By Jeffrey Stone
A new three-tiered visa system is set to replace the Temporary Skills Shortage Subclass 482 visa
The ‘essential skills’ visa will target those earning under $70,000; the ‘core skills’ visa will cover the $70,000-$135,000 range; and the ‘specialist skills’ visa is proposed for those earning over $135,000 per year. The specialist skills visa pathway, with no occupational list, promises a swift processing turnaround of 7 days. Trades occupations, machinery operators, drivers, and labourers are to be excluded from this category, which will have an annual allocation of 3,000 places.
The essential skills visa pathway details are pending finalisation. These visas will be granted for up to 4 years and visa holders will have greater ability to change employers more easily. These temporary visas will provide clear pathways to permanent residency. The ‘Temporary Skilled Migration Income Threshold’ will be indexed annually, and a public register of employer sponsors created, to allow more ease with moving between employers.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Tracy Collins & Morgan Collens
Estate planning can be a minefield of confusing terminology, with the difference between mirror and mutual wills often misunderstood.
Mirror Wills, typically created by couples, mirror each other’s content, and can be altered or revoked by either will-maker at any time. Despite their reciprocal nature, they are distinct from Mutual Wills, which are legally binding and therefore harder to revoke. Mutual Wills involve an additional agreement between two individuals to create Wills on binding terms upon the surviving party, with equity imposing a trust.
Establishing the existence of Mutual Wills requires proving key elements. Clear evidence of an agreement among the parties is essential, along with specific terms indicating mutuality and irrevocability. The intention to create a legally binding contract through the executed Wills is crucial.
While oral agreements may be acceptable, the Courts emphasise the difficulty of proving the same, especially without the provision of a written contract.
While the final decision was handed down in 1937, the case of Birmingham v Renfrew remains particularly relevant when summarising the key aspects of Mutual Will agreements, including:
To avoid disputes relating to Mutual Wills, certain precautions are recommended:
Of course, despite both parties having the best intentions, disputes may still arise. If a party attempts to change a Will against a Mutual Will agreement, beneficiaries can seek court intervention to enforce the Mutual Will and protect their interests.
If you are interested in creating a Mutual Will, or you are concerned about the implications of the same, we strongly encourage contacting us at nevileco@nevile.com.au
*If you and your partner create mirror wills with the same lawyer, and then wish to alter it independently with this same lawyer again, they will likely request the consent of your partner before making any changes.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Jeff Stone and Linnea Cederberg
The Department of Home Affairs has announced that the proposed implementation date for changes to the Employer-Sponsored migration program is to be the 25th November 2023.
The MIA has requested the Department of Home Affairs to confirm the changes that are expected to be implemented on that day, although, it is strongly expected to potentially include the end of the long-awaited pathway to permanent residencies for all Temporary Skill Shortage (TSS) visa holders, including those working occupations on the Short-Term Skilled Occupation list (SOL), after working just 2 years with their sponsors.
TSS visa holders are currently only able to stay in Australia for up to 2-4 years if they are working full-time for a sponsoring employer. Migrants are only able to obtain a TSS visa if there are labour shortages, where an Australian employer is needing to seek elsewhere for a skilled worker. Although the TSS visa also entails a family visa section, it is not always guaranteed, considering many people are not open to the idea of moving their entire family for only 2-4 years of a new life. Now that the idea of permanent residency may be introduced into the Employer-Sponsored migration program, Australia may no longer be facing labour shortages, since skilled-migrant workers may have the possibility of working and living in Australia permanently.
The SOL is a list that compromises the Australian occupations in demand, which are available for foreign skilled workers who are looking for both short-term and long-term jobs in Australia. All those who are lodging applications for the TSS visa will need to refer to the SOL to know which occupations are in demand, and whether they fit the required skills. The TSS visa is a great opportunity for those who wish to seek a new life in Australia, as well as experience the working conditions, however it could be greatly improved if the visa holders are able to be allowed permanent residency, after two years of working, since that would entitle them to many benefits.
According to the Department of Home Affairs, permanent residents are entitled to several privileges, which include the ability to:
This would give migrants the peace of mind to know that they are able to stay, instead of knowing that they must leave at some point.
Giving them the right to an education would mean allowing them to progress in Australian society, both financially and mentally, as they would now have the knowledge on how the Australian system functions.
Allowing them to access the health-care systems without the financial burden of excessive medical costs.
