by Ken Sorrenson | Oct 21, 2017 | Business
Last year, the New South Wales Government introduced surcharge land tax and stamp duty upon land purchases and land holdings by foreign persons. The surcharges are payable in addition to land tax and stamp duty normally payable and they are significant –
- The land tax surcharge is 0.75% for the 2017 year increasing to 2% for 2018 onwards; and
- The stamp duty surcharge from 1 July 2017 is a massive 8%.
Both surcharges relate to residential land only and were intended to put a brake on the level of foreign investment which was seen as driving escalating home prices particularly in the Sydney market.… Read More
by Ken Sorrenson | Aug 5, 2017 | Business
In its simplest terms Crowdfunding involves using a social media platform to request relatively small amounts of money for a particular purpose. Most of us would have had some contact with crowdfunding usually in the context of a funding request for a charitable or benevolent purpose.
Overseas, crowdfunding is used for wider purposes including raising business finance. Essentially the request for finance is made by way of a “kick-start” request with the promise that those who contribute will be given the 1st opportunity to invest if the proposal comes to fruition.
Laws in Australia are beginning to catch up. In March this year legislation was approved to allow unlisted public companies with less than particular revenue and asset thresholds to raise capital via what is referred to as “crowd-sourced equity funding” (CSF).… Read More
by Ken Sorrenson | Feb 11, 2017 | Business
Business operators need to review their business structures on a regular basis.
What you set up years ago may well have been correct at the time but it may not be optimal for your current situation, particularly if your business has expanded.
In past times there were usually stamp duty and capital gains tax costs that needed to be built into any restructure decision and often those costs made restructure not viable.
From 1 July 2016 stamp duty and capital gains tax laws changed markedly –
- Stamp duty on business assets other than land was abolished in NSW; and
- New tax legislation usually referred to as “small business restructure rollover” (“SBR”) took effect.
… Read More
by Ken Sorrenson | Oct 29, 2016 | Business
Electronic signature processes are increasingly being used by businesses and financial institutions. They offer convenience and potential cost savings particularly where documents might need to be signed by people in various different locations.
There are a number of digital platforms available but most involve –
- The documents to be signed being uploaded to the cloud;
- The intended signatory being notified by a link to access the document; and
- The intended signatory opening the link and following on line instructions with the end result being that a signature is inserted into the document.
The generally accepted legal view is that legally binding documents can be created and executed in this manner however a recent New South Wales Court of Appeal case highlighted the problems that can arise.… Read More
by Ken Sorrenson | Sep 10, 2016 | Business
Whilst businesses always plan to succeed, statistics show that about 1 in 2 new businesses fail in the short to medium term. For this reason, it is always relevant when choosing a business structure to consider the personal liabilities for the business owners should things not go as planned.
Traditionally, trading through a structure like a company offered a significant degree of insulation from personal liabilities. With some fairly narrow exceptions, the worst-case result for the business owners was the loss of the money they put into the business. Business failure did not spill over to the separate assets of the business owners.… Read More
by Ken Sorrenson | Apr 23, 2016 | Superannuation
In 2007 superannuation laws were relaxed to allow superannuation funds (“Super Funds”) to borrow money to acquire assets.
At about the same time, a Global Financial Crisis happened. This resulted in there being very little use of these new laws by Super Funds for a few years but with the return of business confidence that changed . It is now very common for Super Funds to borrow, particularly to purchase real estate.
The rules for borrowing by Super Funds are complex but became well understood by financiers and advisors such as financial planners, accountants and solicitors who practiced in the superannuation area.… Read More
by Ken Sorrenson | Dec 19, 2015 | Business
Once there were 3 brothers who ran a very successful business via a company in which they all held shares and they all worked on a full-time (and a bit more) basis.
Like most brothers there were niggles between them from time to time but they got on and they certainly didn’t consider they needed to document their understandings of what should happen if one of them wanted to leave the business or if one of them died.
One of the brothers died unexpectedly leaving behind his wife and young family who depended upon the income from the company. His shares in the company passed to his wife under his will.… Read More
by Ken Sorrenson | Aug 29, 2015 | Business, Superannuation
The number of self managed superannuation funds (SMSFs) is increasing exponentially. This growth has been particularly prompted by changed laws allowing SMSFs to borrow to purchase investments such as real estate.
The primary rule of self managed superannuation is a requirement that all the members (a maximum of 4) must either be trustees of the fund or directors of the trustee company if the fund has a corporate trustee.
Normally, trustees must act unanimously. Unless the prospect for dispute or deadlock between trustees is considered and dealt with upfront, disputes will ultimately find their way to the Supreme Court which is all of, very expensive, uncertain and time-consuming.… Read More
by Ken Sorrenson | Feb 21, 2015 | Business, Employment
It is very common to find restraint on competition clauses in commercial agreements such as employment contracts and business purchase agreements.
There is a very developed body of law in relation to restraint clauses in employment contracts. Essentially they are very difficult to enforce as they are scrutinised very carefully by Courts with the onus being on the employer to prove that they are reasonable and necessary to protect the employer’s legitimate interests. For that reason, employee restraints need to be very carefully and conservatively drafted. Broad probations on the employee trading in competition with the ex-employer are most unlikely to be successful.… Read More
by Ken Sorrenson | Mar 22, 2014 | Wills & Estates
The form of power of attorney (‘POA”) now used in NSW is a very simple but often misunderstood form.
Whilst the standard form is simple, it will often be appropriate to make significant changes to it to reflect the individual circumstances of the person giving the POA.
The issues that may need to be covered by a POA are constantly evolving. A good example of this is the treatment of so-called “digital assets” which are becoming more and more important to all of us.
Research in the USA indicates –
- More than half of individuals over 65 use the Internet;
- 95% of people have an online presence from the age of 2; and
- A representative sample of Internet users had, on average, 25 passwords.
… Read More
