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THE<br />
BULLETIN<br />
THE LAW SOCIETY OF SA JOURNAL<br />
VOLUME 41 – ISSUE 8 – SEPTEMBER <strong>2019</strong><br />
INSIDE<br />
Heritage protection under new<br />
planning laws<br />
Proposed land tax aggregation laws<br />
Complaints against builders<br />
BUILDING & PROPERTY LAW
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This issue of The Law Society of South Australia: Bulletin is<br />
cited as (<strong>2019</strong>) 41 (8) <strong>LSB</strong>(SA). ISSN 1038-6777<br />
CONTENTS<br />
BUILDING & PROPERTY LAW<br />
FEATURES & NEWS<br />
REGULAR COLUMNS<br />
10 Making & handling complaints against<br />
builders – By Consumer & Business<br />
Services<br />
12 Heritage protection under the<br />
Planning, Development and<br />
Infrastructure Act – By Paul Leadbeter<br />
16 The worker’s Liens Act, statutory<br />
charges & insolvency: Good security?<br />
By Travis Shueard & Alice Lynch<br />
18 Is there a need for reform to protect<br />
owners and sub-contractors?<br />
By Nicholas Graham<br />
26 Examining proposed land tax<br />
aggregation laws for SA<br />
By Elias Farah<br />
30 The non-jurisdictional error of law<br />
on the face of the record & the cases<br />
before the High Court<br />
By Dr Auke Steensma<br />
8 Event wrap-up: Legal Profession<br />
Dinner<br />
20 Prasad Direction abolished by the<br />
High Court<br />
By Kristie Molloy & David Stiles<br />
34 Socia media, jurors & the right of an<br />
accused to a fair trial<br />
By Jemma Holt<br />
36 Vale: Damon Ind<br />
40 Does living apart preclude ‘living<br />
with’ when applying for declarations<br />
of domestic partnership?<br />
By Mark Taylor<br />
4 From the Editor<br />
5 President’s Message<br />
22 Young Lawyers: Survey sheds light on<br />
wellbeing & salaries of young lawyers<br />
39 Wellbeing & Resilience: Breaking the<br />
stress cycle – By Toni Vozzo<br />
38 Tax Files: No deductions for vacant<br />
land – By Paul Tanti<br />
42 Family Law Case Notes<br />
43 Risk Watch: Details, details, details –<br />
they matter – By Grant Feary<br />
44 Bookshelf<br />
45 Gazing in the Gazette<br />
Executive Members<br />
President:<br />
A Nikolovski<br />
President-Elect: T White<br />
Vice President: R Sandford<br />
Vice President: M Frayne SC<br />
Treasurer:<br />
F Bell<br />
Immediate Past President: T Mellor<br />
Council Member: E Shaw<br />
Council Member: S Hooper<br />
Metropolitan Council Members<br />
T Dibden<br />
M Tilmouth<br />
M Janus<br />
A Lazarevich<br />
S Hooper<br />
T Vozzo<br />
V Gilliland F Bell<br />
M Mackie<br />
M Boyle<br />
M Smith<br />
E Shaw<br />
R Shaw<br />
J Stewart-Rattray<br />
J Marsh<br />
C Charles<br />
Country Members<br />
S Minney<br />
(Northern and Western Region)<br />
P Ryan<br />
(Central Region)<br />
J Kyrimis<br />
(Southern Region)<br />
Junior Members<br />
R Piccolo<br />
KEY LAW SOCIETY CONTACTS<br />
Chief Executive<br />
Stephen Hodder<br />
stephen.hodder@lawsocietysa.asn.au<br />
Executive Officer<br />
Rosemary Pridmore<br />
rosemary.pridmore@lawsocietysa.asn.au<br />
Chief Operations Officer<br />
Dale Weetman<br />
dale.weetman@lawsocietysa.asn.au<br />
Member Services Manager<br />
Michelle King<br />
michelle.king@lawsocietysa.asn.au<br />
Director (Ethics and Practice)<br />
Rosalind Burke<br />
rosalind.burke@lawsocietysa.asn.au<br />
Director (Law Claims)<br />
Geoff Thomas<br />
gthomas@lawguard.com.au<br />
Manager (LAF)<br />
Annie MacRae<br />
annie.macrae@lawsocietysa.asn.au<br />
Programme Manager (CPD)<br />
Natalie Mackay<br />
Natalie.Mackay@lawsocietysa.asn.au<br />
THE BULLETIN<br />
Editor<br />
Michael Esposito<br />
bulletin@lawsocietysa.asn.au<br />
Editorial Committee<br />
A Bradshaw P Wilkinson<br />
S Errington T Shueard<br />
D Sheldon J Arena<br />
G Hagias<br />
The Law Society Bulletin is published<br />
monthly (except January) by:<br />
The Law Society of South Australia,<br />
Level 10-11, 178 North Tce, Adelaide<br />
Ph: (08) 8229 0200<br />
Fax: (08) 8231 1929<br />
Email: bulletin@lawsocietysa.asn.au<br />
All contributions letters and enquiries<br />
should be directed to<br />
The Editor, The Law Society Bulletin,<br />
GPO Box 2066,<br />
Adelaide 5001.<br />
Views expressed in the Bulletin<br />
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Programme manager (GDLP)<br />
Desiree Holland<br />
Desiree.Holland@lawsocietysa.asn.au
FROM THE EDITOR<br />
From a baby to a<br />
Master: A toast to our<br />
high-achieving peers<br />
MICHAEL ESPOSITO, EDITOR<br />
This month’s message is replete with<br />
congratulations.<br />
Firstly, a huge congratulations to<br />
President Amy Nikolovski and her husband<br />
Tony, who welcomed their beautiful baby<br />
boy on 14 August.<br />
Nikola Morris Nikolovski came into the<br />
world weighing 3.7kg and measuring 55cm.<br />
Amy, who had been pregnant for the<br />
entirety of her presidency before becoming<br />
a mother for the first time, is the first<br />
Law Society President to give birth during<br />
the year of her presidency. This is hardly<br />
surprising given she is only the fourth<br />
woman in the Society’s 140-year history to<br />
be president.<br />
It goes without saying that this has been<br />
a huge year for Amy, both professionally<br />
and personally, and August has no doubt<br />
been one of the momentous of her life. In<br />
addition to giving birth, she also received<br />
the Mary Kitson Award, presented at the<br />
Legal Profession Dinner on 2 August, for<br />
her contribution to gender equality.<br />
Fellow award recipients announced at<br />
the Dinner were Brittany Armstrong, who<br />
was named Young Lawyer of the Year,<br />
while Raffaele Piccolo and Her Honour<br />
Judge Penelope Kari received the Bulletin<br />
Article of the Year awards.<br />
The Society warmly congratulates these<br />
highly deserving award winners. We have a<br />
full wrap-up with plenty of photos of the<br />
event in this month’s edition.<br />
Last but not least, a hearty<br />
congratulations to Elizabeth Olsson who<br />
was appointed as a Master of the District<br />
Court.<br />
Master Olsson has been on the Bulletin<br />
Committee for almost 24 years, serving<br />
as Chair for over 22. It was bittersweet<br />
to receive her notice of resignation from<br />
the Bulletin Committee last month, as she<br />
really had been the driving force behind the<br />
evolution of the Bulletin over the past two<br />
decades.<br />
On behalf of the Bulletin Committee,<br />
I thank Elizabeth for her immeasurable<br />
contribution to the Bulletin and wish her<br />
well in her new role. B<br />
IN THIS ISSUE<br />
