Author: Zoe Hewison

Linfox Australia Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia [2019] FCAFC 131

The Full Court of the Federal Court recently handed down a decision in Linfox Australia Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia [2019] FCAFC 131 (Linfox Case) in relation to fuel tax credits claimed by Linfox pursuant to the provisions of the Fuel Tax Act 2006 (Cth) (FTA).

The Commonwealth Notifiable Data Breaches (NDB) scheme has now been in place for over 18 months and has been widely publicised. Your organisation should be aware of its obligations and have a data breach response plan in place so that quick action can be taken if a breach occurs or is suspected to have occurred.

Businesses that provide road freight services have increased tax compliance obligations as they are now subject to the Government’s Taxable Payments Reporting System (TPRS).

A recent Federal Court judgment demonstrates it is more crucial than ever that employers keep accurate records in accordance with the requirements in the Fair Work Act 2009 (Cth) (FWA) and Fair Work Regulations (Regulations).

The sale of a person’s main residence (ie their home) is generally exempt from capital gains tax. This exemption is ‘carried through’ to beneficiaries or executors of deceased estates who seek to dispose of the deceased’s main residence, where certain conditions are satisfied.

This article was first published by Daily Cargo News.

I wrote an earlier article on Brexit for this publication and thought it may be a good time to review the situation and whether there was any further clarity on the position.

There are new signs that the Australian property market is on the rebound. As the property market recovers, so does the credit market and companies will increasingly seek financing for their business. Financing may take many forms: revolving credit loans, loans to finance the acquisition of a target company, or construction loans, to name a few.

On 18 September 2019, the Treasury Laws Amendment (Recovering Unpaid Superannuation) Bill 2019 (the Bill) was introduced into Parliament. The Bill seeks to re-introduce a superannuation guarantee amnesty, following the previous amnesty legislation lapsing due to the Federal Election being called in April 2019.

This article was first published by AirCargo magazine.

Now that the 46th Federal Parliament has resumed and the commencement formalities have been completed, it is a good time to review the status of our Free Trade Agreement (FTA) agenda along with other new initiatives aimed at facilitating trade.

This article was first published by Daily Cargo News.

Even with the current political pressures around global trade and the supply chain, there seems to be little prospect that there will be no reduction in goods being moved through the international supply chain.

In a Bill currently before Parliament, property investors will be denied deductions for holding and financing costs incurred in owning vacant land. Ordinarily, such costs would be deductible where the land is intended to be used for the purpose of producing assessable income.

The Internet can offer consumers a convenient way to access therapeutic goods, but online purchases of prescription-only medicines can be extremely dangerous.

Key Points:

• In a recent decision of the Supreme Court of Victoria, the Court held that an appeal under the new Insolvency Practice Rules against an insolvency practitioner’s determination on a proof of debt at a meeting of creditors is a hearing de novo (ie a fresh hearing) without any need for the appellant to identify error by the original decision-maker.

Victoria’s family provision legislation was substantially amended by the introduction of the Justice Legislation Amendment (Succession and Surrogacy) Act 2014. This Act had the effect of reducing the classes of claimants that may make a claim for provision from a deceased estate, and also the number of claims being filed in Victorian courts against estates.

Remaining married can leave your Will open to challenges

We have seen a number of recent deceased estates where a deceased person remained married at the time of their death, despite having separated from their spouse for a significant period of time prior to their death.

The Labour Hire Licensing Act 2018 (Act) establishes a licensing scheme to regulate labour hire providers and labour hire users in Victoria.

This article was first published by Daily Cargo News.

The start of a new financial year is often used by the business community to launch new initiatives into the market. However, in this case, by media release on 1 July 2019, the Australian Border Force (ABF) as a division within the Department of Home Affairs (DHA) provided details of the establishment of a new ‘Customs Group’ within the ABF.

This article was first published by AMTIL.

Are you overpaying land tax based on out of date council valuations?

The 2019-2020 Victorian State Budget reported that land tax revenue in 2019-2020 is expected to increase to $3.7 billion. This is a significant increase from the $1.2 billion raised in 2009-2010.

The term seems to have first arisen in the early 1990s with reference to an ‘open distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way’ and was developed to serve as a ‘public transaction ledger’ for the bitcoin cryptocurrency.

With the ever increasing responsibility on companies and their directors and officers to ensure safety and security in the workplace, as well as to ensure compliance with the Heavy Vehicle National Law (HVNL), various forms of workplace surveillance are increasingly being used by employers in the transport and logistics industry.