This would make them eligible for home-loans and ability to purchase property, which would really make them feel at home.
Potentially able to have family with them, so that they can continue to build their lives without feeling alone.
These reforms are a crucial part of the Government’s long-term strategy to enhance and fortify the skilled migration program. While these timelines are always subject to change, this announcement nevertheless signifies that positive changes are on the horizon.
(Received from Migration Institute of Australia).
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Jack Nevile and Anna-Nikol Vladimirova
Better known as “squatters’ rights,” adverse possession allows a person to be legally recognised as the owner of land they’ve possessed. Any discussion of squatters’ rights results in a great gnashing of teeth from us schmucks who foolishly paid for our homes, and sets off the imagination of every law student who knows of an empty house down the street.
What needs to be proven?
Adverse possession requires proof of actual, open and exclusive, and unauthorised possession of land for a continuous period of 15 years. This possession must not be by force, but it is irrelevant whether the rightful owner was aware of it happening.
The squatter must demonstrate they intended to possess the land. This intention element is determined based on the circumstances of each case. Paying rates and fencing the land are strong indicators, as are building on the land, planting trees or crops, or running livestock. Letting animals graze or children play on the land won’t be enough.
Case study – discontinued laneways
Melbourne is a city of laneways, famously the ones cobbled with bluestone pitchers. But much of the city had areas pencilled in for laneways around the same time that modern plumbing arrived, making sewerage collection (and laneways!) obsolete. These laneways fell into disuse and disrepair.
Our client, like most others in his street, fenced off a portion of this laneway at the rear of his property to extend his garden. He’d done so for about 30 years when the local Council sent him a letter demanding he buy it off them before they reclaimed it for themselves, making an adverse possession claim impossible.
It was much cheaper to acquire the land via adverse possession than pay the Council. The Adverse Possession claim required poring through the old Government Gazettes for the discontinuance notice, taking photos of the land, talking to neighbours, obtaining a Land Tax Certificate, our client signing a Statutory Declaration, us signing a Statutory Declaration about our research, lodging a caveat, getting a survey, lodging the Section 60 application, and a host of other things.
The whole process took about 10 months. The application was successful, if you couldn’t tell from his smile.
Rules for thee but not for me:
Not everybody is as lucky – you can’t adversely possess land owned by the government. You can’t take:
Disrupting Adverse Possession
If a true owner discovers that their land is in the process of becoming adversely possessed, they can disrupt the process by:
Regardless of which side of the fence you find yourself on, or if you want to check out that empty house down the street, contact our office today.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Meng Cheong and Linnea Cederberg
Land tax legislation is intensely complex and can pose challenges even for the most astute landowners. Given that land tax liability is contingent on the property’s occupation status as of the 31st of December each year, it is prudent to commence planning now to minimise any avoidable exposure.
The subsequent points highlight some of the areas of risk that we frequently observe impacting our private clients and their family homes.
Moving PPR House
One of the risks involved in moving house is that a land tax bill can be related to either your former residence or your new one.
Typically, the “principal place of residence” (PPR) exemption means most family homes are exempt from land tax. When a family relocates and there’s an overlap where both the old and new properties are in their names, the PPR exemption may cover both homes during this transitional period UNLESS:
The key takeaway is to strive for selling your former home within the year and avoiding the introduction of tenants to mitigate these risks.
Vacant Residential Land Tax (VRLT)
The imposition of a VLRT bill is a potential risk if you own residential property that remains vacant for more than 6 months in a given year.
Introduced from January 1, 2018, VRLT is an annual tax specifically applicable to homes in inner and middle Melbourne that are vacant for over six months in a calendar year. The tax is substantial, amounting to 1 percent of the capital improved value (CIV) of the vacant property. For instance, a property with a CIV of $1 million would incur an annual tax of $10,000.
VRLT is applicable to land that is suitable for residential purposes, such as a home or an apartment. This can also extend to land where a residence is undergoing renovation or where a former residence has been demolished for the construction of a new one, depending on the duration of the renovation/construction process.
An existing residence is typically deemed vacant if, for more than six months in the previous calendar year, it has not been occupied by one of the following:
It’s crucial to emphasize that merely having the property available for occupation, such as by listing it on a short-term rental website, is insufficient. The property must have actually been used and occupied for more than six months.
