Contrary to the Commissioner’s long-held view, the Full Federal Court has unanimously held that unpaid present entitlements owing to corporate beneficiaries are not loans under Div 7A.

A New South Wales case has opened up a risk of taxpayers to surcharge rates of stamp duty and land tax for residential land held in family trusts where badly drafted foreign person exclusion clauses have been used.  This may require a complete review of all trust deeds to ensure that additional stamp duty and land tax imposts are not incurred.

The Schaper report in December 2023 recommended further evaluation of the merits of replacing the Franchising Code of Conduct with a licensing regime. This recommendation arose after a submission to the review by the Australian Competition and Consumer Commission. Without detail of what a licensing regime may look like there is uncertainty about what any licensing regime may require. The recent case of ASIC v RAMS however provides an illustration of the effect a licensing regime may have on a franchisors. Click here to read more.

#franchising #licensing #franchisor_liability

The State Government has introduced a new bill to State Parliament to implement changes from the 2025-2026 Victorian State Budget.  Despite a promise of no new taxes or increased taxes, a new 50% penalty tax rate allows the State Revenue to impose higher penalties if it considers a taxpayer or their adviser has been “reckless”.

Before concluding that you have a family trust distribution tax liability, have you considered whether the trustee of the family trust has complied with the trust deed?

The language used in a contract can significantly impact its enforceability. Reliance on the incorporation of an obligation to act in good faith will not necessarily result in an outcome sought. This was considered in the recent Supreme Court decision in Beecham Motors Pty Ltd v General Motors Holden Australia NSC Pty Ltd, which provides guidance for those with or considering a franchise agreement and the drafters of franchise agreements. #franchise_agreements #good_faith #franchisee_group_action

The 2025-2026 Victorian State Budget contains no new taxes or increased taxes, however previously announced changes have been confirmed – including increases to the congestion/car parking levy and the Emergency Services and Volunteers Fund levy.

Sladen Legal is delighted to have been identified by clients and peers for expertise and abilities in the 2024 listing of recommended Victorian Property & Real Estate Law Firms - Victoria, 2025

On 6 March 2025, Associate Justice Barrett handed down his decision in the matter of Duke Ventures Wellington Street Pty Ltd [2025] VSC 75. In this case, the Court clarified when a debtor can rely on an offsetting claim to set aside a statutory demand in a dispute adjudicated under the Building and Construction Industry Security of Payment Act 2002 (Vic) (SOPA).

#insolvency #statuory_demand  #creditors #securityforpayments

Our recent article on the proposed Division 296 tax has sparked some discussions, particularly as to whether benefits should be taken out and, if so, when they should be taken out.

With the recent Labor election victory, and a potentially friendlier Senate, it is likely that the proposed Division 296 tax of an additional 15% on members with a $3 million or more total super balance (not indexed) will be enacted. See here for our previous commentary on the measure.