What is Contribution Splitting?

Contribution splitting refers to the process where an individual’s superannuation contributions can be transferred to a spouse or spouse equivalent’s superannuation fund. The contributions that can be split under this process are known as concessional contributions. Concessional contributions refer to funds in super that are the result of pre-taxed income. These funds are then taxed at 15% by the fund which go the Australian Taxation Office (ATO).

Types of concessional contributions include:

• Super Guarantee Contributions – These contributions are mandatory superannuation payments made by an employer.
• Voluntary Employer Contributions – These contributions are voluntarily made by an employer.
• Salary Sacrifice – These contributions are usually made based on an arrangement made by an individual member and their employer to pay a portion of their salary as superannuation on top of mandatory contributions.

Rules Surrounding Contribution Splitting

The maximum amount that can be split under contribution splitting is 85% of an individual’s concession contributions for the financial year or the concession contribution cap for the financial year whichever is lesser. (The cap for the 2024/2025 FY is $30,000)

A spouse for the purposes of contribution splitting refers to the qualifying spouse being either legally married to, in a registered relationship or in a de facto relationship with the person who is making the contribution split. The spouse receiving the contribution split must be under the age of 65 and be an Australian resident.

To apply for a contribution split, an individual must submit the request after the financial year for which they would like to split contributions for e.g. Application must be submitted in 2024/2025 for contributions made in 2023/2024. Most super funds will have a contribution splitting form available or the ATO has their own contribution splitting form which can be used.

Reasons Why You May Decide to Split Contributions

There are various reasons as to why someone would decide to submit a contribution split:

• Potential to boost the super savings of your spouse where they may not be working and would not be receiving superannuation payments from an employer. The funds can be used to grow their investment or to cover insurance premiums attached to super.
• Balancing the amount of super that both you and your spouse would have when retiring. This can be beneficial where if one person has a higher amount of super, they would be entitled to a lower amount for their Age Pension.
• Potential to access benefits earlier. If one member in a relationship is closer to retirement age they will be able to access the funds earlier. Lump sum funds withdrawn after the age of 60 are tax free.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

On the 5^th of November 2024, 65 million people tuned in to watch a fight between former boxer Mike Tyson against Popular youtuber and professional boxer, Jake Paul. However, on the night of the much-awaited match, the streaming platform faltered, leaving countless civilians across the U.S to experience severe buffering and glitches from their streaming service, Netflix.

Without anywhere else to turn, over 100,000 frustrated viewers flooded into social media to express their annoyance about their streaming issues that occurred both before and during the fight, putting Netflix in a tough position.

Class-Action lawsuit- what is it?

A Class Action is a legal procedure that allows for many people who have experienced similar issues or grievances to file a lawsuit. In this case, Florida man Ronald ‘Blue’ Denton has stepped up as lead plaintiff on behalf of all people who were affected by Netflix on the night of November 5^th 2024.

The Lawsuit

A $50 million class-action lawsuit filed against Netflix claims that the streaming service has breached its contract by being ill-prepared for the large viewership, failing to deliver on its promise of a smooth global streaming service during the Paul vs Tyson boxing match thus leading viewers to miss key-moments of the match.

The lawsuit seeks monetary damages and class-action status on behalf of other consumers who were affected by the streaming service and accuses Netflix of a breach of contract and deceptive trade practices.

What next?

Although Netflix may be the largest streaming service globally, with this incident, many people are speculating whether other streaming services would perform better. Many concerns about the upcoming NFL Christmas Day streaming quality have arisen, and despite Netflix assuring viewers that this event will stream fine, many viewers remain heavily sceptical and untrusting of the company.

If you or someone you know wish to share your thoughts or concerns over this class-action lawsuit,  then please do not hesitate to contact us on 02 8999 9809.

After the unprecedented occurrence of four domestic-violence related deaths in the span of a single week, a Royal Commission into South Australia’s domestic violence ‘epidemic’ was commenced on the 1st of July 2024. It has inquired into 5 aspects aligned with the ‘National Plan to End Violence against Women and Children 2022-2032’- prevention, early intervention, response, recovery & healing and Coordination.

