Buying a Rural Property

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The process of buying a rural property or farm is substantially different to buying a residential house in town.

A prudent purchaser should conduct the usual pre-contract inspections on the home and buildings on the rural land. This should include a timber pest inspection and a building inspection to discover any defects that are not usual “wear and tear”. Any issues of concern in these reports should be followed up with licensed tradesmen where required.

In addition, as with “town land” the buyer must beware and will risk financial loss if the proper investigations are not done before entering into a contract.

One of the major considerations when buying rural property is whether the purpose you are buying the property for fits the use allowed by the local council and other state government departments. It is a costly mistake to buy a property say for aquaculture in an area that does not permit that type of agricultural pursuit, or the area may have chemical residue which will destroy your organic farming intentions. 

By commissioning searches and enquiries before you enter into a contract for sale you can minimise the risk of hidden “surprises” on your rural property. 

Chemical residues, livestock & plant diseases, noxious weeds & animals

If you intend growing crops on your land for sale or raising livestock for market, the presence of chemical residue in the soil can destroy your business. Organochlorines such as DDT were used extensively on farms (and all property) to control pests and the residue can remain for decades in the ground and attach to plants and animals. 

Some diseases can stay on the land long after the animals are gone even for long periods of time after de-stocking. Protection zones often prohibit certain activities on farms if affected and may stop you from keeping certain types of animals or stock at all if a significant risk exists. 

Specific types of crops can be affected by pests such as fruit fly and nematodes. If you intend cropping, a thorough investigation by an experienced horticulturalist is recommended and local councils often have officers who can assist. You may also want to get a soil test to establish firmly that there is no chemical residue in the soil.

Noxious weeds and pests can also be a problem on rural land. 

The Department of Primary Industries and Regional Development (DPIRD) has resources and a range of services and tools providing information on soils, climate, water, pests, weeds, diseases, biosecurity, livestock, crops and horticulture as well as a Pest and Disease Information Service and Seed Testing and Certification Service.

Survey 

A survey shows the dimensions and boundaries of the property and is particularly important when buying a rural property.

Existing fencing may not be accurate and can give an incorrect picture of the actual land you are buying. If a water source appears to be within the property and in fact it isn’t, a survey will show this error and you can negotiate for purchase of the property with this knowledge. If this is the only water source on the land, the result of not getting a survey might be devastating to you.

Land use

Aspects of rural land use including development, agricultural use, irrigation and clearing are governed by the local council and state government agencies such as the Environmental Protection Authority (EPA). There are rules on what you can and cannot do on the land and these rules should be checked thoroughly before you buy a property, especially if it is for a specific purpose.

Infrastructure for your farm including building of roads and bridges should be investigated and environmental considerations for your intended use of the land checked to make sure they comply with land use rules.

Access

A right of legal access must be confirmed before you buy a rural property.

Sometimes what looks like access may just be an easement or a stock route that can be changed and leave you unable to access your land. This should be checked particularly around Crown Land areas where they may be “enclosed roads” that look like normal roads but are actually owned by the government and can be closed at any time, possibly denying you access to your property.

Easements

The current plan of the land should be carefully considered for any “proposed” or “intended” easements or rights of way. Easements not on the land at the time of inspection, but noted on a plan as approved, may impact on your farming in the future.

Water entitlements

Rural land without water is not as valuable. To protect your investment, you should check whether the water resources are registered as required by local government and state law. Irrigation licences, water access from rivers and water bores all need the appropriate approvals and details should be included in the contract for sale. Dams should also be checked for compliance if required in the area in which you are buying.

Native Title

A search can be obtained to show whether there is a current native title claim on the property and the extent to which this may affect your farming endeavours.

Taxation issues

If you propose running a business from your rural property, you should discuss your purchase and the most appropriate business structure with your legal and accounting professionals who can also advise on GST, CGT and other taxation implications.

Conclusion

Every rural property is different, and it is important that you get the right advice and assistance before and after you enter into a contract to buy a property. 