LEGAL PROFESSION DINNER<br />
Wrap-up & photo gallery of the<br />
profession’s night of nights<br />
8<br />
Landmark decision in asbestos case<br />
An Adelaide man has been awarded a<br />
record compensation payout of just<br />
over $3 million after being diagnosed with<br />
a rare form of mesothelioma caused by<br />
exposure to asbestos dust, including during<br />
renovations on his first home.<br />
Mathew Werfel, 42, was diagnosed<br />
with the terminal cancer after discovering a<br />
lump in his groin in 2017.<br />
Mr Werfel was first exposed to asbestos<br />
as a teenager, while working for a fencing<br />
contractor after leaving school. He was<br />
subsequently exposed during home<br />
renovations, including when he sanded and<br />
painted the walls of his first home, which<br />
he didn’t realise was constructed from<br />
asbestos cement sheets.<br />
In addition to awarding compensation<br />
for pain and suffering, future economic<br />
loss, medical expenses, and loss of life<br />
expectancy, Judge Leonie Farrell imposed<br />
exemplary damages on the company, saying<br />
the court needed to issue a deterrent for<br />
corporate actions that put commercial gain<br />
ahead of people’s lives.<br />
“Part of the conduct complained of<br />
in this case … is still occurring, that is<br />
the lack of warning to the general public<br />
concerning the ongoing risk of the<br />
dangers of [James Hardie’s] product in<br />
thousands of Australian homes,” Judge<br />
Farrell said.<br />
Mr Werfel’s solicitor, Turner Freeman<br />
Lawyers partner Annie Hoffman, said the<br />
SAET decision has significant implications<br />
for “third wave” asbestos victims — those<br />
exposed to in-situ asbestos products in<br />
homes, workplaces, and the community.<br />
“This case confirms that James Hardie’s<br />
duty of care didn’t end when it sold those<br />
products, it continues even decades later as<br />
tradespeople, homeowners, and others are<br />
exposed to those building materials,” Ms<br />
Hoffman said. B<br />
PRASSAD DIRECTION ABOLISHED<br />
High Court sets aside controversial<br />
jury direction<br />
VALE: DAMON IND<br />
Beloved lawyer and animal rights<br />
activist honoured<br />
20<br />
37<br />
4 THE BULLETIN <strong>September</strong> <strong>2019</strong>
PRESIDENT’S MESSAGE<br />
Flexibility is key to<br />
managing juggling act<br />
AMY NIKOLOVSKI, PRESIDENT, LAW SOCIETY OF SOUTH AUSTRALIA<br />
It’s hard to believe that three quarters<br />
of my presidency has already been<br />
completed. As we head into the final<br />
quarter there is still so much to be done!<br />
As you’d no doubt be aware, I have<br />
been pregnant for the entire term of my<br />
presidency. I am happy to announce my<br />
husband Tony and I welcomed our son<br />
Nikola Morris Nikolovski on Wednesday<br />
14 August. Little Niko weighed in at a<br />
respectable 3.7kg (8 pound 3 ounces in the<br />
old scale) and a rather long 55cm. We are<br />
thinking we may have a future ruckman in<br />
our hands!<br />
I have taken six weeks off from my<br />
official duties following the birth of Nikola.<br />
Many thanks to Immediate Past President<br />
Tim Mellor and President Elect Tim White<br />
for attending, chairing and hosting various<br />
events and meetings on my behalf while I<br />
get settled in with a newborn.<br />
I am still however happily writing<br />
articles and settling submissions and will<br />
be back from 23 <strong>September</strong>, when the real<br />
juggling act will begin!<br />
I am about to experience the life<br />
of so many of our members; juggling<br />
young children and a career in the legal<br />
profession. I must say that during my<br />
pregnancy I had nothing but support from<br />
the profession, even when I got teary<br />
during Judge Jo-Anne Deuter’s Special<br />
Sitting (I was 23 weeks pregnant). I hope<br />
the great support will continue upon my<br />
return to work not just at the Society but to<br />
practice.<br />
The Bullying, Discrimination and<br />
Harassment Survey results indicated that<br />
a number of women and parents faced<br />
discrimination while on maternity leave or<br />
returning to work from parental leave, and<br />
I am hopeful that we can stop this stigma<br />
in the workplace and that flexibility will be<br />
seen to be beneficial to all parties.<br />
We also have some exciting celebratory<br />
events coming up in which I hope you can<br />
join me, including:<br />
• a lunch celebrating 125 years of<br />
women’s suffrage in South Australia<br />
with guest speakers The Hon. Justice<br />
Judith Hughes, her Honour Judge Mary-<br />
Louise Hribal and Marie Shaw QC on<br />
31 October at The Hilton Adelaide;<br />
• a birthday party to celebrate 140 years<br />
of the Law Society of South Australia<br />
on 15 November at The Treasury.<br />
I hope to see you there. B<br />
Former Bulletin Committee Chair<br />
appointed as District Court Master<br />
Elizabeth Olsson has been appointed<br />
as Master of the District Court,<br />
replacing Master Mark Rice who resigned<br />
his commission earlier this year.<br />
Master Olsson commenced her role in<br />
the District Court on 12 August.<br />
Master Olsson has had a distinguished<br />
career in the law spanning more than 30<br />
years, including as Senior Associate for<br />
Mellor Olsson since 2014.<br />
She has practised extensively and with<br />
distinction in a range of areas, including<br />
employment law, civil litigation, personal<br />
injury, consumer law, and family law. She<br />
represented victims of the 1983 Ash<br />
Wednesday bushfires in their personal<br />
injury claims.<br />
Master Olsson’s immense contribution<br />
to the Law Society was recognised in 2017<br />
when she was presented with the Society’s<br />
most prestigious award, the Brian Withers<br />
Award, for her service to the Society.<br />
Master Olsson served as Chair of the<br />
Bulletin Committee for almost 22 years,<br />
and even after stepping down as Chair<br />
continued as a Member of the Bulletin<br />
Committee until her appointment as a<br />
Master forced her to resign.<br />
Master Olsson steered Society’s<br />
flagship publication through a number of<br />
iterations, overseeing a publication that is<br />
widely respected and appreciated by the<br />
profession for its informative, engaging<br />
and relevant content.<br />
She also served on the Civil Litigation<br />
Committee for eight years, Industrial<br />
Relations Committee for three, Accident<br />
Compensation committee for two and<br />
Legal Technology Committee for one.<br />
She has also been a passionate and<br />
