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February 2016
SENIOR HOUSING LAW
FAMILY YOUNG AND STUDENTS
HEALTH
SUPERANNUATION AND TAXES
ISSUE
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The new laws that come into effect in 2016
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What to do after car accident?
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Tips for Avoiding Inheritance Disputes
LEGAL - WEALTH PROTECTION - INVESTMENT - BUSINESS - LIFESTYLE - SYDNEY
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Uber is legal in NSW, what’s nexr?
The New Laws That Come Into Effect In 2016 At Owen Hodge Lawyers, we want to wish you the best of the New Year for 2016. But, as always, the New Year brought new laws. Many of these will have a significant financial impact on families with children, seniors, students and those buying a first home, among others. Smart planning and good decisions will require some appreciation of the new lay of the land, especially where increased prices and decreased assistance are in the offing. The following is a brief overview of what you need to know this year.
SENIOR HOUSING
SUPERANNUATION AND TAXES
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NEWS HEALTH POSTAL CHARGES
FAMILY
PASSPORT CHANGES
OTHER NSW CHANGES
OWEN HODGE LAWYERS
Prescription costs will increase for many in 2016 for a number of reasons, including changes in Pharmaceutical Benefit Scheme schedules.
Cost of Panadol Osteo to increase GlaxoSmithKline, the maker of the popular painkiller, increased the price of Panadol Osteo by 50 per cent, as of the first of the year, in reaction to the drug’s removal from the PBS schedule. Pensioners now will pay $12 per month for 192 tablets rather than $6.10.
Radiation therapy cancer treatments will become less expensive when added to Medicare.
Seventeen older medications also came off the PBS schedule. Other drugs that are expected to become more expensive include: antacids (e.g. Gaviscon, Mylanta and Gastrogel), paracetamol (e.g. Panamax), iron tablets (e.g. Ferro-Gradumet), aspirin, pain relief and blood-thinning products, B12 injections, hydrocortisone creams and ointments, folic acid tablets (e.g. Megafol) However, aspirin will be available prescription-free. The pensioners’ price rose to $6.20, in line with inflation, on January 1, but pharmacists now may sell a scrip for just $5.20.
HEALTH
OWEN HODGE LAWYERS - OVER 60 YEARS OF TRUSTED EXPERIENCES
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Parents should be especially mindful of changes affecting childcare rebates, subsidies, tax supplements and paid parental leave.
Immunisations Under the “No Jab, No Play” rules, children must be up-to-date with their immunisations to qualify for three benefits: • the $200-a-week childcare benefit; • the $7,500-a-year childcare rebate; and • the $726 Family Tax Benefit A annual supplement. The changes eliminate the conscientious - objector exception but will permit parents to opt out when there is a proven medical reason for not vaccinating. The combined childcare and welfare payments at risk could amount to as much as $30,000 a year for a family with two young children.
Nanny subsidy The two-year Nanny Pilot Programme, which began in January, will provide an hourly subsidy in support of families who find it difficult to access childcare services because they work non-standard hours, live in remote areas or far away from existing childcare. For each child, qualifying families will receive a percentage of the $7 hourly subsidy. Families earning up to $60,000 are eligible for $5.95 per hour per child and families earning between $165,000 and $250,000 are eligible for $3.50 per hour per child. The program is not intended to fully subsidise the cost of a nanny, but is expected to provide assistance in providing care for as many as 10,000 children.
Paid parental leave New and expectant parents should keep a watchful eye on unpopular changes scheduled to take effect from 1 July, should they pass the Senate. The Turnbull government is attempting to reconfigure provisions that would prevent parents from using the Commonwealth PPL Scheme if they can access an employer scheme. A compromise under discussion might give all new mothers 18 weeks of paid parental leave. If they have an employer scheme covering them at full wages for less than 18 weeks, they will be able to claim government benefits at the minimum wage for the balance of the period.
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Superannuation income calculations and the means test for Residential Care recipients are among the changes affecting seniors.
New caps on superannuation income A new 10% cap on income received from defined benefit pensions will apply to Cetrelink's income test. Centrelink previously had discounted up to 40% of a person's defined benefit income. The government uses the income received from these corporate and public sector plans to determine eligibility for other entitlements.
