The costs agreements and retainer instructions have been updated to reflect changes to the Supreme Court filing fees.
The commentary was updated to include an expanded discussion about employment agreements and the handling of employee entitlements when a business changes hands.
A new ‘tear off’ assets and liabilities list has been added to the retainer instructions Wills, powers of attorney precedent. This list may assist clients when they wish to provide more detail in their planning, as well retained by the client with their personal documents.
The commentary and precedents in this publication have been updated to reflect changes to indexed amounts
From 1 July 2017:
- exemption of transfer duty for transfers between spouses is only available for principal place of residence. Transfers following breakdown of relationship are unchanged and the exemption continues to apply to all properties.
- off-the-plan duty concession is restricted to properties acquired by owner/occupiers who are eligible for the principal place of residence or first home buyer duty concessions.
- First Home Buyers:
- Who purchase a property to the value of $600,000 will pay no duty, with concessions available for properties between $600,000 and $750,000.
- Who purchase in regional Victoria a new home to the value of $750,000 may apply for the First Home Owner Grant of $20,000. Criteria includes the property must be the applicant’s principal place of residence for a continuous period of 12 months, moving in within 12 months of completion.
- From 27 June 2017 Australian Defence Force personnel enrolled to vote in Victoria on duty or on leave are exempt from the residence requirement for the First Home Owner Grant.
From 1 January 2018, vacant residential properties in the inner and middle ring of Melbourne will be subject to a vacant residential land tax of 1 per cent of the property’s capital improved value. A property will be considered vacant if it is unoccupied for six months or more in a calendar year. The six months does not need to be continuous. There are exemptions for many properties including for vacant land.
For contracts entered into on or after 1 July 2017 the new foreign resident capital gains withholding (FRCGW) rate and threshold will apply to:
- real property disposals where the contract price is $750,000 and above (currently $2 million); and
- the FRCGW withholding tax rate will be 12.5% (currently 10%).
All precedents and commentaries were updated to reflect these changes.
New Commentary. Challenging a will questions its validity. Contesting a will questions the fairness of its provisions. The circumstances and processes when challenging a will are similar across all the states in legislation and in the common law principles that govern this interesting area of the law. This addition to commentary covers helpful tips for practitioners if they are faced with a client wishing to challenge the validity of a will.
On 1st May 2017 the Powers of Attorney Amendment Act 2016 and Powers of Attorney Amendment Regulations 2017 came into operation. The Act clarified a number of ‘operational’ matters, discussed below and in the article Powers of Attorney – Evolution. The regulations substituted the majority of prescribed forms
Early Alert – Foreign Resident Capital Gains Withholding Payment
It is proposed that from 1 July 2017 the regime will apply to all real property with a market value of $750,000 or above. Once the bill is law this alert, the commentary and precedents will be updated.
FROM 1 JULY 2017 Concessional Contributions Cap for superannuation reduced to $25,000 for all ages. Before-tax contributions include compulsory employer contributions and salary sacrifice arrangements. Contributions greater than $25,000 from before-tax income may mean payment of extra tax.