tireless supporter of the arts, particularly<br />
theatre, and is a long-serving member of<br />
the Gilbert and Sullivan Society of SA.<br />
Attorney General of SA, The Hon<br />
Elizabeth Olsson<br />
Vickie Chapman, said: “I have no doubt<br />
her ability to think on her feet and keep<br />
calm under pressure will be invaluable in<br />
her new role.”<br />
“I congratulate Ms Olsson on this new<br />
opportunity and would like to thank Mr<br />
Rice for his significant contribution to the<br />
District Court over the last 18 years.” B<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 5
EVENTS<br />
Chief Justice of Australia holds court<br />
at profession’s night of nights<br />
MICHAEL ESPOSITO<br />
More than 300 people gathered to<br />
celebrate the achievements of the<br />
legal profession and hear guest speaker,<br />
The Hon Chief Justice Susan Kiefel AC, at<br />
the Law Society’s Legal Profession Dinner<br />
on 2 August.<br />
Society President Amy Nikolovski, in<br />
welcoming guests, remarked that it was<br />
fitting that the first female Chief Justice<br />
of the High Court was the guest speaker<br />
at an event where the State’s first female<br />
Attorney General was in attendance and in<br />
a year that marked the 125 th anniversary of<br />
women’s suffrage in SA.<br />
Ms Nikolovski herself is only the<br />
fourth female president of the Society,<br />
YOUNG LAWYER OF THE YEAR: BRITTANY ARMSTRONG<br />
and, at 38 weeks pregnant at the Dinner,<br />
was certainly the first president in the<br />
Society’s 140-year history to be with child<br />
during the course of her presidency.<br />
Chief Justice Kiefel’s wryly humorous<br />
speech detailed some particularly telling<br />
interactions with colleagues and peers<br />
that were indicative of some of the<br />
more traditional attitudes that some male<br />
practitioners had towards women in the<br />
law.<br />
While Her Honour’s speech made<br />
some pointed observations about the<br />
experience of being a woman in the law,<br />
her timing and delivery was calibrated for<br />
maximum comic impact, and the speech<br />
MARY KITSON AWARD: AMY NIKOLOVSKI<br />
PHOTOS: PAGES 8-9 ><br />
was received with a rousing reception from<br />
delighted guests.<br />
Ensuring the laughter continued<br />
throughout the night, Alex Ward<br />
performed his MC role with his usual<br />
panache and witty irreverence.<br />
The Society is grateful to the City<br />
of Adelaide’s Ten Gigabit Network and<br />
Notable Imprint for being Major Sponsors<br />
of the Dinner, Supporting Sponsor Peter<br />
Shearer Menswear and Young Lawyer<br />
of the Year Award Sponsor PEXA. The<br />
Society would also like to thank its major<br />
sponsor Bank SA, Imperial Measures<br />
Distilling for sponsoring the Gin Bar on<br />
the night and wine sponsor Wine Direct. B<br />
Young Lawyers Committee Co-Chair Erica Panagakos (left), The Hon Justice Tim<br />
Stanley, Young Lawyer of the Year winner Brittany Armstrong, PEXA representative<br />
Daniel Roesler, and Young Lawyers Committee Co-Chair Georgia Hagias).<br />
Brittany Armstrong was an Associate at the District Court<br />
before joining Shaw & Henderson as a Criminal Lawyer.<br />
Brittany has excelled in this role, working on complex criminal<br />
trials and appeals with exceptional skill. Brittany is passionate<br />
about equality before the law and regularly does pro bono work<br />
to ensure that those who would otherwise not have access to<br />
proper legal representation are afforded their rights. Brittany<br />
is particularly interested in youth justice and the relationship<br />
between disadvantaged youth and crime. She is a strong advocate<br />
for a more effective child protection and child welfare system.<br />
Brittany recently developed a CPD about doli incapax (the<br />
presumption against age of criminal responsibility for children<br />
aged 10-14), but has been a powerful voice for increasing the<br />
age of criminal responsibility to 14. Brittany has been heavily<br />
involved in the Ice Factor program founded by Marie Shaw QC.<br />
She has coordinated numerous fundraisers, organised the Ice<br />
Factor Spectacular (a charity dinner with more than 500 guests),<br />
and organised for 200 teenagers to undergo modelling training.<br />
Mary Kitson award winner Amy Nikolovski with her husband Tony Nikolovski<br />
Amy Nikolovski is the youngest ever female President of<br />
the Law Society and is also the youngest person to be made an<br />
Equity Partner at Duncan Basheer Hannon (age 35). By sheer<br />
example, Amy continues to advance the interests of women<br />
lawyers. Amy was a Member of the Society’s Gender Equity<br />
Working Group and was instrumental in garnering support<br />
for the gender equity reforms undertaken by the Law Society<br />
in 2015. In all her actions she reminds people of unconscious<br />
bias and the challenges that women face. She is Chair of the<br />
Society’s Bullying, Discrimination and Harassment Working<br />
Group; and the Equality, Diversity and Inclusion Committee.<br />
She is also a Member of the Society’s Council and Executive<br />
and numerous other committees, in addition to being a Director<br />
of the Law Council of Australia and the Society’s representative<br />
on the Law Council’s Equal Opportunity in the Law Committee.<br />
6<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
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EVENTS<br />
Law Society President Amy Nikolovski (left), The Hon<br />
Chief Justice Kiefel AC, and the Hon Chief Justice of<br />
SA Chris Kourakis<br />
Daniel Pallaras (left), Stephen Pallaras QC, Genevieve<br />
Lewis, and Arman Abrahimzadeh OAM<br />
Raffaele Piccolo (right) with Bulletin Committee<br />
Chair Alison Bradshaw<br />
BULLETIN ARTICLE OF THE YEAR<br />
AI in Criminal Sentencing: a risk to our<br />
human rights?, By Raffaele Piccolo<br />
In his award-winning article,<br />
Raffaele Piccolo explores the prospect<br />
of artificial intelligence machines being<br />
used to deliver sentences to convicted<br />
criminals, and the implications this<br />
technology might have for human rights.<br />
SPECIAL INTEREST BULLETIN ARTICLE<br />
OF THE YEAR<br />
Can women really have it all? A<br />
perspective from a barrister & mother, By<br />
Penelope Kari<br />
Her Honour Penelope Kari, who<br />
worked as a barrister, when her article<br />
was published, struck a chord with her<br />
honest account of life as a full-time<br />
lawyer and mother.<br />
Brooke Hall-Carney (left), Gavin Carney, Nick<br />
Gormley (Notable Imprint), and Louisa Gormley<br />
Henry Ringwood (left), Elizabeth Olsson, and Pamela<br />
