2023 Year Ahead Year in Review ESL

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YearAhead, YearinReview

Legislation/PolicyUpdate

1.BanksandPowersofAttorneySTEPAustraliaPolicyandAdvocacy Committee,LawCouncilofAustraliaandotherprofessionalbodies.

Jointbodysubmissiononanissueaffectingmanypractitionersandtheirclientsin enforcingtheoperationsofpowerofattorneydocumentationwiththebank community.

Thoseproblemshaveincludedthebankrequiringtheincapacitatedadulttoattend thebranchandconfirmthattheyauthorisetheattorneytomakesuchtransactions orthebankrequiringmultipleattorneys(whenappointedjointly)toattendatthe samebranch,despitetheattorneyslivingindifferentpartsofthecountry. Ifyouhaveastorywhereyouoryourclientshaveencountereddifficultieswitha bankinginstitutionwhenendeavouringtoundertaketransactionsastheaccount providingthosestoriesviathefollowingform https://forms.gle/RZPXt13e97XnMYSh8.

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Legislation/PolicyUpdate

2.BestPracticeGuidesfromLawCouncilofAustralia

TwobestpracticeguideswerelaunchedonWorldElderAbuseAwarenessDaybythe

Bestpracticeguideforlegalpractitionersinrelationtoelderfinancialabuse providesbestpracticemeasurestobeadoptedbylegalpractitionerstomitigate risksofelderfinancialabuse,andtoidentifyandrespondtoclientswhoare potentiallysubjecttosuchabuse.

Bestpracticeguideforlegalpractitionersonassessingmentalcapacity providesbestpracticeguidelinesforlegalpractitionersinrelationtothe preparationandexecutionofwillsandotheradvanceplanningdocuments.

Legislation/PolicyUpdate

3.UseofElectronicSignaturesandRemoteWitnessing

Alltemporarylegislationhaslapsed.Onlythefollowingjurisdictionshaveimplemented permanentprovisions:

CorporationsAct2001(Cth)

companydocuments(includingdeeds)tobesignedusingelectronicsignature (from23February2022)

noticesanddocumentscanbeprovidedelectronically,andmeetingscanbeheld virtuallyprovidedthegoverningdocumentexpresslyallows(from1April2022)

Victoria

wills,powersofattorney(includingenduringpowersofattorney),deeds, affidavitsandstatutorydeclarationscanbesignedandwitnessedusingelectronic signaturesandviaremotewitnessing

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Legislation/PolicyUpdate

NewSouthWales

wills,powersofattorney(includingenduringpowersofattorney),deeds, agreements,enduringguardianshipappointments,affidavitsandstatutory declarationscanbesignedandwitnessedviaremotewitnessing

Queensland

generalpowersofattorneyforbusinesses,deeds,affidavits,statutory declarationsandparticularmortgagescanbesignedandwitnessedusing electronicsignaturesandviaremotewitnessing

Legislation/PolicyUpdate

4.GuardianshipandAdministrationAmendment(AdvanceCareDirectives) Act2021(Tas)

AdvancedCareDirectives

newform

currentlyfreetoregisterwithTASCAT InstrumentsAppointingEnduringGuardians

newdeclarationaboutAdvancedCareDirective

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Legislation/PolicyUpdate

5.ForeignInvestorUpdates

TheTasmanianForeignInvestorLandTaxSurcharge(FILTS)isanadditional2%of landtax whichis: acquiredbyaforeignpersononorafter1July2022;or ownedbyacompanyortrustwhichbecomesforeignonorafter1July2022;and maybe,oriscapableof,beinglawfullyusedsolelyorprimarilyforresidential purposes.

TheTasmanianForeignInvestorDutySurcharge(FIDS)isanadditionalamountof dutychargedwhenresidentialorprimaryproductionpropertyisacquired(either directlyorindirectly)byaforeignperson.Thisincludesvacantlandwhichmaymeet thedefinitionofresidentialorprimaryproductionproperty.

8%ontheproportionofthedutiablevalueofresidentialpropertydirectlyor indirectlyacquiredbyaforeignperson;and

1.5%ontheproportionofthedutiablevalueofprimaryproductionproperty directlyorindirectlyacquiredbyaforeignperson.

Legislation/PolicyUpdate

TheobligationtoseekForeignInvestmentReviewBoard(FIRB)clearanceappliesto inAustraliaaswellascorporationsandtrustsinwhichindividualsnotordinarilyresident inAustraliaholdasubstantialinterest.

ForeignAcquisitionsandTakeoversAct1975(Cth)andForeignAcquisitionsand TakeoversRegulation2015(Cth).

TheActrequiresaforeignpersonwhoacquiresaninterestincertaintypesof Australianland(includingresidentialland)oraninterestincertaintypesofsecurities inentitiestonotifytheRegistrar.Penaltiesapplyforthosewhodonotcomply. From1January2021,anacquisitionofaninterestinsecurities,assets,atrust,or AustralianlandthatisacquiredbywillisnolongerexemptfromtheFIRBRegime. IfassetscaughtbytheFIRBRegimeareotherwisetopassintoatestamentary discretionarytrust(TDT)setupinaWill(ratherthandirectlytoabeneficiary)and future)includeanyonewhoisaforeignperson,thenthetrusteeoftheTDTwill automaticallybedeemedtobeaforeignpersonaswell.

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Legislation/PolicyUpdate

6.IntergenerationalRuralTransferExemption

TheStateRevenueOfficehasreleasedanupdatedGuidelinefors225oftheDutiesAct 2001(Tas).