Taxpayers bear the responsibility of notifying the State Revenue Office (SRO) by January 15 each year if a property they own was vacant for more than 6 months in the preceding calendar year. Failure to provide this notification could result in significant interest and penalties in addition to a Vacant Residential Land Tax (VRLT) assessment.
There are limited exemptions available for certain scenarios, including holiday homes, properties that changed ownership during the year, properties that became residential property during the year, and properties used and occupied by the owner for work purposes. The eligibility for these exemptions is contingent on specific technical criteria, and whether they apply depends on the unique circumstances surrounding a particular property.
Absentee owner surcharge
This is a risk in which involves incurring extra land tax if you reside overseas and are not an Australian citizen or permanent resident.
An annual surcharge of 2% is applied on top of the regular land tax rates for land owned by an absentee individual, an absentee corporation, or a trustee of an absentee trust.
In simpler terms, this surcharge may apply if an individual owner, a director of a corporate owner, or a beneficiary of an owning trust meets the following criteria:
Landowners are obligated to notify the State Revenue Office (SRO) if they are an absentee owner. This notification must be made by January 15 of the relevant tax year, using the Absentee Owner Notification Portal on the SRO website.
When owners, directors, or beneficiaries are not Australian citizens or permanent residents, it’s essential to consider whether notification may be required under the absentee owner rules to avoid the imposition of additional land tax.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Alvin Lim and Anna-Nikol Vladimirova
When it comes to leasing, transparency and open communication between a landlord and tenant is paramount. Tenants rely on accurate information to make informed decisions about the premises they intend to lease. To safeguard this requirement for certainty, the Retail Leases Act 2003 (Vic) requires landlords to provide accurate disclosure statements to their tenants within 14 days before the execution of a lease agreement. Failure to do so can have serious repercussions, potentially leading to the termination of the retail lease contract. As this article will later show, it is also crucial to obtain legal advice before entering into a retail lease in order to minimise the cost of potential disputes.
The Importance of Disclosure Statements
A disclosure statement is a document that is signed by the landlord or the landlord’s agent and must be provided to the tenant within 14 days before the execution of a lease agreement. By providing accurate and comprehensive information, landlords allow tenants to make decisions that align with their needs and expectations.
Common Elements of Disclosure Statements
This section outlines the essential details of the lease, including the duration, rent amount, payment e payment schedule, and any specific conditions or restrictions.
Landlords are obligated to disclose any known defects or issues with the property. This could include structural problems, plumbing or electrical issues, or environmental hazards.
Information about the responsibility for maintenance and repairs should be clearly outlined. This ensures that both parties are aware of their respective obligations.
Tenants need to know if there are additional costs beyond the base rent, such as utilities, property taxes, or maintenance fees.
Some properties may have specific zoning or usage restrictions that tenants must adhere to. These should be explicitly stated in the disclosure statement.
Consequences of Inaccurate Disclosure Statements
In the case of Okil and Rajput v Lu and Turner Building Property [2019] VCAT 525 (‘Okil’), Senior Member L. Ford explained that a disclosure statement contains representations made by the landlord to the tenant. Where these representations are misleading or inaccurate, the landlord may be liable for misleading or deceptive conduct pursuant to section 18 of the Australian Consumer Law.
To demonstrate the importance of accuracy, consider an issue that arose in Okil. One of the sections of the disclosure statement requires the landlord to disclose to the tenant the existing structures, fixtures, plant and equipment in the premises that the landlord will provide with the lease. This section requires the landlord (or their agent) to tick a box next to the items which are included and strike through the items that are not included with the lease of the premises. In that case, the landlord’s agent had ticked some items, crossed out others, but left the box for a separate gas utility meter neither ticked nor crossed. The tenants viewed the disclosure statemen and presumed that the premises contained a separate gas meter. Unfortunately, they suffered financial loss when they discovered that this was not the case and were unable to commence operating their business until they arranged for such a meter to be installed. The issue was whether this unmarked item constituted a representation that the premises included a separate gas meter. The court held that, despite the fact that the disclosure statement was not filled out in the conventional way, the items which were neither crossed out nor ticked, constituted a representation that the item will be included with the premises.
In that case, the premises did not have a separate gas utility meter. This meant that the landlord’s disclosure statement was false and that the financial loss sustained by the tenants was recoverable.