Wilkinson<br />
Magistrate Anna Jackson (left), Kym Jackson, The<br />
Hon Justice Judith Hughes<br />
John Ward (left), Guy Biddle, and Amanda Trudgian<br />
Emma Schulz-Boylan (left), Michael Rydon, Adam Hamilton, Margaret Cusenza,<br />
Fumi Baughan, and Erin Puckridge<br />
Samuel Leeson (left) Elizabeth Carroll-Shaw, Lucy Caruana, Anne Mignone, and<br />
Rowan Tape<br />
8<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
EVENTS<br />
Glen Pearce (left) and Shery Farbod<br />
Amanda Ward (left) and Alex Ward Christine Hanna (left) and David Hanna Kerryn Hawkes (left) and Holly McCoy<br />
Dami Sheldon (left), Michael Janus, and Franco<br />
Camatta<br />
Richard Wharldall (left), Peter Humphries, and<br />
Dr Rachel Hurst<br />
Rebecca Sandford and Sheena Riordan<br />
Mussa Ahmadi (left), Michael Alder, and Matthew Sun Ellen Gordon (left), Jenny Paglia, and Paul Gordon NSW Law Society President Elizabeth Espinosa<br />
(left), Member of the Law Council Executive Caroline<br />
Counsel, and Amy Nikolovski.<br />
Immediate Past President Tim Mellor (left), President Amy Nikolovski, The Hon<br />
Judge Tony Rossi, and Dr Lillian Rossi<br />
Charlie Belperio (left), Marisa Belperio, Mark Anderson, Erica Panagakos, Rachel<br />
Jolly, Beverley Clarke, Madeline Porter, Alysia Panagakos, Steven Polyichanin, and<br />
Brenton Drechsler.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 9
BUILDING & PROPERTY LAW<br />
Making & handling complaints<br />
against builders<br />
CONSUMER & BUSINESS SERVICES<br />
As the State’s consumer watchdog,<br />
Consumer and Business Services<br />
(CBS) is responsible for regulating South<br />
Australia’s building, plumbing, gas fitting<br />
and electrical industries.<br />
CBS administers the following<br />
building-related laws, alongside a raft of<br />
other legislation aimed at protecting South<br />
Australian consumers:<br />
• Building Work Contractors Act 1995<br />
• Plumbers, Gas Fitters and Electricians Act<br />
1995<br />
• Australian Consumer Law (adopted under<br />
the Fair Trading Act 1987)<br />
There are over 55,000 registered<br />
building, plumbing, gas fitting and<br />
electrical licences in SA – and this<br />
represents approximately 77% of CBS’<br />
occupational licences.<br />
The building industry is a key focus for<br />
the agency as it has a significant effect on<br />
South Australian consumers, both in terms<br />
of dollars and emotional impact. Building<br />
disputes can also be quite complex and<br />
substandard work can pose a risk to public<br />
safety.<br />
TYPES OF ENQUIRIES AND COMPLAINTS<br />
Unsurprisingly, building disputes are<br />
consistently in the top three categories of<br />
complaints received by CBS.<br />
In the first six months of this year<br />
alone, CBS has received more than 1940<br />
enquiries, and 223 formal complaints. This<br />
includes complaints relating to shoddy<br />
work by plumbing, gas fitting and electrical<br />
tradespeople, as well as other building<br />
issues.<br />
The most common complaint received<br />
last year related to solar panel installations<br />
with more than 130 complaints received<br />
from unhappy customers.<br />
Other complaints included grievances<br />
around new home constructions, home<br />
additions and renovations, concrete<br />
foundations and other concrete services,<br />
bathroom and laundry renovations, and<br />
fencing.<br />
AVOIDING ISSUES WITH BUILDERS<br />
When building a home, it’s important<br />
to understand the rights of consumers and<br />
builder responsibilities.<br />
Consumers are responsible for<br />
paying for the building work stated in the<br />
building contract and to communicate<br />
any particular preferences, changes<br />
or concerns. Builders are responsible<br />
for building the home in line with the<br />
approved plans and contract documents.<br />
There are a number of key things to<br />
consider before and during the building<br />
process.<br />
USING A LICENSED BUILDER<br />
It’s crucial to ensure the builder holds<br />
a current Building Work Contractor’s<br />
Licence, and their supervisor holds a<br />
Supervisor’s Registration.<br />
If the builder is using subcontractors,<br />
these tradespeople must also be licensed.<br />
The Licensing Public Register on the<br />
CBS website contains details of all licensed<br />
builders in South Australia.<br />
CONTRACTS<br />
There must be a written contract for<br />
any building work costing $12,000 or<br />
more, which will usually contain a number<br />
of documents including drawings and<br />
specifications.<br />
The contract must:<br />
• be in writing<br />
• be legible<br />
• set out all of the agreed terms in full<br />
• include the name and licence number<br />
of the building work contractor and<br />
contractor’s business partners<br />
• be signed by both the consumer and<br />
builder.<br />
When signing a new home contract<br />
in South Australia, there is a cooling-off<br />
period of five clear business days. This<br />
can be longer if the builder has failed to<br />
supply a Form 1 notice outlining consumer<br />
rights and obligations, or fails to take out<br />
building indemnity insurance.<br />
PROGRESS PAYMENTS<br />
Builders are entitled to request<br />
payments when work is complete and ready<br />
for the next stage – these are known as<br />
“progress payments”. This builder must<br />
ask for these in writing (eg via invoice)<br />
and they must be outlined in the building<br />
contract. Consumers should never pay<br />
for work in advance and builders can be<br />
penalised for demanding money before<br />
completing work.<br />
VARIATIONS<br />
There can still be changes made to the<br />
plan once the contract is signed. These<br />
variations need to be agreed between the<br />
consumer and builder, and recorded as an<br />
addendum to the building contract so the<br />
builder can request payment for the work<br />
once completed.<br />
DEPOSITS<br />
There is a maximum amount a builder<br />
can take as a deposit:<br />
• $1,000 maximum for a contract valued<br />
between $12,000 up to $20,000<br />
• 5% of the contract price for contracts<br />
$20,000 or more.<br />
Consumers should always be aware of<br />
paying any deposits in excess of 10% of<br />
the contract price.<br />
10<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
BUILDING & PROPERTY LAW<br />
BUILDING INDEMNITY INSURANCE<br />
If building work costs $12,000 or<br />
more and requires local council approval,<br />
building indemnity insurance is required.<br />
This protects consumers if the builder<br />
becomes bankrupt, disappears or dies<br />
and cannot complete the work or fix<br />