Legal professionals who are experienced in rural conveyancing can assist you in properly investigating rural land for any risks to protect your financial investment.

If you or someone you know wants more information or needs help or advice, please contact us on + 61 8 9921 6040 or email thayter@midwestlawyers.com.au.

Trade Marks in Australia

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The advantage of registering a trade mark is that it confers far more benefits than registering a business name, company name or domain name. Marketing is an important business tool, and a registered trade mark is crucial in allowing you to protect any value or credibility which you have built on your brand. 

What is a trade mark?

A trade mark identifies a product or service, distinguishing it from the goods or services of other traders. A registered trade mark protects any branding element within a business including letters, numbers, words, phrases, sounds, smells, shapes, logos, pictures and aspects of packaging. Registration of a business, company or domain name does not give you that kind of protection.

Registered trade marks are enforceable and a trade mark owner can commence legal action to stop others trading with it. Trade marks can be used to help build market position and stop others from imitating your brand.

The registration of a trade mark is effective for 10 years and can be renewed for further 10 year periods provided renewal fees are paid. 

Registration of a trade mark usually covers the entire Commonwealth of Australia. For worldwide protection, an application can be filed with each country in which the trade mark will be used, or a single international application can be filed through IP Australia nominating the countries in which protection is required.

Applying for a trade mark 

Trade marks are registered in specific classes relevant to the description of the goods or services for which the mark will protect. The application for registration must nominate one or more classes of goods or services for which the mark is intended to be used and associated. The more classes selected, the wider the protection that will be given once the trade mark is registered.

Before making an application to register your trade mark, the following should be considered:

  • Identify the relevant class of goods or services for which the mark will apply. Schedule 1 of the Trade Marks Regulations 1995 prescribes the available classes and describes the types of goods or services specific to each class.
  • A search should be carried out before applying to register a trade mark to check that a similar trade mark is not already registered in that class. An application to register your trade mark could be rejected if there is an identical or similar trade mark already registered which covers similar goods or services. 
  • Only minor changes can be made to a trade mark once an application has been filed and published.
  • A trade mark registration is for the goods and services you actually trade in or intend to trade in in the near future. Once an application is filed and registered, goods and services cannot be added. Therefore, you should clearly define the marketplace you trade in to ensure the best possible protection.
  • Your trade mark must be something that is capable of distinguishing your goods and services – exclusive rights will not be granted to everyday language, names and descriptions of products and services are difficult to register.

Once you are happy with your trade mark, you can apply to register it through the IP Australia website. You can also request an assessment of the likelihood of your trade mark achieving registration through TM headstart.

The cost of applying for a trade mark will vary depending on the application method used, and how many classes of goods and services the trade mark is to be registered in (currently, there are 45 different classes of goods and services in Australia).

The application process

Once your trade mark is accepted, it will be advertised in the Australian Official Journal of Trade Marks and the application is open to opposition for a period of 3 months (which can be extended for a further 3 month period).

If your application is not challenged, your trade mark will be registered once the registration fee is paid (which must be paid within 6 months from the date acceptance is advertised).

The registration of a trade mark in Australia takes a minimum of 7 ½ months after an application is filed.

Conclusion

Applying for an Australian trade mark is a straight forward process however it is important to choose the correct category of registration, and any additional categories, for optimum protection. 

By investing in protecting your brand today, you can avoid the costly and uncertain exercise of preventing unauthorised use of your unregistered trade mark.

If you or someone you know wants more information or needs help or advice, please contact us on + 61 8 9921 6040 or email thayter@midwestlawyers.com.au.

A widow contesting a Will

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All jurisdictions in Australia provide statutory rights for eligible persons to contest a Will on the basis that they have not been left adequate provision by the testator for their proper maintenance, education and advancement in life. 

In Western Australia, an eligible person includes:

  • a spouse or de facto partner;
  • a person receiving or entitled to receive maintenance from the deceased as a former spouse or de facto partner;
  • a child of the deceased;
  • a grandchild of the deceased, in specified circumstances;
  • a stepchild of the deceased, in specified circumstances;
  • a parent of the deceased.

