Many of our clients have indicated to us that;

1. They have not yet received any letters;
2. When querying those letters to Revenue SA they could not get through by telephone; and
3. When attempting to complete their declarations by the due date were confronted with some very onerous steps, many of which they did not understand.

You may have heard that the timeline for making these declarations has been extended to 31 July 2020. The pressure is off right?

Wrong!

It is the view of Welden & Coluccio Lawyers that although the deadline to submit your landholding declarations has been extended to the end of July, the Land Tax legislation that has been enacted still requires certain steps to be taken prior to 30 June.

If possible, we are urge our clients to make the landholding declarations prior to 30 June 2020.

Welden & Coluccio Lawyers’ strongly advise that all landowners seek assistance from their accountant or solicitor with respect to the landholding declarations – in almost all of the cases were we have assisted there have been errors in the original purchase/transfer documents and registration, difficulties in supplying the required documentary evidence and  most importantly opportunities to reduce potential Land Tax have been recognized.

When completing the landholding declarations through the online portal you must have some of the following documents at the ready;

1. Trust deeds and all variations and amendments to those deeds;
2. Copies of the original Transfer (purchase) of the property;
3. Settlement Statements for the purchase;
4. Tax returns for the entity holding the land;
5. Financial Statements confirming the land as an asset; and
6. Relevant Beneficiary Nominations which may lower a Land Tax assessment.

There are other documents that may be required depending on the specific circumstances.  This may include a statutory declaration if, we assume, many of the above documents cannot be located.  Welden & Coluccio Lawyers can assist with the preparation and swearing of that declaration.

Welden & Coluccio Lawyers are also able to assist clients in retrieving some critical documents which may be unavailable such as the original transfer (purchase) of the property.

We strongly advise that you:

1. Be prepared, have all the necessary documentation ready in advance;
2. Seek assistance from your accountant or solicitor as soon as possible (don’t leave it to the last minute);
3. Complete the landholding declaration prior to 30 June 2020.

Our lawyers are readily available to speak to by telephone, video link or even face to face with appropriate social distancing and hygiene measures in place.

Don’t leave it too late, act now.

Welden & Coluccio Lawyers have previously written about, and personally presented (pre pandemic of course) several seminars for the public concerning the new State Government changes to Land Tax. Those changes caused a huge stir amongst landowners, small time investors, large operators, Accountants and Lawyers when news broke back in late 2019. It seems however that these changes, the largest to Land Tax in this State’s history, have taken a back seat to all things COVID related. Well, time marches on, at the looming deadline of 30 June 2020 for many changes to kick in fast approaches.

If you own land via a company or are a Director of a company that owns land, you would have recently received a letter from Revenue SA demanding you log into the Revenue SA portal and advise them of certain information including but not limited to:

•  which other companies are related corporations
• if the land is held in a trust
• if that trust is an exempt entity, and
• whether an individual beneficiary has been nominated by the trust.

The letter includes a nasty RED heading that reads – ACTION REQUIRED BY 3 JUNE 2020. As if things couldn’t get more scary!
A vast array of highly specific (some legal) terms are used with little to no explanation other than to refer you to other sources of information, like previous fact sheets or the core legislation and regulations.

For many, if not most, this will be information overload and simply too difficult to comprehend especially when most of our attention has needed to be fixed elsewhere.
Despite the difficulty in understanding how the new Land Tax scheme operates, it appears that the State Government and Revenue SA have placed absolute responsibility for providing correct and accurate information on each landowner.
Get it wrong and penalties with interest will apply!

Although there are other critical elements of the new legislation that all landowners must be aware of (aggregation, grouping of corporations etc), one of the most important (and least understood) is that of the option of nominating a beneficiary for each discretionary trust which owns land.