any defects under the five-year statutory<br />
warranty.<br />
WARRANTIES<br />
Builders often speak of a threemonth<br />
maintenance period and will ask<br />
consumers to wait three months to either<br />
bring defects to their attention or address<br />
the issues.<br />
This can work well as the builder<br />
doesn’t have to go back and forth as new<br />
problems are found, and the consumer<br />
won’t be constantly contacting the builder.<br />
Consumers don’t have to wait these 3<br />
months however and can continue to raise<br />
issues after.<br />
There are certain warranties (known as<br />
“statutory warranties”) included under any<br />
building contract:<br />
• The building work must be carried<br />
out properly to meet all statutory<br />
requirements, accepted trade standards<br />
and agreed plans and specifications.<br />
• Materials supplied will be good and<br />
proper materials.<br />
• Unless the contract states a time frame<br />
that the work will be completed, the<br />
work will be done with reasonable<br />
diligence.<br />
• The building will be reasonably fit to<br />
live in.<br />
• The work and materials used will be fit<br />
for any purpose or result specified.<br />
If the building project doesn’t comply<br />
with these, consumers should discuss this<br />
with the builder. The owner has up to<br />
five years from the date of completion<br />
to lodge an action for a breach of these<br />
warranty conditions.<br />
Consumers can also claim for up to 10<br />
years under the Development Act 1993 for<br />
any defective work that does not comply<br />
with the Building Code.<br />
MAKING A COMPLAINT ABOUT A BUILDER<br />
Despite best intentions, consumers and<br />
builders may find themselves in a dispute.<br />
The first step in resolving any<br />
disagreement is to speak directly to the<br />
builder, outlining all concerns in writing.<br />
If this fails to resolve the dispute, there are<br />
several options for disgruntled consumers.<br />
CONTACT CBS<br />
The Advice and Conciliation team<br />
within CBS provides free advice and<br />
information to help consumers reach an<br />
agreement with the trader.<br />
There are some circumstances<br />
where CBS is unable to provide further<br />
assistance:<br />
• if the matter relates to a builder or<br />
project outside of South Australia<br />
• if the matter is currently before Court.<br />
CBS encourages concerned consumers<br />
to contact them early so they can provide<br />
the right advice about their rights, who to<br />
contact and what to do next.<br />
COMPULSORY CONCILIATION CONFERENCES<br />
If the parties cannot agree on a<br />
solution, the Commissioner for Consumer<br />
Affairs can call for a conciliation<br />
conference. This will happen where CBS<br />
believes the trader has some responsibility<br />
to provide redress and is usually the final<br />
step before the consumer proceeds with<br />
civil legal action.<br />
Businesses must attend and can be<br />
fined up to $10,000 if they do not attend<br />
without a reasonable excuse.<br />
Before calling a conference, the<br />
Commissioner will consider:<br />
• the nature of the problem and what<br />
can be proven<br />
• the number of complaints against the<br />
business<br />
• how the business handles customer<br />
complaints<br />
• any legal issues.<br />
In these conferences, CBS will<br />
work to ensure the outcome is as fair as<br />
possible for both parties. CBS has no<br />
power to force the parties to enter into<br />
an agreement. If traders and consumers<br />
do sign an Instrument of Agreement,<br />
they must comply with all terms of the<br />
agreement – if they do not, this can be<br />
enforced in the Magistrates Court.<br />
COMPLIANCE AND ENFORCEMENT<br />
Even if the matter is resolved for<br />
the consumer, the issue may be referred<br />
for further investigation if a breach of<br />
legislation is identified.<br />
Sometimes the nature of the alleged<br />
conduct, the number of consumers<br />
affected or repeated incidents means<br />
further action needs to be taken. The<br />
Compliance and Enforcement team<br />
will investigate and may end up taking<br />
enforcement action.<br />
The enforcement action will depend<br />
on the level of harm and seriousness of<br />
the breach. The Commissioner has a range<br />
of options at his disposal when a breach is<br />
identified including:<br />
• formal warning letters<br />
• expiation notices<br />
• public warnings<br />
• disciplinary action<br />
• prosecution.<br />
PROSECUTION<br />
Over the past 12 months, 15 builders<br />
and tradespeople have been prosecuted in<br />
the Magistrates Court and ordered to pay<br />
significant fines and legal costs.<br />
In one case, an unlicensed builder<br />
who failed to complete work and caused<br />
additional damage to property was fined<br />
$175,000 and ordered to pay back more<br />
than $58,000 in compensation to clients.<br />
While CBS does take businesses to<br />
court, CBS cannot provide legal advice<br />
to consumers about pursuing their own<br />
civil case.<br />
MORE INFORMATION<br />
CBS encourages the public to report<br />
any concerns about unlicensed operators<br />
in the building and trades industry. Over<br />
the past few years, a “Dob in an unlicensed<br />
tradie” campaign has helped stamp out<br />
numerous unlicensed tradespeople.<br />
CBS also undertakes a proactive<br />
monitoring program to help keep the<br />
industry compliant. This includes inspectors<br />
visiting building sites, as well as monitoring<br />
advertisements in newspapers and online.<br />
The CBS website has a range of<br />
useful resources for consumers about<br />
building and working with tradespeople.<br />
The “Building, extending and renovating<br />
a home consumer guide” provides<br />
comprehensive details for those thinking<br />
about building or renovating.<br />
Consumers are also encouraged to<br />
check the Licensing Public Register on the<br />
CBS website: https://www.cbs.sa.gov.au/<br />
find-a-licence-holder B<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 11
BUILDING & PROPERTY LAW<br />
Heritage protection under the Planning,<br />
Development and Infrastructure Act<br />
PAUL LEADBETER, SENIOR LECTURER, ADELAIDE LAW SCHOOL<br />
It seems that no one is ever completely<br />
happy with the regulatory systems<br />
put in place by government to regulate<br />
the use and development of land 1 . To<br />
some extent this reflects the fact that<br />
planning of land use and its development<br />
is a dynamic process with change to the<br />
regulatory scheme and associated planning<br />
policy being influenced to varying degrees<br />