If a family provision claim is successful, the Court can order an appropriate adjustment to the terms of the Will to satisfy the claim. A range of factors are considered including the relationship the applicant had with the deceased, the obligations or responsibilities the deceased had to the applicant, and the nature and size of the estate.

The expectation that spouses should provide for each other generally places a widow’s needs ahead of other interested parties in a family provision claim. However, all cases will be individually assessed and balanced with the needs of the applicant and the competing needs of other entitled recipients.

The moral duty to provide for a spouse

There is a general expectancy that testators have a moral duty to provide for the proper maintenance of their spouse or de facto partner. The Court has explained this as providing what is necessary for the spouse to enjoy accommodation to the standard to which he or she is accustomed and, to the extent possible and having regard to the size of the estate, a fund to meet unforeseen contingencies. This is particularly so where the marriage or relationship has been lengthy.

Competing claims

Family provision claims by widows usually involve a contest between the applicant and a child or children from the deceased’s former relationship. 

The applicant will generally apply for greater provision than what has already been provided in the Will based on his or her personal and financial circumstances, current financial position and future needs.

Generally, the widow and children of the current relationship (if any) will stand favourably against the children of a former relationship. This is because the testator’s primary duty is perceived as being owed to his current family and the likelihood that the children of the former relationship may have already been provided for through child support payments. This of course is not always the case and each matter will turn on its own circumstances in consideration of a range of factors.

Determining the sufficiency of proper maintenance

The Courts have explained the difficulties of determining the meaning of ‘proper maintenance’. In Re Harris [1936] SASR 497 it was considered to be ‘…more than a provision to keep the wolf from the door – it should at least be sufficient to keep the wolf from pattering round the house or lurking in some outhouse in the back yard – it should be sufficient to free the mind from any reasonable fear of any insufficiency as age increases and health and strength gradually fail’.

Sometimes, widows are left a ‘right of residency’ in the testator’s property. This allows the widow to occupy the family home or other property of the deceased for his or her lifetime with the intention that the property will pass to a residuary beneficiary, such as the testator’s child or children from a former marriage, after the widow’s death. 

A right of residency however is not always practical and may be considered insufficient to meet the moral duty expected of the testator. The widow may, due to age or health, need to vacate the residence, being left vulnerable and without security of a home.

The alternative approach of leaving the home to the widow may also be inappropriate – if the widow passes soon after the deceased, then the result may be a significant capital asset being inherited by the widow’s relatives, contrary to the wishes of the testator.

As can be seen there needs to be a balance between a tokenistic provision and the risk that a testator’s significant assets might inadvertently be inherited by an unintended beneficiary. 

In Luciano v Rosenblum (1985) 2NSWLR 65 the Court gave some guidance as to the expectation of a widow after the death of a spouse:

‘Where the marriage of a deceased and his widow has been long and harmonious, where the widow has loyally supported her husband and assisted him to build up and maintain his estate, the duty which a deceased owes to his widow can be no less than to the extent to which his assets permit him to achieve that result…’

Conclusion

A testator owes a moral duty to provide for his or her spouse and, as a general rule, a spouse will have priority over other entitled beneficiaries in a Will contest. Having said that, every case is different and will turn on its own unique circumstances.

There are a range of factors a Court must consider when assessing the merits of a family provision claim. Your family circumstances should be assessed in light of these factors when preparing your Will to minimise the potential of a Will contest when you die.

Strict time limits apply with respect to making a claim for family provision. If you feel you have not been given adequate provision from the Will of a family member or if you or someone you know wants more information or needs help or advice, please contact us on + 61 8 9921 6040 or email thayter@midwestlawyers.com.au.

Contractual obligations in the wake of COVID-19

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The coronavirus (COVID-19) presents numerous challenges for individuals and businesses, amongst them, the legal rights and responsibilities under existing contracts during a pandemic such as this.