The nomination of a beneficiary may result in a lower Land Tax assessment, but please be beware;

1. You can in essence, only get 1 opportunity to make the nomination – if the nomination is withdrawn the trust CANNOT make another nomination – it must be the correct nomination in all the circumstances;

2. If the individual you nominate owns land in their own right, you and they may have inadvertently INCREASED their individual Land Tax assessment;

3. There are strict limitations on who the trustee can actually nominate including, amongst many other things, that they had to have been 18 years of age AS AT 19 OCTOBER 2019. To be very clear, that means that the nominated beneficiary cannnot be 18 years of age at the time you make the nomination but must have been 18 as of October 2019.

It is our strong advice that before you make any nomination of beneficiary or accept any grouping of corporations you first speak to Welden & Coluccio Lawyers to assess your options and whether any existing Land Tax Exemptions might be available to you.

With the new legislation, some exemptions have actually been expanded – so you need to know all of your options and you need to know them now!

All of our lawyers are available to speak to by telephone, video link or even face to face with appropriate social distancing and hygiene measures in place.
Don’t leave it too late, act now.

Especially if you’re an investor with more than one property.

Under sweeping reforms by the Marshall Liberal Government, land tax in South Australia is being turned upside-down.

In the past, land tax was pretty simple; If you owned property in your name, you were taxed accordingly. You could separate those land holdings in different entities, trusts and other legitimate, lawful structures usually suggested for asset protection and good accounting practices.

Now, the entire game is set to change.

It all comes down to changing how trusts and companies are dealt with and something called aggregation.

It’s one big cash grab, and it’s set to send thousands of South Australians’ retirement and estate plans into the gutter.

Calculations we have conducted for clients (retired, hard-working people with modest investments) show some being slugged as much as 4000% more from July 1, 2020.

One couple is now set to pay $13,000 in land tax later this year alone, up from $1,100 last year. That new payment will occur each and every year, not a once off! It doesn’t take a genius to work out this more than offsets any value gained from rental income.

Land tax is a time bomb, and most people won’t find out about it until they open their tax bill in late 2020.

If you own an investment property, or hold property in a Trust, you need to speak to Welden & Coluccio Lawyers immediately.

Places are strictly limited. You must act now to have your best chance of beating the changes before you’re locked in for life.

Call us on 08 7225 8703 to make an appointment.

There is another push from Australia’s politicians to reform the family law system.

As a family law solicitor with more than 15 years’ experience, how can you disagree with proposals to create a system that minimizes stress, trauma, costs and puts a focus on out-of-court settlement?

Trouble is, the family law system attempts to do this already.

Only a very small number of family law disputes ever reach trial stages. In fact, only 3% of matters ever end up in court to decide their parenting arrangements or financial settlements.

Australia’s family law system desperately needs change, but probably not in terms of its structure, but how it is work better with the structure in place.

What very few politicians are willing to accept is that the system requires more funding. We need more Registrars, more Court Administration Staff and most importantly more Judges to unclog the system. But in these times of growing political austerity, where governments are willing to take our money but not spend it, more funding doesn’t seem to be an option.

So now the gaze of those “reformers” (headed by Pauline Hanson) shifts to the Lawyers who practice in the Family Law Jurisdiction. Apparently we lawyers are nothing more than a pack of vultures, lining our pockets while we pick over the bones of broken families; dragging disputes out for our own benefit.

Frankly, we are sick of being characterized this way.

Let me say something that you probably didn’t think you’d hear from a Family and Divorce Lawyer:

We don’t want your dispute to drag on or progress to litigation!  The best way to resolve your dispute is by good old-fashioned negotiation and sensibility to reach a resolution by agreement.

Family Law is an intimate field of specialty – we share a lot of the pain and stress you experience and the fees we charge reflect the years of study and investment it took to want you to come to us.  It is our expertise that you are paying for.

Unfortunately, Family Law proceedings, like any legal dispute, can easily balloon into ugly, costly battles if you are after an all-out war or proceed to litigation.

So, in the spirit of reform, here’s five tips on how to minimize your legal fees if you’re going through a divorce or dispute regarding your children’s future care arrangements or property settlement.