by changing demographics, technology<br />
changes and different infrastructure needs<br />
as well as the need to address economic 2<br />
and environmental concerns 3 . Further<br />
influencers of change include changing<br />
trends in lifestyles and housing choice<br />
and pressure from interest groups such<br />
as the development industry and resident<br />
action groups. There had been concerns<br />
expressed over many years by both the<br />
development industry and community<br />
groups about the South Australian land<br />
use planning system which operated under<br />
the Development Act 1993. This led to an<br />
extensive and lengthy review by an Expert<br />
Panel on Planning Reform appointed by<br />
the State Labor Government in February,<br />
2013. In its final report delivered in late<br />
2015 it concluded that:<br />
“Our planning system should provide<br />
communities with a clear understanding of<br />
the policies that will guide development, while<br />
ensuring that unnecessary costs and delays<br />
for applicants and assessing authorities are<br />
minimised. It is critical to the competitiveness<br />
of the state, but our current planning system is<br />
not up to this task.”<br />
The then State Labor Government<br />
took on the task of drafting new planning<br />
legislation taking on board the majority of<br />
the Expert Panel’s recommendations. On 1<br />
April, 2017 4 a new Planning, Development and<br />
Infrastructure Act 2016 (the PDI Act) came<br />
into partial operation with the intention<br />
being that the PDI Act, (which will<br />
eventually repeal the Development Act 1993<br />
and thereby end the 25 year old planning<br />
system and policies implemented under<br />
that legislation), would be fully operational<br />
by the end of June, 2020. Provisions in the<br />
PDI Act are being gradually implemented<br />
along with key policy documents, the most<br />
important of which is the Planning and<br />
Design Code 5 . The Planning and Design<br />
Code (the Code) effectively replaces the<br />
old council area development plans and<br />
sets out zones, policy areas, definitions<br />
of land uses and land use classes, and<br />
the specific rules and policies that will<br />
govern the use and development of land<br />
within particular zones 6 . The Code is<br />
being developed by the State Planning<br />
Commission and is to be released in three<br />
phases. The first phase is that applying<br />
to all land that is not within a council<br />
area and it came into operation on 1 July,<br />
<strong>2019</strong>. It is understood that drafts of the<br />
second phase of the Code (dealing with<br />
regional council areas) and the third phase<br />
(dealing with Metropolitan Adelaide) will<br />
be released for comment in October, <strong>2019</strong><br />
with actual implementation of them some<br />
months later. 7<br />
This article looks at how the PDI<br />
Act addresses the issue of development<br />
control and heritage. In the first half<br />
of <strong>2019</strong>, concerned local councillors,<br />
community action groups like the<br />
Community Alliance and the National<br />
Trust of SA have campaigned strongly<br />
for better heritage protection under the<br />
PDI Act believing that the new Planning<br />
and Design Code is not going to offer the<br />
same level of protection for places with<br />
heritage value as the existing Development<br />
Act 1993. 8 The State Planning<br />
Commission, which has the responsibility<br />
for developing the Code provisions that<br />
address heritage disagrees 9 .<br />
WHAT IS “HERITAGE”?<br />
“Heritage” is basically all that one<br />
generation inherits from another. It can<br />
include (and is most commonly thought<br />
of) as structures and objects but it also<br />
extends to gardens and landscape (such<br />
as reserve areas), and traditions. Susan<br />
Tonkin has argued that each generation<br />
decides what should and should not be<br />
kept from earlier generations and what can<br />
be discarded 10 . In the 1970’s when heritage<br />
protection legislation first commenced<br />
in Australia, much of the focus was<br />
on protecting grand public buildings,<br />
churches and the large grand homes of the<br />
wealthy colonists in each state 11 . In more<br />
recent times the dwellings of workers<br />
in the colonies have been seen worthy<br />
of protection, together with examples<br />
of early industrial buildings and sites<br />
and more recent buildings of significant<br />
architectural merit or interest 12 or where<br />
significant events occurred or a prominent<br />
South Australian may once have resided 13 .<br />
It should be noted that, disappointingly,<br />
there is no direct reference to heritage or<br />
the need or desirability of retaining or<br />
protecting heritage places in the Objects<br />
of the PDI Act. 14 The Principles of good<br />
planning 15 which seek to further the<br />
objects of the Act do refer to built form<br />
being durable and designed to be adaptive<br />
12<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
BUILDING & PROPERTY LAW<br />
The old Z Ward for the criminal insane (left); St Andrews Church in Walkerville (right). Photos: National Trust SA<br />
in the sense of building reuse but that<br />
provision essentially speaks to buildings<br />
being constructed today. 16 There is also a<br />
requirement that the Minister ensure that<br />
a State Planning Policy be developed by<br />
the Commission that specifies policies<br />
and principles that are to be applied to<br />
encourage and support the adaptive re-use<br />
of buildings and places. 17<br />
LISTING OF PLACES OF HERITAGE VALUE<br />
South Australia has had legislation<br />
providing for the listing of places of state<br />
heritage value for 42 years 18 and since<br />
the commencement of the Development<br />
Act 1993, the listing of places of local<br />
heritage value via amendments to council<br />
development plans. Both state and<br />
local heritage places will continue to be<br />
recognised under the PDI Act with the<br />
identification and listing of state heritage<br />
places and areas remaining under the<br />
Heritage Places Act 1993 and local heritage<br />
places being able to be designated in the<br />
Planning and Design Code following a<br />
process set out in section 67 of the PDI<br />
Act. The same criteria are applicable for<br />
listing places of local heritage value in<br />
both the PDI Act and the Development Act<br />
1993.<br />
The listing of places as state or local<br />
heritage places means that any proposal<br />
to undertake development in relation<br />
