In Show 098 – Monthly Legal Updater June 2018 – Budget Special originally broadcast on Facebook Live on Friday 8 June 2018.
Show Notes
Today on the monthly legal updater we’re doing something a little different. We’ve invited two guests to join us for a discussion about superannuation and taxes. Brett Griffiths and Kim Reynolds are chartered accountants at the firm Vincents in Brisbane. Combined they both have decades of experience in their respective fields. The firm recently produced a report on the recent Federal Budget. We wanted to hear their perspectives on how the budget will affect small business.
Brett feels strongly that this is an election budget. The government is trying not to rock the boat too much and to appeal to as many voters as possible. The centerpiece of the budget is a personal tax cut. Many of them will come into effect on July 1, 2018. One of the cuts comes in the form of a low to middle income offset that can be used on next year’s tax returns. The government is starting to flatten out tax rates. One of the marginal tax brackets will change from $87 thousand to $90 thousand. In the three years that increases to $120 thousand. The top marginal rate will be $200 thousand.
Even though the budget has largely focused on individuals there were a few changes that will affect business owners. There is an extension of the $20 thousand right off for acquisitions. That was supposed to finish this year but it will be extended another 12 months. That tax deduction has not been taken up by many business owners but is well worth considering. That only impacts small businesses and it can be tricky to determine what firms fit that definition.
There was also a change to Division 7A which relates to private company loans and forgiveness of debts. Entwined in that is interpretation of how it applies to trusts. The government is going to introduce some changes about how that will work. Those details have not yet been released.
The budget also included some measures dealing with the “black economy.” One of them limits the amount of cash receipts that can be taken by companies to $10 thousand. A company can not receive payments that exceed that amount in cash. How practically this will be monitored is still very much an open question.
There have been a few changes to superannuation but not many. The industry is still trying to deal with all the changes that came into effect in 2016. They allowed self-managed super funds to have six instead of just four members. That’s going to mean they will need a corporate trustee instead of an individual trustee.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 087 – Monthly Legal Updater originally broadcast on Facebook Live on Friday 4 May 2018 we explore this interesting topic.
Show Notes
It’s time once again for our Monthly Legal Updater. The law is constantly changing in Australia and around the world. We want to make sure you know about how those changes are going to affect your and your business.
Cryptocurrency regulations
Digital currencies like Bitcoin have been a hot topic for several years now. The incredible growth of these markets have caught regulators around the world flat-footed. The Australian government is trying to catch up. In April 2018 they introduced new rules to clarify their legality. There has been a lot of concerns that crypto could be used to launder money for drug cartels or terrorist groups. The new rules say that users of digital currencies will have to register with Austrac and report any income derived from them.
Bankruptcy changes
A bill currently before the Australian Parliament will change the insolvency rules across the country. Australia’s bankruptcy laws are among the harshest in the world. Currently the bankruptcy discharge period is three years. The new rule would change that to just 12 months. The reason for the change is to encourage more entrepreneurial activity in the country and to reduce the stigma associated with insolvency.
UK changes
Starting in April 2018 the UK government began levying a tax of up to £5000 per vehicle. The goal is to reduce pollution associated with cars. The government has also introduced new laws aimed at curbing illegal immigration. Any employer caught employing an illegal worker will be banned from claiming employment allowances for one year.
Workplace licensing laws
The Queensland Government has changed the rules around the labour hire industry. The goal is to reduce exploitation in that industry. Any labour hire business must now register with the government. The business must provide reports every six months and there are strong penalties for breaching the rules.
ACCC and ASIC Updates
The Federal court has ordered Ford to pay a $10 million dollar fine for “unconscionable conduct”. The fine relates to the sale of vehicles with faulty transmissions in Australia. Complaints made to the company were ignored and resulted in this case being brought against the company.
ASIC also won a major judgement against Malouf Group, a credit repair firm based on the Gold Coast. The company was found to have lied to customers about the state of their credit rating.
ASIC meanwhile has released a new small business strategy. The goal of the strategy is to promote and protect small businesses in the country.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 078 – Monthly Legal Updater originally broadcast on Facebook Live on Monday 9 April 2018 we explore this interesting topic.
