By Jack Nevile & Anna-Nikol Vladimirova

Tax reforms are usually about as predictable as Melbourne weather. However, in recent years, a few things have become fairly certain – the government is going to tax everything that doesn’t vote, and they’re going to tax where the money is. The big pot of gold in Australia is our national pastime of property, and the non-voters are foreigners and commercial property owners. 

The Commercial and Industrial Property Tax Reform Bill 2024 was introduced to into the Victorian Parliament earlier this month. 

This bill will introduce a new tax system for all commercial and industrial properties sold after 1 July 2024. Once a commercial property has sold and settled after this date, a 10-year countdown begins. This the transition period before the new tax is raised against the property. 

At settlement, the purchaser can choose to pay the stamp duty in one of two ways: 

1. Pay the property’s stamp duty liability as an upfront lump sum.  
2. Make repayments which are equivalent to the upfront stamp duty liability over the next 10 years, plus interest. 

Regardless of which option the purchaser chooses, this will be the final stamp duty payable on the transfer of that particular property. 

Following the initial settlement after 1 July 2024, no stamp duty is payable on future transfers of the commercial or industrial property.  

Time’s Up

After the 10-year transition period for that property has elapsed, the new Commercial and Industrial Property Tax will be levied. This tax will operate like land tax and be set at a flat 1% of that property’s unimproved land value, unless you are a Build-to-Rent developer, in which case your mates in government have given you a sweetheart 0.5% tax rate. 

What if I sell the property within the transitionary period?

If the property is transferred within that 10-year transition period, then no stamp duty is payable on settlement.  

However, if the previous purchaser is repaying the final stamp duty liability in instalments, then all outstanding amounts must be paid prior to the settlement.  

Once settled, the new purchaser resumes the countdown and begins paying the Commercial and Industrial Property Tax once the 10-year transition period has expired. 

But what if…?

We understand that these changes may be confusing. If you would like more information or advice on tax implication tailored to your specific circumstances, please contact our office today. 

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Linnea Cederberg

WICKED The Musical

The Broadway sensation WICKED looks at what happened in the Land of Oz long before Dorothy arrives. It follows the stories of two young women, who manage to turn their initial rivalry into the unlikeliest of friendships. One is rather misunderstood exceedingly fiery, given she was born with green skin; while the other, a bubbly and popular blonde. This is until the world decides to call one “good,” and the other one “wicked.”

Available at the Regent Theater until the 2nd of June! Get your tickets here

Leonardo Da Vinci at The Lume

In a celebration of innovation, art and the timeless genius of Leonardo da Vinci, The Lume Melbourne gives visitors the once-in-a-lifetime opportunity to step inside Leonardo’s world.

Located at The Lume, Melbourne until the 16th of June! Get your tickets here

Titanic: The Artefact Exhibition

One of the most famous tragedies in modern history, the story of the Titanic continues to educate and break hearts more than 110 years since she sank to the bottom of the ocean. This is the only exhibition in Australia to feature more than 200 real artefacts, recovered directly from the wreck site. The exhibition takes visitors on a memorable journey through the events of that fateful night.

Located at the Melbourne Museum until the 21st of April! Get your tickets here

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Jeffrey Stone

Jobs and Skills Australia (JSA) has opened consultation on the new Core Skills Occupation List (CSOL).

There are to be three visa pathways under the Migration Strategy:

• Specialist Skills pathway (salary over $135,000)
• Core Skills pathway
• Skills in Demand pathway (salary under $70,000).

This JSA consultation refers to the Core Skills pathway for occupations being paid a median salary above $70,000 and below $135,000. The draft list is based on labour market analysis of ANZSCO Skill Level 1-3 occupations, so some occupations in the other salary bands may be included in this list. However, it is not yet clear how this will be addressed in the visa regulations.

The JSA reports it has developed the draft lists benchmarked to the 2022 ANZSCO not the 2013 version which will capture new and emerging occupations and has also used the most up to date employment/labour market datasets.

The JSA notes that this is a draft list and further surveys, submissions, bilateral meetings and qualitative analysis will be undertaken on the list with closing date for submissions of 10 May

2024. The consultation information may be accessed on the JSA website where three lists appear:

• occupations JSA is confident will be on the new Core Skills list
• occupations JSA is confident will not be on the Core Skills
• occupations for further targeted consultation

The MIA recommends that members bring this consultation to the attention of industry association contacts and relevant employer clients they may have. It is expected that the JSA, as with previous ‘list creators’, will give most weight to submissions supported by industry or labour market evidence from these stakeholders. Guidelines on the timeline for the release of the final list and for lodging submissions are available on the JSA webpage.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Tracy Collins & Morgan Collens

In matters of medical care, especially during critical situation where an individual may be unable to communicate their preferences, having clear directives in place is essential. Two common mechanisms exist for this purpose: appointing a medical treatment decision maker and creating an advance care directive. While both serve the purpose of ensuring that person’s wishes regarding medical treatment are upheld, they differ in their scope and legal implications.

