The release of Draft Practical Compliance Guidelines 2021/D2 (PCG 2021/D2) – allocation of professional firm profits

The Commissioner of Taxation has finally released the long-awaited draft PCG 2021/D2 on 1 March 2021, outlining the Commissioner’s proposed compliance approach to the allocation of profits in professional firms (including the accounting, architectural, engineering, financial services, legal and medical professions). Advisors will be aware that the Commissioner’s concerns with respect to the allocation of …

The new excepted trust income provisions – clarity in the law

Generally, the Income Tax Assessment Act 1936 (Cth)[1] (ITAA36) provides specifically for beneficiaries who are minors to be taxed at higher rates than those of adult taxpayers – effectively, this means that minors will often pay tax on any trust distributions they receive at the highest marginal tax rate, plus Medicare Levy on any amount …

The arbitral power of the Fair Work Commission: Dispute resolution provisions under inherited enterprise agreements

One Tree Community Service Inc v United Workers’ Union [2021] FCAFC 15 The Federal Court of Australia recently decided that the Fair Work Commission has the power to arbitrate disputes under enterprise agreements inherited by new employers following a transfer of business. The decision may have far reaching consequences for employers who have inherited an …

New domain name Licensing Rules to come into effect in Australia from 12 April 2021

From 12 April 2021, auDA (the .au Domain Administrator) will introduce and enforce a new uniform domain name licensing scheme in Australia. The .au Domain Administration Rules – Licensing (the Licensing Rules) will update and consolidate over 20 auDA published policies on registrant obligations, as well as the auDA domain names complaints process, into a …

Tax administration lessons learnt from COVID-19 (and promptly forgotten)

Although most of us will remember 2020 as a year of enormous disruption and difficulties, it likely represents the zenith of tax administration in Australia. Driven by Treasury’s JobKeeper and Cashflow Boost programmes, the ATO pivoted in a way never seen before in an organisation of over 20,000 employees. In a surprising, but necessary, decision …

Queensland’s new project trust regime to commence on 1 March 2021

Who should read this All principals, head contractors and subcontractors performing building and construction work in Queensland, in particular those involved in State Government projects. Things you need to know Last year, we flagged the introduction of the new project trust regime under the Building Industry Fairness (Security of Payment) Act 2017 (Qld) (BIF Act) …

New Industrial Relations Laws – What it means for you

Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 – What it means for you The Morrison Government introduced the Fair Work Amendment (Supporting Australia’s Job and Economic Recovery) Bill 2020 (Bill) to Federal Parliament on 9 December 2020.  Employer groups have welcomed the Bill’s changes as the first step to getting industrial relations …

Payment Times Reporting Scheme

The Payment Times Reporting Scheme begins on 1 January 2021. While aimed at assisting small businesses when engaging with large business customers, the Scheme has significant implications on negotiated payment terms and compliance obligations for large business customers. Following two inquiries by the Australian Small Business and Family Enterprises Ombudsman in 2017 and 2019 into …

Australian Government proposes new broadcaster’s licence and forced investment quotas in Media Reform Green Paper

Australian broadcasters and free-to-air television networks may be able to make a ‘one-time transition’ to a new broadcaster’s licence with reduced tax and content quotas on multichannels.  In exchange, those who take up the ‘new licence’ must agree to transmit content on reduced radiofrequency spectrum, with surplus spectrum to be auctioned off to the telecommunications …

Verification of identity – does it always need to be in person?

[vc_row][vc_column][vc_column_text]Verification of Identity (VOI) is an important safeguard in property transactions, providing certainty about the identity of parties and aiming to prevent fraudulent dealings.  Traditionally, this process has taken place via face-to-face meetings; however, given technological advancements and requirements resulting from the COVID-19 pandemic, verifying a party’s identity virtually is becoming more common. With the …

The 2020 global Zoom boom

The COVID-19 pandemic has brought unprecedented technological challenges, particularly our engagement with others through technology.  Platforms such as, Zoom, Microsoft Teams, Cisco Webex, Google Hangouts Meet, Skype and BlueJeans have become increasingly popular worldwide among businesses and individuals. The global pandemic has changed the vast majority of the population’s behaviour patterns, particularly the manner in …

Mandatory news media bargaining code – is the model right?

Background In April 2020, the Commonwealth Government directed the Australian Competition and Consumer Commission (ACCC) to create a mandatory news media bargaining code, designed to establish a mandatory framework for negotiating and agreeing payments to news content creators by the digital platforms (specifically Facebook and Google) that display and link to that news content (Code).  …

Privacy ‘must haves’ in a digitalised and data-heavy post-COVID economy

It’s been over six months since COVID-19 disrupted the day-to-day operations of businesses in Australia.  As we near the end of 2020, many businesses have now fast-tracked digitalisation across their business models and activities, pivoted to new goods and service offerings, moved business operations and interactions online, distributed their workforce, and implemented COVID-tracing capabilities.  While …

Cybersecurity in the post Covid workplace – stress testing your defences

WHO SHOULD READ THIS Business Owners, CEO’s, CFO’s, CIO’s, CISO’s, Executive Managers, Insurance and Risk Managers. THINGS YOU NEED TO KNOW Cybersecurity must be addressed in the same way as any other business risk to protect critical processes and functions and to ensure business continuity. A robust cybersecurity framework should be supported by a carefully …

Electricity Infrastructure Investment Bill passes NSW Parliament Upper House – what you need to know