Parties to a contract that are facing difficulties in meeting their obligations may be anxious about their legal position in such circumstances.

Some contracts may provide specific rights for parties to delay performance of their obligations or terminate a contract due to certain conditions, however these must be carefully scrutinised before taking such action. 

The individual circumstances of each case and the law at the relevant time must be considered before an informed decision can be made.

Force majeure

Commercial agreements may include ‘force majeure’ clauses which operate to suspend a contract and / or eventually bring it to an end if a specified situation occurs, and continues to occur, that is out of the parties’ control. 

Specified events may include things such as natural disasters, war or public emergency. The words used in such a clause will determine whether a pandemic like the coronavirus will constitute a force majeure event enabling the contract to be suspended or terminated. 

Many standard contracts would not specifically include the word ‘pandemic’ as a force majeure event and each contract must be assessed in light of the provisions, the surrounding circumstances and with reference to case law.

Frustration

Failing the inclusion of specific clauses, general contract law (and legislation in some states) provides that a contract may be ‘frustrated’ by events beyond the parties’ control which make its performance impossible or makes the contractual obligations fundamentally different. Examples include changes in the law that make performance of the contract illegal or physical destruction of the subject matter. 

The doctrine of frustration operates when events occurring subsequent to the contract’s formation render the agreement ‘radically and fundamentally’ different to the parties’ expectations. The frustrating event must occur through no fault of the parties who, because of it, are now unable to perform their obligations.

Case law provides examples of frustration however traditionally, the doctrine operates in very limited circumstances and can be difficult to establish. The doctrine will not apply in circumstances where performance of the contract is merely more expensive or onerous than originally anticipated – performance of the contract must become literally impossible. Given these limitations and the uncertainty of establishing frustration, it is preferable to rely on express contractual rights to delay or terminate a contract, if possible.

What should you do?

If you are having difficulty performing your obligations under a contract, or are considering terminating a contract, you should obtain urgent advice regarding your legal rights and the ramifications of termination.

Threatening to terminate a contract without sufficient legal cause may be considered wrongful termination and constitute a repudiation of the contract. Repudiation occurs when a party to the contract shows an intention to no longer perform its obligations, the result being that the other party may be in a position to claim compensation for loss and damage.

Contracts should be reviewed to determine whether performance can be delayed, or termination rights are available, and advice provided regarding the correct process to follow in these circumstances. The contract will usually specify strict notice requirements or the use of prescribed forms and specific conditions for valid service of a notice.

The consequences of termination and the parties’ respective rights will generally be determined by the contract itself and whether some of the obligations under the contract have already been performed.

If you or someone you know wants more information or needs help or advice, please contact us on + 61 8 9921 6040 or email thayter@midwestlawyers.com.au.

COVID-19 – Important Updates For Financially Distressed Businesses

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This material is general in nature and incorporates information regarding proposed or pending legislative changes to address the potential economic and other impacts of the Coronavirus (COVID-19) pandemic. 

On 22 March 2020, the Australian Federal Government delivered its second response to the economic threat posed by the Coronavirus. 

Part of this response includes measures to alleviate some of the financial hardship faced by many businesses and provide some safeguards to help them survive and be better placed to resume operations after the crisis.

Key to these objectives were proposed reforms to company and personal insolvency laws.

Statutory demands

Temporary changes to the requirements for issuing a statutory demand are aimed at offering protection to companies that might otherwise be pushed into insolvency and liquidation.

Statutory demands have long been used to recover money owed by a company which will be presumed insolvent if, after 21 days after service of a statutory demand, it either fails to pay the debt or have the demand set aside or extended. The presumption of insolvency triggers a right for a creditor to instigate proceedings to have the company wound up. Generally, a statutory demand may not be issued unless the debt is for $2,000 or more and the debtor is given 21 days from service of the demand to pay the debt or apply to have it set aside.

Temporary changes, anticipated to operate for 6 months as from 25 March 2020 include:

  • Increasing the minimum amount of debt for which a statutory demand may be served from $2,000 to $20,000;
  • Extending the timeframe for a debtor company to comply with a statutory demand from 21 days to 6 months.

