ClearLaw Articles

Major super reforms announced ahead of 2013 Budget

Stuart Jones and Terry Hayes, Thomson Reuters — Tue, 30 Apr 2013 02:00:00 GMT

On 5 April 2013, the Government announced major superannuation reforms [presumably to end mounting speculation ahead of the 2013 Budget]. This article discusses those reforms.

Estate assets v non-estate assets including trust assets and superannuation benefits

Stephanie Bower — Tue, 30 Apr 2013 02:00:00 GMT

Before you make a Will, it is important to understand the assets you can give away in a Will, and those you cannot. The starting point is to ensure you have appropriate ownership of the relevant asset, which can be more complicated than it initially seems. In addition, there are certain types of assets which generally cannot be dealt with under your Will at all, regardless of ownership. You may need to make additional arrangements to ensure that you have effective estate planning measures in place for these assets.

Further changes in the not-for-profit sector: introduction of ACNC Governance Standards

Alastair Keith — Wed, 27 Mar 2013 13:00:00 GMT

In our ClearLaw January 2013 article (Further changes in the not-for-profit sector: introduction of ACNC governance standards), we discussed changes in the not-for-profit (NFP) sector, including the establishment of the Australian Charities and Not-for-profits Commission (ACNC).

As part of these changes, new ACNC Governance Standards are set to apply from 1 July 2013 onwards to charities registered with the ACNC.

Charities must comply with these Governance Standards to be and remain registered with the ACNC and obtain tax concessions from the ATO.

This article summarises the new Governance Standards.

Stronger Super - MySuper and insurance: regulations registered

Stuart Jones, Thomson Reuters — Wed, 27 Mar 2013 13:00:00 GMT

On 4 March 2013, the Superannuation Legislation Amendment Regulation 2013 (No 1) (Cth) was registered to implement aspects of the Stronger Super reforms. The amendments to the SIS Regulations and Corporations Regulations 2001 set out the notification requirements for MySuper transfers, prohibit self-insurance and restrict the types of insurances that can be offered within superannuation. The regulation also refines the minimum insurance requirements for default funds and MySuper members in regulation 9A of the Superannuation Guarantee (Administration) Regulations 1993 (Cth). Details of the amendments are outlined below.

Annual report reveals important statistics on the SMSF sector

Christina McElwain — Wed, 27 Mar 2013 13:00:00 GMT

In February 2013, the SMSF Professionals Association of Australia (SPAA) and Russell Investments issued an annual report titled "Intimate with Self-Managed Superannuation". The Report contains important statistics on the SMSF sector in areas such as trustee preferences and behaviour, investment trends and trustees' perceptions of the SMSF service industry.^[1]

The Report's findings highlight:

the need for SMSF trustees to support multi-asset investing; and
the need for financial planners to rethink the delivery of advice given the increasing demand for specialised advice and guidance about SMSF investment strategies.

Advertisers, not Google, are responsible for misleading content of sponsored links

Stephanie Bower — Wed, 27 Feb 2013 22:00:00 GMT

On 6 February 2013, the High Court delivered a landmark decision in proceedings between Google Inc. and the Australian Consumer and Competition Commission (ACCC). The decision is globally significant for:

Google, other search engines and online advertising services and publishers; and
all businesses which advertise using those providers.

Key company law changes: proposed changes to paying dividends, and reporting on executive remuneration

Steven Tang — Wed, 27 Feb 2013 22:00:00 GMT

The federal government is accepting submissions on proposed amendments to the Corporations Act 2001 (Cth) (Act) concerning:

a new dividend payment test; and
revised reporting requirements for executive pay disclosures.

Understanding the differences between an agreement and a deed: lessons from 400 George Street (Qld) Pty Ltd v BG International Ltd

Kate Hocking — Wed, 27 Feb 2013 22:00:00 GMT

In a unanimous decision,^[1] the Queensland Court of Appeal held, amongst other things, that a deed is binding after it has been signed by all parties and physically delivered to the other parties.

The case highlights important principles that can be applied to determine whether a document is an agreement or a deed - and what turns on the distinction.

The case confirmed that, in general, deeds and agreements are distinct in two principal ways:

for a document to fit the description of a deed, it must address certain formalities; and
unlike an agreement (or contract generally), parties to a deed can enforce it against one another, even if the parties are not required to pay one another (or provide goods or services to one another under) the document.

A new limited accountants' AFSL: will many bother; still too many unknowns?

Terry Hayes, Thomson Reuters — Thu, 31 Jan 2013 01:00:00 GMT

In late November 2012, the Government released draft regulations that would replace the accountants' exemption with a new form of limited licence - a limited Australian Financial Services Licence (AFSL). The intention is that the proposed new licence would mean that licensed practitioners would "advise on a wider range of alternatives, rather that limiting their advice to the establishment of a self-managed super fund [SMSF]". The draft regulations and draft explanatory statement are on the Future of Financial Advice website and comments on them closed on 21 December 2012.

Trust resettlements and TD 2012/21: some comfort but uncertainties remain

Thu, 31 Jan 2013 01:00:00 GMT

The judgment in FCT v Clark and Anor^[1] and subsequent withdrawal of the Commissioner's Statement of Principles on 20 April 2012, created uncertainty on the ATO's view on resettlement of trusts. On 24 October 2012, the Commissioner released Taxation Determination TD 2012/21 confirming his position in relation to CGT events E1 and E2 and the creation of a trust over CGT assets. Some changes have been made from the previously released draft TD 2012/D4 in finalising this TD.