Medical Treatment Decision Maker

A Medical Treatment Decision Maker is an individual chosen by you to make medical decisions on your behalf in case you become incapacitated due to illness or injury. This role carries significant responsibility and should be assigned to someone who you trust to respect your values and preferences.

Key Characteristics:

1. Legal Authority: A medical treatment decision maker has the legal authority to make decisions regarding your medical treatment if you are unable to do so yourself.
2. Trust and Understanding: The chosen individual should have a clear understanding of your values, beliefs, and treatment preferences. This ensures that the decisions made align closely with your wishes.
3. Support Person: Additionally, the individual can appoint a support person to assist in making, communicating, and implementing medical treatment decisions. However, unlike the medical treatment decision maker, a support person does not possess legal authority to make decisions on behalf of the individual.

Advance Care Directive

An Advance Care Directive is a legal document that allows you to outline your preferences for medical treatment, ensuring your wishes are known and respected in the event you cannot communicate your decisions. It provides guidance to health professionals and the appointed medical treatment decision maker regarding your treatment preferences.

Key Characteristics:

1. Values Directive: This part of the directive captures your overarching values and preferences regarding medical care. It serves as a guide for your medical treatment decision maker, helping them understand your overall healthcare philosophy.
2. Instructional Directive: This contains legally binding statements dictating specific medical treatments you do or do not consent to in various scenarios. For instance, you may specify preferences regarding life-sustaining treatments or palliative care.

Key Differences

Legal Authority:

The primary distinction between a medical treatment decision maker and an advance care directive lies in legal authority While a medical treatment decision maker can make decisions on your behalf, an advance care directive provides guidelines and instructions for healthcare professionals and the decision maker but does not grant decision-making authority.

Scope of Influence:

A medical treatment decision maker can make real-time decisions based on your current medical condition, whereas an advance care directive primarily focuses on guiding future medical decisions based on predetermined preferences.

Who Creates the Document:

Your lawyer can assist you with creating an Appointment of Medical Treatment Decision Maker when drafting all other documents relating to your overall estate plan, such as your Will or Enduring Power of Attorney. This is then signed by you in front of two adult witnesses and must be accepted by the person you have appointed.

Your doctor can assist you with creating your Advance Care Directive. To make a valid advance care directive you need to sign in front of two witnesses. One must be a registered medical practitioner (a medical doctor). Neither witness can be someone you have appointed as your medical treatment decision maker.

Both appointing a medical treatment decision maker and creating an advance care directive are crucial steps in ensuring that an individual’s wishes regarding medical treatment are honored, especially when they are unable to communicate their preferences. While a medical treatment decision maker holds legal authority to make decisions, an advance care directive serves as a comprehensive guide for healthcare providers and the decision maker. By understanding the difference between these two mechanisms, individuals can take proactive steps to assert control over their medical care, even in challenging circumstances.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Jack Nevile and Anna-Nikol Vladimirova

The Victorian Government has expanded the Vacant Residential Land Tax to the entire state, and made some crucial changes. If you own vacant property, you need to act now.

A property is considered ‘vacant’ if it has not been lived in for six months by either:

• the owner (or an owner’s permitted resident) as a principal place of residence; or
• a person under a lease, or bona fide short-term letting arrangement.

It is not enough that the property was ‘available’ for occupation. A listing or available on AirBnB won’t pass the pub test. It must actually have been used and occupied for more than 6 months, which can be intermittently as long as it is 183 days throughout the year.

The tax is 1% of the capital improved value (CIV) of the property, found on your council rates notice. This tax is slightly different to traditional land tax as it uses the CIV and not the site value of the land. You must also pay standard land tax in addition to this tax.

It will increase to 2% in the second year if your property remains vacant, and 3% in the third, where it is capped. On a $2,000,000 property this will be $60,000 per year.

Previously, outer Melbourne and regional properties were exempt – no longer. The entire state is subject to the tax, effective from 1 January 2024. There is an exemption for holiday homes occupied by the owner for at least 4 weeks per year – the Commissioner must be satisfied your holiday home is genuinely for holidays. There is also a brief exemption for properties undergoing renovations.