Personal liability for company directors – insolvent trading

Companies are prohibited from trading whilst insolvent, and directors have a duty to prevent insolvent trading. Directors who allow a company to continue incurring debt where it is reasonably foreseeable that the company is, or likely to become insolvent, may be held personally liable for financial losses. 

New measures provide temporary relief from the duty to prevent insolvent trading to company directors who incur debts in the ordinary course of the company’s business, alleviating the director from personal liability that would otherwise be associated with insolvent trading. These measures will apply for 6 months.

Individuals and bankruptcy

Similar temporary measures, to apply for 6 months, are proposed for individuals facing insolvency issues through changes to personal insolvency laws, namely:

  • increasing the threshold for the minimum amount of debt owed from $5,000 to $20,000 before a creditor can initiate bankruptcy proceedings;
  • extending the timeframe for which a debtor must comply with a bankruptcy notice from 21 days to 6 months;
  • in circumstances where a debtor has declared an intention to enter voluntary bankruptcy, extending the timeframe for which a debtor is protected from an unsecured creditor taking further recovery action from 21 days to 6 months.

Taxation matters

Business owners or company directors who are struggling financially as a result of the Coronavirus may seek tailored solutions from the Australian Taxation Office such as temporary reductions, payment deferrals or the withholding of enforcement action.

How can we help?

The above material is based on an understanding of the available information at the time, which may be subject to change or further development. The individual circumstances of each case and the law at the relevant time must be considered before an informed opinion can be offered.

This is a concerning time for all Australians and we are here to help.

If you or someone you know wants more information or needs help or advice, please contact us on + 61 8 9921 6040 or email thayter@midwestlawyers.com.au.

Covid-19 – Temporary Relief from directors’ personal liability whilst trading insolvent

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If a company trades while insolvent directors are personally liable. This can lead to boards of directors feeling under pressure to make quick decisions to enter into an insolvency process if there is any risk that the company will experience periods where it will be unable to be pay its debts when they fall due and are trading while insolvent.

In order to ensure that companies have confidence to continue to trade through the Covid-19 crisis with the aim of returning to viability when the crisis has passed, directors will be temporarily relieved of their duty to prevent insolvent trading of a company with respect to any debts incurred in the ordinary course of the company’s business. This will relieve the director of personal liability that would otherwise arise from insolvent trading. It will apply for six months.

Temporary relief from personal liability for insolvent trading will apply with respect to debts incurred in the ordinary course of the company’s business. Blatant cases of dishonesty and fraud will still be subject to criminal penalties. Any debts incurred by the company will still be payable by the company. The WA Premier and WA Treasurer announced $25 million has been allocated for a rent relief plan for small businesses and not-for-profits that lease from Government agencies and trading enterprises. 

The plan will benefit businesses such as convenience stores in train stations, cafés in government buildings, and restaurants in tourism precincts. It will also benefit eligible small businesses leasing land from the WA Government, such as caravan park and eco-tourism operators.

Legislation is in place that allows pastoral lease holders to request rent payments be reduced, waived or delayed where the pastoral lease has been adversely affected, or if the lease holder is suffering personal financial hardship due to poor economic conditions in the pastoral industry.

The rent relief is in addition to the recently announced moratorium on the termination of leases for non-payment of rent for six months for commercial tenancies suffering financial distress, to be rolled out by State and Territory Governments in response to the COVID-19 pandemic.  

Small businesses include those owned and operated by an individual, partnership or proprietary company with a relative small market share and are not a subsidiary of a larger business, as defined by the Small Business Development Corporation Act 1983.  Not-for-profits include all charities and associations defined by the Associations Incorporation Act 2015.

Visit https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/temporary-relief-for-financially-distressed-businesses for more information.

Tim Hayter, Principal, Mid West Lawyers

This information is general in nature and should not be relied upon as legal advice. Formal legal advice should be sought for your particular circumstances. 