Safety v privacy: In a landmark decision, the Fair Work Commission (FWC) Full Bench has held that an employee was unfairly dismissed for refusing to use biometric scanners to sign in at work.

This article was published in the July print edition of Daily Cargo News and updated for recent events

In the week leading to the recent Federal election, the Minister for Industry Science and Technology (Minister) released her decisions as to the imposition of interim dumping and countervailing duties on steel pallet racking and PVC covered electrical cabling

In the week leading to the Federal election, the Minister for Industry Science and Technology (Minister) released her decisions as to the imposition of interim dumping and countervailing duties on steel pallet racking and PVC covered electrical cabling.

The Therapeutic Goods Administration (TGA), currently uses a standardised, risk-based international classification system (risk-based system) to assess and approve the use, consumption and implantation of medical devices in Australia. The same system is used in the United States, the European Union, the United Kingdom, Canada and Japan.

Adjustments to wages and remuneration in the transport industry commence today.

The following tables detail the new minimum rates of pay for part-time and full-time employees under various modern awards, applicable to adult employees in the transport industry.

This article was first published in AirCargo magazine, June 2019.

Those in industry (let alone anyone with an interest in world news) would be painfully aware that global trade is under massive pressure at the moment. Examples of these threats are everywhere and if they come to pass, the consequences will be uniformly bad. Trade and global integration has been a driver of financial and social improvement with the World Bank estimating that more than a billion people have been lifted out of poverty over the last 25 years.

The Fair Work Act 2009 (Cth) (FW Act) does not specifically deal with whistleblowers, and the Federal Government has previously rejected proposals to amend the FW Act to link disclosure rights under public and private sector whistleblowing laws with the General Protections in Part 3-1. That said, whistleblowers can still utilise provisions in the FW Act to gain additional protection, including where their disclosure may not actually qualify for protection under whistleblowing laws.

Property developers who enter into agreements to develop Victorian land with an unencumbered value of over $1 million are at significant risk of incurring a duty liability, under new legislation that received Royal Assent on 18 June 2019.

The last few years have seen several high profile cases of senior executives being ‘caught out’ providing fake or misleading information on their CVs/ job applications.

What is the employer’s duty of care?

Employers have a duty under workplace health and safety legislation, including the Occupational Health & Safety Act (2004) (Vic), to provide and maintain (as far as is reasonably practicable) a safe workplace. In addition, employers have a duty to monitor the health of their employees. Criminal prosecution, penalties and potentially imprisonment can result if these statutory duties are breached.

20 June 2019 – Correction to article in footnote 5

Annual Wage Review Decision

On 30 May 2019, the Fair Work Commission handed down its 2019 Annual Wage Review Decision. The key elements of the decision are:

This article is co-authored by Andrew Hudson and Bethany Clark 

During each year we discuss various important decisions handed down by the Tribunals and Courts.

Rigby Cooke Lawyer, led by property partner Darren Marx, recently acted for Stronghold Investment Management on its acquisition of the Cardinia Club from Pakenham Racing Club for $16m. The well established entertainment venue has 105 Electronic Gaming Machines, a large bistro, upmarket sports bar and multiple function rooms. Brisbane based Stronghold is a specialist Business Park and Hospitality sector Fund Manager.

Chapter 11 of the Parliamentary Joint Committee on Corporations and Financial Services ‘Fairness in Franchising Report’ – published in March 2019 – covered the termination of franchise agreements.

Now that the Australian Federal election has been run and won, attention will turn to the priorities of the Coalition Government once Parliament resumes, whether in relation to the introduction of new initiatives or pursuit of the agenda which had been on hold pending the election outcome.

Led by partner Michael Gough, Rigby Cooke is delighted to have the opportunity to support Barnes Capital, a premier boutique capital investment firm, on the launch of the Oakwood Hotel and Apartment development in Dandenong.

Businesses operating in Australia are subject to a kaleidoscope of constantly evolving privacy obligations. As privacy week draws to a close, it is an opportune time to look forward to how the privacy landscape might change in the future, subject to the outcome of tomorrow’s federal election.

Rigby Cooke Lawyers’ Planning and Environment team continues to be recognised for their outstanding work in the planning space in Victoria.

Rigby Cooke Lawyers partner and Intellectual Property expert, Ian Rosenfeld, has been selected by Mondaq Ltd as its Exclusive Australian Contributor and author of the Australian chapter of the Mondaq Comparative Guide to Trademarks 2019.

