Business
Services News
Gilshenan & Luton Property Section involved in $15 million sale
Our property team recently acted for a public company in the sale of a 31 hectare property at Bahrs Scrub, near Windaroo which sold for $15 million.
The site was touted by PRD Nationwide as being one of the most prestigious residential development sites in southeast Queensland due to its elevated location overlooking the Windaroo Estate and Golf Course, with easy access to both Brisbane and the Gold Coast.
The sale was carried out by way of tender and our primary role involved drafting complex tender documentation and contracts of sale for distribution to prospective tenderers.
This significant and successful transaction was reported in The Courier Mail on Friday, 23 July 2004 on page 38.
Paul Luton is the Partner in our Property Section (Telephone: (07) 3361 0313)
No more perks for financial advisors
An industry code of practice to be effective from 1 August 2004 is set to put an end to financial advisors receiving free holidays, cash gifts and other perks commonly received from investment fund managers for promoting their products.
The new IFSA/FPA Industry Code of Practice on Alternative Forms of Remuneration in the Wealth Management Industry will apply to members of the industry's two peak associations, the Investment and Financial Services Association (IFSA) and the Financial Planning Association (FPA).
Members who fail to observe the code will face penalties including suspension or termination of membership. In addition, the FPA is imposing fines of up to $20,000 per breach on its members.
The code of practice follows a recent Australian Securities and Investments Commission (ASIC) report into the financial advice industry which concluded that perks such as holidays and cash gifts compromised the impartiality of retail financial services.
The code can be downloaded from http://www.fpa.asn.au/images/userimages/2004%200726%20alt%20rem%20paper%20_final.pdf.
Further Proposed Bankruptcy Changes
The Federal Government has decided to withdraw and revise its exposure draft Bankruptcy Legislation Amendment (Anti-Avoidance and Other Measures) Bill 2004. The Bill has been widely criticised by many groups because (amongst other things) it gives trustees in bankruptcy the new powers in relation to recovering property held by third parties, including family members.
For some time professionals have transferred their major assets to their spouse or family trust for asset protection reasons (amongst other reasons). The Government has proposed the draft Bill to address issues arising from the ability of some high income earners to use bankruptcy to avoid paying debts, while maintaining their lifestyle through assets held in other entities.
Whilst the Bill is to be withdrawn and revised, Mr Ruddock has said "The Government remains determined to address these issues by ensuring that bankrupts who actively seek to avoid paying their debts are brought to task".
Changes to be addressed by the Government include:
- the provisions which reverse the onus of proof that the bankrupt had a 'tainted purpose' in making the original transfer of assets;
- introducing realistic time limits to determine how far back bankruptcy trustees could look in seeking to recover transferred property; and
- ensuring the provisions do not have unintended consequences in cases where bankruptcy results from business or professional failure.
"The draft Bill contains other important amendments particularly those designed to address difficulties arising from the interaction between family law and bankruptcy. ...Although the Committee will not be continuing its current inquiry into the provisions allowing for recovery of property from third parties, I will be asking it to report to the Government on the remainder of the Bill" Mr Ruddock said.
ATO loses split-super test case
The Administrative Appeals Tribunal (AAT) has rejected a claim by the ATO that the owners (husband and wife) of a private company engaged in a tax avoidance scheme by using the company to split their income and make large superannuation contributions on behalf of the wife. These super contributions were often greater than the salary earned by the wife in providing administrative assistance to the company.
In finding for the tax payer, the judgment stated, "The purposes (for the scheme) were providing superannuation for Dr and Mrs Ryan, paying Mrs Ryan for her work, and claiming necessary deductions. Obtaining a tax benefit was not a purpose".
This decision is considered a boost for small business people who have similar arrangements, however the ATO is currently considering an appeal.
Abolition of Queensland Credit Card Duty
Credit card duty in Queensland is to be abolished from 1 August 2004. No credit card duty will be payable for transactions dated on or after 1 August 2004.
Credit card providers registered under the Duties Act 2001 (Qld) will still need to lodge a
credit card duty return, and pay credit card duty, on or after 1 August 2004 for any
credit card transactions entered into before that date.
Click here for more information from the Qld Office of Fair Trading website.
Cooperation to Combat Spam US UK and Australia
Government Authorities in Australia, the United States and the United Kingdom have signed a memorandum of understanding (MoU) in Washington to combat the spread of spam emails.
The parties to the MoU comprise:
- in Australia - the Australian Communications Authority (ACA) and the Australian Competition and Consumer Commission (ACCC);
- in the US - the Federal Trade Commission (FTC); and
- in the UK - the Department of Trade and Industry (DTI), the Information Commissioner (ICO) and the Office of Fair Trading (OFT).
ACA Acting Chairman Dr Bob Horton said the MoU provided a framework for cooperation in fighting cross-border spam affecting all three countries. The signing of the MoU is to be followed up by other actions including increased discussions between the countries involved and practical actions including his chairing of an International Telecommunication Union (ITU) conference for all regulators of the world on spam legislation, awareness and concerted action in Geneva in July.
The Australian Spam Act 2003 came into force on 10 April 2004. In October 2003, Australia and the Republic of Korea signed an MoU to promote the regulation of spam.
APRA releases draft Prudential Standards for Business Continuity Standard
The Australian Prudential Regulation Authority (APRA) has released a draft Prudential Standard on Business Continuity Management (BCM) for authorised deposit-taking institutions, general insurers and life insurance companies (regulated institutions) for public consultation.
Under the proposed Standard, regulated institutions would be required to:
- identify, assess and manage potential business continuity risks to ensure they can continue to meet their financial and service obligations to depositors and policy holders in the event of a material disruption to business operations; and
- undertake regular reviews of their BCM framework, including periodic testing and maintenance of their business continuity plan.
Police Radio Inquiry
Access by the media to police radio communications is the topic of a current Inquiry by the Crime and Misconduct Commission.
The Queensland Police Service is currently introducing digital radio systems which do not allow the media and others to scan the airwaves and listen in on police communications. The media are calling for access to the digital radio transmissions, whilst the Police Service and Police Union have submitted that media access is not justified.
To peruse the submissions already put before the CMC Inquiry, go to the CMC website on www.cmc.qld.gov.au