ROMANO Review Online

Volume 1 Issue 3 December 1997

This Biannual Issue

Personal Injury

Trusts & Family Companies

Government Duty

Inside

Injured At Work ~ Do You Know Your Rights?

Trusts ~ Watch For The Hidden Tax Traps!

Stamp Duty ~ How Much Is It?

Injured At Work ~ Do You Know Your Rights?

No Fault Compensation for all Workers.

Workers Compensation

Protection is provided to all workers for work related injuries and diseases through a scheme of legislation called workers’ compensation.

Employers are required by law, to obtain insurance to cover work related claims. The Commonwealth and every State and Territory have a similar system of workers’ compensation legislation.

In the A.C.T., the scheme is contained in the Workers’ Compensation Act 1951 (‘the Act’). Public servants are protected by a separate piece of legislation which is administered by Comcare.

Unlike common law claims for damages, which require fault on the part of the employer, workers’ compensation does not depend on the existence of any form of fault.

Subject to some exceptions, simply put, injuries arising out of or in the course of one’s employment and diseases contributed to by the work environment are compensable under the scheme.

The A.C.T. Act provides for compensation according to the nature and extent of the injury and or disease that is suffered. Where the work related condition results in time off work, the worker is entitled to continuing weekly payments at their normal rate of pay for the first 6 months, and then at a reduced rate, in accordance with the Act, for the time that they are unable to work.

In cases of loss of body parts, hearing and sight, compensation is dependent on the percentage loss of efficient use. In all cases, reasonably incurred medical and treatment expenses are to be paid for by the employer through their insurer.

At the time of a work related incident, whether it be an injury or at the time the worker first notices a condition, the worker should immediately advise his/her supervisor. Their supervisor should make a note of the complaint and will often provide the worker with an incident report to complete.

Even if there is no time taken off work, it is essential that a worker reports the incident to his/her employer as soon as possible, because should the symptoms persist and/or the condition get worse, the worker must show that it was a work related injury. In any event, the worker must report the incident and/or condition within six months.

The above mentioned information is intended to bring to the attention of all workers and employers, the statutory system of workers’ compensation which presently exists. It is simplistic in its explanation and should not be relied upon as a source of reference. Should you have a specific question or problem, please do not hesitate to contact one of our friendly solicitors at Romano & Co’s litigation section on (02) 6247 6277. z

Family Companies & Capital Gains Tax

The use of a trust is still regarded as a prudent method of financial planing for the benefit of future generations. But trusts need to be looked at often, it is not simply a matter of setting it up and forgetting about it. Government policy and legislation change often and these may adversely affect or impede the operation of your trust.

It is advisable to review your trust company and deed every few years in order to ensure they will still achieve the objective you set out to accomplish. Alternatively you may simply wish to change the deed, to exclude or include a class of beneficiaries or allow your children to become shareholders and directors of the trust company.

One of the many issue directors, shareholders & beneficiaries all need to be aware of when considering whether or not to issue or transfer shares to other family members, is the affect of section 160ZZS of the Income Tax Assessment Act.

This section works as an anti avoidance provision designed to stop people selling their whole company instead of selling just the property, in order to avoid capital gains tax.

The affect of section 160ZZS is that; unless the commissioner of taxation is satisfied that the companies underlying interest (shareholding) has been maintained at a level of at least 50%, all the assets of the company will be deemed subject to capital gains tax.

The ramifications of this section is that, if your family trust company holds properties acquired before 20^th September 1985 and you decide to issue or transfer shares to other family members, depending on the number of shares, you may change the status of those properties into ones that are subject to capital gains tax, a costly mistake.

To review your trust deed and company, or to obtain more detailed advice on taxation legislation, contact one of our commercial solicitors on (02) 6247 6277. z

Stamp Duty

If you purchase a property in the Australian Capital Territory or in New South Wales, be it residential or commercial, you must pay stamp duty on the contract.

The amount of stamp duty payable is calculated on a sliding scale and varies between the ACT and NSW. The current rate of stamp duty in the ACT is calculated as follows;

Up to $14,000 ~ $1.25 per $100 (or part thereof).

$14,000 to $30,000 ~ $175 plus $1.50 per $100 (or part thereof) over $14,000.

$30,000 to $60,000 ~ $415 plus $2.00 per $100 (or part thereof) over $30,000.

$60,000 to $100,000 ~ $1015 plus $2.50per $100(or part thereof) over$60,000.

Over $100,000 ~ $2015 plus $3.50 per $100 (or part thereof) over $100,000.

First home buyers should be aware that, in the ACT, if their combined income is less than $45,000 they may be eligible for a reduction or even an exemption from stamp duty.

Most other contracts entered into in the ACT or NSW will also attract stamp duty. To find out if you will be subject

to pay duty on your transaction or to discuss any contract issue, call one of the commercial solicitors at Romano & Co on (02) 6247 6277 they will be happy to assist you.. z

Seasons Greetings

The Partners and Staff of Romano & Co would like to wish all our valued clients a very merry Christmas and a prosperous new year.

Please note that our Canberra City office will be closed from 1:00pm on Wednesday 24^th December 1997 through to 9:00am on Monday 5^th January 1998.

Romano & Co Canberra + Level 4 Colonial Building 161 London Cct Civic ( (02) 6247 6277 : http://www.romano.com.au ,mail@romano.com.au

ã Romano & Co Canberra ~ Client Newsletter ~ December 1997

Disclaimer ~ The articles in this newsletter are for general information only and are not intended to be relied upon as legal advice. Before acting obtain further detailed legal advice.