ByLawyers News and Updates

Priority Property Pool – FED

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From 30 October 2023, under a new Federal Circuit and Family Court of Australia practice direction, special procedures apply for property matters that qualify as Priority Property Pool (PPP) Cases.

Some registries of the FCFCOA have operated special arrangements under the PPP500 pilot since February 2020. The arrangements will now apply to proceedings in all registries.

Priority Property Pool Cases are those where the net value of the asset pool is, or appears to be, less than $550,000 excluding superannuation interests, or not significantly greater and the court considers it appropriate to include the matter as a PPP case.

Previously, under the pilot program, the cap was $500,000.

Priority property Pool cases can include matters involving applications for property settlement, spouse maintenance, or urgent spouse maintenance.

Cases will not qualify as a PPP Case if:

  1. they involve entities such as a family trust, company, or self-managed superannuation fund the value of which is contested and requires valuation or expert investigation,
  2. only parenting orders are sought,
  3. both parenting and financial orders are sought, or
  4. child support is the issue.

The new Family Law Practice Direction – Priority Property Pool Cases applies. It revokes and replaces the previous Family Law Practice Direction Priority Property Pools Under $500,000, and must be read in conjunction with:

PPP Cases proceed differently to standard cases. The Guide for practitioners in PPP Cases sets out the applicable procedure. Important differences from standard case procedures include:

  • At each court date the parties’ lawyers must inform the judicial registrar of the costs their client has incurred to date, their estimated costs to the conclusion of a final hearing, and the source of the funding for representation.
  • Adjournments are discouraged and will be granted only in exceptional circumstances.

The By Lawyers Family Law Property Settlement publication has been updated accordingly.

Specialist Family Violence List – NSW

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A Specialist Family Violence List operates in some Local Court locations from 25 September 2023.

The Specialist Family Violence List Pilot Practice Note applies in the Downing Centre Local Court, Blacktown Local Court, Newcastle Local Court, Gunnedah circuit, excluding Tamworth, and Moree circuit. The list may operate at other local courts at the Chief Magistrate’s direction.

The practice note applies to all family violence related proceedings listed at those locations, which include:

  • All domestic violence offences, including breaches of Apprehended Domestic Violence Orders (ADVOs);
  • All applications for ADVOs, whether commenced by police or privately;
  • Family law applications if ancillary to an ADVO application.

Apprehended Personal Violence Orders and personal violence offences that are not domestic violence offences under s 11 of the Crimes (Domestic and Personal Violence) Act 2007 are excluded.

Eligible matters will automatically be placed in the list. Charges and related AVOs will be listed together and remain together as they progress.

There are different procedures for standalone ADVO proceedings and those with related criminal charges.

Lapsing interim order

The practice note provides that the court can deal with standalone ADVO matters in the Specialised Family Violence list by imposing a lapsing interim order (LIO). This is an alternative to a final order and operates to the same effect as a conditional discharge in a criminal matter.

If the court considers it appropriate to impose a LIO, the matter will be adjourned for a period at the court’s discretion and, if there are no breaches of the order during that period, the AVO may be withdrawn and dismissed.

If the defendant agrees to undertake counselling or other intervention during the adjournment period, this will be taken into account by the court when the matter returns.

Either party may return the matter to court at any time during the adjournment period to fix a date for a defended hearing. If a breach of the LIO results in charges, the court may relist the proceedings.

Each party can be heard on the suitability of an LIO. In determining whether to impose an LIO, the court may consider:

  • if it is by consent;
  • the complainant’s views, including if they do not want a final order and whether they have received independent advice;
  • the relationship between the complainant and defendant;
  • the seriousness of the allegations and the conditions being sought;
  • whether any LIO has been sought previously;
  • any impact of imposing an interim order rather than a final order;
  • whether the defendant is seeking treatment or counselling; and
  • any other matter the court thinks appropriate.

The commentaries in the By Lawyers Apprehended Violence Order (NSW) and Local Court (NSW) – Criminal guides have been updated accordingly.

Subpoenas – FED

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From 31 July subpoenas for production of documents, in most family law matters can be eFiled on the Commonwealth Courts Portal.