Thetransfereetrustmustbeincapableofremovingbeneficiaries.

SeeupdatedGuidelinehttps://www.sro.tas.gov.au/property-transferduties/concessions-exemptions/intergenerational-rural-transfer-exemption

Legislation/PolicyUpdate

6.GuardianshipandAdministrationAmendmentBill2023(5of2023)

Proposedamendmentsinclude:

updateapproachestotheappointmentofguardiansandadministratorsbythe TASCAT

applyaframeworkfordeterminingdecision-makingabilitytothewholeofthe GuardianshipAct

insertrequirementstoprovidepersonswithimpaireddecision-makingabilitywith accesstothesupportnecessarytoenablethepersontoasfarasispracticable makeandparticipateindecisionsandpromotetheirowndecision-makingability

relationtopeoplewithimpaireddecision-makingabilityandpreferences-ofapersonwithimpaireddecision-making providesubstitutedecision-makersshouldonlyoverridethewishesand preferencesofpersonsinnarrowcircumstances,includingpreventingserious harm

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Legislation/PolicyUpdate

providenewobjectsandprinciples,includingapplyingtheprinciplesofthe UnitedNationsConventionontheRightsofPeoplewithDisabilities removethecriteriaofdisabilityasastand-alonetestofimpairment providefortheregulationofhealthandmedicalresearchincircumstanceswhere apersonhasimpaireddecision-makingabilityandisunabletogiveorrefuse consent,suchasclinicaltrialsthataresubjecttonationalethicalresearch guidelines,inordertoallowaccessbythisgrouptothebenefitsofparticipating intrials

provideforcircumstanceswhereprotectedinformationcanbedisclosed, includingwhereapersonconsentstotheirinformationbeingpublished amendconflictofinterestprovisionswhichcancurrentlypreventclosefamily membersfrombeingappointedasprivateguardiansoradministrators amendstandingprovisionsandappealprocedures

insertrequirementsinrelationtotheresolutionofdisputesandthehandlingof complaints

CaseUpdate

1.LegalServicesCommissionervPennisi[2023]QCAT118

Intheaboveproceedings,disciplinaryproceedingswerecommencedagainstalegal practitionerfortwocharges:

thelegalpractitionerfailedtomaintainreasonablestandardsofcompetencewhen preparingawillandenduringpowerofattorneywheretheclientdidnothavethe capacitytoexecutethedocuments(Charge1);and

thelegalpractitionerfailedtomaintainreasonablestandardsofcompetenceand diligenceincarryingouttheirrolewhenengagedtoactintheadministrationofthe estateofaclient(Charge2).

AhearingwasheldbeforeaJudicialMemberwithbothaPractitionerPanelMemberanda LayPanelMemberassisting.

InrelationtoCharge1,itwasheldthattheapplicantfailedtoestablishtotheBriginshaw standardthattheconductofthelegalpractitionerfellshortofthestandardtobeexpected ofasolicitor.

InrelationtoCharge2,theallegationswereadmittedbythelegalpractitionerandhis conductwasfoundtoamounttounsatisfactoryprofessionalconduct.TheTribunalordered thattherespondentbepubliclyreprimanded,payapecuniarypenaltyof$5,000andpaythe TheTribunalmadenoorderforcoststothecomplainant,whoseparatelymadesubmissions onthispoint.Thedecisionthoroughlydetailed,andwortharead.

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CaseUpdate

2.WilliamsvWilliams[2023]QSC90(SMSF)

Theabovecaseconcernedwhether:

thenoticeoftheBDBNwasgiventothetrusteesinaccordancewiththegoverningrules thetrusteeswerevalidlyappointedinaccordancewiththegoverningrules thetrusteeshadbehavedinawaythatjustifiedtheirremoval

Thefollowingkeyprinciplesarenotedfromtheabovecase: aBDBNonlyneedstobegiventoalltrusteesifso rules(oftenreferredtoasthedeed).PursuanttoHillvZuda,ifthedeedstatesthat theBDBNdoesnotneedtobegiventoanytrusteetobevalid,thentheexactreverse ofwhatoccurredinWilliamsvWilliamswouldbethecase:namely,theBDBNcouldbe ifamemberisconcernedaboutgivingaBDBNtoatrustee,themembershould probablyurgentlyconsiderrestructuringtheirsuperannuation.Suchaconcernis probablyasuggestionthattheremaywellbeadeathbenefitdispute anychangeoftrusteemuststrictlycomplywiththetermsofthedeed trusteesmustnotactwheninaposition(orpotentialposition)ofconflict

CaseUpdate

3.WilliamsvDuerinckxEnterprisesPtyLtd[2022]TASSC32(20May2022),Inthe matteroftheGeorgeHardiFamilyTrust[2021]NSWSC1584(26November 2021)andApplicationofWalkerCorporationPtyLtd[2022]NSWSC1609(28 November2022)

Eachofthesecasesconcernedanapplicationforrectificationofthetermsofa discretionarytrustdeedtorectifythevestingdate.

Thefollowingkeyprinciplesarenotedfromtheabovecase: alwayscheckthevestingdateofalltrusts donotassumethatthe80-year

ifthevestingdateisapproaching,ensureclientsarewarnedandgivenadviceto starttoprepareforthetaxandotherimplicationsofthis

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CaseUpdate

4.EstateofArethaFranklin

willandthe2014

overUS$1.1Min2018)tohersonKecalfFranklinandhergrandchildren. InTasmaniancontext,itispossiblethatthedispensingpowersins10oftheWillsAct 2008(Tasmania)wouldapply.

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