Rigby Cooke Lawyers have just introduced a new Notary Public offering led by Partner, Rachael Grabovic.

This article was first published by Daily Cargo News.

I write this article on 12 April 2019, shortly after the announcement of the federal budget and the announcement of the date for the federal election. As expected, this period encompassed the usual claim and counter-claim between the major political parties and the usual cynicism that even after the election, the political landscape may not change significantly.

This article was first published by AirCargo Magazine.

Faced with the prospect of a no deal Brexit on 12 April 2019, the EU and the UK put into place a compromise that is referred to as a ‘flextension’ because it delays Brexit until 31 October 2019, subject to a number of conditions. 

What is a Will? Almost all of us would answer that question by mentioning that it’s a written document setting out who receives our assets when we die.

However, recent court cases have taken a more expansive view as to what they are prepared to accept is a valid Will. The 2017 decision of the Supreme Court of Queensland (QSC) in Re Nichol; Nichol v Nichol & Anor [2017] QSC 220 held that an unsent SMS message was sufficient to constitute a Will.

This article was first published by Daily Cargo News.

Technology has contributed to improvements in trade and is seen as one means to facilitate improvements. For example, many parties are looking to Blockchain as a means to enhance both the speed and safety in the movement of goods. Most contemporary Free Trade Agreements (FTAs) include provisions to facilitate customs procedures and trade as well as chapters on assisting e-commerce. In one excellent example, the FTA Portal by the Department of Foreign Affairs and Trade (DFAT) comprises up to date information on the terms of our FTAs in a way which makes it easier for parties to understand the FTAs and take advantage of them.

Last year the Victorian Government passed the Labour Hire Licensing Act 2018 (Act). The Act legislates a scheme to regulate labour hire providers and labour hire users in Victoria (Labour Hire Participants). The scheme legislated by the Act will commence operation on 29 April 2019 and labour hire providers are required to have applied for licences under the Act by no later than 29 October 2019.

Last month, the Parliamentary Joint Committee on Corporations and Financial Services published its ‘Fairness in Franchising report’ (Report). The terms of reference for the Report were released over 12 months ago and more than 400 submissions were received, mostly from franchisees.

The Federal Budget 2019 was formally released by the Federal Government last night (2 April 2019). However, in an election year, the Federal Government took the unusual path of confirming that the government would not be seeking to pass new legislation implementing that Budget in the remaining Parliamentary sitting days. Instead, the Budget legislation would be left only to pass if the government is re-elected in the next Federal Election which is likely to take place in May 2019.

The freedom to make a Will and to leave your estate to whomever you choose (called testamentary freedom) is one of the most fundamental principles of succession law in Australia.

As many readers would be aware, when the New Zealand Customs Act 2018 (Act) commenced on 10 October 2018, not all of its provisions come into force on the same day.

I had been working with Custom Brokers & Freight Forwarders Federation of New Zealand (CBAFF) and other members of the Stakeholders Reference Group (Group) established by New Zealand Customs (Customs) in reviewing the proposed terms of the Act including changes to powers to Customs and the enforcement regime in the Act.

This article was first published by Daily Cargo News.

The term “Brexit” has well and truly entered into regular use and represents one of the top topics for news and current affairs at the moment. The world is transfixed by developments in the UK including close attention to the (non) passage of legislation to implement the Exit Agreement brokered by the UK Government with the EU and the associated pressure on the UK Conservative Government. As the day of departure from the EU approaches (29 March 2019), the absence of a clear exit process gives rise to more concerns on how the world will cope if no deal (or a bad deal) is struck.

Key points:

• When contracting with administrators or liquidators, counterparties need to be careful to ensure such contracts will give them enforceable rights.
• An administrator can enter into almost any contract and is personally liable for numerous categories of debts they may incur.
• A liquidator has only limited powers to enter into contracts on behalf of a company, and generally has no personal liability under such contacts.

Key points:

• A liquidator is unable to apply for a judgment under the Building and Construction Industry Security of Payment Act 2002 (Vic) (SOPA).
• Where judgment under the SOPA was obtained by the contractor before it went into liquidation, and the principal asserts an offsetting claim, the Court will stay enforcement of the judgment pending a taking of accounts pursuant to section 553C of the Corporations Act.
• Ultimately, a liquidator will only be able to enforce payment of an amount actually shown to be owed under the construction contract, after a final reconciliation has occurred.