Show Notes
Time for another Monthly Legal Updater, our regular review of important legal stories in Australia and around the world.
Skills Visas
The Australian Government has introduced a new skilled Visa program. The program is a simplified system aimed at attracting skilled workers from countries like South Africa. Applicants could be approved in a matter of minutes greatly reducing wait times. The government is yet to announce when this new program comes into effect but it will likely occur later this year.
Project Bank Accounts
Over the last 20 years a common practice in the building industry has has disastrous results for many subcontractors. Big building firms routinely take the money earmarked for subcontractors and put it into a high interest savings accounts. They delay paying the contractors for as long as possible in order to rack up their earnings on that interest. For many small subcontractors that delay can drive them out of business. Queensland government building projects starting in 2019 will have to place the money for subcontractors in a project bank account thus ensuring timely payments.
EU Data protection
The European Union has brought in the biggest overhaul to data protection regulations in over 20 years. Stating in May a new framework will grant new rights to individuals in over to protect any personal data that is gathered by private companies. Companies will now be far more culpable for any data breach and will be required to report any such breach.
Country or origin labelling
Starting this year new rules about country of origin labelling on products sold in Australia will come into force. To help companies to comply with the new rules the government has created an online tool for creating new labels. There are different labelling requirements depending on where the products was grown, produced and packaged. The deadline for the new labels is July 1, 2018.
ASIC and ACCC news
ASIC has recently obtained a winding up order for a car lender because if unpaid fines. They also obtained a bankruptcy order for the director of that company. The lender owed more than $1 million in fines. A similar wind up order was issued for a payday lender accused of unfair lending activities.
ASIC has also announced new guidelines for banks to guard against unfair contract terms.
The ACCC, meanwhile, has approved a $1.2 billion dollar merger between hoteliers Accor and Mantra. The ACCC has also fined Heinz for making misleading claims about a line of products aimed at children,
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 057 – Monthly Legal Updater originally broadcast on Facebook Live on Friday 2 February 2018 we explore this interesting topic.
Show Notes
Its February 2018 and time once again for our Monthly Legal Updater. There have been numerous changes to the law that came into effect in the past month. There has also been a lot of news that legal professionals will be interested in. With everyone now returning from holidays it seems like a good time to bring everyone up to date.
M&A Report
Allen & Overy’s recent report on mergers and acquisitions around the world showed strong growth in this sector around the world. In Australia they see the potential for strong growth especially for smaller deals as private equity from places like China floods into the country.
Same-sex consequences
The decision to allow gay marriage has been hailed as a triumph of human rights but there are some unintended legal consequences that gay couples may not be fully aware of. The succession laws in Australia are such that when a person gets married it can invalidate their already existing will. There are some concerns that people getting married under the new law may not be fully aware of the impact on their estate plan.
Queensland lawyer revoked
Just because someone calls themselves a lawyer doesn’t mean they are. Nicholas Braid has been jailed for 3 months for pretending to be a lawyer. He does hold a law degree but was never admitted as a lawyer. He lied about his credentials as a criminal lawyer and even set up his own firm.
ACCC unfair contracts
We’ve spoken in the past about the ACCC’s new rules about what is an unfair contract. That has had the predictable of effect of greatly increasing the number of complaints being filed with the business watchdog.
Western Union scam refunds
The Western Union wire service has been a notorious method for scammers to take advantage of the public. Fake prizes, loans, jobs and discounted products are just part of the myriad ways criminals fooled people into wiring them money. The Department of Justice in the United States ordered the company to pay a $586 million fine. Part of that money will be used for restitution for victims – including those in Australia.
Insurance refunds
Insurance companies Allianz and Suncorp were ordered by the ACCC to refund $62 million of insurance premiums for policies that were deemed to by of little or no use.
Crowd-sourcing in Australia
Crowd-sourced funding has been a hugely popular method for start-up compnaies to attract early investment. But up until now it has not been permitted in Australia. That ended last month when ASIC announced it has licensed the first batch of crowd-sourced funding intermediaries.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 048 – Monthly Legal Updater – January 2018 originally broadcast on Facebook Live on Friday 5 January 2018.
