Commercial Archive

Privacy Act changes – deadline looms

Businesses need to prepare now for changes to the Privacy Act that take effect from 12 March 2014.  Businesses that fail to update their privacy policies and practices will very likely find themselves in breach of the Privacy Act, potentially resulting in fines and orders to pay compensation, and possibly adverse publicity. All businesses with […]

PPSR – time is running out

Businesses need to register by 29 January 2014 to obtain the benefit of the “Transitional Perfection” protection under the Personal Property Security Act.  If your business has interests created prior to 30 January 2012 under:   leasing and hire arrangements (eg if you are the lessor of equipment); retention of title supplies (eg if you are […]

Directors’ Penalties – ATO on the warpath

You may have seen the article in the Australian Financial Review today (24 April 2013) warning directors that the Tax Office is now pursuing an aggressive policy of sending penalty notices to directors making them personally liable for their company’s unpaid PAYG and superannuation.  The article alerts readers to the fact that since 30 June […]

PPSA update

Some charges not migrated to the PPSR The Personal Property Securities Act 2009 (Cth) (PPSA) came into full operation on 30 January 2012 with the commencement of the Personal Property Securities Register (PPSR). The PPSR is supposed to be the single source of registered security interests in relation to personal property (section 8 of the […]

Your trading terms & conditions may no longer work

Two new Federal Acts (Personal Property Securities Act, “PPSA” and the Australian Consumer Law, “ACL”) make it important for any business that supplies goods to review and update its terms of trade to obtain greater protection and avoid losing rights it may previously have had.  PPSA If your business sells goods either to other businesses […]

Impact of new Australian Consumer Law on advertising

Riordans Lawyers’ March 2011 Newsletter noted that the new federal Competition and Consumer Act (CCA) and the Australian Consumer Law (ACL) replaced the Trade Practices Act (TPA) and introduced a number of important changes.  Some of the changes have particular relevance to advertisers and their advertising agencies.  This Information Brief deals with several of those […]

Personal Property Securities Act & Retention of Title rights

Under the PPSA, retention of title clauses, and also known as Romalpa clauses (ROT) will give rise to a security interest.  This is because of the definition of security interest under the PPSA and in particular the provisions of section 12(2)(d) of the PPSA.  When a business sells goods to its customer, the seller will […]

UPEs to companies arising after 16 December 2009 – analysis and comment

With effect from 16 December 2009 the Commissioner of Taxation has adopted a new approach in dealing with distributions of income made by trusts to related family companies where the amount of the distribution remains unpaid at the end of the tax year in which its made. In effect, the Commissioner now treats the unpaid present entitlement (UPE) owing by the trust as being a loan made by the company to the trust. Under Division 7A, if a loan is made by a company to a related trust, the amount of that loan will be treated as an unfranked dividend paid by the company to the trust in the year in which the loan is made. Prior to the Commissioner adopting this approach, it was common for trusts to “shelter” income at the corporate tax rate of 30% by distributing amounts to corporate beneficiaries. This step may now only be taken in accordance with the requirements now set out by the Commissioner is a new Practice Statement.