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Many pensioners will see their payments drop. Veterans’ affairs pensions and military defined benefit income streams are not affected by the change.
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Thus, the change will reduce the eligibility of pensioners for income support payments, the Low Income Health Care Card, and aged care fees.
Residential rental care changes. Rental income also will be included in the aged care means test for all new Residential Care recipients, and some existing Residential Care recipients, after 1 January. Previously, rental income from a Residential Care recipient’s former principal home had been included in the aged care means test only if the recipient made lump sum accommodation payments. It was not included if the recipient made periodic accommodation payments or a combination of lump sum and periodic payments. The net effect may be that fewer qualify for aged care assistance.
OWEN HODGE LAWYERS - OVER 60 YEARS OF TRUSTED EXPERIENCES
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SENIOR HOUSING LAWS Section 10 of the Strata Schemes Development Bill 2015 reduced the percentage of apartment dwellers who must consent to a collective sale. Under prior law, such a decision was required to be unanimous. When the changes go into effect later this year, only 75 per cent of residents need agree. The dissenting minority will be required to sell, regardless of wishes to the contrary. The law sets forth a detailed process for consideration of buyout plans in an effort to ensure the process is transparent and democratic. It also promises assistance for those displaced. Nonetheless, the change has alarmed seniors and their advocates who fear that pensioners and other vulnerable residents will be forced out of their homes in the superheated Sydney property market.
YOUTH AND STUDENTS Incentives to find work. Early school leavers between the ages of 15 and 21 must meet an activity test requirement of 25 hours per week until they either get a Year 12 or Certificate III qualification.
Student loan payments. Individuals who have taken out Australian student loans and now live overseas must pay for them the same way as they would if they had remained in Australia. Senator Simon Birmingham, the Minister for Education and Training, has estimated that as much as $30 million in repayment has been lost annually from graduates who have moved overseas. As of the first of this year, those graduates must notify the Australian Taxation Office to make repayment arrangements.
Expiring discounts for university fees. Currently, university students who opt to pay their fees in advance may take advantage of a 10 per cent discount. Those who opt instead to defer their fees and sign up for a HECS-HELP loan also can avail themselves of a back door discount, a 5 per cent "bonus," which applies when they make voluntary repayments of $500 or more.
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Reduced FHOG. The amount of the First Home Owners Grant for new homes will fall by a third, from $15,000 to $10,000. For many, that all-important first purchase may become more difficult.
Medical cannabis trials. Women’s safety.
NSW and Victoria will partner to conduct clinical trials of medical cannabis, ahead of planned legal access to locally manufactured medicinal cannabis products. Medical cannabis is expected to be available for use in the treatment of children with chronic epilepsy, beginning in 2017.
A women's safety package, including funding for programs and the trial of GPS trackers for domestic violence perpetrators, is expected to be introduced federally.
OTHER NSW CHANGES
AUSTR A
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Postal Changes The cost of regular postage stamps rose from 70 cents to $1 on 4 January after Australia Post received approval from the Australian Competition and Consumer Commission for the price increase.
Passport Changes From the beginning of January, sixteen- and seventeen-year-olds will be issued 10-year passports at the increased cost of $254, the same fee charged for an adult passport.
OWEN HODGE LAWYERS - OVER 60 YEARS OF TRUSTED EXPERIENCES
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Bicycle laws From 1 March 2016, cyclists over 18 must carry photo ID. If they do not have a driver’s licence, they can get a $51 NSW photo card. In addition, motorists must maintain a one-metre distance from a cyclist when passing at speeds of 60km/h or less and 1.5 metres at speeds over 60km/h. Failure to keep the minimum distance when passing a bicycle rider will result in a $319 fine and a two demerit point penalty. Under the new rules, bicycle riders also should keep a metre’s distance from pedestrians on shared paths, where possible.
OTHER NSW CHANGES
Opal Cards Underquoting property sales prices Underquoting occurs when an agent understates the estimated selling price of a property, using phrases such as “offers over,” or “offers above.” Going forward, agents may not quote a selling price less than the estimate provided to the seller in the sales agreement. Furthermore, if a price range is used, the highest price must not be more than 10 per cent higher than the lowest price. Real estate agents who underquote face losing their commission and incurring fines of up to $22,000.