I have vacant property – how can I avoid it?

• Rent out your property
• Sell your property
• Use it as a holiday home for at least 4 weeks per year, provided you genuinely can do so. You can’t live in Carlton and holiday in the CBD, for instance.

The purpose of this tax is to encourage homeowners to make use of their property in light of the ongoing housing crisis. So the best way to avoid it is to play ball.

If you’re a renter, this can be great news. More supply should come to the market (although a similar law was enacted in Canada a few years ago, and there weren’t many additional homes made available). You may know of a vacant property – why not ask the owner if you can move in? Surely some rent is better than a huge tax bill. One of our lawyers did just that, and has moved into a previously empty property, saving the owner a big tax bill and making it livable in the process.

But who will know?

If you own a vacant property, you are required to notify the SRO using the Notification Portal by 15 January. Failure to do so incurs substantial penalties.

Late disclosure is treated more favourably than being caught in an investigation. The following penalty taxes apply if you do not disclose promptly:

• 5% if you voluntarily notified late;
• 20% if you notify after an investigation commences; and
• 90% if the SRO believes you intentionally disregarded the law and hindered their investigation.

Helpful Tools:

• The SRO has an online tool to help determine whether the tax applies to you
• The Vacant land tax calculator to calculate the amount payable, if it does.

If your residential property has enjoyed a prolonged vacancy, the winds of change have arrived. Don’t wait until the taxman comes knocking to do something. If you have any questions, please feel free to contact our office.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Tracy Collins & Morgan Collens

If you’ve determined that establishing an enduring power is the right choice for you, the most critical decision lies in selecting the individual to entrust with this responsibility. It’s imperative that you have full confidence in the person you appoint, as they will wield considerable authority and access over your finances and assets, depending on the scope of decisions you authorize them to make. The role of an appointed decision-maker carries substantial power and comes with significant responsibilities. Your chosen decision-maker for financial matters must:

1. Act in your best interests and strive to protect and promote them.
2. Refrain from gaining personal profit from their appointment.
3. Avoid any conflicts of interest between their own interests and yours.
4. Conduct themselves with honesty, care, and diligence.
5. Keep your finances and assets separate from their own, except for jointly owned property.

It’s helpful to begin by identifying the qualities that matter most to you. Examples of important qualities for enduring powers regarding financial decisions include:

• Willingness to prioritize and act upon your wishes and preferences, rather than their own.
• Adequate skill and time commitment to fulfill the role effectively.
• Competence in managing finances and property.
• Ability to remain composed in challenging situations.
• Confidence to advocate on your behalf, including dealing with legal and governmental entities.
• Effective communication skills and conflict resolution abilities.
• Proximity to you for in-person assistance or readiness to manage responsibilities from a distance.
• Understanding and respect for your cultural background and community ties.
• Willingness to embrace the role’s full responsibilities.

Once you’ve determined the essential qualities, try to assess the individuals close to you objectively. Fulfilling all the obligations of an appointed decision-maker won’t always be straightforward, so consider who is best equipped to handle this responsibility. Remember, trust in the person or people you appoint is paramount.

When selecting a decision-maker, opt for someone who truly knows you, your values, and your desires. This could be a spouse, life partner, adult child, another family member, or a trusted friend.

Here are some actions to take:

• Consider all potential candidates, including trusted friends, siblings, grandchildren, nieces, and nephews. You’re not obligated to choose adult children or a partner.
• Assess who would make sound decisions during challenging times.
• Exercise caution when appointing individuals facing their own difficulties, such as financial problems or addiction.
• Avoid appointing someone solely for family harmony if it compromises the best interests of your long-term well-being. Addressing issues openly may lead to better outcomes.

Here are some things to avoid:

• Don’t appoint someone solely based on familial ties or seniority within the family.
• Don’t succumb to pressure when selecting a decision-maker. The choice is entirely yours.
• Seek assistance from relevant organizations if you feel pressured to make a decision.

If you’re unable to identify a suitable candidate you trust, consider appointing an independent decision-maker, such as a public or private trustee company, an accountant, or a lawyer. While independent decision-makers offer benefits like regulation, insurance, and experienced staff, they typically charge fees for their services. Be sure to inquire about these fees before making a decision.

Furthermore, remember that an independent decision-maker may lack the intimate knowledge of your values and preferences that a family member or community member possesses.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Linnea Cederberg

Celebrate Lunar New Year
Lunar New year is fast approaching! Join the festivities and celebrate the Chinese Lunar New Year Dragon Festival in Chinatown on February 11th! You will be able to experience various markets, enjoy great food, art, music, and traditional lion dances to welcome the Year of the Dragon. More info can be found here.