Prevention: 

The Commission intends to investigate how South Australia can prompt preventative change in social drivers of domestic, family and sexual violence.

Early Intervention: 

The Commission aims to find solutions to improve effective early intervention by identifying and supporting high-risk individuals.

Response: 

The Commission expects to investigate how South Australia can ensure best practice responses by providing services and support for affected families.

Recovery and Healing 

The Commission aims to provide an answer on how South Australia can take a more positive approach with recovery and healing that will reduce the risk of re-traumatisation and can better support survivors.

Coordination 

Lastly, the commission intends to recommend solutions for how communities and different organisations, whether government or not and can coordinate efforts across all the above aspects so as to design and provide a capable domestic, family and sexual violence system that meets the needs and wants of all affected individuals.

What Does the Future of This Commission Look Like?

The Royal Commission is planning to conclude its investigations by the 1st of July 2025. Before then, the commission is working on uncovering initial responses from South Australian residents especially by engaging with diverse groups (including First nations people, culturally diverse communities, members of the LGBTQIA+ community, people with disabilities, people of all ages, regional residents and experts in related fields) and focusing on systemic development to better suit a wide range of people.

How Might This Commission Influence NSW? 

The South Australian Royal Commission into Domestic, Family and Sexual Violence has the potential to foster stronger cross-state collaboration by setting new benchmarks in addressing Domestic Violence and providing effective solutions to also help those in NSW.

If you are an Australian citizen experiencing domestic, family or sexual violence, please call 1800RESPECT (1800 737 732). 

If you or someone you know wish to discuss this issue further, or seek legal advice on matters concerning domestic, family, or sexual violence, please do not hesitate to contact us on 02 8999 9809.

Background:

From October 2023 to 30 June 2024, the ‘Shared Equity Home Buyer Helper’ (hereafter, ‘SEHBH’) Scheme in NSW helped participants secure more affordable mortgages and reduced initial deposits, to as low as 2% of the property purchase price (hereafter, ‘PPP’).

The program saw the NSW Government contribute up to 40% of the PPP for a new home, or 30% for an existing property, in exchange for an equity share. Subsequently, while buyers retained ownership over their homes, they weren’t obligated to repay the Government’s equity share (unless they chose to), thus lowering their mortgage payments.

However, the SEHBH ended in mid-2024, with pre-approved participants being required to find and purchase a home by 30 September 2024.

Nevertheless, in November 2023, the Federal Government introduced the ‘Help to Buy’ Scheme (hereafter, ‘HBS’), a national version of the SEHBH.

After a 9-month deadlock in the Senate, where the Coalition opposed the Labor proposal, the Labor Government secured the support of the Greens and crossbenchers, allowing the Bill to pass on 27 November 2024.

The HBS:

Typically, an Australian property deposit can be as high as 20% of the PPP. In NSW, this deposit is often around 10%, though negotiations and certain deal structures, may reduce it to as little as 5%.

Under the HBS, similar to the SEHBH, eligible parties need only pay a minimum 2% deposit, while the Government will contribute 30% of the value for an existing home, or 40% for a new build.

What does the Equity Share Mean?

The Government’s equity share effectively mean it becomes a part-owner of the property, entitled to up to 40% of its value upon its resale.

While voluntary payments can be made to reduce the Government’s stake in the property, there is no obligation to repay the Government contributions, for mortgage purposes.

This effectively reduces a buyer’s mortgage from 90% of the purchase price (assuming a 10% deposit) to between 58% and 68% (with a 2% deposit).

Eligibility Criteria:

The Government aims to assist 40,000 people over four years through the HBS, subject to the following eligibility requirements:

• The applicant must be a first-time homebuyer;
• Their annual income must not exceed $90,000 (individually) or $120,000 (for couples);
• The property must fall within certain price caps (e.g. $950,000 for Sydney, and $400,000 for regional South Australia).

Summary:

While the HBS offers significant benefits to eligible participants, its strict eligibility criteria, 40,000 participant cap and limits on property price may prevent many Australians taking advantage of it.

