• a grant of a lease for consideration (other than rent reserved); and
• a transfer, assignment or surrender of a lease for consideration.

The amending Act provides for the definition on what is “rent reserved” which includes rent paid or payable during the lease term and the usual outgoings. However, there are foreseeable problems with this definition and it will be tested in due time.

The good news is that leases, licences or other documents creating rights in a retirement village under the Retirement Villages Act 1986 are amongst others exempted from duty.

The amending Act also clarifies what a dutiable change in beneficial ownership is and the definition of beneficial ownership has been amended to include ownership of dutiable property by a person as trustee of a trust.

Although the amending Act took effect from 21 November 2008, the State Revenue Office (SRO) has announced that no penalty or interest will be payable if full disclosure is made to the SRO of any dutiable leasing arrangements entered into between 21 November 2008 and 7 July 2009 and duty is paid by 7 October 2009. If you suspect your leasing arrangement may be affected by this amending Act or need advice on this matter, please contact our office at the earliest time to discuss or you may see ‘latest news’ on the SRO website at www.sro.vic.gov.au for further information.

One of the first steps in establishing your own successful small business is to seek legal advice on the best business structure for your business: sole trader, partnership, company or trust. Each structure has its own advantages and disadvantages which will affect your taxation position, personal legal liability, the life of your business, the availability of capital and the flexibility of your business operations. There may be relevant legislation which affects the structure you choose. At Hutchinson Legal we can advise you on the most appropriate structure for your business needs.

If you are considering buying a small business currently defined as a business valued below $350,000.00 you should receive various documents from the seller, including:

Form 19 Estate Agents Act 1990 (Vic) giving details of the financial position of the business;

Section 51 statement indicating whether or not the agent is going to help you find finance;

            Contract;

            A transfer of the registered business name (if applicable);

            A transfer of any permits or licences (if applicable); and

            A transfer of the lease of the premises and/or any equipment.

Do not sign a contract without first having the contract and the related documents checked by a solicitor. Your solicitor will ensure the contract reflects your expectations and all legal requirements are met.