ByLawyers News and Updates

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.

Expert evidence – Family law – FED

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A new precedent for use when obtaining expert evidence has been added to the Family Law guides.

When the Federal Circuit and Family Court of Australia (FCFCOA) commenced operation on 1 September 2021, it did so with a new set of rules: the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (the Family Law Rules 2021). The rules 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 must 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, as well as clarification of the requirements for a single expert report.

A new enclosure has been created which conveniently includes all of the rules in these divisions. The enclosure can be given to the expert witness when they are instructed, thereby making it easy for practitioners to comply with the requirements under the rules. This enclosure has been added to these Family Law matter plans – Property settlement, Children and Financial agreements, for use when obtaining expert evidence. There are corresponding precedent letters to experts on each matter plan.

For Property settlement matters, the new precedent enclosure is located in the Going to court folder under If required – Valuer. There is also a Letter to the valuer for single expert valuation.

For Children matters, the new precedent enclosure is located in the Going to court folder under If required – Single expert witness report. There is also a Letter to single expert witness.

For Financial agreements matters, the new precedent enclosure is located in the Enforcement folder under If required – Single expert witness report. There is also a Letter to single expert witness.

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 FCFCOA.

Federal Circuit and Family Court of Australia – FED

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The Federal Circuit and Family Court of Australia (FCFCOA) commences operation on 1 September 2021.

The FCFCOA is an amalgamation of the former Family Court of Australia and Federal Circuit Court of Australia.

The new court has two divisions:

  • Division 1 is a superior court of record that includes the judges from the former Family Court. It deals with the most complex matters and exercises appellate jurisdiction.
  • Division 2 is a court of record that includes the judges from the former Federal Circuit Court, which is the single point of entry for all family law and child support matters.

There is a common set of forms and rules across the two divisions. The Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (the Family Law Rules 2021) apply in all family law matters, except in Western Australia where the Family Court Rules 2021 (WA) apply. Western Australia also has its own dedicated portal – the eCourts Portal of Western Australia.

They provide for the practice and procedure in both divisions of the FCFCOA except for a few matters such as transfer from Division 2 to Division 1 as set out in the Family Law Rules 2021.

The new court’s website is available: www.fcfcoa.gov.au.

A practice direction deals with Transitional arrangements.

Division 2 of the new court also has a general federal law jurisdiction, like the former Federal Circuit Court.

All By Lawyers Family law publications – Children, Divorce, Financial Agreements, and Property Settlement – are being updated for the commencement of the new court. This includes a full review of the:

  • commentaries, for the new terminology, procedures and hyperlinks to the new rules;
  • matter plans, with a single Going to court folder reflecting the new process; and
  • precedents, to incorporate all necessary changes.

There is a 90 day grace period for using the old forms in the new court. The new court forms will be added to the By Lawyers matter plans as they become available.

By Lawyers always keep our subscribers up to date!

New family law court – FED

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The new family law court, the Federal Circuit and Family Court of Australia (FCFCOA), commences 1 September 2021.

The FCFCOA will have 2 divisions. Essentially Division 1 replaces the existing Family Court and Division 2 replaces the existing family law functions of the Federal Circuit Court. There will be a single point of entry to the new family law court through Division 2.

Summary of the changes

  • There will be harmonised rules, new practice directions, updated forms and one website.
  • The new court’s website will be launched on 1 September 2021 with simplified access and navigation.
  • All forms will be updated. An Application in a Case will become an Application in a Proceeding.
  • Transitional arrangements will allow for the use of new forms, with a 90 day grace period for old forms.
  • Existing matters will generally remain in the existing courts, unless the parties are advised otherwise.
  • Division 2 will have a general federal law jurisdiction similar to that of the Federal Circuit Court currently.
  • Division 1 will have jurisdiction to hear family law appeals and there will be a single national appeals filing registry.
  • A National Contravention List will be introduced and a practice direction will accompany the commencement of the list.
  • The new court will have Senior Judicial Registrars, Judicial Registrars, and Deputy Registrars. While the titles change, their powers and roles will be the same as existing Registrars.
  • Child Disputes Services will be known as the Court Children’s Service. Family Consultants will be known as Court Child Experts.
  • Parties in children’s matters will receive assistance earlier, with a greater emphasis on expert guidance.

Updates for the FCFCOA commencement on 1 September 2021

All By Lawyers Family law guides – Children, Divorce, Financial Agreements, and Property Settlement – will be updated to reflect the commencement of the new court. This will include a full review of the:

  • commentaries for the new procedures and rules;
  • matter plans with a single Going to court section reflecting the new process;
  • forms – with all new forms on the matter plans; and
  • precedents, to incorporate the changes where necessary.

By Lawyers always keep our content – and our subscribers – up to date!

Family law property dealings – FED

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For the assistance of practitioners conducting family law property dealings, a new folder has been added to the By Lawyers Family Law publication. Commentary and precedents are available to assist family law practitioners at the point of a matter where real property needs to be transferred between the parties.

The new folder is called If required – Real property dealings. The commentary and precedents within the new folder are extracted from the By Lawyers Conveyancing and Property publications. They provide guidance and the necessary forms and precedents to verify the client’s identity to the relevant standard for electronic lodgments of transfers and dealings with real property.

The new folder contains the following precedents and commentary required for the electronic settlements process:

This useful content has been added to the Property Settlement guide and the Financial Agreements guide. The new folder can be found in Finalising the matter on both matter plans. The location of this new content reflects the fact that family law property dealings are typically effected upon finalisation of the matter.

Family law practitioners are reminded that the commentary in both the Family Law Property settlement and Financial agreements guides cover the considerations and procedure for transfers of real property in family law matters. The By Lawyers 101 Family Law Answers reference guide also provides helpful information which includes valuing real property in the family law context, stamp duty implications of real property transfers in family law, together with coverage of capital gains tax and foreign resident withholding payments.

This enhancement arises from feedback from a By Lawyers subscriber. We value such feedback and always love to hear our users. Don’t hesitate to get in contact: askus@bylawyers.com.au

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