Show Notes
It’s time for another monthly legal updater. The new year means lots of new rules and regulations – across Australia and around the world. We’ve highlighted the changes that are most likely going to impact you in your daily life.
Tax issues for investment properties
First up is a major change for those that own investment properties in Australia. If you’ve got an investment property in another part of the country you used to be able to write off many ancillary costs associated with travelling to that property. Things like flights and car hires could all be written off. As of 2018 that is no longer the case. You may want to consider hiring a property manager instead of making those trips.
Gonski 2.0
The Turnbull government’s new education plan comes into effect this year. There are many changes that will effect school age children and those that work in the education sector.
Life insurance commissions
The government has brought in changes to the way life insurance companies get paid for their product. The changes are quite extensive but among the most important is a new commission structure that is intended to lower the cost of life insurance.
NSW Property developer bond
As of 2018 any new building being constructed over two stories will have to lodge a 2% bond with the New South Wales Building Commission to protect the public from defective builds.
Same-sex marriage
Starting January 9, 2018 same-sex couples will be permitted to legally marry across Australia.
California marijuana
California has become the latest American state to legalize recreational marijuana. You can’t smoke at work or in your car and the details of where you can legally buy it are still to be worked out.
China garbage rules
China has for many years accepted waste from other countries. As of 2018 that is no longer going to be the case. China is cutting way back on the type and amount of garbage it imports. It’s all an effort to combat the huge amounts of pollution in the country.
Electric black cabs in London
There are few things more iconically British than the London black cab. But they are changing. Come 2018 the cars are all being converted to run on electricity rather than gasoline.
Wood burning in Europe
Gas and wood burning stoves and fireplaces have come under strict new rules inside the EU. They will now have to meet emissions standards in order to preserve air quality.
Bankruptcies decline in Australia
The end of the calendar year means that a raft of statistics have also been released. ASIC has reported that there was a marked decline in insolvent businesses over the last year. There are many reasons why companies go under but nearly half reported that cash flow problems are what did them in. The other half said that a lack of a strategic plan is why their businesses failed.
Computer game company fine
Valve Corporation, one of the largest video game companies in the world, was fined the maximum by the Australian Federal Court. The company was found to have wilfully ignored Australian law when it began operating in this country. In total the company will have to pay $2.2 million in fines.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 040 – Monthly Legal Updater originally broadcast on Facebook Live on Friday 8 December 2017 we explore this interesting topic.
Show Notes
On this month’s legal updater we are going to talk about some of the big stories that grabbed our attention. The recent state elections in Queensland are, once again, going to change the legal landscape. The current Labour government is likely to remain in power and that means there are going to be some new policies implemented. Among those are:
Increase Transfer Duty Surcharge
The surcharge is going up from 3% to 7%. It applies to any non-Australian buying property in Queensland. It hasn’t been legislated yet but it was party of Labour’s platform. If your property is worth more than $10 million than an additional 2.25% will be levied.
Luxury car tax
Any car worth more than $100 thousand will be taxed an additional 2%.
Industrial relations changes
The laws that govern employees and employers are going to be extensively revised. They are aiming to revise the collective bargaining system.
Prevent the use of drones and tracking devices
Larger businesses may be considering using new surveillance equipment like drones to keep tabs on their employees. The government is promising to legislate against any such practice.
Medically assisted dying
The government is promising to introduce legislation that will allow for medically assisted suicide.
There have also been some interesting rulings from the courts recently that we think you should be aware of.
Prenuptial agreements
In early November the Supreme Court ruled that the prenuptial agreement between a foreign women and Australian was null and void. The reason for that was the fact that there was undue influence. The women was presented with the agreement just a few days before the marriage. When the marriage ended she was left with $50 thousand, an apartment and a car. The high court has said that was not fair and the prenup was set aside.
New Building and Safety Laws
The law has been changed to put the responsibility to report unsafe practices on anyone on a building site. That means that any person who witnesses unsafe building practices must report or they will be liable for fines.
Brisbane fraudster
A financial advisor in Brisbane was found guilty of misusing clients’ money by investing in businesses that ultimately failed. A total of $10 million was lost. The man was handed a 12 month sentence by the courts.
