obiter | ByLawyers News and Updates

NSW – OSR changes

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First Home owner

  • First Home New Home scheme ended 30 June 2017 and was replaced by First Home Buyers Assistance scheme. From 1 July 2017 first home buyers of new OR existing homes to the value of $650,000 will pay no duty. Concessions are available between $650,000 and $800,000. There is no change to the caps for vacant land which are exemption to $350,000 and concession from $350,000 – $450,000.
  • First Home Owner Grant (New Homes) scheme property caps are amended from 1 July 2017. The cap for purchasing a new home is $600,000, or $750,000 for the house and land when building a new home under a home building contract or by an owner builder.

Shared Equity Scheme.

A person may purchase a property with an approved equity partner. Subject to eligibility the home buyer may apply for first home buyers assistance and grants. Subsequent transfers from the equity partner to the home buyer are exempt from duty. Principal place of residence land tax exemption is applicable from 2018 tax year.

New Home Grant scheme.

The $5,000 grant for any purchaser of a new home ends 30 June 2017.

Payment of duty in off the plan purchases.

From 1 July 2017 the 12 month duty liability deferral is only available to purchasers who declare their intention to occupy the property as their principal place of residence. If the property is not occupied for 6 months commencing within 12 months of completion interest and penalty tax apply from the lability date.

Foreign Purchaser Surcharge Duty.

Foreign Purchaser Surcharge Duty has increased from 4% to 8% .

Commercial residential property is exempt – retrospective to 21 June 2016.

Permanent residents, including NZ citizens holding a special category visa, are exempt from the surcharge on their principal place of residence if they occupy the home for a continuous period of 200 days within 12 months of purchase.

Australian-based developers will pay surcharge purchaser duty when purchasing the land however may be entitled to a refund on the sale of a new home built by them, if they are an Australian corporation.

Foreign Person Land Tax Surcharge.

From the 2018 tax year the surcharge land tax rate will increase from 0.75% to 2% and commercial residential property will be exempt. Permanent residents, including NZ citizens holding a special category visa, are exempt from the surcharge on their principal place of residence if they occupy the home for a continuous period of 200 days within the land tax year.

Australian-based developers will pay surcharge land tax, however may be entitled to a refund on the sale of a new home built by them if they are an Australian corporation.

From 1 July 2017 – Foreign Resident Capital Gains Withholding Payments

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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.

Foreign Resident Capital Gains Withholding Payment

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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.

Practice management – superannuation

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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.

Music copyright

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Following a recent mentor question the Sale & Purchase of Business commentary in all states was updated to discuss the licensing requirements  for business owners when playing background music in their businesses. Amendments were also made to the Retainer Instructions in each state.

Wills, Powers of Attorney and Enduring Guardianship NSW

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Wills, Powers of Attorney and Enduring Guardianship

DECEMBER 
  • New Commentary on Challenging the validity of a will
    • 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.
OCTOBER
  • Update to all Power of Attorney precedents – additional explanation of clause 3 Conditions and limitations.
  • Costs Agreement
    • Included reference to time limit for bringing costs assessment included total estimate of legal costs section with provision for variables and included authority to receive money into trust.
    • Disputes section improved, fields for client and firm details added, trust account details added, solicitor’s lien added, execution clauses for individuals and corporations added and general formatting and grammatical improvements.
SEPTEMBER
  • Powers of Attorney and Enduring Guardianship
    • Updated commentary and precedents to refer to Guardianship Regulations 2016.
    • Updated links to Guardianship Regulation 2016 (Schedule 1 and regulation 4) to Austlii consolidated regulation.
JUNE 
  • Content has enriched to now include irrevocable powers, ademption, registration of a power of attorney and land transactions, and also when there is no guardian.
  • Added new precedent – Individual will creating multiple testamentary discretionary trusts.
MARCH
  • Commentaries enriched to include a new section ‘What an attorney can’t do’. Commentaries also enriched to include Instruments made in other states.
APRIL
  • File Cover Sheets for all publications have been completely re-formatted for a better look.
FEBRUARY
  • Making life a little easier for practitioners – look out for Blank Deed, Agreement and Execution Clauses folder in the matter plan at the end of each Getting the Matter Underway.

Workers Compensation NSW

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DECEMBER 2016

New precedents were added including an Application for review of work capacity decision and a Work compensation referral sheet

OCTOBER 2016

The commentary and the retainer instructions were updated to reflect the new monetary amounts.

The Costs Agreements were updated to reference the time limit for bringing costs assessment included total estimate of legal costs section with provision for variables and included authority to receive money into trust.

The Disputes section was improved, with fields for client and firm details added, trust account details added, solicitor’s lien added, execution clauses for individuals and corporations added and general formatting and grammatical improvements.

A new precedent was included Application for merit review by SIRA.

SEPTEMBER 2016

Amendments were made to precedents and commentaries to reflect new Workers Compensation Regulation 2016 and updated links to the regulation.

Motor Vehicle Accident NSW

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View the Motor Vehicle Accident publication on By Lawyers

NOVEMBER 
  • New commentary added on recent amendments to maximum costs recoverable by practitioners – Amendments by Motor Accidents Compensation Amendment (Claims) Regulation 2016
OCTOBER 
  • Retainer instructions – Motor accident claim – Updated references to indexed maximum amounts of damages.
  • Costs Agreements – Included reference to time limit for bringing costs assessment, total estimate of legal costs section with provision for variables, and authority to receive money into trust.

Personal Injury NSW

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NOVEMBER 
  • Commentary – Updated link to clause 3 of CIVIL LIABILITY (NON-ECONOMIC LOSS) ORDER 2010 regarding maximum amount of damages for non-economic loss.
OCTOBER 
  • Retainer instructions – Updated reference to index amount for maximum non-economic loss.
  • Costs Agreements
    • Included reference to time limit for bringing costs assessment, total estimate of legal costs section with provision for variables, and authority to receive money into trust.
    • Disputes section improved, fields for client and firm details added, trust account details added, solicitor’s lien added, execution clauses for individuals and corporations added and general formatting and grammatical improvements.

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