A repository of legal publications and information

For many businesses, insurance is the most important, if not the only, risk management tool utilised in the protection of the business.  Knowing that policies of insurance have been put in place to protect your business from a wide array of potential losses and liabilities can bring great peace of mind and allows you to focus on the core aspects of your business.

However, unless you carefully note the terms of your policies, your standard business practices have the potential to render your insurance ineffective in many common situations.

For the full article click here. Business Services Bulletin Feb 2009

For quite some time the inability of a superannuation fund being able to borrow or invest in geared unit trusts has meant that better wealth creation alternatives could be found through other forms of geared investments e.g. family trusts.  However with changes to the Superannuation Industry (Supervision) Act (SIS) in September 2007, these borrowing restrictions have been relaxed and, with that, significant alternative wealth creation strategies through self-managed superannuation funds (SMSF) have been opened up.

Due to this article’s length, please click here to download as PDF.

Paul Paxton-Hall recently presented at a LegalWise seminar on the topic of Using Superannuation for Best Effect.

In his presentation, Paul spoke about the significant changes to the superannuation legislation in late 2007 which now mean that superannuation funds are able to borrow in certain circumstances.

The procedures involved are complex and involve the establishment of a separate security trust. Loans made in accordance with the new rules must be on a limited basis so that the lender may only have recourse to assets acquired by the borrowed funds and not the assets of the super fund generally.

These developments in superannuation law are likely to have a very significant impact on wealth creation strategies involving superannuation funds - particularly self-managed funds.

The powerpoint of Paul’s presentation is available here.

For more information on this topic please contact us.

Fox and Thomas has an unrivalled reputation for providing legal services to agribusiness. With a history of staying the distance in regional Queensland and New South Wales, no other firm has the depth of expertise, developed over many years, to service the industry as well as Fox and Thomas. With offices in Goondiwindi, St George and Brisbane, we have staked our reputation on helping your agribusiness to flourish. When you choose Fox and Thomas, you get the attention of key people, with access to the firm’s directors and senior people from the beginning. It’s a complex legal landscape in agricultural business, and Fox and Thomas knows it like no other.

Due to this article’s length, please click here to download as PDF.

Summary

Recent changes to superannuation have meant that it is probable large sums will be held in many superannuation funds at the time of death of a fund member, with the prospect of significant tax being paid as benefits pass to non-dependent beneficiaries.

This “death duty” can be avoided with careful planning.

The change

Previously, there were limits on the amount of superannuation contributions, strict requirements to “cash out” benefits in retirement, and adverse tax consequences if benefits were received by a “working retiree”

All that has changed. Generous contribution allowances in recent years mean that amounts held in superannuation funds are now measured in billions of dollars. Also, from 1 July 2007 persons over 60 can withdraw superannuation benefits tax free before death. Read more

In the past, the classic way in which families would minimise risk exposure would be for the low-risk spouse to own family assets - particularly the family home. The theory has been that the high-risk spouse (usually the higher income earner) would be exposed to trading or professional liabilities with personal and investment assets being held by the spouse or perhaps a separate entity such as a company or trust. Read more

Once upon a time, estate planning lawyers could adequately protect the interests of their clients by the skilful gifting of assets or the use of other family controlled entities such as family trusts. The landscape now is quite different so that any estate planning or asset protection strategy necessarily requires a detailed understanding of recent amendments to the Bankruptcy Act (BA). Read more