Bitcoin
The explosion in the price of Bitcoin has regulators worried. The huge increase in the price of digital currencies means a much greater likelihood that they will be used to launder the proceeds of crime. Australia is going to introduce new legislation to allow Austrac to regulate Bitcoin exchanges.
ACCC investigations
There were recent changes to the rules around unfair contracts. The ACCC soon announced that Ashley and Martin were being investigated for some of their agreements. The contract in question only allowed two days for customers to opt out of a contract before being charged the full amount. That was deemed to be unfair.
Fastaway Couriers fined
In the franchising code of conduct the franchisor has to reveal a proscribed set of financial details to the franchisee. The ACCC found that Fastaway was not providing that information and were fined just under $10 thousand.
Finder penalized
Financial comparison website Finder was recently fined by the ACCC for misleading consumers. The website claimed that it was checking 65,000 different health polices when in fact it was substantially less than that.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
In Show 029 – Monthly Legal Updater originally broadcast on Facebook Live on Friday 3 November 2017 we explore this interesting topic.
Show Notes
Today we start a new feature to the show – the monthly Legal Updater. We discuss the top ten legal changes that have occurred over the last year. There have been many but we selected the ten that we think will have the most relevance to you and your business. Eight of these come from Australia and two others from outside the country.
Can a mobile text be a Will?
The Queensland Supreme Court seems to think so. After a man passed away an unsent text message was found in his mobile phone. The text was intended for the man’s brother. In it he essentially disinherits his estranged wife and leaves the bulk of his assets to his brother. The court found that this was a legal will.
The East Brisbane Resumptions
Residents of Brisbane’s Eastern suburb are well familiar with the nightmare that is the daily commute. Litton Road and Wyhnam Road suffer from horrible bottlenecks during the morning and afternoon commute. The council decided two years ago to expand the roads and that required the purchase of a number of properties to facilitate the expansion. Ten properties still need to be finalized with the council. Construction is slated to begin in 2018.
Bankruptcy and Insolvency changes
The Australian Government passed a law in September which made a small but significant change to the Bankruptcy Act. Prior to the change the director of a company could be liable for the insolvency of his firm in certain situations. The new section allows directors to avoid liability for if they make a good faith effort to right the ship. It’s called a safe harbour provision and it’s quite controversial. The government believes it will incentivize companies to take more risks to prevent bankruptcy. Others feel it will encourage company directors to gamble with creditor’s money.
Plastic bag ban
Residents of Queensland will soon no longer have access to plastic bags at local shops. Starting July 1st, 2018 single use plastic bags will be banned. An astonishing number of those bags end up in landfills each year. This has big implications for local business owners who will now have to come up with alternatives.
Miller Murder
A New Zealand man was convicted last month in the death of 18-year old Australian Cole Miller. Miller died after being punched by 23-year old Armstrong Renata in 2016. Renata only punched Miller once but that was enough to end the young man’s life. He was sentenced to seven years in jail.
Data Breach Laws
In the wake of massive data breach scandals like the Equifax and Ashley Madison breaches, Australian firms are now required to notify their customers if they expose their personal information. The US has had a law like this on the books for 15 years and Australia is just now catching up. The law comes into effect in February of 2018.
ASIC changes for liquidators
The Australian Securities and Investment Commission has introduced some peculiar new regulations for liquidators. The regulations allow liquidators to assign rights to sue. The problem is there is little clarity about how the new rules will work in practice.
Australian politicians booted out
Australia’s strict citizenship laws have ended the political careers of seven high profile MP’s and Senators in recent months. The Australian constitution forbids dual citizens from holding elected office. The row has already claimed the Deputy Prime Minister and a Senator.
Baccarat Cheater
Phil Ivey is one of the most successful professional poker players in the world. Last year he turned his attention to another card game, Baccarat. Ivey won $10 million dollars playing the game at a UK casino. The casino accused Ivey of using a technique called edge-sorting, a form of card counting, and refused to pay him. Ivey sued but last week he lost his case. The court found that what Ivey did was dishonest.
Eminem copyright case
New Zealand’s National Party lost a big court case to American rapper Eminem. The party was accused of using a song in one of their ads that was very similar to the hit song Lose Yourself. The company that owns the rights to Eminem’s music sued and won NZ$600,000 in court.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.