On 25 November 2020, the Electricity Infrastructure Investment Bill 2020 (NSW) (Renewables Bill) passed the NSW Parliament Upper House following over 30 hours of ongoing debate that challenged 249 proposed amendments.  With the Renewables Bill expected to be assented to before the end of 2020, it is guaranteed to shake up the NSW energy market …

Stronger Unfair Contract Terms Regime on the Horizon

Earlier this month, and in an announcement that has been several years in the making, the Commonwealth and state and territory consumer affairs ministers met at the Consumer Affairs Forum and agreed to strengthen Australia’s existing unfair contract terms (UCT) regime to provide further protection for small businesses when entering into standard form contracts. The …

Business Interruption Insurance – COVID-19 Test Case creates opportunity for loss recovery

The outbreak of the COVID-19 pandemic in Australia and overseas has had a hugely damaging economic effect on the business community. Many of these businesses hold Business Interruption (BI) insurance and may have either had claims declined or not pursued them on advice that the policy did not respond. Alternatively, they may not have considered …

Reform of regulation of Australia’s screen industry now underway

The next stage of media regulation reform is now underway in Australia with the Australian Government announcing a ‘media reform package’ as part of the 2020-2021 Federal Budget. While more reforms are anticipated in 2021, the initial announcement has reached a position on a number of items put up for consultation in the Supporting Australian …

Commonwealth Government releases IoT Security Code of Practice

After a period of significant public consultation, including consideration of submissions from over 4,000 organisations, on 3 September 2020, the Commonwealth Government of Australia released its Code of Practice: Securing the Internet of Things for Consumers (Code). The Code sets out a voluntary set of 13 principles that vendors of Internet of Things (IoT) devices …

It’s ale gone pear shaped for Urban Alley: Appeal dismissed with costs

In February 2020, we reported on the Federal Court case of Urban Alley Brewery v La Sirène, in which the Federal Court of Australia found in favour of Melbourne brewer La Sirène’s cross-claim to have Melbourne brewer Urban Alley’s trade mark for URBAN ALE cancelled from the Australian Trade Marks Register.  Our case summary is …

It’s ale gone pear shaped for Urban Alley: Appeal dismissed with costs

In February 2020, we reported on the Federal Court case of Urban Alley Brewery v La Sirène, in which the Federal Court of Australia found in favour of Melbourne brewer La Sirène’s cross-claim to have Melbourne brewer Urban Alley’s trade mark for URBAN ALE cancelled from the Australian Trade Marks Register.  Our case summary is …

Alignment across the States: A fundamental overhaul of security of payment regulation in Western Australia

Overview On 23 September 2020, the Parliament of Western Australia (WA) introduced the broad-ranging Building and Construction Industry (Security of Payment) Bill 2020 (WA) (SOP Bill) to the Legislative Assembly.  It proposes a fundamental overhaul of security of payment regulation in WA by replacing the existing regime under the Construction Contracts Act 2004 (CC Act) …

Insolvency Update: Uncertainty about director COVID-19 protections from insolvent trading

There is a looming, although little publicised, risk for companies and specifically their directors, in relation to the expiration of the COVID-19 safe harbour protections. Subject to any further extension, or amendment, the current protection will apply only if directors make an external appointment (i.e. administrator or liquidator) prior to 31 December 2020. All companies, …

Certain sports supplements to be regulated as ‘medicines’ under the therapeutic goods regulatory regime from November 2020

The Australian Therapeutic Goods Administration has declared that, as of 30 November 2020, certain sports supplements will be captured and regulated as ‘therapeutic goods’ under the Therapeutic Goods Act 1989 (Cth) (TGA) and the existing Therapeutic Goods (Declared Goods) Order 2019 (Order). This announcement, and the updates to the therapeutic goods regulatory regime, comes after …

Infrastructure charges in the Court of Appeal

In 2020, the Court of Appeal has twice considered challenges to infrastructure charges levied upon major developments and has twice found in favour of councils.  The Court of Appeal has upheld the right of councils to levy new infrastructure charges rather than relying on a condition of a preliminary approval in the Gold Coast City …

Keep it open! New regulations for closing council meetings have commenced

On 12 October 2020, new regulations under the Local Government Act 2009 (Qld) (LGA) and the City of Brisbane Act 2010 (Qld) (CoB Act) commenced.  The Local Government Legislation (Integrity) Amendment Regulation 2020 (the New Regulation) makes various amendments in line with the changes to the LGA also commenced on 12 October 2020. Of particular …

The 2020 Queensland State Election: Misleading Electoral Advertising

With the Queensland State Election date of 31 October 2020 fast approaching, members of the public will inevitably be inundated with a wealth of ‘election matter’ distributed across various advertising platforms.  ‘Election matter’ is a phrase used to describe the diverse range of mediums which intend to influence the way electors vote and subsequently, the …

Queensland duty exemption introduced for small business restructures

On 9 October 2020, the Commissioner of State Revenue (the Commissioner) released Public Ruling DA000.16.1 (the Public Ruling) which introduces an administrative arrangement that provides an exemption from duty on certain small business restructures.  Effectively, the exemption set out in the Public Ruling assist typical ‘mum and dad businesses’ currently trading through sole traders, partnerships …

New rules and a bigger box – your toolkit for playing in the Australian Government enhanced regulatory sandbox

[vc_row][vc_column][vc_column_text]The ASIC regulatory sandbox, established in December 2016, provided a licensing exemption to allow eligible fintech companies to test certain products or services for up to 12 months without an Australian financial services licence (AFSL) or Australian credit licence (ACL).  The Australian Government enhanced regulatory sandbox (ERS) commenced on 1 September 2020 and superseded the …