New Commercial and Industrial Property Tax Takes Effect From 1 July 2024 –Key FAQs

New Commercial and Industrial Property Tax Takes Effect From 1 July 2024 –Key FAQs

The new Commercial and Industrial Property Tax reform that progressively abolishes stamp duty on relevant transactions from 1 July 2024 is one of the most significant Victorian property tax reforms in the past 30 years and will impact anyone looking to buy or sell commercial or industrial property.

Sladen Legal Announces Promotions of Two New Shareholder Principals and Two Principal Lawyers

Sladen Legal Announces Promotions of Two New Shareholder Principals and Two Principal Lawyers

Sladen Legal is pleased to announce the promotion of two outstanding lawyers to the position of Shareholder Principal: Edward Skilton and Neil Brydges effective 1 July 2024. This promotion recognises their exceptional legal expertise, dedication to client service, and significant contributions to the firm's success.

Sladen Snippet – NALE changes pass parliament

Sladen Snippet – NALE changes pass parliament

After a number of years in the making, the changes to the non-arm’s length expenses (NALE) rules have now passed through Parliament. While, as previously noted, the changes did not go far enough for many of the tax industry, and accounting bodies, the changes offer some relief to taxpayers.

Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

Water Pipeline Subject To Duty As “Goods” For The Purpose Of The New South Wales Landholder Duty Provisions in Conexa Syndey Holdings

On 24 May 2024 the New South Wales Supreme Court held that landholder duty applied to value of a water carrying pipeline in Conexa Sydney Holdings Pty Ltd v Chief Commissioner of State Revenue (2024] NSWSC 628.

Details Needed To Pursue Insolvent Trading Claims - Copeland as Liquidator of Skyworkers Pty Ltd (In Liq)) v Murace

Details Needed To Pursue Insolvent Trading Claims - Copeland as Liquidator of Skyworkers Pty Ltd (In Liq)) v Murace

On 18 January 2023 the Federal Court of Australia handed down its decision in Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14. The decision resulted in Liquidator’s insolvent trading claim against Mr Murace being struck out and costs awarded to the defendant, although the liquidator was then allowed to file a further statement of claim.

Determining Insolvency and Unreasonable Director Related Transactions: Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq)

Determining Insolvency and Unreasonable Director Related Transactions: Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq)

Guidance has been provided to liquidators by the Federal Court of Australia in Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq) v Mandalinic (No 2) regarding the analysis of financial records required to determine the solvency of a company and what conduct of a director will constitute an unreasonable director related transaction.

Proving Insolvency: Re Clarinda Pty Ltd (in liq)

Proving Insolvency: Re Clarinda Pty Ltd (in liq)

In Re Clarinda (liq) [2023] VSC 109, parties sought the leave of the Court to use documents produced in an earlier proceeding to demonstrate the insolvency of the company. Justice Connock ultimately allowed the documents to be reproduced on the basis that the issues in dispute are the same, or substantially the same, and set out the special circumstances which substantiate this reproduction.

New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

New South Wales State Budget 2024-25 – Increase to foreign surcharges and payroll tax relief for GP contractors

The New South Wales State Budget 2024-25 is a mixed bag, containing an increase to foreign surcharges, but also payroll tax relief for GP contractors. The tax-free threshold for land tax will also remain the same, so more landowners will be subject to land tax as property values rise.

Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.

Sladen Snippet – Merristock – primary production exemption applies as trust can beneficially own shares

Sladen Snippet – Merristock – primary production exemption applies as trust can beneficially own shares

In a case run by Sladen Legal, Merristock Pty Ltd v Commissioner of State Revenue (Review and Regulation) [2024] VCAT 535, the taxpayer has successfully appealed against a Victorian State Revenue Office (SRO) determination that land owned by the taxpayer was not eligible for the primary production land tax exemption.

Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

Godolphin case: High Court decision considers the “dominant use” test under the NSW land tax primary production exemption

The High Court has dismissed an appeal by Godolphin Australia Pty Ltd (Godolphin) and confirmed that it cannot claim the primary production land tax exemption, as it was unable to show that the “dominant use” of its properties was for primary production where it also had substantial horseracing activities.  The decision illustrates the issues that can arise when primary production land is used as part of business models that include other interrelated activities.

GP Tax – Payroll tax changes flagged in Victoria

GP Tax – Payroll tax changes flagged in Victoria

In a major backdown, the Victorian State Government has agreed to reduce some of the impact of the recent policy shifts towards taxing general practitioners as employees for payroll tax purposes.

Discrimination & Art: The ‘Ladies Lounge’ Legal Challenge

Discrimination & Art: The ‘Ladies Lounge’ Legal Challenge

The recent case of Lau v Moorilla Estate Pty Ltd [2024] TASCAT 58 revolved around a conflict between an artwork, specifically designed to be discriminatory for artistic purposes, and the provisions of the Anti-Discrimination Act 1998 (Tas) (the Act).

Restructuring – To Roll Or Not To Roll?

Restructuring – To Roll Or Not To Roll?

In the current economic landscape, business owners may be considering a restructure, merger, or demerger to adapt, survive, or enable growth. A change in the structure of a business typically involves either the transfer of ownership interests in the entire business or of specific assets of the business.

Trust Vesting: The Tax Implications

Trust Vesting: The Tax Implications

1. The High Court has described the trust as a “…creature of equity…” subject to the jurisdiction of a court of equity. The essential feature of every trust is that one person is an owner of property, but is bound to use their position as owner for the benefit of another or for the advancement of a purpose.