Newsletter August 2017

  1. Risk Management
  2. Where a Company owes you money
  3. Migration – Temporary Sponsored Parent Visa
  4. Median House prices – 20 years of growth

_________________________________________________________________________________________________________________________________

Message from Peter

We are drawing to the end of winter here in Melbourne and although I have recently returned from overseas, I understand it has been quite cold. Being Melbourne it does vary from day to day, or even hour to hour, much like our political and economic climate. We are living in times of political uncertainty on both domestic and international level, and that uncertainty always creates potential threats and corresponding opportunities.

Many of our clients both locally and internationally, will have read of the possibility of a property downturn and of the banks’ exposure to the property market. Like terrorism, it is always a possibility however, the fundamentals of investment really do not change. If you are looking for short term gains then clearly you are speculator and not an investor. The property market has always gone in a cycle and we seem to be experiencing at present a particularly long one. However, historically in any given ten-year period the price of property at the end of the cycle has shown a good return over almost any ten-year period. Certainly, there are from time to time peaks and troughs within that cycle. While we in no way hold ourselves out as investment advisors or financial planners it generally pays to hold a strategic long-term view, to diversify your investments geographically, by nature and type and to weigh up the risks and level of borrowings or gearing of those investments.

The old mantra profit follows risks should never be underestimated or forgotten. Nor should we ever expect good times to last forever. Having said that, those with access to cash in times of economic pressure are generally able to avail themselves of some excellent opportunities.

We welcome Natasha our new receptionist to our team, together with Irene Chen, Peter Nicholls and early next month, Andrea Lucas will join us to lead the property team.
When you next visit our office, we hope you will note some changes to our facilities and our technology. We are particularly excited about installation of a very large interactive touch screen in our boardroom for both client presentations and internal training purposes.

We also suggest that you have a look at our website which is being continually revised. Presently in English, Chinese and Indonesian. Shortly we will be adding further language options to our website as we diversify our client base even further to several European countries.

Our role as lawyers is to ensure that we meet your expectations as our clients and to provide to you a personal, pragmatic and cost-effective level of service. We welcome your comments and in these days where social media is playing an increasing important part- your google reviews.

Next time you are in our office, please make sure you make yourself known to me. I thank you for your support in the past and looking forward to being of service to you in the future.

 

__________________________________________________________________________________________________________________________________

Risk Management 

All business carries an element of risk which cannot be avoided, however, it can be generally identified and then managed to minimise that risk. There are of course, many ways in doing this, and we are very happy to discuss with you and work with you to make an evaluation of those risks.

There are a number of ways of dealing with them, including appropriate legal structures and even considering specific insurance. Debtors are always an issue for most businesses, and in this newsletter, we have focused on where you may be owed money by a Company.

Where a Company owes you money

Under section 459E of the Corporations Act, a creditor can make a statutory demand on a company for payment of a debt that is over $2,000 and due and payable. The company that is served with a statutory demand have 21 days to apply to the Court to have it set aside.

A company is presumed to be insolvent if it fails to comply with the statutory demand or it fails to make an application to the Court within that time period to have it set aside. Once there is a presumption of insolvency, the creditor may commence proceedings to wind up the company. Therefore, if a company receives a statutory demand from a creditor, it must act fast and seek immediate legal advice.

If you are a creditor, Nevile & Co can assist you in preparing a statutory demand. The statutory demand must follow the form specified in the Corporations Act otherwise it will be susceptible to being challenged and set aside.

If you are a debtor company, it is very important that you contact us immediately. The statutory demand can be set aside on a number of grounds such as if the company has an offsetting claim against the creditor (which would reduce the debt to below the statutory minimum) or if there is a genuine dispute about the debt claimed. We will assess you position and advise you on the options available to you.

If you require further information, please contact one of our commercial lawyers Mr Meng Cheong.

_____________________________________________________________________________________________________________________________________

Migration

Subject to the passage of relevant legislation, should it be approved, the Government will introduce this visa in late 2017. The purpose of this Visa is designed to allow the parents of Australians to spend longer periods of time with their children in Australia.

FAQ’s – Temporary Sponsored Parent Visa –

What is the temporary sponsored parent visa?
• The new visa will allow Australians to sponsor their parents to stay in Australia for up to five years at a time.

Who is eligible to apply for a temporary sponsored parent visa?
• This new visa arrangement is for parents (biological or adoptive) and step-parents of Australian citizens, Australian permanent residents and eligible New Zealand Citizens.

• Only one set of parents per household (that is maximum two people) can be sponsored for this visa at a time.

What requirements must a parent meet to be granted a temporary sponsored parent visa?

To be granted a temporary sponsored parent visa, a person must satisfy a number of requirements, including:
• having their Australian child approved as a sponsor
• meet identity, health and character requirements
• not having an outstanding public health debt in Australia.

They will also be required to hold, and maintain, health insurance, from an Australian provider, valid for their intended period of stay in Australia.
How can I apply for this visa?

The new visa is proposed to be introduced in late 2017.

How will the temporary sponsored parent visa differ from existing parent visa arrangements?
• the sponsorship and visa applications will be assessed separately
• a person must be approved as a sponsor before a visa application can be made

What fees and charges will be applicable to this new visa? What will the ‘bond’ be set at?
The visa application charge for:
• a five year visa will be AUD10,000
• a three year visa will be AUD5,000.
There will be no financial bond for this visa.

How long will a temporary sponsored parent visa be valid for, and how many times will I be able to apply?
Once granted, the visa will be valid for either three or five years.
You can apply for, and be granted, this visa more than once but the maximum stay is 10 years in total.

Will there be an English language requirement?
No. There is no English language requirement.

Will holders of this visa be able to work, or study?
A parent(s) cannot work on this visa.
They will be able to undertake short term, informal study on this visa. If they wish to study a formal full-time course, they will need to apply for a Student Visa.

I want to sponsor my parents. How do I make a sponsorship application?
Applications for this new visa will be available online, through ImmiAccount. There will be no paper applications supporting this new visa.

What requirements must a sponsor meet?
• be a biological, adoptive, or a step-child of their parent
• provide valid evidence of their identity
• be an Australian citizen, Australian permanent resident or eligible New Zealand citizen
• be 18 years or older
• have lived in Australia for at least four years
• meet a household income requirement
• meet character requirements
• accept legal liability for any outstanding public health debt their sponsored parent accrues.

Sponsors must also agree to undertake certain obligations in relation to those they are sponsoring.

For further enquiries of the above visa, please email jstone@nevile.com.au.

 

Median House prices – 20 years of growth

 1995                                                   2015

  • ACT –   $130,000                ACT –   $507,500
  • NSW – $157,000                NSW – $550,000
  • NT –     $135,000                NT –     $498,000
  • QLD –  $135,000                QLD –  $416,000
  • SA –      $  91,000                SA –     $368,000
  • TAS –  $   83,500                TAS –   $280,000
  • VIC –    $110,000                VIC –   $452,500
  • WA –    $  98,000                WA –    $495,000