The Federal Circuit and Family Court of Australia (FCFCOA) has introduced eFiling through the Commonwealth Courts Portal for subpoenas seeking the production of documents where there is an ongoing family law final orders application on foot. Online filing is not available for interim applications, contravention applications or subpoenas for attendance and for attendance and production of documents.

There is a new option available in relevant matters on the portal for Request to issue a subpoena.

New subpoena forms apply. The old forms will still be accepted until Friday 29 September 2023.

Once the subpoena is issued the court will apply a Subpoena (Family Law) Coversheet which includes the last date for service, the date for production, and how the documents are to be produced. The new coversheets will be applied to all subpoenas, not only those able to be eFiled.

Documents in response to a subpoena cannot be produced through the portal. If possible, they are produced by sending an email to the court registry at the address noted on the subpoena’s cover sheet. All family law registries have a subpoena email address. If production by email is not possible the documents need to be otherwise delivered to the registry.

As part of this change the Notice of Objection has been removed from the new subpoena form. An updated version of the Notice of Objection is now a separate form available on the FCFCOA’s website.

By Lawyers Family Law Property Settlement and Children guides have been updated accordingly, with amended commentary and new hyperlinks covering the new processes for subpoenas, and the new forms added to the matter plans. The previous forms will remain available on the matter plan until at least 29 September.

Family law rules – FED

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Changes to the family law rules from 28 November include the abolition of the need to file a parenting or financial questionnaire with an initiating application. Parties now only file a questionnaire if they have not filed an affidavit with their application or response.

Other amendments to the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 include:

  • Rule 1.09: Changing the form for seeking rescission of a divorce order from an Application for Review to an Application in a Proceeding;
  • Rule 2.01: Requiring that an application must concisely state the orders sought;
  • Part 2.6: Making the rules on service of documents in Australia apply to service generally;
  • Part 5.6: Inserting new rules 5.28 and 5.29 requiring that the Annexure to Proposed Consent Parenting Orders be attached to an application for interim parenting orders proposed to be made in chambers, as was already required for final orders;
  • Rule 5.28 and rule 10.04: Allowing draft consent orders to be signed by a party’s legal representative;
  • Rule 6.06 and rule 8.09: Removing the requirement to file parenting or financial questionnaires with an initiating application if the party has filed an affidavit;
  • Rule 7.35: Providing for the court to accept the opinion of a court-appointed assessor unless there are exceptional circumstances; and
  • Rule 14.07: Allowing the court to consider an Application for Review in chambers if the parties consent, and requiring parties to seek leave for any further evidence to be filed in support of an Application for Review.

Amendments to the costs schedule in the rules commence on 1 January 2023.

Amendments have also been made to the delegations table in Schedule 4 to the Rules, with effect from 28 November 2022.

The amended delegations increase the powers of Senior Judicial Registrars and Judicial Registrars in dealing with aspects of case management, including allowing the registrars to:

  • deal with an application for an interlocutory consent order under the new part 5.6 of the Rules;
  • apply on a limited basis the court’s power under s 69ZR of the Family Law Act 1975 to make a finding of fact, determine a matter, or make an order in relation to an issue arising, at any time before final orders are made in child-related proceedings;
  • order a party to undergo drug or alcohol screening or testing;
  • make spousal or de facto maintenance orders on a limited basis;
  • make an order for child maintenance – Senior Judicial Registrars only;
  • make an injunction under s 114 against a third party – Senior Judicial Registrars only;
  • make orders in relation to costs, costs estimates, and assessment of costs under s 117;
  • grant leave to institute proceedings out of time – Senior Judicial Registrars only;
  • grant leave for joinder of a party to a proceeding after the first court date;
  • issue a subpoena, order the production and inspection of documents, and hear subpoena objections;
  • summarily dismiss an application that has no reasonable prospects of success;
  • make summary orders in response to a claim by a party that an application or response is frivolous, vexatious, or an abuse of process, or that an application has no reasonable likelihood of success;
  • make certain case management orders or directions under r 10.11;
  • make orders varying or setting aside orders under the slip rule if the original orders were made by a Senior Judicial Registrar or Judicial Registrar;
  • make declarations regarding the costs of a child, and amend administrative assessments that are more than 18 months old under the Child Support (Assessment) Act 1989; and
  • grant a stay under s 111C of the Child Support (Registration and Collection) Act 1988.