1. Know how your Lawyer’s charges:
   A brickie gets paid per brick laid. A sales rep relies on commission. A Lawyer charges by the hour. That means whatever time we spend on your case needs to be charged back to you. The less work we do, the more you save. This is directly linked to the next two points.
2. Be organized:
   A lot basic leg work we do can be done by our clients. Organizing receipts, emails and other documentation can take us hours. Your lawyer would rather do what they specialize in than sort through a box of loose papers. Save yourself money (literally) by getting as organized as possible before coming to see us.
3. Trust your Lawyer. Let them do their job:
   There is a lot of waiting. Waiting for Court Dates, waiting to hear from the Lawyer on the other side, while they wait to get their client’s instructions. As your Lawyer, we will contact you once something happens by way of update or we need more information from you.  You don’t need to check up on us to make sure we are doing our job. It can be hard, given the personal nature of your dispute, but rest assured we do have your best interests in mind even when you don’t hear from us.  Why charge you when there is nothing to add?
4. Approach your family dispute like a business dispute:
   Don’t treat your Family law matter like a chance to exact personal revenge. This is how disputes turn ugly. You need to make decisions that aren’t just personal but commercial. Keep your eye on the bigger picture and trust your Lawyer to give you good advice that you should follow. If we say that is not relevant, or your end goal is impossible, believe us. Yes, we are on your side, but we are also here to advise on the realities of good outcomes as opposed to impossible outcomes, which will simply have the effect of increasing your fees in the longer run.
5. Bigger doesn’t necessarily mean better:
   Many people think a big law firm means better service. This isn’t always the case. Big law firms have big overheads; that skyscraper in the city isn’t cheap and you’ll often find they charge higher fees (especially for consumables like photocopying) to claw back money where they can. Always check the fine print on your Retainer to see where you might get stung.

Welden & Coluccio Lawyers is proud to announce that Natalie Rossi has been appointed to the SA Law Society Council on a two year term.

Natalie joined the Welden & Coluccio team as a graduate lawyer in 2018 and has already proven herself a gifted and dedicated solicitor.

Through her appointment to the Council, she will be able to advocate on behalf of young lawyers throughout the State on issues of importance across the legal field. Congratulations, Nat. You’re a fantastic part of our team and will be an asset to the Law Society too!

Welden & Coluccio Lawyers is a Gold Alliance member of the South Australian Law Society.

Welden & Coluccio Lawyers are proud to announce they have been named the preferred legal partner for the South Australian Hair and Beauty Association (SAHBA).

The SAHBA is a volunteer-run not-for-profit that provides training, advocacy and industry recognition for the State’s hair and beauty professionals.

Solicitor Natalie Rossi will be Welden & Coluccio’s dedicated liaison to the SAHBA, advising on everything from business structures, trusts and working with social media influencers to estate planning.

“The hair and beauty industry is a major employer in South Australia, from bricks and mortar salons to freelancers who travel for their work, it’s a sector driven by entrepreneurship which must constantly innovate to stay ahead of the latest trends in fashion, technology and technique,” Ms Rossi said.

“My role will be to ensure SAHBA members have access to quality legal advice that underpins their work, giving them the freedom to be creative and focus on growing their businesses.

“Hair and beauty professionals work on everything from haute couture runway shows to feature films and even therapy for cancer patients looking to reclaim their sense of self.

“That’s why I’m honoured to have the opportunity to work with SAHBA members to help give them a solid legal foundation on which to build their careers,” Ms Rossi said.

For more information visit:

www.welcolawyers.com.au

www.hairandbeautysa.com.au

I’ve heard some stories in my time.

Perhaps the worst was an old bloke who didn’t trust the banks. You can’t blame him for that, but this chap kept his savings in a broken radio he’d hollowed-out and left in the shed to look like junk.

It was a pretty good hiding place – so good, in fact that radio made its way to landfill before his children found his hand-written Will hidden in a plastic bag at the bottom of an old flour tin that was still filled with flour as added security.

Best guess, there was probably $20,000 in that radio.

