FCA: Unfair preferences recovered from trust property must benefit creditors

The Federal Court has held that payment from trust property recovered as an unfair preference must be applied by trustee in bankruptcy for the benefit of creditors of the trust. Lane (Trustee), in the matter of Lee (Bankrupt) v Commissioner of Taxation (No 3) [2018] FCA 1572 Background Mr Lee was the sole trustee of […]

WA businessman jailed for $890k phoneix activity

A Western Australian Phoenix operator has been sentenced to five years and four months in prison for fraudulently obtaining more than $890 000 through illegal phoenix activity. He was also ordered to repay the money. The proceeding ensued after an extensive investigation by the Australian Tax Office which revealed that Western Australian businessman Sung Jae […]

Buyer Beware: Real Estate Agent Not Liable for Misleading Statement

In the matter of Hyder v McGrath Sales Pty Ltd [2018] NSWCA 223, the court was required to consider whether McGrath, in their capacity as a real estate agent, had engaged in misleading or deceptive conduct by making representations to a property purchaser about parking availability. The proceedings commenced after Amy Hyder purchased a Sydney property […]

Federal Court: Bankruptcy Notice Valid Despite Use of Pseudonyms

A fundamental factor of bankruptcy is that the public are able to identify a bankrupt and that the relevant parties are able to identify each other. Typically, this would mean that all relevant documentation must clearly identify the relevant parties. However, a recent case in the Federal Court has deemed that the use of pseudonyms […]

FWC: Employee Reassignment Sufficient to Reduce Bullying.

In Mr Andrew Hamer [2018] FWC 6037, the Fair Work Commission (“the Commission”) found that the reassignment of an employee alleging work place bullying was an acceptable means of reducing the risk of the employee experiencing further bullying. Mr Hamer was employed by the Australian Taxation Office (“ATO”) in Perth. After making allegations of bullying […]

Full Federal Court: ‘Casual’ Employee Entitled to Annual Leave Payments

A recent decision in the Full Federal Court determined that a labour hire employee was entitled to annual leave payments. Typically, casual employees are not entitled to the same entitlements as a permanent employee and are instead paid casual loading. However, following this decision in WorkPac Pty Ltd v Skene [2010] FCAFC 131, simply paying […]

WASCA clarifies the law of set-off in insolvency

In the recent matter of Hammersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liq) (receivers and managers appointed) [2018] WASCA 163 the Court of Appeal of the Supreme Court of Western Australia held that the attachment of a security interest under the Personal Property Securities Act 2009 does not preclude set-off in insolvency […]

ATO Commences Examinations to Identify Phoenix Activity

The Australia Taxation Office recently commenced public examinations in the Federal Court, in relation to a group of entities connected to pre-insolvency advisor Philip Whiteman. The examinations will review the suspected promotion and facilitation of phoenix activities and tax schemes. ATO Deputy Commissioner Will Day has revealed that the examination will investigate over 45 service […]

ASIC to revise RATA with launch of ROCAP

Next month, ASIC is expected to launch it’s Report on Company Activities and Property (ROCAP) which will have the effect of revising the existing RATA form.  It has been designed in response to law reform and industry consultation, and serves to enable insolvency practitioners to obtain better information about events leading up to an external administration, […]

Postal Evidence Rule Extended to 7 Days

Last month, the Senate passed the Civil Law and Justice Legislation Amendment Bill 2018, which serves to improve the operation and clarity of civil justice legislation administered by the Attorney-General. Schedule 5 of the Bill introduces amendments to the Evidence Act 1995, by extending the postal evidence rule to accord with changes to Australia Post […]