Lighthouse project expands – FED

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From 28 November the Federal Circuit and Family Court of Australia’s Lighthouse Project expands to include all major registries. This follows additional funding provided in the recent federal budget.

The Lighthouse Project is a family-violence and risk-screening initiative for parenting and parenting/financial matters. The legislative framework was provided by the Family Law Amendment (Risk Screening Protections) Act 2020.

The project was initially available in the Adelaide, Brisbane, and Parramatta registries. It now expands to include Cairns, Canberra, Dandenong, Darwin, Hobart, Launceston, Melbourne, Newcastle, Rockhampton, Sydney, Townsville, and Wollongong registries.

The Lighthouse Project’s key points are:

  • early risk screening through a secure online platform;
  • early identification and management of safety concerns; and
  • assessment and triage of cases by a specialised team, who will provide resources and safe and suitable case management.

All cases identified as high-risk following the screening process are referred to a dedicated list in the court, known as the Evatt List. This is a judge-managed list that focuses on early information gathering and intervention through a dedicated support team in appropriate cases.

When commencing or responding to proceedings in the applicable registries, parties will be asked to provide an email and mobile number to enable risk screening. Parties will then receive an email with a secure link and login details to complete the risk screening process.

See the FCFCOA’s Lighthouse expansion – General fact sheet for more information.

The By Lawyers Family Law Children guide has information on The Lighthouse Project under Pre-action procedures in the commentary.

Practitioners are also reminded of the related information on family violence and cross-examination of parties in the Going to court folders, and the separate By Lawyers guides covering apprehended violence, intervention, and restraining orders for family and personal violence under various state laws.

Central Practice Direction – FED

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The Central Practice Direction: Family Law Case Management outlines the core principles applicable to family law proceedings and establishes a consistent national case management system in the Federal Circuit and Family Court of Australia.

The practice direction requires that before filing an Initiating Application or a Response to an Initiating Application, lawyers give their clients a copy of the practice direction. There is a brochure on the matter plans in the By Lawyers family law publications, being a convenient PDF version of the practice direction, for this purpose.

A new precedent letter to the client has been added to the matter plans, enclosing the brochure and summarising its key points. This assists the practitioner to both comply with their obligations and explain the importance of the practice direction to their clients.

The Central Practice Direction incorporates the overarching purpose, enshrined in the Federal Circuit and Family Court of Australia Act 2021 under which the court was created, to facilitate the just resolution of disputes as quickly, inexpensively, and efficiently as possible.

The ten core principles by which the overarching purpose is to be achieved are in summary:

  1. assessment of risk to vulnerable parties;
  2. rapid and inexpensive agreements;
  3. efficient use of the court’s resources;
  4. effective case management;
  5. active dispute resolution;
  6. adverse consequences for non-compliance;
  7. costs obligations;
  8. full disclosure between parties of all relevant information and focus on the real issues;
  9. hearing preparation; and
  10. resolution or determination of all cases promptly.

Following the principles, the Central Practice Direction makes it clear that the court expects parties and their lawyers to always:

  • minimise costs;
  • promptly give full and frank disclosure of information;
  • communicate productively; and
  • identify and seek to resolve the issues genuinely in dispute.

The Practice Direction prohibits aggressive and unnecessarily adversarial conduct. The safety of parties and children is a priority. Parties are not required to put themselves or their children at risk or compromise if they feel unsafe or believe abuse or violence affects their ability to negotiate fair or reasonable outcomes. The interests of children are always the court’s paramount concern.

Family Court Act – WA

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The Family Court Act 1997 (WA) has been amended to reflect recent changes to Commonwealth family law legislation and facilitate the exercise of federal jurisdiction by the Family Court of Western Australia.