Connection at the Lume
Step into a breathtaking world of radiant colours and mesmerising projections at The Luminous Lume’s dazzling digital art exhibition, Connection. Closing February 4th, Connection unveils the world’s largest digital canvas, adorned with over 650 vibrant works by 110 First Nations’ artists. You will be able to witness Australia’s oldest stories come alive in a captivating tapestry of music and visuals. Book tickets here.

Night on the Reef at Sea Life
Dive into an enchanting underwater world after dark at SEA LIFE Melbourne’s brand-new Night on the Reef! This dazzling makeover unveils a 360-degree ocean wonderland teeming with vibrant fish, majestic sharks, and playful rays. Witness the ocean come alive under the moonlight as bioluminescent creatures’ glow and engaging talks unveil the secrets of coral reef ecosystems. Learn more and book tickets here.

(Information recieved by GoGet Australia).

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Jeffrey Stone

A new three-tiered visa system is set to replace the Temporary Skills Shortage Subclass 482 visa

The ‘essential skills’ visa will target those earning under $70,000; the ‘core skills’ visa will cover the $70,000-$135,000 range; and the ‘specialist skills’ visa is proposed for those earning over $135,000 per year. The specialist skills visa pathway, with no occupational list, promises a swift processing turnaround of 7 days. Trades occupations, machinery operators, drivers, and labourers are to be excluded from this category, which will have an annual allocation of 3,000 places.

The essential skills visa pathway details are pending finalisation.  These visas will be granted for up to 4 years and visa holders will have greater ability to change employers more easily. These temporary visas will provide clear pathways to permanent residency. The ‘Temporary Skilled Migration Income Threshold’ will be indexed annually, and a public register of employer sponsors created, to allow more ease with moving between employers.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.

By Tracy Collins & Morgan Collens

Estate planning can be a minefield of confusing terminology, with the difference between mirror and mutual wills often misunderstood.

Mirror Wills, typically created by couples, mirror each other’s content, and can be altered or revoked by either will-maker at any time. Despite their reciprocal nature, they are distinct from Mutual Wills, which are legally binding and therefore harder to revoke. Mutual Wills involve an additional agreement between two individuals to create Wills on binding terms upon the surviving party, with equity imposing a trust.

Establishing the existence of Mutual Wills requires proving key elements. Clear evidence of an agreement among the parties is essential, along with specific terms indicating mutuality and irrevocability. The intention to create a legally binding contract through the executed Wills is crucial.

While oral agreements may be acceptable, the Courts emphasise the difficulty of proving the same, especially without the provision of a written contract.

While the final decision was handed down in 1937, the case of Birmingham v Renfrew remains particularly relevant when summarising the key aspects of Mutual Will agreements, including:

1. Two parties can create a contract through making mutual Wills;
2. While both parties are alive, the contract can only be altered or revoked with notice to the other;
3. If the contract is broken without sufficient notice, either whilst both parties are alive or by the surviving party after the death of the first, this amounts to fraud;
4. On the death of the first party, the contract becomes binding and irrevocable;
5. The survivor is free to deal with the inherited assets on trust for the benefit of those named in the Will;
6. Those named in the Will become beneficiaries of a constructive trust pursuant to the terms of the Will, with the survivor acting as trustee for their benefit and the trust capital is what is left after the survivor has enjoyed it; and
7. Any transactions to defeat the intentions of the deceased party by the survivor will be in breach of that trust.

To avoid disputes relating to Mutual Wills, certain precautions are recommended:

1. Seek legal advice to ensure correct drafting and suitability to specific requirements.
2. Document the Mutual Will agreement thoroughly and execute them simultaneously, clearly reflecting the intent to create a binding contract.
3. Regularly review and discuss the terms to align with the parties’ wishes, formalising alterations with the agreement of all involved parties.
4. Consider the alternatives, like Testamentary Trusts, or other estate planning strategies which may be easier to amend in future.

Of course, despite both parties having the best intentions, disputes may still arise. If a party attempts to change a Will against a Mutual Will agreement, beneficiaries can seek court intervention to enforce the Mutual Will and protect their interests.

If you are interested in creating a Mutual Will, or you are concerned about the implications of the same, we strongly encourage contacting us at nevileco@nevile.com.au

*If you and your partner create mirror wills with the same lawyer, and then wish to alter it independently with this same lawyer again, they will likely request the consent of your partner before making any changes.

Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.