to those places will undergo a level of<br />
scrutiny not experienced by many other<br />
forms of development. Under the PDI<br />
Act, “development” in relation to a state<br />
heritage place includes the demolition,<br />
removal, conversion, alteration or painting<br />
of, or addition to, the place, or any<br />
other work that could materially affect<br />
the heritage value of the place. 19 This<br />
provision is identical to that contained in<br />
the Development Act 1993. However, the<br />
definition of development as it relates<br />
to local heritage places varies from that<br />
presently found in the Development Act.<br />
Instead of listing a range of activities<br />
that would comprise development in<br />
relation to the local heritage place, (as it<br />
does for state heritage places), it simply<br />
refers to “any work (including painting)<br />
that could materially affect the heritage<br />
value of the place…” 20 . It then states<br />
that the heritage value must be specified<br />
by the Planning and Design Code either<br />
generally in relation to local heritage<br />
places or in relation to the particular local<br />
heritage place. This definition makes the<br />
provisions within the Code extremely<br />
important. Unfortunately, as noted above,<br />
Phases 2 and 3 of the Code are not yet<br />
available. However, in May, <strong>2019</strong> the<br />
Department of Planning, Transport and<br />
Infrastructure released a Practitioner<br />
Overview of Heritage and Character<br />
in the New Planning System 21 (the<br />
Practitioner Overview) which provides<br />
some indication of the proposed approach<br />
in the Code. It suggests that the Code will<br />
provide that demolition of a local heritage<br />
place will only be considered if a building<br />
has little heritage value, is structurally<br />
unsound or has public safety issues or is<br />
economically unviable to repair. For some<br />
of these criteria it notes that support<br />
from a suitably qualified person would<br />
be required, 22 as well as a heritage impact<br />
assessment. 23 It also notes that adaptive<br />
reuse policies will be strengthened to<br />
make adaptive reuse easier. 24 Alterations<br />
and additions will be code assessed<br />
(performance assessed) and certain<br />
alterations which do not affect heritage<br />
values, such as the demolition of a modern<br />
lean-to at the rear of a building will be<br />
“deemed to satisfy” which will mean they<br />
must be granted consent. 25 The defining<br />
of the heritage values in the Planning and<br />
Design Code is going to be of significance<br />
in terms of determining how much<br />
protection will continue to be accorded to<br />
local heritage places under the PDI Act.<br />
Arguably the protection accorded<br />
to state heritage places under the PDI<br />
Act will be less than under the current<br />
Development Act. Both the demolition<br />
and alterations or additions to a state<br />
heritage place will be Code assessed<br />
(Performance Assessed) 26 which means<br />
the development proposal has to be<br />
assessed against the Code, applying<br />
flexible broad policies rather than more<br />
prescriptive criteria. There will not be<br />
any non-complying classification as there<br />
is at present for development involving<br />
state heritage places. Arguably, it leaves<br />
state heritage places more vulnerable<br />
to demolition. Note also that any<br />
development that is “in the State Heritage<br />
Place Overlay or State Heritage Area<br />
Overlay” under the Code 27 and specified<br />
in the Code as being in a class to which<br />
the referral provision applies 28 must be<br />
referred to the Minister responsible for<br />
Heritage who has the power to direct the<br />
planning authority to refuse consent or<br />
attach specified conditions to any consent<br />
given. 29<br />
There are 17 state heritage areas,<br />
around 2,300 state heritage places and<br />
7,000 local heritage places currently<br />
identified in South Australia and the<br />
Practitioner Overview indicates that these<br />
will all be carried across into the Code. 30<br />
At present many council development<br />
plans also have Historic (Conservation)<br />
Zones and Historic (Conservation) Policy<br />
Areas and there has been a Planning<br />
Bulletin issued by Planning SA in 2001<br />
which sets out the guidelines for the<br />
establishment of such zones and areas. 31 It<br />
would appear that these zones and policy<br />
areas will be transitioned into the Code<br />
and depicted as “Local Heritage Areas” 32 .<br />
Of some concern is the requirement in<br />
s67(4) of the PDI Act which requires<br />
that the creation of any new heritage<br />
character or preservation zone or subzone<br />
must be approved by 51% of property<br />
owners within that area. The Greens<br />
have introduced a bill into the Legislative<br />
Assembly seeking to repeal this provision.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 13
BUILDING & PROPERTY LAW<br />
CONTRIBUTORY ITEMS-WHAT WILL BE<br />
THEIR STATUS?<br />
Controversy exists in relation to those<br />
items which are not to be transferred into<br />
the Code, namely, “contributory items”.<br />
Contributory items are not referred to<br />
in the current Development Act and<br />
there is no definition of them. They are<br />
items that have been “designated for the<br />
contribution they make to the historic<br />
and architectural character of a particular<br />
area and are located primarily in Historic<br />
Conservation Zones”. 33 That designation<br />
is made by local councils through the<br />
identification of contributory items in<br />
their development plans. Contributory<br />
items are not the equivalent of local<br />
heritage places but have heritage features<br />
which contribute to the historic quality<br />
of the Zone or Policy area. 34 There<br />
are around 12,000 contributory items<br />
identified in Development Plans at<br />
present, the majority of which are<br />
residential buildings and located in<br />
existing Historic Conservation Zones.<br />
The National Trust maintains that those<br />
12,000 items represent just 1.8% of the<br />
total 741,748 separate and medium density<br />
dwellings in the state. 35 Further, until 2012<br />
the Government was recognising and<br />
not preventing the practice of including<br />
contributory items in development plans.<br />
The Practitioner Overview proposes<br />
that within the proposed local heritage<br />
areas overlay the existing Contributory<br />
Items will be protected not by being<br />