The combined WA and Federal amendments provide for the exercise by the Family Court of Western Australia of federal jurisdiction in family law property proceedings to:

  • determine the superannuation interests of separating de facto couples; and
  • hear bankruptcy proceedings concurrently with family law proceedings, where appropriate.

Superannuation splitting

The Commonwealth family law legislation has allowed the superannuation interests of married parties in proceedings before the previous Family Court of Australia, now the Federal Family and Circuit Court of Australia, to be treated as property for distribution since 2001. However, this was restricted to parties to the breakdown of a marriage.

The Family Court Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020 (Cth) inserts a new Part VlllC into the Family Law Act 1975 (Cth). This section provides for the distribution of superannuation entitlements between separating de facto couples in the Family Court of Western Australia. It allows superannuation matters under the Family Law Act 1975 (Cth) to be heard concurrently with other matters under the property provisions of the Family Court Act 1997 (WA).

Bankruptcy jurisdiction

The Family Court Amendment (Western Australia De Facto Superannuation Splitting and Bankruptcy) Act 2020 (Cth) also amends the Bankruptcy Act 1966 (Cth) to enable bankruptcy matters related to de facto couples to be heard by the Family Court of Western Australia in conjunction with family law proceedings. This is possible where:

(a) a party to a marriage or de facto relationship is bankrupt, and the trustee of the bankrupt’s estate is a party or an applicant in property settlement or spousal maintenance proceedings; or

(b) proceedings before the Federal Court or the Federal Circuit Court are transferred to the Family Court of Western Australia.

The Commonwealth Act also provides that appeals about concurrent family law and bankruptcy proceedings for Western Australian de facto couples will mirror existing appeal pathways for married and de facto couples in other jurisdictions.

The By Lawyers Family Law publications have been amended accordingly.

Revenue – NSW

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Recent duty and other revenue amendments impacting conveyancing, trusts, and family law have been incorporated as applicable into the relevant By Lawyers publications.

Legislation

The State Revenue and Fines Legislation Amendment (Miscellaneous) Act 2022 (NSW) amended various revenue Acts with effect from 19 May 2022, including:

These revenue amendments touch on various areas of practice.

Conveyancing

Options

Ad valorem stamp duty is payable on option fees under put and call option deeds. New section 8 (1)(b)(ix) of the Duties Act 1997 provides that duty is payable by the grantee within three months of an option being granted. This changes the previous position where duty was only payable on an option fee if the option was exercised.

Duty is assessed on the option fee, not including security deposits, performance payments, and legal costs.

The grantee is not entitled to claim a refund for any stamp duty paid, regardless of whether the call option is exercised. Also duty paid on the option fee is not credited toward the duty payable on the property when the option is exercised and the contract completed.

The changes do not apply to option agreements entered into before 19 May 2022.

Off the plan

A new section 49A (1D) of the Duties Act 1997 provides that to qualify for a 12-month deferral of stamp duty on off-the-plan purchases, a residence requirement must be met. At least one of the purchasers must use and occupy the property as their principal place of residence for at least 6 months, within 12 months of completion. Australian Defence Force personnel are exempted from the residency requirement. A new version of the Revenue NSW purchaser declaration form is available. Part 6 of the form relates to off-the-plan purchases and provides for the nomination of ADF personnel.

Surcharge duty

A new s 104ZJA(1) (c) of the Duties Act 1997 provides that an Australian-based developer which pays surcharge purchaser duty on a transfer of residential land may have it refunded they later change the use of the land to wholly or predominantly commercial or industrial.

The application for a refund must be lodged online using the application type Australian Based Developer Application for Exemption & Reassessment.

First home owners

Section 13A (3) of the First Home Owner Grant (New Homes) Act 2000 has been amended to include a new definition of the eligibility cap, including how to calculate the total value of the transaction based on the type of transaction and when it occurs.

Land tax

New sections 5B(2A) and 5B(2B) of the Land Tax Act 1956 provide for a discretionary exemption allowing those who do not occupy their principal place of residence for 200 days continuously in a year to remain exempt from land tax. This allows owners to, for example, live and work overseas for a period without losing the exemption.

The By Lawyers Sale of real property (NSW), Purchase of real property (NSW) and 1001 Conveyancing Answers (NSW) publications have been updated accordingly.

