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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

In an previous article discussing the ACCC’s enforcement priorities for 2024-25, we noted that the Australian Competition and Consumer Commission (ACCC) has continued to monitor strict compliance with small business codes of conduct, including the Franchising Code of Conduct (Franchising Code).

 

In particular, the ACCC had pursued UltraTune, for contempt of Court when Ultratune failed to comply with orders made by the court requiring Ultratune to take specific actions. On 28 January 2025, UltraTune’s appeal was dismissed by the Full Federal Court.

 

UltraTune’s story serves as an important reminder to ensure active monitoring of business’ compliance with all the obligations including those imposed on them by the law or court order and those that they might voluntarily agree to undertake.

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Sladen Snippet - Division 296 tax, the proposed new $3 million super fund tax on unrealised gains, still not law

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Sladen Snippet - Division 296 tax, the proposed new $3 million super fund tax on unrealised gains, still not law

Division 296 tax, the proposed new $3 million super fund tax on unrealised gains, did not pass in the Senate yesterday, 13 February 2025.

Division 296, if passed, would impose an additional 15% tax on members with a $3 million or more total super balance (not indexed).

Division 296 is now unlikely to be put to the Senate before an election, and is expected to become a key election issue.

#division296 #$3million #unrealisedgains

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Navigating a Restructure Under the Corporations Act: Protection Against Contractual Rights to Help Your Business Get Back on Track

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Navigating a Restructure Under the Corporations Act: Protection Against Contractual Rights to Help Your Business Get Back on Track

If your business is restructuring, contractual rights triggered solely by the restructure or financial distress may be rendered unenforceable under section 454N of the Corporations Act 2001 (Cth). This statutory protection can help a business stabilise and continue trading through difficult times. This article reviews a recent case of Okami SA Newton Pty Ltd v Newton SC Pty Ltd which considered the operation of this section.

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Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

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Unequivocally exposed: Lessons learned from ASIC’s greenwashing case against Active Super

Active Super was found to have made false or misleading representations by using unequivocal language, and engaged in conduct liable to mislead the public in relation to investments it made.

The case provides further insights into the latest developments on ASIC’s ongoing greenwashing enforcement action.

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Does failure to make minimum pension payments really cause a super pension to cease?

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Does failure to make minimum pension payments really cause a super pension to cease?

Last year, the ATO has updated its ruling TR 2013/5 Income tax: when a superannuation income stream commences and ceases. This included that the ATO’s view that if a super pension ceases (eg because of failure to make minimum pension payments, that a new pension will not start until a new pension commences (eg via new pension documents).

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New ASIC Guidance on Insolvent Trading

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New ASIC Guidance on Insolvent Trading

On 6 December 2024, the Australian Securities & Investments Commission (ASIC) updated its Regulatory Guide: Duty to prevent insolvent trading: Guide for directors (RG 217).

The guide contains key principles intended to help directors comply with their duty to prevent insolvent trading and how to establish safe harbour protection through proactive monitoring and timely action.

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Mergers and Acquisitions Reform

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Mergers and Acquisitions Reform

2025 will see the biggest changes to Australia’s Mergers and Acquisitions regulatory landscape for a considerable time. On 10 December 2024, the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024 received Royal Assent resulting in a shift from a voluntary informal review scheme to a mandatory administrative review process. This is a clear statement to focus on protecting competition through merger control.

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Franchising Update: A Year in Review

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Franchising Update: A Year in Review

This article will looks back on some of the key developments that occurred in the franchising sector in 2024, offering a reminder of changes and developments that occurred and foreshadowing what franchise businesses can expect in this coming year.

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Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

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Green Screens: Vanguard’s Greenwashing Leads to $12.9 Million in Penalties

Last year, the Federal Court of Australia handed down its decision in Australian Securities Investment Commission v Vanguard [2024] FCA 308. This case serves as a reminder that business who are making sustainable investment claims must ensure that those claims are not misleading or deceptive in nature.

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From Green to Red: Lessons learned from ASIC’s landmark $11.3 million penalty imposed on Mercer Superannuation (Australia) Ltd

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From Green to Red: Lessons learned from ASIC’s landmark $11.3 million penalty imposed on Mercer Superannuation (Australia) Ltd

In ASIC’s first case against alleged greenwashing conduct, the court has ordered that Mercer Superannuation (Australia) Ltd pay a landmark $11.3 million penalty after it made misleading statements about sustainable and environmentally-friendly superannuation investment options marketed to its members.

