The commentary was updated to include an expanded discussion about employment agreements and the handling of employee entitlements when a business changes hands.
Assets and liabilities list
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.
Retirement villages in NSW
A complete guide on the law and practice as it applies to Retirement Villages in New South Wales including 
a comprehensive treatment on obtaining accommodation and services within a retirement village, living there, and ending a residency including on sale, on termination, and on death.
This guide is available through the Conveyancing (NSW) publications as well as Leases (NSW).
– Precedents in the guide include:
– Retainer Instructions;
– To-do List;
– Checklist for prospective residents;
– Various letters of advice on commencing residency, completion and moving out;
– Various letters to the operator; and
– NCAT application forms.
The commentary includes information on the fundamental terms of the statutory regime, the standard contracts and mandatory documents, duties taxes and rates, taking occupation, living in a village and ending a residency including death and termination, payment of refund by the operator and dispute resolution.
NSW – Latest conveyancing changes
LPI fees increase from 1 July 2017
Retail Leases
Major changes include abolition of the 5 year minimum term, the inability to claim outgoings not disclosed, and the introduction of penalties for failing to comply with key aspects of the legislation.
By Lawyers Contract for the sale of land
- Updated for the Foreign Resident Capital Gains Withholding Payment changes; and
- Land tax adjustment section amended to elect if foreign resident land tax surcharge is adjustable.
NSW – OSR changes
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
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
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
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.
NSW – Apprehended violence orders
The Crimes (Domestic and Personal Violence) Amendment (National Domestic Violence Orders Recognition) Act 2016 has received assent however commencement is yet to be proclaimed. It will give effect to the NSW component of a national recognition scheme for domestic violence orders.
Music copyright
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.