CWS Newsletter – April -June 2009
Changes to the de facto relationships act
Family agreements – money for love
The effect of an inheritance on a centrelink benefit
Staff
CWS Newsletter – July - September 2007
Gifts to family & friends
Abolition of Mortgage duty
Binding death benefit nomination
President of the Law Society
Some light relief
CWS Newsletter – April - May 2007
Living with a reverse mortgage
New Partners
Special Disability trusts
Some light relief
CWS Newsletter – January - March 2007
Beware of Trustees' Commission
Family law issues
Staff changes
Welcome Casey Abel
Some light relief
CWS Newsletter – July-August 2006
Protecting your Assets
New Tasmanian Laws on Building and Plumbing
Family Law shakeup
Some light relief
CWS Newsletter – April-June 2006
Family Court to Decide Bankruptcy Cases
Third Party Property Orders
Future Parenting Changes
New Parenting Cases Procedure
Some Light Relief
Privacy Policy
History
CWS Newsletter – July 2005
Abolition of non-real-property business conveyances
Mortgage Duty Changes
Miscellaneous Amendments
Abolition of Debits Duty
Land Tax Relief announced in State Budget
Some Light Relief
First Home Buyer’s Duty Concession Scheme to continue and to be extended to vacant land
Do I need to Appoint a Guardian – by James Walker
CWS Newsletter – March 2005
Purchasing or Selling Real Estate or a Business?
Family Law
Clerk Walker would like to welcome Paul Mason
Beware Of Executor’s Commission !
New Arrivals
CWS Newsletter – June 2004
Purchasing a Property?
Civil Disbursement Fund
First Home Buyer Duty Concession
Clerk Walker Website
Free 15 Minute Legal Advice
A little light relief
CWS Newsletter
– January 2004
Change of name
James (Jamie) Hurburgh
Australian
Young Lawyer of the Year 2003
Farewell to Brit Bullard
Point to Pinnacle
Power of Guardian
See us before you sign...
Free 15 minute legal advice
CWS Newsletter – April 2002
Changes To Workers Rehabilitation
and Compensation Legislation - July 2001
Assessment
of Lease Instruments - How to Estimate Costs
New Private Sector Provisions in the Privacy
Act 1988
Superannuation and Family Law Act Changes
Pensions and Trusts - Jan 2002
CWS Newsletter – August 2001
Changes To Stamp Duties Legislation
Changes To Criminal Injuries Compensation
Goods & Services Tax
New Powers Of Attorney Act
Taxation
Borrowing And Investing
CWS Newsletter – October 2001
Changes To Stamp Duties Legislation
- July 2001
Changes to Criminal Injuries Compensation
Goods & Services Tax
New Powers of Attorney Act
Taxation Services
Borrowing and Investing
CHANGES TO THE DE FACTO RELATIONSHIPS ACT
Important changes came into effect on 1 March 2009 with implications to de facto relationships across most of Australia.
The Family Law Amendment (De Facto Financial Matters and Other Measures) Act 2008 was introduced to allow a new regime of settling property disputes between not only married couples, but now also de facto couples of the opposite sex and de facto couples of the same sex.
The changes to the legislation mean that separating de facto couples now have access to the Federal family courts rather than the State Supreme Court in relation to property matters. Children’s matters were previously heard in the Commonwealth family courts; whereas de facto property matters could only be dealt with in a State court. These changes now mean that both children and property matters for married and de facto separating couples can be heard within the one jurisdiction.
The change to the law means that separating de facto couples can now divide assets and financial resources in the same way as married couples under the Family Law Act 1975. Previously only married couples had been able to split superannuation. But the new changes now enable de facto couples to also split their superannuation.
Not all States have referred their powers to the Commonwealth for these changes to take effect. South Australia and Western Australia are both yet to refer their powers. New South Wales, Victoria, Queensland and Tasmania are now governed by this new legislation which has become increasingly more important when assessing property entitlements across State and Territory borders when there are differing laws for each.
When determining whether there is a de facto relationship in existence some of the following factors are taken into consideration:
- The relationship must have lasted for at least two years;
- There is a child of the relationship;
- The degree of financial dependence or interdependence;
- The ownership, use and acquisition of property;
This is not an exhaustive list as a number of other factors can apply when determining the existence of a de facto relationship. The legislation will also apply to de facto relationships that have been registered under a State or Territory law.
The new laws apply to de facto relationships that have broken down after the commencement of the legislation (1 March 2009), although couples who have separated before 1 March 2009 can choose, after obtaining independent legal advice, that the new laws apply to their relationship.
FAMILY AGREEMENTS – MONEY FOR LOVE
Caring for an elderly or dependent parent used to be a cultural duty. However some families are now asking solicitors to write up formal agreements. These “family agreements” are arrangements in which the parent transfers property or pays compensation to someone in exchange for a promise of “care for life”.
Centrelink has special rules for assessing granny flat interests. A granny flat can be a separate self-contained dwelling built on someone else’s property or a right to accommodation for life or a life interest in a home. You may have a granny flat interest if you have contributed money or other assets in exchange for your flat. How much you contributed in exchange for your granny flat interest determines whether the amount you contributed will be counted as an asset; whether you are considered a homeowner; or, if not a homeowner, are able to receive rent assistance if you pay rent. A granny flat interest may affect your pension.
If you are considering such an arrangement or have already transferred ownership of your home to your children or a granny flat has been built for you, then there may be certain implications that you may not have considered. Please contact Jim or Alison if you have any queries.
THE EFFECT OF AN INHERITANCE ON A CENTRELINK BENEFIT
The receipt of the lump sum inheritance is exempt under the Centrelink income test. However the lump sum amount is immediately treated as an assessable asset and it is likely that the deeming rules will then apply.
Under the deeming provisions Centrelink assume that all financial investments earn a certain rate of interest; regardless of the actual interest received. The current deeming rates are 2% on the first $41,000 for a single person and $68,200 for a couple. Thereafter the deeming rate is 3%. The deemed income is added to income from other sources which is to determine the level of pension, benefit or allowance payable.
After receiving an inheritance (or at any other time) you may wish to gift or transfer assets to your children or other people or organisations. While you are entitled to gift any assets to any person at any time you choose, the rate of your pension or allowance may be affected if you gift assets worth more than the allowable gifting amount.
The allowable gifting amount for a single person or a couple is $10,000 in each financial year to a total of $30,000 in any five consecutive financial years. Any gift which has a total value greater than the allowable gifting amount will be assessed as a “deprived asset” for five years from the date of gift and will be subject to the income deeming provisions as discussed above.
If you are in receipt of a Centrelink benefit and are expecting to receive an inheritance, or are considering making a gift, we encourage you to contact us to further discuss your options. For example, a prepaid funeral is not considered an assessable asset, therefore purchasing one may reduce your deemed income. More information is available on the Centrelink website at www.centrelink.gov.au.
STAFF:
WELCOME TO ALEXANDRA BOOTE
Alex joined the firm of Clerk Walker in February and practices in the area of family law including:-
- Marriage/de facto breakdown
- Children’s matters
- Property settlements
- Divorce
- DNA/Parentage Testing
- Family Dispute Resolution Conferences
ALISON WISS
Alison has returned from maternity leave and is working three days a week. Alison looks forward to assisting new and past clients.
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