Trusts

The amending Act broadens the scope of dutiable transactions under s 8(1)(b)(ix) of the Duties Act 1997 by introducing duty on transactions that result in a change in beneficial ownership and acknowledgement of trust. 

Under s 8(3), the definition of change in beneficial ownership has been extended to include the creation and extinguishment of dutiable property, a change in equitable interests in dutiable property, and dutiable property becoming and ceasing to be subject to a trust.

This amendment directly arises from the case of Benidorm Pty Ltd v Chief Commissioner of Revenue [2020] NSWSC 471 where the Supreme Court held that the definition of declaration of trust in s 8(3) of the Duties Act 1997  as it then was must have a legal consequence, or consequences, beyond merely acknowledging that which already exists. The taxpayer in that case held real property and shares on trust for a beneficiary. When the beneficiary died his sole beneficiary and executor made a declaration of trust substantially the same as the original trust. On appeal the taxpayer was successful and was able to avoid paying duty on the second declaration, which acknowledged and evidenced a trust that was already in place. Such an acknowledgment of trust will now be caught by the Act.

The By Lawyers Trusts publication has been updated accordingly.

Family Law

A new s 68 (1A)(b)(iia) of the Duties Act 1997 means that for de facto relationships transfers of property effected by an agreement made to divide relationship property due to the breakdown of a relationship will be exempt from duty. Previously, to be exempt from duty the transfer had to be effected by a binding financial agreement, court order, or purchase at a public auction. This brings the exemption for de facto couples into line with that for married couples. These exemptions are discretionary and depend on sufficient evidence being supplied in support of the application.

A new version of the form Revenue NSW ODA 069 – Application for Exemption or Refund – Break up of marriage or De facto Relationship is available and needs to be completed.

The By Lawyers 101 Family Law Answers publication has been updated accordingly.

Expert reports – FED

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Two new precedent affidavits for expert reports have been added to the Property Settlement and Children matter plans in the Family Law publications. These new precedents ensure compliance with Rule 7.21(2) of the Federal Circuit and Family Court of Australia (Family Law) Rules 2022.

The Federal Circuit and Family Court of Australia (Family Law) Rules 2021 apply in all family law matters across both divisions of the court. Part 7.1 of the Family Law Rules 2021 makes provision for expert evidence.

Rule 7.13 provides that experts be given a recent copy of Divisions 7.14, 7.15, and 7.16. These rules cover requirements for instructions to experts, information about disclosure by experts, their duties and obligations, and clarification of the requirements for expert reports. The By Lawyers enclosure precedent which combines these rules make it easy for practitioners to comply when briefing experts.

Expert witnesses in family court proceedings potentially include:

  • psychologists
  • social workers
  • child and family psychiatrists
  • medical specialists
  • property valuers, and
  • financial consultants.

The two precedents deal with both a single expert, when both parties to proceedings engage an expert jointly, and the less common situation where parties engage their own expert.

The new precedents are located in an IF REQUIRED – Expert witness folder, in the Going to Court folder in the Property Settlement guide, and Children guide.

Disclosure – Family Law – FED

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Rule 6.02 of the Family Law Rules 2021 provides that a party must file a written notice stating that they have read Parts 6.1 and 6.2 of the Rules and that they will comply with their disclosure obligations. This written notice is given in the Undertaking as to Disclosure form that each party is required to file before the first court date unless the court orders otherwise.

New precedent Enclosure – Parts 6.1 and 6.2 of the Family Law Rules 2021 conveniently sets out all of the rules in Parts 6.1 and 6.2 for the client’s ease of reference. Practitioners can give this enclosure to clients involved in parenting or financial proceedings when first instructing them, making it easy for practitioners to comply with the requirements under the rules to fully inform their clients.

The enclosure accompanies the Letter to client regarding duty of disclosure and can be found on the Property Settlement and Children matter plans directly under the Duty of disclosure brochure in the Pre-action procedures folder.

The By Lawyers Family law publication is up to date with all of the recent changes to the family law system after the merger of the two courts into the Federal Circuit and Family Court of Australia.

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