Sladen Legal is delighted to announce the appointments of Leneen Forde and Louise Houlihan (formerly partners of Cornwall Stodart Lawyers) as principals of the firm.

Louise is joined by senior associate, Jane O’Brien, and associate, Joanna Shields (also formerly of Cornwall Stodart Lawyers) and together they will strengthen Sladen Legal’s existing Employment, Industrial Relations and Occupational Health and Safety team.

Leneen has joined the existing litigation group and new recruit, Lawyer, Andrew Blyth, forming Sladen Legal’s new Commercial Disputes team.

This article was written by Renuka Somers for the Tax Institute’s Journal, Taxation in Australia, published in November 2014.

It discusses some of the taxation and trusts issues encountered when structuring family law settlements. Managing these issues appropriately through careful planning and the preparation of appropriate documentation can ensure the best financial and taxation outcome for clients.

The Australian Taxation Office (ATO) has set out its view in ATO Interpretative Decisions, ATO ID 2015/2 and ATO ID 2015/3 that the superannuation laws and tax laws prohibit superannuation death benefits from being paid by mere journal entries.

In the ATO IDs, the taxpayer/beneficiary and self managed superannuation fund (SMSF) trustee wished to effect the death benefit to the beneficiary by the transfer of money from the deceased member's account, to the beneficiary's own account in the SMSF by way of journal entry (to save on transactions costs). The ATO noted that set offs can occur in a superannuation context, but that there needs to be “mutual liabilities between the taxpayer and the SMSF and there is an agreement between those parties to set-off the liabilities”. Here, the ATO found there was “not a mutual liability in this case as the taxpayer does not have a liability to the SMSF”.

Self-managed superannuation funds1 (SMSFs) have been carrying on property development activities ever since they came into existence. Such activities are either done directly by the SMSF or more commonly through a structure (typically, a trust). Yet, despite this, there is still a common concern that such activities will cause the SMSF to become non-complying, or subject to penalties, on the basis that such activities, and in particular undertaking a property development business, are prohibited

This article was written by Renuka Somers for the Tax Institute’s Journal, “Taxation in Australia”, and published in April 2014.

This article discusses the complexity associated with a trust satisfying the maximum net asset value test for the purposes of accessing the capital gains tax (CGT) small business concessions, where it is unclear whether an unpaid present entitlement would be classified as a liability relating to the CGT assets of the trust.

People are generally aware of the risk of personal liability as a director. For example, directors can find themselves personally liable for debts to employees, for tax debts and penalties owed to the Australian Tax Office or for breaches of The Corporations Act 2001 ("the Act").

However, the Act itself provides little guidance or limitation in defining who is a director. A director may be anyone who acts in a position of a director, or someone who gives instructions or expresses wishes and the directors of the company are accustomed to act in accordance with those instructions or wishes. The result is that a trusted company advisor can, unwittingly, become liable as if they were a formally-appointed director.

The Full Bench of the Fair Work Commission (FWC) has handed down an important interpretive decision concerning when a worker is bullied “at work”, for the purposes of the workplace bullying provisions under the Fair Work Act 2009 (the Act).

Current working practices now shadow the traditional workplace model, through increased mobility, work done outside of normal hours and the prevalence of social media.  As a result, in recent years courts have been required to make findings about what performing work now looks like in the modern era.

Sladen Legal has conducted a major review of our self managed superannuation fund (SMSF) documents including the SMSF deed, the SMSF deed update and the SMSF pension agreements. We are pleased to announce our new SMSF corporate trustee stakeholders agreement.

Treasury has released a draft bill to enact a “look through” approach to apply to limited recourse borrowing arrangements (LRBAs) for income tax and capital gains tax (CGT) purposes, with effect from 1 July 2007. Under a LRBA the asset must be held by the trustee of a separate trust (referred to below as a bare trustee). This has raised a number of issues in relation to how the tax laws interact with the holding of the asset, the super fund and the bare trustee.

From 1 January 2010, thousands of state and federal awards were subsumed into 122 modern awards as part of an award simplification process. To allow employers and employees time to adjust, many modern awards contained transitional provisions, allowing employers to phase-in new modern award entitlements over a period of time, including payments in relation to minimum wages, piece work rates, casual or part-time loadings, shift allowances and penalties payable for work done on Saturday, Sunday and public holidays. There were also transitional provisions in relation to accident make-up pay, district allowances, and higher redundancy pay.

Two Federal Court decisions from 2014, DCT v Lyons and DCT v Graham Family Superannuation Pty Ltd have demonstrated the Court’s relatively lenient approach to applying penalties under the Superannuation Industry (Supervision) Act 1993 (SIS Act) for cases involving multiple numbers of very serious breaches.