If you or someone you know wish to discuss the HBS further, or acquire legal advice on property matters, then please do not hesitate to contact us on 02 8999 9809.

Timeline:

Since late 2012, the greater Sydney area has been using Opal, a contactless, smartcard fare collection system, for its public transport services.

From 7 December 2012 to 1 December 2014, the Opal system was gradually introduced across all ferry, train, bus and light rail services. By 1 August 2016 it fully replaced previously used paper tickets. Subsequently, the Opal ticketing system has been adopted across the L2 and L3 light rail lines and Sydney Metro Network.

To date, over 4.5 billion trips have been made using Opal, with contactless payment options introduced in 2017. Further updates applied between 2022 and 2023 have enabled faster and easier payments, including the addition of Express Mode for digital wallets on Samsung and Apple devices.

In June 2022, the Opal Next Generation Ticketing System project (hereafter ‘ONG’) was announced, with a budget of $568 million allocated for its completion by 2026. The project is currently open for tender, with various companies competing for the major bid, as the current Opal contract expires in September 2026.

Project Aim:

ONG aims to modernize the current ticketing system, allowing commuters to replace their physical Opal (or bank) cards with digital cards on their smartphones and wearable devices.

Kurt Brissett, the Chief Technology and Innovation Officer of Transport for NSW iterates that ‘new hardware and technology will help ensure the… system remains reliable, resilient and [able to] integrate with [future]… technologies.’

ONG also endeavors to offer commuters greater flexibility in fare payment, enabling them to plan end-to-end journeys that combine public, private and active transport, and make more informed choices about personalized travel options.

Additionally, ONG intends to improve commuters’ experiences by simplifying trip planning and management, streamlining account top-ups, and providing real-time information via an updated mobile app and website.

Project Features Overview:

Key features of ONG include:

• The installation of 25,000 new electronic readers at stations, buses, light rail and ferries, following system upgrades;
• Unified concession rates and day travel discounts (including travel caps) across a digital portfolio, accommodating different bank cards used by commuters;
• Dynamic pricing options; and
• A redesigned transport app (Mobility as a Service app) with multi-modal trip planning, known as Opal Plus.

Summary:

Though ONG is not scheduled for completion until 2026, it is poised to enhance the future of transportation across the greater Sydney region, benefiting both current and future passengers.

If you or someone you know wish to discuss this development further, then please do not hesitate to contact us on 02 8999 9809.

The recently proposed Sydney Rail Strike initially scheduled to occur from between 10pm on Thursday 21 November 2024 (later pushed back to commence at 4:15am on Friday 22 November 2024, to accommodate for the ‘Pearl Jam Concert’) till mid-morning on Sunday 24 November 2024, was ultimately cancelled.

This follows ongoing ‘wage negotiations’ between the NSW Government and Rail, Tram and Bus Union (hereafter ‘RTBU’), with the industrial dispute scheduled to be resolved within a two-week deadline.

Although the majority of commuters have been relieved by this announcement, various business leaders have expressed their concerns and uncertainty over potential future disruptions, which may catalyse substantial economic impacts.

The Deal:

The train strikes were averted following crisis talks between the RTBU and the Government (namely NSW Premier, Chris Minns, Transport Minister, Jo Haylen, and RTBU Secretary, Toby Warnes) lifting ‘109 planned work bans’ from Thursday 21 November 2024 till Thursday 5 December 2024.

Though commuters were able to catch trains until Sunday 24 November 2024 as per usual, the Metro underwent scheduled maintenance from Saturday 23 November 2024 to Sunday 24 November 2024, running only from Tallawong to Chatswood.

No major shutdown transpired, and limited 24-hour trains services were run across the pertinent period, per RTBU demands (in exchange for lifting the work bans).

Ongoing Wage Negotiations:

The postponed industrial action was initially raised following disagreements between the RTBU and NSW Government over wage increases for rail workers.

The parties’ positions are as follows:

• NSW Government
  • Proposing wage increases (for 14,000 rail workers) of 9.5% over 3 years, namely 3.5% in the first year, 3% in the second year and 3% in the third year.
• RBTU
  • Demanding wage increases of 32% over 4 years (8% increase each year).
  • Reducing work hours for rail workers.
  • Ensuring trains run for 24 hours on the weekend.

