Legal Insights
ATO’s 2017/18 areas of focus for SMSFs
At the SMSF National Conference we heard James O’Halloran, Deputy Commissioner of Superannuation give a speech outlining the areas of focus for the balance of the financial year. The speech confirmed that a key component of the ATO is education to prevent breaches before they occur, especially in light of the recent superannuation reforms, but with some specific enforcement priorities.
Succession planning is planning to succeed
In 2017, the Gforce Group (incorporating People@Work) commissioned a research project to understand trends within workplaces in Geelong, with information collected through interviews with human resources representatives from medium to large organisations.
The weakness of a connected business
All businesses increasingly rely on other service providers to deliver their products and services, and even a small business will have a surprisingly large supply chain made of many large and small suppliers (who of course have many of their own suppliers).
Uber drivers and employment rights
In a Fair Work Commission hearing in December 2017, Deputy President Val Gostencnik found that under Australian law, Uber drivers are independent contractors, and therefore ineligible for unfair dismissal protection.
SMSF - inhouse asset rules and sole purpose test reviewed
The court in Aussiegolfa v FCT has recently examined the in-house asset rules (s62) and sole purpose test (s71) of the Superannuation Industry Supervision Act 1993 (Cth) (SISA).
10 legal tips every small business owner should know
Not every small business owner has the time to think through legal issues that could make or break their business. However, there are some important legal tips that every business owner should be aware of to avoid time consuming and expensive issues down the track. To assist the time poor, we have put together 10 legal tips to help small business mitigate business risk and achieve their commercial goals .
Crowd-sourced equity funding: First steps
Equity crowd funding has taken some first, tentative practical steps. The new crowd-sourced funding (CSF) regime that started at the end of October 2017 - designed to reduce costs and red-tape for start-ups and SMEs looking to raise capital from a large number of small investors – is still being tweaked, as proprietary companies were excluded from eligibility. This will be rectified with a bill currently before the Parliament.
Fairness and good business: a year of Unfair Terms
It’s been over a year since the Australian Consumer Law provided that terms that are ‘unfair’ in new or renewed consumer and small business contracts could be deemed void and unenforceable.
Advisors: don’t cut corners on death nomination forms
The Australian Securities & Investments Commission (ASIC) has released a media release warning the financial advice sector about the consequences of binding death benefit nominations (BDBNs) not being signed and witnessed correctly.
SMSF – extended time for annual returns this year
In a move welcomed by SMSF trustees (and their advisors!) the ATO has announced the extension of the lodgment date for self managed superannuation fund (SMSF) annual returns for the 2016/17 year to 30 June 2018. The ATO has confirmed that because 30 June 2018 falls on a Saturday, lodgment can occur on Monday 2 July 2018 without penalties.
The “sting-in-tail” of overseas luxuries
Do you own a unit in Noosa, a villa in Tuscany, or a ski-lodge in Japan, or hanker for such luxuries?
It is increasingly common for people to own assets in other states or other countries. This can create complications for their wills and estates.
Ultimate Consumer Test - Broad Definition of Retail Leases confirmed in Victoria
A broad interpretation of the definition of a retail lease in Victoria has again been supported by the courts. Section 4(1) of the Retail Leases Act 2003 (Vic) (RLA) defines 'retail premises' to include 'the sale or hire of goods by retail or the retail provision of services' but does not further define these terms.
Prepare now for data breach notification
Cyber security experts counsel us that it’s a matter of when, not if your data will be compromised in some way either maliciously or by accident. The opportunity for personal information to be lost only increases as businesses store greater and greater amounts of electronic information and outsource marketing, HR and operational activities to third parties without considering how they will protect information entrusted to them.
Travelling overseas – got your estate plan in place?
We are well and truly on the countdown to Christmas and the end of year. Holidays are just around the corner and many people will be travelling overseas for their holidays.
What is “market value” for the purpose of the MNAV test
In Commissioner of Taxation v Miley, the Federal Court overturned a decision of the Administrative Appeals Tribunal (AAT) concerning the method for valuing shares in applying the maximum net asset value (MNAV) test in s 152-15 of the Income Tax Assessment Act 1997.
Snap, snap – the Lions are bitten by Commissioner regarding use of image rights
In the growing world of online marketing, and with the increased public profile and popularity of our athletes, there is increased value and interest in the name and image of professional sportspeople.
Court Rules On Private Rulings Involving Assumptions About Future Events
The recent case of FCT v Hacon illustrates the practical difficulties in obtaining a private ruling that depends on assumptions about future events - in particular, in the context of the application of the anti-avoidance provisions in Part IVA of the Income Tax Assessment Act 1936.
New GST withholding regime for purchasers of new residential premises and new subdivisions of potential residential land
From 1 July 2018 purchasers of new residential premises or of new subdivisions of potential residential land that are taxable supplies will be required to pay 1/11th of the purchase price directly to the Australian Taxation Office (ATO) at settlement, if the exposure draft legislation released by the Government on 6 November 2017 passes in its current form. Subject to limited exceptions under proposed transitional rules, the new GST withholding obligation will apply even if a vendor applies the GST margin scheme.
High price for assisting others to contravene the Fair Work Act
In May 2017, the Federal Circuit Court (FCC) found the accountant’s client, the operator of a Japanese restaurant chain in Melbourne, underpaid its workers and thereby contravened the Fair Work Act. Critically though, the judge found the accounting firm, which provided the restaurant with book-keeping services, knew its client underpaid its employees and had ‘deliberately shut its eye as to what was going on’.
Eligibility for the lower company tax rate and access to imputation credits clarified
Uncertainty had arisen earlier this year as to whether companies with passive investments (including ‘bucket’ companies) would be eligible for the lower company tax rate of 27.5% based on the requirement in section 23AA of the Income Tax Rates Act 1986 that they were “carrying on a business.”