RSS Feed

In Check Issue 42 (April 2009)

In this issueDownload this issue of InCheck
Growth Areas Infrastructure Contribution – Retrospective tax on urban growth land Beware!
Pay trust money to the right person
In Check will be available in hard copy
Family Law Changes
Water Hotline reminder
Personal Property Securities reform
Reduced Premium Statutory 

 

Growth Areas Infrastructure Contribution – Retrospective tax on urban growth land Beware!

On 2 December 2008 the Victorian government announced that a new growth area infrastructure contribution will apply to land, that is zoned for development (usually
land zoned Urban Growth Zone or equivalent), and is situated in two areas, namely:

The contribution will be payable only once. It will be incurred when the first transaction occurs in relation to the property after 2 December 2008; usually where the land is sold or subdivided or a building permit for major building works is issued. The vendor of the property, in the case of a sale, or the owner, in the case of subdivision or building works, will be liable to pay the contribution. Various exemptions do apply. The charge will be between $80,000 and $95,000 per hectare. Practitioners should be aware that any dealings with the relevant land now may incur the contribution charge once the legislation is passed later this year. It is, in effect, a retrospective charge. More information can be obtained from the Growth Areas Authority’s website at www.gaa.vic.gov.au, in particular practitioners are referred to the Growth Areas Infrastructure Contribution Information Sheet on this website.

 

Pay trust money to the right person

We have had several claims where practitioners have released money held on trust in a manner that was later said to be contrary to the terms of the trust. This can occur
because the practitioner:

While it may seem obvious, practitioners are reminded that money held on trust must be dealt with in accordance with the terms on which it was accepted. If it was agreed that the money would be placed in a joint interest-bearing account in the names of both parties then that is what must happen to the money. The practitioner who holds the money is responsible for seeing that it happens. The terms of the trust should always be revisited before any money is paid out.

Where the parties cannot agree on how the money is to be paid out and the terms of the trust do not squarely deal with the situation, the practitioner should not just “take a punt” and pay it to their client or the party who is loudest! The Supreme Court (General Civil Procedure) Rules 2005, rule 12 sets out a procedure for a stakeholder’s interpleader. Practitioners are urged to pursue this procedure where it is available.

 

In Check will be available in hard copy

Due to the response we received from practitioners who preferred to receive In Check in hard copy and the limited number of practitioners who signed up to receive it in electronic format the decision has been made to continue to send the newsletter in paper form to those who have not registered for the electronic format for the time being. We thank all those practitioners who have registered and who gave us the encouraging feedback about how much they value receiving and reading In Check each quarter. If however, you would like to have it emailed to you and have not yet got around to registering, here is what you do:

There is no charge to subscribe and you can unsubscribe at any time.

 

Family Law Changes

The Family Law Amendment (De Facto Financial Matters and Other Measures) Act 2008 (Cth) (‘the Act”) received Royal Assent on 21 November 2008 but came into full operation on 1 March 2009. 

In broad terms, the amendments give both opposite-sex and same-sex de facto couples access to the family law courts in relation to property and maintenance disputes. Where the Family Law Act 1975 applies, the Victorian Relationships Act 2008 will be excluded. The relationship must have broken down after the commencement of the Act in order to come within its provisions. However, transitional provisions allow the parties to choose to use the Family Court system where their relationship broke down before 1 March 2009, provided certain conditions are met. The conditions include a requirement that both parties must consent in writing after receiving independent legal advice. The legal advice must be as to the “advantages and disadvantages, at the time that the advice was provided, to the party of making the choice”. The practitioner must sign a statement stating this advice was given. (See item 86A Schedule 1 Part 2 of the Act). 

Practitioners should note that the County Court Interim Practice Note issued 15 December 2008 stated that any proceedings filed in the County Court pursuant to the Victorian Act on or after 1 December 2008 and before 1 March 2009 will remain in the County Court subject to any entitlements of the parties to have the proceeding transferred to the Family Court.

Practitioners practising in the area are urged to come to terms with the Commonwealth legislation and its interplay with the Victorian legislation. There is an information sheet at www.familyrelationships.gov.au entitled "Property division when de facto relationships break down – new Commonwealth law for separating de facto couples"

 

Water Hotline reminder

In December last year we sent to practitioners a bulletin on water unbundling describing the complexities of the issues now faced when dealing with rural water. A copy of the bulletin is available on
our website at www.lplc.com.au.

The bulletin also announced that in order to support practitioners the LPLC has set up a water hotline. Practitioners (with client-related questions) can phone or email or fax their queries to us and we will provide an answer or refer you to one of our experts on our water panel for specialist advice. The first half an hour of our expert’s time will be funded by the LPLC.

Ph: 9672 3800
Fax: 9670 5538
Email: heather@lplc.com.au
Mondays to Wednesdays
alexmac@lplc.com.au
Thursdays and Fridays

 

Personal Property Securities reform

The Senate Committee inquiring into the Exposure Draft of the Commonwealth Personal Property Securities Bill reported back on 19 March with the following recommendations:

The Bill aims to make personal property a more accessible and cost effective as a form of security.

 

Reduced Premium Statutory

Declaration deadline Practitioners who wish to apply for a reduced premium in the 09/10 year due to gross income below $75,000 should note that unless the statutory declarations as to gross fees for the 08/09 year which were sent to practitioners in January are received by Wednesday 22 April, practitioners will be required to pay the full premium.