A new ‘Enterprise Agreement’ (pay deal) is being drafted across the following 2 weeks of intensive bargaining between the RTBU and Labor Government.

Though finer details are still being determined, the RBTU has raised the prospect of pursuing ‘a mechanism [to] increase the percentage pay rise [for rail workers] … in the new Enterprise Agreement through identifying and abolishing waste throughout… rail agencies and… the Transport bureaucracy… in line with the Labor Government’s policy [for]… pay rises [to]… be linked to “productivity gains.”’

Summary:

Ultimately, it remains currently unclear whether the relief provided to commuters and businesses will be momentary or permanent.

However, should disruptions continue post these ongoing negotiations, the potential economic implications will be accentuated over the critical Christmas business period.

If you or someone you know wish to discuss this issue further, then please do not hesitate to contact us on 02 8999 9809.

What is a Section 60I Certificate?

Under the Family Law Act 1975 (Cth) (‘FLA’), separating couples who wish to apply to the Court for a ‘parenting order,’ must first demonstrate that they have made a genuine effort to resolve the dispute, through Family Dispute Resolution (‘FDR’).

A Section 60I Certificate (‘s60IC’) effectively documents this genuine attempt, as it may only be issued by registered FDR Practitioners. A copy of the s60IC must subsequently be filed with the Court Application for a Part VII order (which concerns the care and welfare of children).

Significantly, where a party fails to attend FDR, or does not make a genuine effort to resolve the dispute, the Court may order them to pay costs.

Types of s 60IC:

There are 5 types of s60ICs that can be issued under FLA ss 60I(8), covering different real-life circumstances:

• The ‘person did not attend FDR… due to the refusal, or the failure, of the other party …to attend’ (per FLA ss 60I(8)(a));
• The ‘person did not attend FDR… because the [FDR] practitioner consider[ed]… that it would not be appropriate to conduct the proposed FDR’ (per FLA ss 60I(8)(aa));
• The ‘person attended FDR… and… all attendees made a genuine effort to resolve the issue[/s]’ (per FLA ss 60I(8)(b));
• The ‘person attended FDR… but [they, or] the other party… did not make a genuine effort to resolve the issue[/s]’ (per FLA ss 60I(8)(c)); or
• The ‘person began attending FDR… but… the FDR practitioner consider[ed]… that it would not be appropriate to continue the FDR’ (per FLA ss 60I(8)(d)).

Applicable Timeframe:

A s60IC must be filed within 12 months of the last FDR session attended, or attempted, per Regulation 26(1) of the Family Law (Family Dispute Resolution Practitioners) Regulations 2008 (Cth).

Key Exceptions:

The s60IC requirement does not apply in certain circumstances (per FLA ss60I(9)), including, but not limited to:

• When the order being applied for is to be made with the ‘consent of all the parties.’
• Where there are ‘reasonable grounds to believe that there has been… [or]… would be a risk of [child] abuse… if there [was]… a delay in [making the order].’
• If ‘there has been [a history of, or] … risk of family violence… by one of the parties.’
• If the ‘application is made in circumstances of urgency.’
• When ‘one or more of the parties… is unable to [effectively] participate… in FDR… [due to] incapacity… physical remoteness… or… other reason[s].’

Please note: Western Australia has a separate template (form) for a s60IC that only applies under specific circumstances.

If you or someone you know wish to discuss this issue further, or seek legal advice on family matters, please do not hesitate to contact us on 02 8999 9809.

Real estate investment is a popular decision amongst many Australians for several reasons including, but not limited to:

• Its relatively low volatility in comparison to shares and other investment options,
• Its potential to generate consistent rental income,
• The capital gains benefits when selling a property at a higher value, and
• The opportunity to claim tax deductions by offsetting property expenses against rental income.

However, to maximise the potential of your property investments, whether you own a single investment property or a diverse portfolio, obtaining a property valuation can offer significant advantages.

