Using a Public Company Limited by Guarantee for your Charity
A public company limited by guarantee is a legal structure commonly adopted to establish and operate a charity in Australia, also known as CLG. CLGs are well suited for the carrying on of non-profit undertakings, as they prohibit the payment of dividends and the issue of shares (to prevent a single person from gaining a controlling stake...
Important Considerations in the Exercise of a Trustee’s Discretions
Owies v JJE Nominees Pty Ltd [2022] VSCA 142 on a trustee’s duty to act on a real and genuine consideration.The desirability of discretionary trusts as vehicles for investment and managing family wealth is not unknown. A 2017 Labor proposal to reform the taxation of discretionary trusts noted that their number in Australia nearly doubled between the late 1990s to over 642,000. [1] Their prevalence between 2017 and now has only increased [2...
SMSF Binding Death Benefit Nominations – are you getting it right?
Superannuation laws and regulations permit for the cashing of a member’s benefits, on death, to a dependant or legal personal representative of said member as nominated by them. For industry funds, these rules and regulations make clear that the trustee must pay that benefit as directed by the member if:(a) the person(s) named in the notice are the legal personal representative o...
An update on the remote witnessing and electronic execution of deeds
This article takes a brief look at the current state of affairs for the remote witnessing and electronic execution of deeds across Australian jurisdictions.New South WalesOn 16 November 2021 the Electronic Transactions Amendment (Remote Witness) Bill 2021 was passed by the NSW State Parliament, paving the way for permanent remote witnessing in NSW. Given the recent update in NS...
Draft Taxation Ruling 2022/D1 and the tax consequences of reimbursement agreements
With TR 2022/D1 comes clarity as the application of the reimbursement agreement provisions, and a warning as to the strict consequences of their applicationRecently published, Draft Taxation Ruling TR 2022/D1 provides insight and guidance as to how the ATO will assess reimbursement agreements and apply s 100A of the Income Tax Assessment Act 1936 (Cth) (“ITAA 1936” or “1936 Act”).Basic structure of s 100A