We see the same problems when it comes to legal Wills.

Wills are important confidential documents.

You need to store your Will in a safe, secure place, but at the same time it needs to be accessible at the time of your death. That means at least two different people should know where to find it and be able to access it.

What happens if you die and one of those people doesn’t like what your Will says? It might find its way to landfill along with that radio.

Doesn’t seem so safe after all, doesn’t it?

Then there’s the storage itself. Your Will needs to be free from bends and marks so it’s clear to the Probate Court that no one has meddled with it.

Plastic tubs from office supply places don’t cut it. They melt like ice-cream in a fire and the lack of weather proofing means your document can go mouldy in the shed, which is where these tubs often end up.

Concertina files? You might as well just let a dog chew your Will.

A fireproof storage box or safe from a hardware store is a great idea, but you need to ensure you have copy keys or the combination written down … which somewhat defeats the purpose, doesn’t it?

Sometimes, these jobs are best left to the professionals.

When making a Will with your solicitor, it’s best to leave it with them.

All documents held by Welden & Coluccio are stored in our explosive-rated bank vault.

Probably more secure than a broken radio, don’t you think?

Being a social media influencer is just travel, free clothes and cocktails, yeah?

That might be the dream, but here’s some #nofilter advice every aspiring influencer should consider on their way to insta-fame and fortune.

And yes, you’re going to need a lawyer. Sounds boring but keep reading (there’s some great tips here for businesses wanting to work with influencers, too).

There’s three main ways you turn your socials into a career:

1. Paid brand endorsement
2. Affiliate marketing; and
3. Promoting and selling your own products.

Often, it’s a blend of all three. Here’s what each of these looks like in practice.

1: Paid brand endorsement.

• How it looks on insta: You’re sitting by the pool, looking great, clutching a refreshing drink. It’s this great new juice cleanse that has made dieting so much easier. Your skin looks great, you’ve got more energy and you encourage your followers to try it out. You tag the company so everyone knows who you’re talking about because you’d love your followers to try it too.
• Behind the scenes: A juice cleanse company approaches you to endorse their product in exchange for payment. These deals are usually based on a minimum number of Instagram stories and posts about their product.

2: Affiliate marketing.

• How it looks on insta: You’re sitting by the pool, looking great, clutching a refreshing drink. Same juice cleanse but because you care about your fans you’ve negotiated a deal with the company to get 10% off any purchase by using an exclusive coupon code at check-out. This way, you’re not only sharing great health tips with your followers, but because you care you’ve managed to get them a discount, too.
• Behind the scenes: A juice cleanse company approaches you to endorse their product. As an added incentive, you get a small commission for each product they sell through your social media. The coupon code is also a tracking tool that shows just how effective your campaign was. Obviously if the company sees huge sales with your name attached, it’s likely they’ll keep working with you.

3: Promoting and selling your own products.

• How it looks on insta: You’re sitting by the pool, looking great, clutching a refreshing drink. It’s the juice cleanse secret you’re now ready to share with the world. Countless hours of research have gone into this wonderful product, which your fans can purchase at your online store.
• Behind the scenes: It’s the Kylie Jenner model. Either develop something new or slap your name on an existing product and name your price. Much riskier, but potentially more lucrative.

Sound easy, doesn’t it? It’s not. And here’s why you need a lawyer.

Firstly, you need to understand that you are a business and your most valuable asset is your brand.

You need to protect that brand from misuse and exploitation. That is, people who want to use your brand without your permission, and those who want to use your brand without paying a fair rate.

This is where a good lawyer comes in. They can look at the deals you are offered (because there’s always fine print) and tell you what the pitfalls are.

A good lawyer can also help you structure your business in a professional way and assess the risks of any particular endorsements you might be offered. This will protect you in the event something goes wrong.

This is especially important if you’re planning on selling your own products and giving out health and lifestyle advice, as bad advice can lead to problems down the road, especially if you endorse a product that doesn’t do what it claims – or worse – made someone sick.

