FNQROC Update - February 2016
By: Darlene Irvine, Executive Officer...
FNQROC Board meeting
Minutes of the meeting can be found here however, of special note is the message Cr Bill Shannon bought back from his delegation to Canberra with other ROC Chairs. The clear message from the commonwealth is to ensure you have your business cases completed for projects you are seeking funding for. Without these they find it difficult to fund projects.
RMCN
Treasurer, Hon Curtis Pitt spoke about:
- the State starting to implement pre tender lodgement discussions to mitigate businesses spending $10’s and $100’s of thousands on tenders that won’t fit or be considered.
- In terms of water, his focus is on increasing irrigation to increase agriculture.
- Treasury has a new position to assist the portfolio – this position is Liaison Officer for Qld Treasury – Melinda Eades – she is effectively the ear for Curtis Pitt when he can’t attend – please use her! Her contact details are: P: 07 40573052 M: 0439 272 794
Domestic Violence training - is a focus across all agencies. White Ribbon training “recognise and respond’ is free for all to access.
Black Business finder - http://www.bbf.org.au/ Qld Aboriginal and Torres Strait Islander Business Directory.
2016 Business Legislation Update provided by MacDonnells Law of interest to councils
(note: this is an extract from the presentations – please seek further detail if it is of interest to you)
Unfair Contract Protection to be extended to small businesses. Small business = 20 employees or less and contract is for under $300,000 over 1 year or $1,000,000 over a longer period.
- A term of a contract is unfair if it would cause a significant imbalance in the parties’ rights and obligations and is not reasonably necessary in order to protect the interests of then party who would be advantaged by the term and is would cause detriment (financial or otherwise) to a part if were to be applied or relied on.
Examples of unfair terms include:
- Permit one party (but not another) to avoid or limit performance of the contract
- Permit one party (but not another) to terminate the contract
- Penalise one party (but not another) for a breach or termination of the contract
- Permit one party (but not another) to vary the terms of the contract
- Permit one party (but not another) to renew or not renew the contract.
Recent Case: Email Negotiations equal Binding Agreement for Lease
- Vantage Systems Pty Ltd v Priolo Corporation Pty Ltd (2015) the Supreme Court found that a binding agreement for lease existed as a result of email negotiations between the parties, despite the fact that no formal lease was signed.
As a result, it is important to ensure that when negotiations in respect of a contract are entered into, the negotiations are foreshadowed by an express disclaimer that the negotiations will not become legally binding on the parties until a formal contract is entered into.
Legal Changes from the “Ideas Boom” – particularly interesting for our economic development Officers:
There are Tax Offsets and Exemptions with a proposed date of effect being 1 July 2016. Essentially the following measures will be introduced to increase the attractiveness of investing in new start-up ventures:
- Early stage investors in start-ups will get a 20% non-refundable tax offset, capped at $200,000 per investor per year; and
- A 10 year capital gains tax exemption for investments held in an eligible venture for three years.
There are also proposed changes to insolvency laws with a proposed date of effect being 2017. Insolvency laws will be relaxed for start-ups which fail, in order to encourage entrepreneurship the key proposals are as follows:
- The default period for bankruptcy will be reduced from three years to one year;
- A ‘safe harbour’ for directors from personal liability for insolvent trading will be established if they appoint a restructuring adviser within a certain timeframe; and
- ‘ipso facto’ clauses will be unenforceable while a company is undertaking a restructure.