Legal updates

If you are currently a director of a company, you'll need to register for your director ID by 30 November 2022. This will be applicable to you if you're a director or alternate director (acting in that capacity) of a company, registered Australian body, or registered foreign company under the Corporations Act 2001 or an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006. If you're going to become a director, you'll need to apply for your director ID before you become a director.

A director ID is a bit like a tax file number - you only need to register once, and it stays with you for life.

As much as I'd like to offer to help you register, only you can register for your own director ID. To register, go to the Australian Business Registry Services website and follow the instructions. If you're really stuck and can't apply online, you can call ABRS on 13 62 50.

Updated July 2022

For new entrants into the housing market, the pandemic has been a double-edged sword. Prices have shot up, but the government has also introduced measures to make it easier for some people to enter the housing market. If any of the following apply to you, please advise me when purchasing your next property:

• New Home Guarantee - helps buyers of new homes purchase with as little as a 5% deposit

• Family Home Guarantee - for single parents with dependants purchasing new or established homes, requiring only a 2% deposit. The government guarantees your loan so you don't need lender's mortgage insurance. It's available for single parents earning up to $125,000.00 p.a. You still need to be able to service the loan, however much you intend to borrow. Unfortunately, this incentive is expected to have limited application.

• First Home Super Saver - allows first home buyers to save for the deposit for their first home inside their super fund, up to $50,000

Updated May 2021

Sweeping changes were made to Victoria's residential tenancy laws on 29 March 2021. This also coincided with the removal of the COVID-19 renting provisions, which included bans on rent increases and evictions.

Some other notable changes include:

• A ban on soliciting bids for rentals - the rent must be offered at a fixed price and not seek offers or bids.

• Landlords can only ask for a maximum of four weeks rent by way of a bond, and a further four weeks rent paid in advance, unless the rent is more than $900/week or they get an order from VCAT.

• If a tenant is late in paying rent and the landlord issues a notice to vacate, and the tenant subsequently brings the rent up to date within 14 days, the notice to vacate becomes invalid. Tenants can get away with this up to four times in a 12 month period, but on the fifth occasion the notice stands and the landlord can apply to VCAT to have the tenant evicted.

• There are now minimum standards for a rental property. These will only apply to new tenancy agreements entered into after 29 March 2021. Important ones to note are:

  • A fixed heater is required in a main living area from 29 March 2021. From 29 March 2023 this must be a minimum two-star rated appliance.

  • Window coverings to block light and provide privacy are required in bedrooms and living rooms by 29 March 2022.

  • Electrical safety switches must be installed by 29 March 2023 (if you own an older property this would be worth checking out soon so you can get work done if necessary).

  • Showerheads must be minimum three-star rated.

  • External doors must have key locks.

  • Windows must have locks or latches.

  • All habitable rooms (bedroom, office, study, etc.) must have access to natural light.

There are other standards, and you can read more about them here.

• Changes to "urgent repairs" - the types of repairs that can be requested, the limit a tenant can spend on those repairs, and how long the landlord has to reimburse the tenant.

• Changes to the types of modifications a tenant can make to a property without the landlord's consent (see here for an extensive list).

• Finally, just because the government likes to make work for themselves, they've changed the wording - landlords are now "rental providers", tenants are simply "renters", and tenancy agreements are "rental agreements".

This is not a complete summary of the changes. If you are a landlord or a tenant I encourage you to read the information set out here which outlines all of the changes in the new legislation.

Updated April 2021

Prior to the pandemic (not the reason for this change, just a coincidence as to timing), it was common for landlords to refuse tenants the right to keep pets. However, in March 2020 the law changed, and landlords must now allow pets unless they can provide a good reason to refuse.

Basically, if you are a tenant and you want to keep a pet at your property, you need to submit a request to your landlord. Unless there is an Owners Corporation or other rule in place preventing you keeping a pet, the landlord has 14 days to either consent, or make their case to VCAT as to why you shouldn't be allowed to keep a pet.

For more information and to download the pet request form, visit the Consumer Affairs Victoria website.

Updated April 2021

You may have recently seen some news coverage about a proposed tax payable by owners of hybrid / electric / hydrogen powered vehicles.