We’ve helped a few influencers at this firm. One recent case we saw included a contract that was 20 pages long and included a sneaky clause that would have signed over all rights to a particular influencer’s name and image – literally everything of value in their personal brand!

Needless to say, based on our advice, the influencer walked away from the deal and maintained control of their business.

Other times, we’ve helped influencers extract the value in a deal that didn’t seem great on the surface (which included options for affiliate deals).

Similarly, if you’re a business looking to work with an influencer, we can help you get the contracts in place that will help grow long-term, fruitful relationships in this exciting space.

The late Prime Minister Bob Hawke is best remembered for two quotes.

The first, barked to reporters over popping champagne corks at the America’s Cup, is perhaps his most treasured: “Any boss who sacks anyone for not turning up today is a bum.”

The second, rehearsed and delivered with poise and measure, haunted him: “by 1990 no Australian child will be living in poverty”.

It’s a promise that could never be kept.

It’s ironic then, that Mr Hawke’s own daughter is apparently set to challenge his Will on the basis that she’s dipped out in his estate.

A recent article published by The New Daily claims that Mr Hawke’s daughter is preparing a challenge to the late PM’s estate, after the lion’s share of his wealth was left to his second wife Blanche d’Alpuget.

According to reports, Ms d’Alpuget is set to benefit from the entire estate, including the sale of a $15m Sydney mansion, whereas Hawke’s children (from his first marriage to Hazel) will receive about $750,000 each under a deal separate to the Labor legend’s Will.

Ms d’Alpuget’s own son also received such a payment.

While we make no judgement as to the late PM’s relationships with his children, or the merits of such a claim, it’s worthwhile discussing how a claim like this might work given even a former Prime Minister needs to have an iron-clad estate plan in place.

At the centre of any such estate claim is the concept of inadequate provision; that your parents didn’t leave you enough money in the Will to ensure you’re taken care of in the future.

$750,000 sounds like a lot (it is a lot), but there’s a good argument that Mr Hawke’s children deserve a greater share of his substantial wealth given they are blood relatives, maintained good relations with their father and, arguably, didn’t enjoy the fruits of his early labour (pun intended) when Mr Hawke was merely a trade union official and low-ranking politician yet to accumulate his fortune.

However, without knowing how much wealth Ms d’Alpuget brought to the relationship, it could be that a long fight is just beginning.

It’s a classic case of the difficulties in preparing an estate plan for a blended family, because as soon as you remarry, the list of those who can potentially claim against your estate grows.

It takes care, skill, foresight and some creativity to be able to achieve either the right balance so a claim can be avoided or a legal scenario where a claim is fruitless or cannot be made.

Even ex-Prime Minsters need expert advice about estate planning if you are in a second relationship and either (or both) have kids.

If you’re planning your estate, or considering a challenge to one, contact Welden & Coluccio Lawyers – we’re the estate experts.

For many of us, buying and selling our first property can be confusing.

Why all the strings attached? Why the need for conveyancers and solicitors? Can’t I just sign on the dotted line and transfer the money?

All this talk of “encumbrances”, “caveats” and “discharges”. What does it all mean?

Understanding a mortgage is key to getting them to work for you. So let’s take some of the mystery out of buying that first home or investment property.

First, a little history.

50 years ago, a mortgage was once-in-a-lifetime commitment to secure the family home. Today, we’re more likely to be investors, taking on multiple loans to build wealth through equity and rental income.

Back in the good old days, when a mortgage was something you negotiated with your bank manager over dinner, a few extra hoops to jump through wasn’t a problem. Today, you need to strike while the market is hot, which can make all the additional work seem inconvenient.

It might take longer than we’d like, but buying and selling property comes with built in protections, for you and your bank.

These protections – and the need for expert advice – are even more important than ever.

So how does a mortgage work?

When you take out a mortgage, a lender (such as a bank) buys a property on your behalf, committing to sell that property on to you in the form of a loan. Given the lender takes on the risk of this purchase, they want to make sure their investment is safe.