The Benefits of Property Valuation

• Ascertaining Your Property’s Current Market Value:

The primary purpose of a property valuation is to calculate the property’s value based on current property market evidence and variables.

A precise market value estimate is crucial for determining key financial figures including ‘rental yield’ and ‘capital gains tax.’

Additionally, when applying for loans or mortgages, having an accurate appraisal may help you unlock broader financing options from banks and other lenders.

• Evaluating Your Potential Investment:

It is important for all prospective investors to conduct thorough due diligence before finalizing their property purchases.

Pre-purchase valuations can provide property investors with essential information including insights into current market trends, comparable property data and upcoming local infrastructure developments, thus helping them to make more informed investment decisions.

• Expertly Planning Developments:

For investors planning to subdivide or develop property or land, customizable property valuation reports can be generated.

These can assess the property’s present value or project its future value, depending on the intended development proposal/s.

Subsequently, these reports can inform critical budgeting considerations and effectively evaluate the feasibility of proposed projects.

• Ensuring Greater Legal Protection:

A legally certified valuation report can serve as an important document across a range of property-related legal matters, such as settling an estate, resolving a property dispute, or calculating property taxes.

How Can You Get Your Property Valued?

Though various ‘online tools’ and ‘service providers’ can offer property appraisals, they may not provide legally certified reports, limiting their applicability in tax disputes or legal proceedings.

Consequently, to ensure greater accuracy, transparency and impartiality, a Certified Practising Valuer (CPV) accredited by the Australian Property Institute (API) should instead be consulted.

Our firm works closely with a broad network of CPVs and can help you obtain an accurate, legally certified property valuation.

If you or someone you know wish to discuss this issue further, or seek legal advice over  your property matter, please do not hesitate to contact us on 02 8999 9809.

Grammy and Oscar-winning music composer, A. R. Rahman, and his wife, Saira Banu, are separating after 29 years of marriage.

The divorce was initiated by Ms Banu, who explained that the separation was a ‘difficult decision [made]… after years of emotional strain.’ Following this, Mr Rahman also shared a heartfelt message on X, confirming the separation.

Challenges Experienced by Bollywood Couples:

Ms Banu’s divorce lawyer, Vandana Shah, shed light on how factors including ‘boredom’ and ‘growing indifference,’ rather than ‘adultery,’ may be the primary motivators behind high-profile Bollywood divorces.

She raised that these issues are often unique to extremely wealthy families including those with ties to Bollywood, where relationships are burdened with greater expectations than those in other marriages, potentially culminating in breakdowns.

She also discussed how potential interference from outsiders may present further obstacles for couples in celebrity marriages, by complicating personal dynamics and making conflict resolution more difficult.

A Dignified End:

Despite the challenges the former couple faced, Ms Shah emphasized that the relationship ended ‘in a dignified manner… [with] both [parties]… continuing to support each other and wish[ing] each other well.’

She clarified that their marriage was genuine, and that their divorce decision was made after careful deliberation.

The former couple, along with their three children, have kindly requested for the public to respect their privacy during this challenging time and thanked everyone for their kindness and support.

Overview of the Indian Divorce Process:

In India, divorce proceedings typically take anywhere between 6 – 18 months, depending on the Court handling their case, and its current caseload.

For a ‘Mutual Divorce’ under the Hindu Marriage Act (No. 25) of 1955, the procedure generally follows these six chronological stages:

• Petition filing – A petition is created to outline the reasons for the divorce and ensure that the parties are in mutual agreement.
• Summons Service – The petition is jointly filed to the Family Court through each party’s divorce lawyer/s.
• Response – The Court issues an order to record the oath statement, after reviewing the petition and accompanying documents.
• Trial – Both parties are provided with a 6-month cooling period to allow for reconciliation.
• Interim Orders – If no reconciliation occurs, the parties appear for a final hearing (which must occur within 18 months of filing the petition).
• Final Orders – The Court issues the divorce decree, legally ending the marriage.

It must be noted that divorce procedures and laws in India may differ according to religion.

If you or someone you know wish to discuss this issue further, or seek legal advice on family or divorce matters, please do not hesitate to contact us on 02 8999 9809.