Key points:

• Liquidators have the power to sell causes of action belonging to the company, or conferred on the liquidator by the Corporations Act 2001 (Cth) (Act).
• Selling instead of litigating causes of action can be a safer, surer and quicker path for a liquidator to realise value for creditors.
• However, there are certain important limitations on a liquidator’s power to sell causes of action.

The memory of the summer holidays are long over. And, as a full working year looms, some employees will consider looking for opportunities elsewhere.

There may be many motives to contemplate change. More pay or new career challenges, for example, a promotion. Or, the motive, as the common social media catchphrases go, might be that an employee leaves their boss, not the organisation – seeking neither money nor career advancement, but simply respect.

Australia depends heavily on sea cargo and the efficient movement of goods through the supply chain both for exports and imports. The benefits of the proliferation of free trade agreements (FTAs) and other initiatives aimed at facilitating trade and reducing barriers and costs, can be compromised when access to the infrastructure is limited, delayed or made more expensive, especially where there is little recourse against those practices.

When most goods enter the country, the completion of customs formalities usually includes the payment of customs and excise duty. However in a number of cases, the duties are not paid on import and the goods are moved under “customs control” to “licensed premises” which are secured facilities, whether bonds or warehouses where goods are held pending payment of the duties and release into “home consumption” for wider use, often for retail sale.

One of the fundamental questions any business owner needs to address is how to finance their assets. On commercial grounds, the various options have important implications.

Contracts to provide transport or logistics services are vital to business success, but if not well negotiated, can have serious or even fatal consequences for the transport or logistics provider.

Rigby Cooke Lawyers’ Workplace Relations team continues to be recognised for their outstanding work in the Workplace Health & Safety and Employment space in Victoria.

On 19 December 2018, the Latrobe Valley Magistrates’ Court sentenced a 72 year old employer to prison for breach of her duties to provide a safe workplace under the Victorian Occupational Health & Safety Act 2004 (OHS Act).

For a variety of reasons Australians have wholeheartedly embraced the various means of electronic communication and social media platforms.

This article was first published by Daily Cargo News.

Beware those working in licensed premises – you can be liable for amounts equal to duty owing on goods stolen from those premises.

This article was first published by AirCargo Magazine.

The Australian Productivity Commission (PC) website describes its main role as:

“Providing independent research and advice to government on economic, social and environmental issues affecting the welfare of Australians”

The Fair Work Commission (FWC) has recently considered whether a dismissal for incapacity was harsh, unjust or unreasonable, in circumstances where the employee was unable to return safely to her substantive position and had declined to accept alternative employment due to her personal circumstances.

Following a health and safety related incident in the workplace, there are several actions that employers may need to take depending on the type of incident.

Readers will be aware that significant changes to the Chain of Responsibility (CoR) provisions under the Heavy Vehicle National Law (HVNL) came into effect on 1 October 2018.

The Australian border is a busy place, not just in terms of the movement of goods and people and not just in terms of the many free trade agreements (FTAs) and other trade developments.

The new Oaths and Affirmations Act 2018 (Vic) (the Act) is set to come into operation on 1 March 2019. The Act updates the processes and requirements regarding oaths, affirmations, affidavits, statutory declarations and certification of documents.

While there has recently been significant commentary on Chain of Responsibility under the Heavy Vehicle National Law and transport of goods by road the most common manner of importing and exporting goods to and from Australia is by sea.

In early 2018, Greater Shepparton City Council (Council) initiated an application to the Victorian Civil and Administrative Tribunal (VCAT) for a declaration that a camping and caravan park in Shepparton East had transformed from a camping and caravan park to a residential village or retirement village as a result of four new high quality long term cabins being constructed within the park.

The Fair Work Commission (FWC) recently considered whether an employee’s employment was terminated on the employer’s initiative of whether the employee had resigned.

In response to the decision in WorkPac Pty Ltd v Skene [2018] FCAFC 131 (WorkPac Decision), the Minister for Jobs and Industrial Relations has made the Fair Work Amendment (Casual Loading Offset) Regulations 2018 (Cth) (Casual Loading Offset Regulations).

This article was first published by Daily Cargo News, January 2019.

It really should come as no surprise that Australia and New Zealand have a shared experience and agenda when it comes to customs and trade matters. After all, both countries started out as far-flung outposts of the British Empire, both started with a similar legal framework and both have some similar trade interests and challenges, as well as similar national security interests.

