. The employee was a habitual latecomer and worked as a motor vehicle detailer. He had been given six previous written warnings as well as many verbal warnings by the employer.
Victoria’s long service leave laws under review
The Victorian government today announced the Long Service Leave Act 1992 (Vic) (Act) is under review. The government is seeking public input in its examination of whether the Act is ‘meeting the needs of the modern workplace’.
Effective workplace policies are communicated policies
A recent Tribunal decision serves as a reminder to employers that the mere existence of workplace policies is insufficient to protect employers from employee claims. If a workplace policy is not effectively communicated to staff, an employer may be found vicariously liable for the actions of its employees, even when the employer has no active role in the prohibited behaviour.
Retirement living and Supported Accommodation – GST on services supplied to residents
The Australian Tax Office (ATO) has released a Draft Addendum to a current GST Ruling (GSTR 2012/3) regarding the GST treatment of care services and accommodation in retirement villages and privately funded nursing homes and hostels.
Amendments to Private and Public Ancillary Fund Guidelines
The Private Ancillary Fund and Public Ancillary Fund Amendment Guidelines 2015 (amending guidelines) propose to amend the currentPrivate Ancillary Fund Guidelines 2009 and the Public Ancillary Fund Guidelines 2011 (together, the Guidelines), with the changes to apply from 1 July 2016. The Guidelines set minimum standards for the governance and conduct of ancillary funds and their trustees, breach of which can result in a revocation of charitable and/or concessional tax status. Therefore, trustees of ancillary funds need to familiarise themselves with these changes.
National Innovation and Science Agenda – Culture and Capital
As part of the Federal Government’s focus on culture and capital in its recent release of the National Innovation and Science Agenda, some of the changes proposed include:
New Retirement Village Legislative Changes
There have been some recent legislative changes governing the operation of retirement villages.
The Retirement Villages (Records and Notices) Regulations 2015 take effect from 12 December 2015 and revoke the previous sets of regulations.
Sunday Rates should be Reduced – Recommendations from the Productivity Commission
The Final Report by the Productivity Commission (PC) was released today. As expected, the PC did not recommend a complete overhaul of the workplace relations system.
Religious tolerance and planning decision-making: the Bendigo Mosque case comes to an end with important consequences for planning decision making
In a widely expected outcome, the Court of Appeal yesterday refused leave to appeal against the orders of the Victorian Civil and Administrative Tribunal in Hoskin v Greater Bendigo City Council, commonly known as Bendigo Mosque case.
Employment, Industrial Relations & OHS - Christmas Essentials
To help you navigate you through the silly season, the Employment, Industrial Relations & OHS team bring you this short yet comprehensive guide, Christmas Essentials.
Recognising objectors – early guidance on demonstrating a significant social effect
In the lead up to the 2014 State election, the (then) Labor opposition promised to introduce legislation concerning the weight to be given to the number of objections received in respect of a planning permit application.