News and Insights

Wisewould Mahony offers a full suite of legal services covering business, commercial, corporate, M&A, private equity capital raising, financial services, tax, asset protection, estate planning, IT, IP, property, employment, and related areas, with lawyers in Melbourne and Geelong.  The following is a brief outline of some of the issues arising out of recent client work that may also affect you, your businesses or family:

Ensuring a safe and happy Christmas for employees

With Christmas season fast approaching it is important for employers to consider how safe their celebrations and workplaces are.

We recently settled a claim for an individual who was subject to sexual harassment at her previous employer’s Christmas Party.  The employer was liable for the actions of the aggressor as it has a duty to ensure its workplace is free from discrimination, sexual harassment, and victimization.

Employers are urged to take positive steps to prevent such conduct from occurring.  For more about positive steps which employers can take to ensure employees have a safe working environment, read more here (link to final article on website).

A cautionary tale about updating wills when circumstances change

We recently resolved a contested estate where the deceased had made a Will in 1999 while married to his then wife.  The Will appointed his wife as Executor and left his entire Estate to her.  They later separated but did not divorce and continued to arrange their matters between themselves informally.  No new Wills were executed.

When the husband passed away, his ‘ex’ wife applied for a Grant of Probate on the original Will.  Having cared for their father for some years, the children of the deceased were forced to initiate Part IV proceedings seeking that provision be made for them from the Estate.

The matter resolved at mediation, but not before significant costs were incurred by all parties in litigation.  A reminder to revise your Wills whenever there are significant changes in your personal circumstances.

Marketing or Spam?

Email marketing campaigns can be an effective marketing tool and, if well executed, can result in a high rate of clients or contacts taking action.  However, it only takes one disgruntled person to undo that hard work with a complaint to the communications watchdog, the Australian Communications and Media Authority (ACMA).

To avoid being classified as ‘Spam’, marketing emails must clearly identify up to date contact details of the sender’s business, that recipients must be able to unsubscribe and the sending business must have the recipient’s consent to receive marketing emails.  While identifying the business and unsubscribe must be made fairly clear, consent may be express or “inferred”.

Businesses should review their marketing campaigns, processes and procedures to ensure compliance with the Spam Act and avoid significant penalties from ACMA.

Revised ATO web guidance on crypto assets

On 30 June 2023 the ATO revised its web guidance on the tax treatment of crypto assets, following a legislative amendment which confirms that digital currencies such as Bitcoin are excluded from the income tax treatment of foreign currency.

In Australia, cryptocurrencies are considered to be CGT assets in accordance with Taxation Determination TD 2014/26 and gains or losses must be calculated each time cryptocurrency is sold, unless the cryptocurrency is held as a personal use asset (with a cost base of up to $10,000) or trading stock.

If you are using cryptocurrency in your business, or if you intend on disposing of cryptocurrency that you have held as an investment, we recommend that you seek advice.

Stamp duty – beware of double duty

Most contracts for the sale of real property allow a purchaser to nominate an alternative purchaser to whom the vendor will transfer that real property. In some cases, this can lead to double stamp duty being payable on the one transfer of land where there is either a transfer involving additional consideration or a transfer involving land development before the nomination was made (including transfers resulting from options).

On 31 October 2023 the Victorian State Revenue Office published Revenue Ruling DA-064v2 in which it clarifies the meaning of ‘land development’ for the purposes of the sub-sale duty provisions. The Ruling essentially states that if a plan of subdivision is prepared, a planning permit is obtained, a building permit is obtained, or if various other things are done, land development is considered to have occurred and double duty will be payable if an alternative purchaser is nominated.

Therefore, clients should be aware that advice should always be obtained before nominating an alternative purchaser for the sale of real property.

Welcome Kathleen Jess

Senior Associate Kathleen Jess has recently joined us a tax specialist in our Business & Commercial team.

Having commenced her career working in Big 4 accounting firms, Kathleen also worked at the ATO before moving to mid-tier law firms. Kathleen advises on all areas of Taxation Law, Trusts Law and Self-Managed Superannuation Fund (SMSF) Law and assists small to medium business clients as well as individuals and high net worth family groups (including trustees of trusts and SMSFs) in disputes with state and federal revenue authorities (e.g. the ATO and the Victorian State Revenue Office).  Kathleen is a great addition to our Commercial team.

If any of these matters raise issues you would like to discuss, please give us a call on (03) 9629 8333, or email any of our lawyers or enquiries@wisemah.com.au.