Sladen Snippet – “Look through” Bill released for limited recourse borrowing arrangements
The Government has released the Tax and Superannuation Laws Amendment (2015 Measures No. 2) Bill 2015 which, if passed in its current form, will provide for “look through” tax treatment for trusts set up for limited recourse borrowing arrangements (LRBA).
In effect, this means that, from a tax law perspective (except for certain limited exceptions), the asset of the LRBA trust will be deemed to be held by the super fund and the actions of the trustee of the LRBA trust in relation to the asset will be deemed to be the actions of the trustee of the super fund. This will reduce adverse tax consequences (eg capital gains tax on collapsing the trust, losses being trapped in the trust and difficulties of passing franking credits) and result in a reduction to tax administration (eg the trust will not require a TFN or be required to prepare a tax return). It also means that, from a tax law perspective, super funds no longer need a bare trust for a LRBA in order to achieve a look through approach.
Director’s breach of fiduciary duties results in a clawback of super contributions
In April 2015, an article written by Sladen Legal's Phil Broderick and Melissa Brazzale, was published in the Tax Institute’s Journal, Taxation in Australia.
This article addresses the need for directors of corporate trustees to beware, as breaches of their fiduciary duties can result in amounts taken out of the trust, including super contributions, being clawed back.
Sladen Snippet – The Segelov decision: trustee not under a duty to notify discretionary objects of their entitlements
The New South Wales Court of Appeal adopted a traditional and technical approach to the interpretation of the terms of a trust deed when dismissing an appeal in the decision in Segelov v Ernst & Young Services Pty Ltd.
Sladen snippet - Turning 55 in 2015/16? You can’t access your super until you turn 56
For super purposes, turning 55 has traditionally been the year in which you start to access your benefits (for example under a transition to retirement income stream (TRIS)). However, with the auto-rise of the preservation age coming into effect, as of 1 July 2015, persons turning 55 in the 2015/16 year will have to wait until they turn 56 (ie in the 2016/17 year).
Sladen Legal presents at the Tax Institute's Trusts & Estates Forum
The attached presentation was delivered by Sladen Legal’s Rob Jeremiah and Phil Broderick at the Tax Institute’s Trusts & Estates Club on 17 June, 2015.
In this presentation, Rob discussed “Beneficial interests” in and “beneficial ownership” of trust property – trustees, trusts and beneficiaries, while Phil addressed issues about Superannuation and insurance – the good, the bad and the ugly.
Sladen Snippet - SMSF trust deeds must be QROPS compliant to receive UK pension transfers
Newly introduced UK regulations impose additional conditions on SMSFs that are registered, or will be registered as Qualifying Overseas Pension Scheme (QROPS). The new regulations broadly require that in order to be treated as, or continue to be treated as, a QROPS, the relevant SMSF’s deed must now contain provisions that prevents members from accessing benefits prior to age 55, unless they retire as a result of ill health under the UK laws.
The importance of dealing with statutory demands in a timely manner
When served with a statutory demand a company has 21 days to pay the debt, negotiate an outcome or apply to have the statutory demand set aside. Upon the expiration of 21 days the company is deemed insolvent and an application can be made to wind it up.
Following this expiration date, the company cannot make an application to set aside the statutory demand, even if it has grounds to do so. Instead, it has to oppose the winding up application if it is to avoid being wound up. The most common ground for setting aside a statutory demand is that the debt is in dispute.
Do I own the trade mark if I buy the business?
Use our online trade mark search tools to ensure it is not already registered.
If you are purchasing a business and want to use the existing brand, it’s important to ensure the brand is available for use and sale. It may not automatically come with the acquisition of
business assets.
This happened to poor Mr Carroll who purchased a pallet racking, shelving and storage solutions business from the Griffiths in Queensland in 2009, called Rack’N Stack*. Unbeknown to Mr Carroll, the Griffiths had already sold the Rack’N Stack business to someone else in 2008. Under the original sale, the Griffiths retained a limited licence to trade in an agreed geographical location. Mr Carroll was unaware of this until he tried to register the trade mark Rack’N Stack and found out that the purchaser of the business in 2008 had already registered it as a trade mark in Australia. This registration was cited against Mr Carroll’s application, and the owners also opposed the registration of Mr Carroll’s Rack’N Stack trade mark.
Sladen Snippet - Minimum wage to rise 2.5%
Yesterday, the Fair Work Commission handed down its Annual Wage Review decision.
From 1 July 2015, the national minimum wage will be increased by 2.5% (equating to an increase of $16 per week) and the new weekly minimum wage will be $656.90 (or $17.29 an hour) .
Modern award rates will also be increased by 2.5% from 1 July.
Sladen Snippet – Safe Work Health and Safety Statistics
Safe Work Australia has released key statistics on work-related injuries, diseases and fatalities. While the report shows a downward trend in both worker fatalities and in the rates of serious injury over the period 2003 to 2013, the total number of serious workers’ compensation claims (117,815 in 2012-13) and worker fatalities (196 in 2013) are significant.