Read on for key details of the case, and a breakdown of what your business can do to avoid greenwashing.

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Franchising Update: Key Changes to the Franchising Code for 2025

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Franchising Update: Key Changes to the Franchising Code for 2025

If you are a franchisor or a franchisee, it is important to be updated on the upcoming changes to the franchising Code of Conduct. The new Code contains a number of changes which will significantly increase the compliance burden and risk for the franchisors. The new Code is set to commence on 1 April 2025, franchisors may need to redraft the franchise agreements before that date to avoid penalties.

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PCG 2024/3 – the ATO’s practical approach to section 99B

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PCG 2024/3 – the ATO’s practical approach to section 99B

The ATO has finalised its practical compliance guidance Practical Compliance Guideline PCG 2024/3 (Guideline) to clarify how the ATO will apply its compliance resources in relation to the application of section 99B when Australian residents receive payments or benefits from non-resident trusts. The guideline outlines common scenarios, record-keeping expectations, and low-risk arrangements.

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Division 7A – new ATO guidance – section 109U, it’s not all about Bendel

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Division 7A – new ATO guidance – section 109U, it’s not all about Bendel

The Australian Taxation Office (ATO) recently issued two key updates that could affect private groups using guarantee-backed financial arrangements.

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Section 99B - TD 2024/9 – updates on the ATO’s guidance

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Section 99B - TD 2024/9 – updates on the ATO’s guidance

The ATO published Taxation Determination TD 2024/9, finalising its guidance on section 99B of the Income Tax Assessment Act 1936 and specifically on the relevant factors to be considered when applying paragraphs 99B(2)(a) and (b).

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Sladen Snippet - Proposed General and Specific Prohibitions On Unfair Trading Practices – Chance To Submit Your Views

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Sladen Snippet - Proposed General and Specific Prohibitions On Unfair Trading Practices – Chance To Submit Your Views

On 15 November 2024, the Treasury release a consultation paper on the design of proposed general and specific prohibitions on unfair trading practices. Options to amend the Australian Consumer Law will be considered and agreed in consultation with States and Territories.

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Senior Management liability for the conduct of a company business: Lessons from Productivity Partners Pty Ltd v ACCC

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Senior Management liability for the conduct of a company business: Lessons from Productivity Partners Pty Ltd v ACCC

The High Court deemed a tertiary college’s enrolment processes to be unconscionable for creating a risk of unsuitable student enrolment and found that  senior management may be held liable as accessories for the actions of the business if they were aware of the primary matters which made the conduct unreasonable. 

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Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views

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Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views

In November 2024, the Government introduced a consultation paper proposing the incorporation of a licensing regime for the franchising sector.

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Is your settlement payment unsettling you?

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Is your settlement payment unsettling you?

The income tax treatment of settlement payments received under an agreement depends on the circumstances surrounding the entering into of the agreement, not just the terms of the agreement.

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Can you Mislead or Deceive Someone if You Have Honestly Relied on Your Lawyers Advice? A Case Study on ASIC v Retail Employees Superannuation Pty Ltd

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Can you Mislead or Deceive Someone if You Have Honestly Relied on Your Lawyers Advice? A Case Study on ASIC v Retail Employees Superannuation Pty Ltd

The Federal Court of Australia’s judgment in ASIC v Retail Employees Superannuation Pty Ltd highlights that if a corporation honestly relies on advice from their lawyers that may provide reasonable grounds to defend the making of a representation that concerns the present state of affairs.

The Federal Court found that representations made by Retail Employees Superannuation Pty Ltd (REST) regarding their rules and practice were opinions expressed as to the law based on reasonable grounds due to reliance on advice received from their lawyers and other trusted sources. Therefore, the representations made could not amount to misleading or deceptive conduct.

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Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

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Why it is important to have disclaimers: a lesson learned from Mallonland Pty Ltd v Advanta Seeds Pty Ltd

The High Court of Australia’s judgment in Mallonland Pty Ltd & Anor v Advanta Seeds Pty Ltd [2024] HCA 25 emphasised the significance of incorporating clearly written disclaimers on your product’s packaging to limit your liability for pure economic loss claims in negligence.