This is the “mortgage”; a loan with additional protections in place to protect the lender. The most obvious of these protections can be found on the official government title for your house, where the name of your bank is listed as the mortgage holder. This is called an “encumbrance”. It’s basically a signal to the world that the property is owned by the bank and subject to a loan.

Why should a mortgage be listed on the title?

It’s an extreme hypothetical, but imagine you got the opportunity to buy a house worth $350,000 for $100,000 cash. A quick search of the title would show the house is subject to a mortgage, meaning there’s probably a debt attached to the property than the seller is concealing, and that debt needs to be settled before the house can be sold.

So does that mean you can’t sell a house when there’s a mortgage? Of course you can.

Even though your lender owns the property, you still have the right to sell that property under the terms of your mortgage. But, as you’d expect, when you sell the bank gets paid first.

This is called a “discharge of mortgage”. This means the bank gives up its rights over the property, allowing you to sell it, in exchange for a cash-settlement of the outstanding loan amount.

Who can arrange a discharge of mortgage?

First thing you need to know – a discharge of mortgage takes time. A few weeks, usually. It’s a legal process and requires forms and the services of a licenced conveyancer or solicitor, like at Welden & Coluccio Lawyers.

The discharge will need to be arranged before you sell your home. This basically frees you up to come to the bargaining table for a sale and shows the other side that you’ve got permission from the bank to sell your home.

Once you’ve lodged your discharge of mortgage application, the lender will speak with your solicitor or conveyancer and arrange to be present at “settlement”. This is where money is exchanged and the sale or purchase of property formalized.

Settlement usually takes place online, but occasionally your conveyancer or solicitor will still have to attend a formal settlement in-person, where discharge documents and cheques are exchanged with other banks and conveyancers (it’s really something to see – like a cattle market at times).

From there, the lender will then generally register the discharge of mortgage at the Land Titles office to show they no longer hold an interest in the property.

It can be a slow, cumbersome process, but it works and is pretty well-designed to prevent fraud.

There are often fees involved in discharging a mortgage, including a discharge fee and, if you have a fixed rate loan, potentially costs associated with breaking your loan. Some lenders also charge a fee for paying off your home loan very early, say within the first three to five years. They’ll usually add these fees to the amount they take from your sale.

What happens next?

So the house is sold, you’ve discharged your mortgage. Congratulations! But, it’s not all profit yet. As you’d imagine, you also need to pay any outstanding bills for the property you’re selling. Think rates, water and other utilities etc.

There could also be fees associated with paying off your mortgage early which have to be taken into account, along with the professional fees for your solicitor or conveyancer.

If you’re not purchasing another property, the balance after all fees have been taken out will usually be transferred into your bank account.

If you are buying another property, that money might be held by your bank or solicitor to put towards another property. Or, if you’ve arranged simultaneous settlement, the bank will automatically put that money towards a new mortgage.

What happens if you come up short?

While negative gearing can be a good thing for property investors, losing money isn’t ideal when it comes to selling a home.

Remember, when you take on a mortgage, you not only have to pay off the principal loan amount, but the interest too.

Selling a property for less than you owe is called Negative Equity, and it could mean having to sell other assets to pay-out the bank. Think your car, another house …

And it’s not just those bad with money who might face this possibility. It’s common for people to get sick or injured and fall behind on loan payments.

Obviously, being in a negative equity situation isn’t great. For this reason, we always suggest those facing a difficult decision with regard to their home consult a suitably qualified solicitor or accountant to get the best advice. Sometimes an innovative solution can be negotiated.

Final thoughts.

Enlist the expertise of an experienced solicitor or conveyancer to oversee your property transactions. That way, the selling process is more likely to run smoothly and especially in the case of solicitor, they can advise you of the best ownership structures to have in place.

You should also see the purchase or sale of a property as a reason to revisit your estate plan and Will.

Your debt doesn’t die with you, so you need to make sure that your children don’t inherit your problems.