This case not only highlights the importance of ensuring that the disclosure statement is accurate and true, but also the necessity of obtaining legal advice before executing lease agreements. This is because, the law provides that if a tenant realises that a disclosure statement is false, misleading or materially incomplete, he can issue a notice of termination within 28 days of entering into the lease. This means that the entire case of Okil could have been resolved in a much more efficient and effective manner, had both parties obtained legal advice. As Senior Member L. Ford stated:
It is very unfortunate that neither party appeared to obtain legal advice on their rights and obligations as landlords and tenants at the commencement of the lease or when issues arose during the lease. Had they done so the outcome of this matter is likely to have been very different… Both parties found themselves in difficult predicaments, the impact of which could have been significantly reduced had they received timely legal advice.
These wise words remain relevant to all commercial endeavours. At Nevile & Co. we are dedicated to protecting our client’s interests and minimising commercial risk. If you find yourself in the process of entering into a retail lease, contact us today to discuss your rights and obligations.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication
By Morgan Collens
The new Victorian Premier, Jacinta Allan, has recently backed a proposed expansion to vacant residential land taxes.
During a Tuesday industry breakfast, the Victorian Treasurer, Tim Pallas, revealed a plan to introduce legislation to parliament later in the week, aiming to extend the vacant residential land tax to cover the entire state starting on January 1, 2025. Currently, this tax applies only to empty residential properties in Melbourne’s inner and middle suburbs that have remained vacant for six months or more, with a rate of 1% of the property’s total value, including buildings.
Additionally, a new tax will be introduced in 2026 for vacant residential land that has shown no improvement for five years or more in established metropolitan areas of Melbourne.
The focus for these changes appears to be the importance of not allowing metropolitan Melbourne’s vacant land to remain idle year after year, with an emphasis on the belief that landowners should either develop their land or sell it to those who will. Pallas also asserted that the government’s land holdings would be held to the same standard.
It is expected that approximately 600-700 additional homes will be affected by the tax expansion, generating an annual revenue of around $6 million. Notably, single-family holiday homes will remain exempt from these changes, and Pallas characterized the measures as modest, designed to discourage long-term land banking.
Stay tuned for further updates as more information becomes available.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Morgan Collens
Build-to-rent, also known as multi-family housing, presents a relatively novel approach to urban housing development. In this model, developer ownership is retained throughout the entire process of designing and constructing apartment complexes. Subsequently, the developer assumes responsibility for leasing, management, and upkeep of the complex.
Such developments often receive support from institutional investors, such as superannuation funds. This differs from the conventional ‘build to own’ model, where property developers typically build apartment complexes and subsequently sell individual units to individuals who may choose to reside in them or utilize them as investment properties.
Potential Benefits:
Build-to-rent developments offer several advantages to those who choose this method of home leasing, including:
Potential Downsides:
Despite these wonderful benefits, there are also some important downsides that need to be considered:
Are you looking into build to rent contracts? Contact Nevile & Co. today to discuss a contract review! nevileco@nevile.com.au
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Jeffrey Stone & Grace Convey
We’re seeing now more than ever that the world is back to business after the extensive Covid-19 lockdowns, and Victoria is once again focused on making Migration opportunities available to benefit our local economy. Victoria’s Skilled Migration Program is now open with two pathways to permanent residency. Read on to understand the changes, and whether or not you may be eligible to apply.
Australian Migration Planning
The Australian Government currently has a focus on attracting skilled migrants in areas where Australia is still emerging and developing. There are 190,000 places on offer for the 2023-2024 calendar year (only a small reduction from the 195,000 places on offer last year), with many offering streams for permanent residency or citizenship for eligible applicants. There are several streams which make up the places, including:
Skilled Nominated Visa (subclass 190) & Skilled Work Regional (Provisional) Visa (subclass 491)
Registrations of Interest (ROI’s) are now open to international residents who fulfil the requirements to qualify as a skilled migrant, and who are looking to live and work anywhere in Victoria, can apply for a Visa subclass 190 (2,700 places open). Those who are interested in working in regional Victoria specifically can apply for a Visa subclass 491 (600 places open). Both visa options may provide a pathway to permanent residency in Victoria.
Changes to subclass 190
While this program remains largely unchanged for the 2023-2024 application year, it is worth reviewing your application to ensure nothing has changed. If the information you provided has changed, you will need to submit a new Expression of Interest (EOI). If your partner points and/or annual salary have changed, withdraw your existing EOI and submit a new one to ensure it is correct.