Covid-19 – Temporary Higher Thresholds for Credits Statutory Demands

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A creditor issuing a statutory demand on a company is a common way for a creditor to recover unpaid monies and place the company into liquidation. The Government is temporarily increasing the current minimum threshold for creditors issuing a statutory demand on a company under the Corporations Act 2001 from $2,000 to $20,000. This will apply for 6 months.

Not responding to a statutory demand within the specified time creates a presumption that the company is insolvent. The statutory time frame for a company to respond to a statutory demand will be extended temporarily from 21 days to 6 months. This will apply for 6 months.

The Government will make a number of changes to the personal insolvency system regulated by the Bankruptcy Act 1966 to assist individuals. The threshold for the minimum amount of debt required for a creditor to commence bankruptcy proceedings against a debtor will temporarily increase from its current threshold of $5,000 to $20,000. This will apply for 6 months.

Failure to respond to a bankruptcy notice is the most common act of bankruptcy. The time a debtor has to respond to a bankruptcy notice will be temporarily increased from 21 days to 6 months. This extension of time will give a debtor more time to consider repayment arrangements before they could be forced into bankruptcy. This will apply for 6 months.

When a debtor declares an intention to enter voluntary bankruptcy by making a declaration of intention to present a debtor’s petition there is a period of protection when unsecured creditors cannot take further action to recover debts. This period will be temporarily extended from 21 days to 6 months. This will give debtors more time to consider the options that are best for them. This will apply for 6 months.

Creditors, many of whom are themselves small businesses, will still have the right to enforce debt against companies or individuals through the courts. The Small Business Development Corporation has created a COVID-19 assistance centre to provide dedicated guidance on available support options, including:

  • information on available stimulus packages and eligibility requirements;
  • advice on preparing businesses to manage impacts;
  • other resources.

To access the service, contact 133 140 (8.30am to 4.30pm weekdays) or email info@smallbusiness.wa.gov.au 

Visit https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business/temporary-relief-for-financially-distressed-businesses for more information.

Tim Hayter, Principal, Mid West Lawyers

This information is general in nature and should not be relied upon as legal advice. Formal legal advice should be sought for your particular circumstances. 

Covid-19 – Advice for Employers

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Employers need to be mindful of issues relating to employees in relation to the Covid-19 pandemic.

Employers should not send staff to be tested at either COVID clinics or through GP referrals unless they have a fever and respiratory symptoms such as cough or sore throat AND:

  • have returned from overseas travel in the last 14 days; or
  • are a contact of a confirmed COVID-19 case; or 
  • believe they may have been in close contact with a person infected with COVID-19.

Health authorities advise that it is ineffective and unnecessary to test people who do not have these symptoms.

Unnecessary testing also uses more valuable resources such as personal protective equipment (PPE) and pathology supplies, which are in limited supply worldwide.

There is no point testing someone if they do not have symptoms and it uses valuable resources such as personal protective equipment (PPE) and pathology supplies, which are in limited supply worldwide and need to be used responsibly for patients who meet testing criteria.

Employers should not send their staff to COVID-19 Clinics or GPs for medical clearances or certificates.

Encourage and practice quality personal hygiene like you would in the winter flu season – the includes covering coughs and sneezes, washing hands often with soap or sanitiser and staying away from work if unwell.

Continue to follow the advice of health authorities – anyone instructed to self-isolate by a medical professional must take the request seriously and stay home to avoid putting others at risk. This means you don’t leave your property, you don’t go to work or school, you don’t go on outings and you don’t have visitors. The only time to leave the house is to seek medical attention.

Know the facts by sourcing accurate information, from credible sources such as the Department of Health. Employers are advised to remain calm and use common sense.

Visit this website for more information: https://www.wa.gov.au/organisation/department-of-the-premier-and-cabinet/covid-19-coronavirus-latest-updates.

Tim Hayter, Principal, Mid West Lawyers

This information is general in nature and should not be relied upon as legal advice. Formal legal advice should be sought for your particular circumstances. 