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Say farewell to paper tickets on trains, busses, ferries and light rail. The only paper tickets available are single Adult and Concession tickets and return Adult and Concession tickets. .
OWEN HODGE LAWYERS
What to Do Straight After a Car Accident ? To ensure you make the right choices for your health, your vehicle and your finances after a crash, you should take these essential steps after a car accident happens:
• Remove vehicles from the road. All those involved in the collision and all bystanders should move safely off the road and should try moving vehicles out of the path of oncoming traffic when possible.
• Stop your vehicles. It is a criminal offence to fail to stop after a crash, to fail to exchange contact information with other involved motorists or to fail to render aid. If you leave the crash scene and someone was seriously hurt, you actually could be charged with an indictable offence, which could carry a lengthy jail sentence or large fine.
• Assess if anyone is injured. If anyone has been hurt, call 000 for immediate medical assistance. • Contact the police. Calling the police is not required after every accident, but is necessary for most crashes. If property damage or injury occurred, if the police are needed to direct traffic, if alcohol or drugs may have been involved or
if anyone involved fled the scene of the accident, it is especially important to contact the police. • Obtain details and evidence from the crash. Get the contact details and license information of other drivers involved in the accident. Get the contact information of witnesses and take pictures of the area where the crash happened and of the damage to vehicles. You also should be ready to deal with insurers who will be making decisions regarding coverage for losses.
Tips for Avoiding Inheritance Disputes Avoiding inheritance disputes begins during the estate planning process. To help reduce the chance conflicts will arise, it is important to: • Understand the top reasons for disputes. Inheritance disputes frequently arise when potential beneficiaries believe assets were not divided fairly; when sentimental items are divided; or when there is confusion regarding the wishes of the deceased. Conflicts also arise regarding whether assets such as a house should be sold or how these assets should be maintained. • Provide clear instructions in an up-to-date will. To ensure gifts left behind for loved ones are a positive legacy, rather than a burden that leads to fighting, create a comprehensive and
detailed will. It is a good idea to review the will periodically to ensure all assets are addressed and that instructions are clear.
disputes and conflicts can arise when an executor is not trustworthy and does not follow the proper processes after a death occurs.
• Communicate with family during the estate planning process. As you plan ahead for your future and determine how to distribute your assets, it may be a good idea to talk with your loved ones. While you don't want to put yourself in a situation where you are subject to undue pressure or where you become embroiled in conflicts about asset division, you can have open discussions about your wishes so your family is clear on what decisions you made and why you made them.
OHL Lawyers has helped many clients to create an estate plan and has provided assistance to executors and beneficiaries during the probate process. Call today to speak with a legal professional and find out how we can help.
• Choose a capable and trustworthy executor. The executor is the person who is actually in charge of getting your will through the probate process. Inheritance
OWEN HODGE LAWYERS - OVER 60 YEARS OF TRUSTED EXPERIENCES
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Uber is legal in NSW,
what’s next? On 17 December, the New South Wales cabinet signed off on a deal to legalise ride-sharing services including Uber, Uber X and perhaps others in the future.
For passengers
If you live and die by your phone, it’s nearly impossible to beat the convenience of being able to summon and pay for your ride via mobile app. Drivers must pass criminal background checks. The cars themselves must pass safety inspections. Nonetheless, after a driver was charged with raping a passenger in Vaucluse, some have expressed safety concerns. In addition, Uber is not everywhere. Cars will not be able to pick up hailing passengers from the street, taxi ranks or at the Sydney Airport.
For taxi owners
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Taxi plates are a major investment for owners, costing from $300,000 to $400,000. It’s a sobering statistic that in San Francisco, where Uber originated, average cab business tumbled by 65 per cent. The transfer value of a taxi license dropped by almost one quarter in the month prior to the NSW decision to greenlight Uber. Taxi owners have plenty of reasons to be nervous.