Rigby Cooke Lawyers partner and litigation and dispute resolution specialist Elizabeth Guerra-Stolfa recently warned of the consequences to members of the supply chain for failing to be prepared to meet their obligations under the new Chain of Responsibility (CoR) provisions of the Heavy Vehicle National Law (HVNL) which came into effect on 1 October 2018.

So much of what we do in our lives is now carried out online, so it’s not very surprising that we’re now including access to our digital assets if not in our Wills, in letters of instruction to our executors. However, you may find that by including such instructions, you could actually be putting your executor at risk.

If you have recently purchased property in Australia, it is important that you protect your new asset. Most people immediately take out insurance to protect their new property from the consequences of flood, fire, damage and theft. Many people fail to protect their new asset from the consequences of incapacity or death.

This article was first published by AirCargo magazine, December 2018.

One of the essential elements of good regulation is the need for clear contemporary supporting legislation and associated regulation.

This article was first published by the Customs Brokers and Forwarders Council of Australia.

I have been working with the Customs Brokers and Forwarders Council of Australia (CBFCA) to develop guidance material and host legal forums on the introduction of the Trans-Pacific Partnership (TPP-11), a free trade agreement that comes into play from 30 December 2018.

Governments and, increasingly big companies, are using tender processes (including Request for Proposals and Request for Tenders) to award contracts to transport and logistics companies.

Privacy and data protection concerns the management of personal information. The definition of personal information is broad and captures most information about an identified or identifiable individual. This includes for example names, photographs, basic contact information, credit card details, health or genetic information and information about a person’s location at a specific point in time.

Since the launch of Bitcoin in 2009, more and more people have become aware of blockchain technology, and its potential to revolutionise payments systems. However, blockchain has many applications beyond cryptocurrency. ‘Smart contracts’ – computer code which execute the terms of an agreement have the potential to revolutionise commercial transactions.

In recent times, the legalisation of ‘euthanasia’ has been hotly debated within our homes, schools and parliaments. Whilst positions may remain conflicted, the State Government of Victoria has passed the Voluntary Assisted Dying Act 2017 (Vic) (VAD Act) which is due to commence on 19 June 2019.[1]

It is often said that the one constant in life is change. Employers in the health and welfare industry are well aware of that fact of life, given the frequency of regulatory change. One of the consequences of those sorts of changes for employers is that they often result in the need to modify or reshape the skills or qualification mix or working hours of the workforce.

The Heavy Vehicle National Law (HVNL) requires that heavy vehicles, their components and their loads meet mass requirements including mass limits. The Heavy Vehicle (Mass, Dimension and Loading) National Regulation sets out, among other things, the mass requirements, mass limits and exemptions applicable to heavy vehicles.

This may seem a somewhat straightforward question, but, as with many tax questions, the answer is not particularly easy. Like most of these matters, the answer depends on the circumstances.

Changes to the Heavy Vehicle National Law (HVNL) took effect on 1 October 2018. These changes relate to new inclusions to Chain of Responsibility (CoR) laws, and resemble the current risk-based approach that is applied in workplace health and safety law.

Trans Pacific Partnership (TPP 11) to start on 30 December 2018

Good news for all – six countries have ratified the commencement of TPP 11, which is the magic number to allow the agreement to commence (for those countries which have ratified the Agreement)

We congratulate our client, Alfasi Property Group, on the announcement of their new hotel development at 2-10 River Street, South Yarra.

On Thursday 1 November 2018, the Long Service Leave Act 2018 (Vic) (LSL Act 2018) took effect.

Although the rate at which long service leave (LSL) accrues (0.8667 weeks per year) will not change, there are other significant changes that businesses operating in Victoria need to ensure they comply with to avoid exposure to penalties which have tripled under the new law.

In September 2018, the Fair Work Commission (FWC) published a new model award term to supplement the flexible work provisions in s65 of the Fair Work Act 2009 (Cth) (FW Act). In another decision, when arbitrating a dispute under an enterprise agreement, it found that the employer had not demonstrated that it had “reasonable business grounds” for refusing an employee’s flexible work request.

On 2 October 2018, a Full Bench of the Fair Work Commission, headed by Ross J, partially overturned a decision of Deputy President Colman, regarding the cases of Mr Gelagotis and Mr Hatwell which received media coverage because of the industrial context that the dismissals arose.

There has been a significant amendment to the Trade Marks Act 1995 which further entrenches the legality of parallel imports in Australia.