Covid-19 – Rent Relief for Small Business and Not-for-Profits

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The WA Government will waive rental payments for small businesses and not-for-profit groups in Government-owned buildings for six months to help these lease holders respond to the impacts of COVID-19. This is the first time the WA Government has waived rental payments for any lease holders.

The WA Premier and WA Treasurer announced $25 million had been allocated for the rent relief plan for small businesses and not-for-profits that lease from Government agencies and trading enterprises. 

The plan will benefit businesses such as convenience stores in train stations, cafés in government buildings, and restaurants in tourism precincts. It will also benefit eligible small businesses leasing land from the WA Government, such as caravan park and eco-tourism operators.

A raft of individually tailored measures including more flexible opening hours, and facilitating takeaway and delivery options are also available to tenants across Elizabeth Quay and Yagan Square. DevelopmentWA has been working closely with each lease holder to support them during this difficult period.

Legislation is also in place that allows pastoral lease holders to request rent payments be reduced, waived or delayed where the lease has been adversely affected, or if the lease holder is suffering personal financial hardship due to poor economic conditions in the pastoral industry.

The rent relief builds on the recently announced moratorium on the termination of leases for non payment of rent for six months for commercial tenancies suffering financial distress, to be implemented by State and Territory Governments in response to the COVID-19 pandemic.  

Small businesses include those owned and operated by an individual, partnership or proprietary company with a relative small market share and are not a subsidiary of a larger business, as defined by the Small Business Development Corporation Act 1983.  Not-for-profits include all charities and associations defined by the Associations Incorporation Act 2015.

Visit this website for more information: https://www.wa.gov.au/organisation/department-of-the-premier-and-cabinet/covid-19-coronavirus-latest-updates.

Tim Hayter, Principal, Mid West Lawyers

This information is general in nature and should not be relied upon as legal advice. Formal legal advice should be sought for your particular circumstances. 

Covid-19 – Small Business Relief

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As a result of the Covid-19 pandemic the WA Government has declared a State of Emergency for Western Australia, which has led to small business suffering a loss.

The Small Business Development Corporation has created a COVID-19 assistance centre to provide dedicated guidance on available support options, including:

  • information on available stimulus packages and eligibility requirements;
  • advice on preparing businesses to manage impacts;
  • other resources.

To access the service, contact 133 140 (8.30am to 4.30pm weekdays) or email info@smallbusiness.wa.gov.au 

For information on a range of other support they offer, including a series of free online webinars covering key topics relating to small business issues, visit the Small Business Development Corporation website or follow their blog for regular updates on the rapidly changing business environment.

The WA Government is investing $114 million in measures to support WA small and medium businesses including:

One-off grants of $17,500 to small and medium businesses

  • Small and medium businesses whose annual Australian Taxable Wages are between $1 million and $4 million will receive a one-off grant of $17,500 to assist them to manage the impacts of COVID-19.
  • No applications are required. Grants will automatically be paid from July 2020, but there may be delays for taxpayers whose tax status changed during the 2018-19 assessment period or who commenced as new employers in 2018-19 and 2019-20.

Fast-track payroll tax relief for small businesses

  • The payroll tax threshold will be increased to $1 million from 1 July 2020, six months earlier than planned.

Deferred payment 2019-20 payroll tax available to small and medium sized businesses

  • Small and medium sized businesses affected by COVID-19 can apply to defer payment of their 2019-20 payroll tax until 21 July 2020.
  • The deferral is available to employers who pay $7.5 million or less in Australian Taxable Wages and have been directly or indirectly impacted by COVID-19, compared to normal operating conditions.
  • Eligible businesses will be able to defer payment of their 2019-20 payroll tax until 21 July 2020.

Further information on how to apply for a payroll tax deferral is available on the Department of Finance website.

Tim Hayter, Principal, Mid West Lawyers

This information is general in nature and should not be relied upon as legal advice. Formal legal advice should be sought for your particular circumstances.