Michael Fabbro

From the Principal’s Desk – Fabbro Talks

The end of April brings us exactly three weeks away from the next Federal Election. With the Labor Party only requiring seven seats to win.

Given the recent performance of the Liberals in South Australia, the seat of Boothby looks likely to be one seat going the Labor Party’s way; in fact, the seat of Sturt could be at risk for the Libs as well given the conduct of Vickie Chapman in politely resigning a few short weeks after being elected in the State election.

The polls are showing a swing to Labor nationally, and given the intervention of Climate 200 funding for a number of independent, “light green”, candidates nationally, it appears highly likely a Labor government federally is on the cards. Whether this is outright or with the support of a number of independents remains to be seen.

I am hopeful the current posturing of the ATO will not be buoyed by a Labor Party win such that small businesses find themselves the subject of aggressive tax treatment. There has been a recent release from the Tax Office whereby they have enunciated an approach to the treatment of distributions to adult children from Family Trusts which is quite contrary to their approach for the last thirty or forty years. So, it is potentially an area that could cause the average small business utilising trusts in their affairs, and making distributions to adult children which are ostensibly not ‘paid’ to them, to reflect upon such distributions.

The economy continues to move at a rapid rate with inflation topping 5% and the Reserve Bank in the unenviable position of having to make an interest rate decision, (likely increase), on the eve of a Federal election.

I’m hoping that my farming clients get the rains they need to get the season away to a good start and hoping prices stay strong so they can recover their input costs, which as mentioned last month have increased dramatically in the last twelve months.

In this month’s newsletter we discuss changes to the determination and treatment of independent contractor relationships to be wary of after some recent High Court decisions, some IT related matters that impact businesses and also changes to the Franchising Code that may be of interest.

I trust you are all well, remaining healthy and performing better than our local two AFL teams.

I look forward to touching base next month with the result of the Federal election presumably decided and hope you enjoy good success over the coming month.

Remember, if there is anything of a legal nature that is concerning you … “we’re here to help”!

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Michael Fabbro

Practice Principal

Ezra Legal

Categories: Blog

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