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The deal worked out by the NSW government attempts to balance the interests of passengers and taxi owners by creating a compensation package for plate holders. This includes: • a one-off payment of $20,000 to owners of licence plates; • the repeal of more than 50 regulations that the industry regards as burdensome; • the creation of a $142 million fund for taxi licensees who face hardship as a result of the changes; and • a buyback scheme for perpetual hire-car licences.
For non-owner drivers
Taxi owners are not alone in feeling the squeeze. About 70 per cent of taxi operators do not own a taxi licence but pay lease fees to the owner or hold an annual licence. Under new regulations, drivers will have to pay an authority fee of $45 and an annual registration fee of $120 to $200. That may be too steep for most, who work for fewer than 10 hours per week. Some drivers may take advantage of the declining cost of a plate to purchase for themselves. Others, fearing a decline in business, may move to Uber instead. Technologically driven disruption in the hire-car industry may be good news for riders, but the industry still is processing the legal and economic implications.
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What’s On in Sydney Reviewing The Situation - Potts Point
Morning Herald Growers Market
Sydney Chinese New Year Festival
4 February to 7 February 19 Greenknowe Avenue. Potts Point (02) 8065 7337
6 February Sydney Metropolitan and Regional NSW locations, Sydney NSW 2000
6 February to 21 February Sydney City, Haymarket NSW 2000 (02) 9265 9333
One of the hit shows from this year's Hayes Theatre Co Cabaret season is returning in 2016. Well known cabaret artist Phil Scott teamed up with director Terence O'Connell to create Reviewing The Situation, a celebration of the life of Lionel Bart.
Bringing everything from fresh fruit and vegetables to rare-breed pork and seafood to Pyrmont Bay Park, the Sydney Morning Herald Growers' Market has been a tradition for the last 14 years.
Celebrate the Lunar New Year at City of Sydney's Chinese New Year Festival. This vibrant arts Festival has a program bursting with cultural events, markets, tours, exhibitions and entertainment, most of them free.
Papunya Tjupi Arts 2016 Exhibition
Luisa Miller - Opera
10 February to 28 February 11 February to 29 February Incinerator Art Space, Willoughby NSW Sydney Opera House, Sydney NSW 0447 538 077 (02) 9318 8200
The Reef - Sydney 12 February City Recital Hall, Sydney NSW 2000 www.aco.com.au/reefsydney
Originally only the men painted in Papunya, the birthplace of the Western desert dot-painting movement. Now it is the women who artistically thrive in this community. Their remarkable works are receiving widespread acclaim.
This rare and beautiful work of Verdi, with its sumptuous and intimate score, tells a thrilling story of love, intrigue and poison. Luisa Miller is a woman in love, but a woman in anguish, trapped by a man she does not love and a father who loves her too much.
Australian Chamber Orchestra presents an illuminating and thrilling celebration of surfing, the ocean, landscape, film and music melded together.The Reef returns to Sydney for one night only before embarking on its North American tour.
Meatstock Festival
Cinema In The Park
The Color Run Night
13 February to 14 February Sydney Olympic Park NSW 2127 Website: www.meatstock.com.au
19 February Morrison Bay Park, Putney NSW 2112 www.ryde.nsw.gov.au/cinema
20 February 2016 Mrs Macquaries Road, Sydney Harbour thecolorrun.com.au
The two-day meat filled extravaganza will feature bands, barbecues, beards, butchers, bourbon, barbers, beer and much more.
Cinema In The Park - City of Ryde's free annual open air movie season, now in its 15th year. Come and enjoy Avengers 2: 'Age of Ultron', starring Aussie superhero Chris Hemsworth.
The Color Run, also known as the Happiest Five Kilometres on the Planet, is a unique paint race that celebrates healthiness, happiness and individuality.
OWEN HODGE LAWYERS - OVER 60 YEARS OF TRUSTED EXPERIENCE
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INDIVIDUAL AND COMMERCIAL LAW SPECIALISTS Enhancing the lives of our clients by providing acquisition of wealth, protection and management of assets and the transfer of wealth throughout generations. CALL 1800 770 780 VIEW www.owenhodge.com.au VISIT Level 3, 171 Clarence Street, Sydney NSW 2000 Level 2, 12-14 Ormonde Parade, Hurstville nsw 2220