Changes to subclass 491
Those applying for the Skilled Work Regional (Provisional) Visa (subclass 491) must be living and working in regional Victoria at the time of their nomination to successfully qualify as an onshore candidate. Several outer Melbourne suburbs are included in the regional zones, making this a potentially attractive option for clients looking to have access to some of the benefits of living in a bigger city.
If you submitted a ROI in the 2022-2023 year and were unsuccessful, eligible candidates must submit a new ROI to be considered for the 2023-2024 year.
Business Innovation & Investment Program (subclass 188)
Unfortunately, no states of territories (including Victoria) received any places for this much anticipated Visa stream in the 2023-2024 year. While there are no places available for this year, if you are considering a long-term residence in Australia with significant business purchase or investment, this may be one to look out for in next year’s program.
Global Talent (subclass 858)
Global Talent visas are available to select individuals only: those who are highly skilled in one of the Minister’s defined sectors (or a related sector) and who have the potential to earn, or are currently earning, above the Fair Work high income threshold. Submitting an EOI is essential, though note that a successful EOI is not a guarantee of receiving a visa. For more information about Global Talent visas and whether you may be eligible, please contact us to speak to one of our migration team members.
Family
Family visas are a group of approximately 37 visas which are available to relatives of Australian citizens or permanent residents, to allow them to permanently or temporarily migrate to join, visit, or care for their family members. Due to the wide variety of visas available in this category, we suggest speaking with a migration lawyer to better understand which options are available to you.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.
By Morgan Collens & Anna-Nikol Vladimirova
From the vantage point of my intern desk, I can see the various practice areas of law diligently working across the office. Indeed, I am positioned right at the centre with the property team to my right and wills and estates only a glance to the left. The commercial litigation team never escape diagonal line of sight, while migration is only a 180-degree desk-chair pivot away. The insight I have gained from this position has made me the perfect candidate for researching how we can implement AI across the different faculties at the firm. Having now conducted a thorough investigation into its many benefits, I cannot help but wonder whether I myself will be replaced by a legal chatbot?
But before I answer that, it is important to mention how AI can contribute to legal practice.
Automation of Repetitive Tasks
One of the most tangible impacts of AI in the legal field is the automation of repetitive tasks. Document review, contract analysis, and due diligence are areas where AI-powered tools can work with remarkable efficiency, reducing both time and costs associated with these processes. This enables lawyers to focus on higher-level strategic thinking and client interactions.
Legal Research Augmentation
AI-driven legal research tools can quickly identify relevant case law, statutes, and legal opinions. This expedites the research process, allowing lawyers to provide more comprehensive and informed advice to their clients.
Predictive Analytics and Decision Support
AI-powered predictive analytics can analyse historical data, case law, jurisdiction, and judge tendencies, to generate valuable insights into the likely success of a legal matter. This information empowers lawyers to make data-driven decisions, contributing to more effective legal strategies.
What does this mean for you and me?
Despite all these incredible benefits, the reality is that that the role of AI in legal practice remains very distinct from the human element which the profession requires. This means that AI integration does not call for replacement, but rather invites us to partake in a synergistic relationship. By leveraging AI’s automation of routine tasks, enhanced research capabilities, and data-driven insights, lawyers can focus on the unique skills and expertise that set us apart.
Think of it like baking a cake. While having access to range of ingredients is important, it is ultimately the expertise and artistic talent of the baker that is the key ingredient in creating a delicious masterpiece. Similarly, AI’s research capacity gives us access to high quality data, but it is our mastery of legal judgment and reasoning that combines these outputs in such a way as to produce the best results for our clients.
In addition, the practice of law often involves understanding and addressing the emotional and personal aspects of clients’ situations. We understand that litigation is a stressful experience and stive to support our clients throughout the process. This human touch is an essential aspect of client-lawyer relationships than cannot be automated.
We are truly living in exciting times. But while you may never really know whether it was Chat GPT or an intern that wrote this article, you can trust that as legal professionals, we will always have your best interests at heart. Having observed all the advantages AI can offer, our goal at Nevile & Co. is to integrate it in such a way that it maximises our productivity. In automating the monotonous tasks and maximising our legal research capacity, we can focus on what really matters – delivering an exceptional legal solution and protecting your interests.
Disclaimer: This publication contains comments of a general and introductory nature only and is provided as an information service. It is not intended to be relied upon as, nor is it a substitute for specific professional legal advice. You should always speak to us and obtain legal advice before taking any action relating to matters raised in this publication.