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Family Business

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

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.

New powers of attorney

New powers of attorney

From 1 September 2015, new powers of attorneys will come into effect in Victoria.

Small business update: Good news for small business

Small business update: Good news for small business

There have been a number of legal developments in the small business sector which should be welcomed as wins for small business operators.  This alert provides a summary of three of those developments that are particularly relevant following the Australian Competition and Consumer Commission’s release of its Small Business in Focus report for the six months to June 2015.

Federal Budget 2015: Small Business and Startups

Federal Budget 2015: Small Business and Startups

The Federal Government has announced as part of its 2015 Federal Budget, a $5.5 billion package for business which is aimed to encourage entrepreneurship, growth and the creation of jobs. Small Business, being entities that that have an annual turnover of less than $2 million, make up 90 percent of incorporated business and have been the winners in the 2015 Budget. 

Family Court rules on 'special contributions to a relationship'

Family Court rules on 'special contributions to a relationship'

In a recent appeal to the Family Court, it was determined that there is no binding rule for determining “special contributions” to a relationship. The Court decided that a wealthy couple should share their assets equally, despite the husband claiming that his special skills meant that he should have 70% of the assets.

Powers of Attorney (financial) – Incapacity of Directors

Powers of Attorney (financial) – Incapacity of Directors

If you are a director of a company and you lose capacity, the management and control of the family business may be significantly affected. Simply having an Enduring Financial Power of Attorney (POA) is not a fix all solution that replaces proper succession planning.

New year's resolutions for family business

New year's resolutions for family business

Each New Year people make personal resolutions that more often than not are left unfulfilled and forgotten by the end of January. So perhaps this year rather than focusing on yourself, take the time to reflect on your family business and the goals which you would like to achieve.

New Twist To Bringing Family Property Proceedings

New Twist To Bringing Family Property Proceedings

In a recent case, the Plaintiff Donna Nolan separated from her husband and brought proceedings in the Supreme Court of Queensland separate to her proceedings in the Family Court.

How Can Family Business Meetings And Advisory Councils Help Your Business?

How Can Family Business Meetings And Advisory Councils Help Your Business?

Family Meetings

Many successful families in business hold at least one family meeting each year. Family meetings often have a formal business and social component, and a structured and unstructured component, and are frequently held in locations away from the normal environments of the family.

Introducing Family Business Hub

Introducing Family Business Hub

Family Business Hub has been established by Harwood Andrews as a specialist consulting service to provide advice, support and expert knowledge to families in business.

Federal Government Announces the Entrepreneurs' Infrastructure Programme

Federal Government Announces the Entrepreneurs' Infrastructure Programme

The Federal Government announced the establishment of the Entrepreneurs’ Infrastructure Programme (EIP), with funding of $484.2 million over 5 years. The objective of the EIP is to improve the business capabilities of Australian small to medium enterprises to make them more competitive on the world stage. 

Family Trusts - Structuring for Family Business

Family Trusts - Structuring for Family Business

When recommending a structure to conduct a business or hold an investment, advisors should consider a number of issues, primarily the income taxation consequences of the structure, the ability to access applicable capital gains tax reliefs upon a sale of a capital appreciating asset, the asset protection benefits of the recommended structure and how the structure works to ensure that control of the asset passes to the next generation upon death in a succession plan.  Legal and accounting advisors routinely recommend a discretionary trust structure for these purposes. However, it is important to highlight the difficulties that a discretionary trust structure poses in planning for succession and how those difficulties are best addressed.