Basically, if you drive an electric, hydrogen or other zero emission vehicle, you will pay 2.5c per kilometre you drive, on top of your annual registration fee (although this is reduced by $100). For owners of plug-in hybrid electric cars, this drops to 2c per kilometre. If you've got a conventional hybrid you won't pay the additional per kilometre charge, but you're also not entitled to a discount on your registration.

This tax is still a proposal at this stage, but if it comes into effect you can be sure VicRoads will notify you. The intended start date is 1 July 2021. Check the VicRoads website for more information.

Updated April 2021

UPDATE:

This came into effect on 1 July 2021 with the enactment of the Zero and Low Emission Vehicle Distance-based Charge Act 2021. The rates are as set out above, but will likely change each financial year, the same way car registration fees do.

Updated September 2021

In June 2020, the Australian government created the HomeBuilder grant to support the construction industry during the pandemic. It was originally worth up to $25,000, which got everyone's attention.

To receive the grant (which is now only $15,000), you have to:

• be an Australian citizen (both of you, if you're part of a couple)

• earn less than $125,000 ($200,000 jointly if you're a couple)

• sign a contract to build a new home or substantially renovate one before 31 March 2021

• spend less than $850,000 to build (including the cost of the land) or $750,000 to renovate

• start building within six months of the contract to build or renovate being signed (if you're buying land to build on, it doesn't matter when you sign the purchase contract for the land)

• move into the property when it's done (if you're not already living there)

• stay living there for at least six months

If you think you might be eligible, you must apply for the grant by 14 April 2021. This deadline is going to come around pretty fast, so if you are thinking of applying, get in touch with me sooner rather than later so we can ensure your application is in with plenty of time to spare.

Updated February 2021

The Public Health and Wellbeing Amendment Act 2021, which will come into force on a date to be proclaimed (1 December 2021 at the latest), will amend the Public Health and Wellbeing Act 2008 in relation to wind turbines. Typically, if you are bothered by noise, smells, animals, etc. and you report it to your local council, the council has to do something about it. However, under the new amendment, this will not extend to any noise or emissions created by wind turbines. If you have made a complaint to your local council before the amendment comes into effect, this complaint remains valid and council should still deal with it.

If you have a complaint regarding nuisance caused by wind turbines, you should first discuss it with the wind energy facility operator. If you cannot reach a resolution, take your concerns to the National Wind Farm Commissioner.

Updated February 2021

While this wasn't the key takeaway from the recent Supreme Court of Victoria case of Re Josipovic [2021] VSC 43, it's sound advice nonetheless.

In that case, Marija died and left a handwritten note in her safety deposit box at the bank telling her executors where to find the $50,000 cash she had buried in her backyard and what she wanted done with it. The case centred around whether Marija intended the handwritten note to form part of her will. The Court determined that the relevant factors were (a) whether it was an actual document (it was), (b) whether the document recorded the testamentary intentions of the deceased (it did) and (c) that the deceased intended the document to be their will (she did).

The handwritten will was treated as part of Marija's will (which she had signed the day before writing the note), and the instructions in the note were to be followed.

Most would say that this is evidence of why you should ensure your will is formally prepared by a lawyer, but I say you'd be better to not store $50,000 cash in your backyard. Learn from it what you will!

Updated February 2021

I recently read a case out of the Victorian Supreme Court that highlights why you need to be very accurate with the names of people mentioned in your will.

In Re Hamilton; Hughes v O’Donoghue [2020] VSC 876, the Court had to decide whether the "Bryan Hogan" referred to in the will (and left $200,000!) was the deceased's friend Brian O'Donoghue, since there was nobody actually named Bryan Hogan. Bryan/Brian ended up with the money eventually, but the estate had to pay Brian's costs and the estate's costs, which in the Supreme Court is going to add up to a pretty penny (potentially in excess of $10,000.00 per day!).

It is extremely important to make sure you get names correct in wills, including the spelling and middle names if people have them. It's not all that unusual to have multiple people in one family with the same name, so if you think there might be any possibility of confusion, it's best to include additional descriptions, such as the relationship the person has to you, and perhaps even their address.

If you're unsure whether your will is properly drafted, it is worth having a look over it at regular intervals to ensure that it is up to date and correct and still reflects your wishes. For your peace of mind, I conduct free will checks and can recommend any changes or updates that might be required.

You can either email or post a copy of your will to me for your complimentary check, or click here to upload a copy.

Updated February 2021