specifically listed but by appropriate code<br />
provisions which recognise the importance<br />
of keeping places which contribute to the<br />
existing heritage or character values of<br />
the area. There will be performance-based<br />
provisions against which applications for<br />
demolition and alterations and additions<br />
to buildings must be assessed. The details<br />
in the Practitioner Overview are vague<br />
as to what considerations will be made<br />
for demolition approval. It will include<br />
consideration of the value the building<br />
makes to the streetscape, the proposed<br />
replacement building, contextual analysis<br />
outcomes, (whatever that means) and<br />
how well the theme is represented 36 . So<br />
much depends on how these criteria are<br />
set out in the Code, hence a lot of the<br />
concern presently being expressed. For<br />
example, it is not clear what is meant by<br />
representation of “the theme”. Where<br />
will the theme be described? Does it<br />
mean that representation of that theme<br />
must be assessed for the Local Heritage<br />
Area where the building is located or<br />
more broadly? If there is already one late<br />
Victorian bluestone cottage in the area will<br />
that be deemed sufficient enabling others<br />
to be demolished and replaced with new<br />
buildings?<br />
CONCLUSION<br />
Similar rules to those which presently<br />
apply under the Development Act will<br />
apply to state and local heritage listed<br />
places under the PDI Act. While there<br />
is less certainty about what will happen<br />
with the proposed local heritage areas, and<br />
more particularly those places previously<br />
designated as contributory items situated<br />
within them, it does appear on the<br />
information presently available that there<br />
will be less protection for those items. We<br />
await the release of drafts of Phases 2 and<br />
3 of the Code to confirm what the precise<br />
new rules will be. Adelaide has a unique<br />
built heritage. It would be disappointing<br />
if the new planning legislation and its<br />
Planning and Design Code undermines<br />
that position.<br />
Paul Leadbeter teaches law at the Adelaide<br />
Law School and is a Consultant to Hilditch<br />
Lawyers. He is also a Councillor of the National<br />
Trust of South Australia. B<br />
Endnotes<br />
1 Since 1967 South Australia has had 4 different<br />
systems of regulation, the Planning and<br />
Development Act,1967, Planning Act ,1982,<br />
Development Act,1993 and now the Planning,<br />
Development and Infrastructure Act, 2016.<br />
2 For example, the decline in South Australia’s<br />
traditional industrial base of manufacturing motor<br />
vehicles and white goods created a need for new<br />
sources of work and employment with often<br />
different land use requirements as well as the<br />
release of large tracts of land for redevelopment.<br />
3 Environmental concerns are many and varied but<br />
the pressing need to try and prevent the further<br />
decline in biodiversity, and to address the potential<br />
impacts of climate change across the state are at<br />
the forefront.<br />
4 Some might say, an unfortunate choice of<br />
proclamation date!<br />
5 Planning Development and Infrastructure<br />
Act,2016 s 65<br />
6 Planning, Development and Infrastructure Act<br />
2016 s66<br />
7 SA Planning Portal, https://www.saplanningportal.<br />
sa.gov.au/planning_reforms/implementation<br />
8 National Trust South Australia, Heritage Living<br />
Autumn `<strong>2019</strong>, ‘Headed for Disaster’ p5<br />
9 See for example the material contained in the<br />
Community Guide to Heritage and Character<br />
in the New Planning System: https://www.<br />
saplanningportal.sa.gov.au/__data/assets/pdf_<br />
file/0006/545748/Community_guide_to_heritage_<br />
and_character_in_the_new_planning_system.pdf<br />
10 Susan Tonkin, ‘Essay: What is Heritage?’<br />
Commonwealth Dept. of Environment and<br />
Energy, undated, https://www.environment.gov.<br />
au/system/files/pages/f4d5ba7d-e4eb-4ced-<br />
9c0e-104471634fbb/files/essay-whatisheritagetonkin.pdf<br />
11 Such as Ayers House, Home of Sir Henry Ayers<br />
onetime SA Premier, and Beaumont House, built<br />
for Augustus Short, the first Anglican Bishop of<br />
Adelaide.<br />
12 For example, the Former MLC Building at 185<br />
Victoria Square and the home in more recent years<br />
to a number of members of the legal profession<br />
is on the State Heritage register, in part because it<br />
was Adelaide’s first skyscraper(at 12 storeys) and<br />
also the first example of a new building technique,<br />
curtain wall construction.<br />
13 Such as the humble dwelling in which Sir Hubert<br />
Wilkins, Explorer and Aviator lived as a child at Mt<br />
Bryan East.<br />
14 Planning, Development and Infrastructure Act,<br />
2016 s12<br />
15 Planning, Development and Infrastructure Act,<br />
2016 s14<br />
16 Planning, Development and Infrastructure Act,<br />
2016 s14(c)(ii)<br />
17 Planning, Development and Infrastructure Act,<br />
2016 s61<br />
18 Currently this protection and the listing process is<br />
found in the Heritage Places Act, 1993<br />
19 Planning, Development and Infrastructure Act,<br />
2016 s3<br />
20 Planning, Development and Infrastructure Act,<br />
2016 s3<br />
21 Available at: SA Planning Portal https://www.<br />
saplanningportal.sa.gov.au/__data/assets/<br />
pdf_file/0007/545749/Practitioner_overview_of_<br />
heritage_and_character_in_the_new_planning_<br />
system.pdf<br />
22 Ibid at p5<br />
23 A heritage impact assessment is defined in<br />
the Glossary to the guide as ‘An assessment<br />
undertaken by a heritage expert which identifies<br />
the impact of the proposed development on<br />
heritage values’ see p9<br />
24 Adaptive reuse is defined in the Glossary to the<br />
guide as the process of repurposing buildings for<br />
viable new uses and modern functions, other than<br />
those originally intended, to address present-day<br />
needs, action and sustainable investment. See p9<br />
25 Planning, Development and Infrastructure Act,<br />
2016 s106<br />
26 Planning, Development and Infrastructure Act,<br />
2016 s107<br />
27 This will presumably be a list of all State heritage<br />
places and areas.<br />
28 It is unclear exactly to what this requirement<br />
relates. Until the Code is available, we will not<br />
know.<br />
29 Planning, Development and Infrastructure<br />
(General) Regulations 2017 Schedule 9 Table 3<br />
Clause 3<br />
30 SA Planning Portal, Practitioner Overview n21 at<br />
p3,4,5.<br />
31 SA Planning Portal, Practitioner Overview n21 at 6<br />
32 SA Planning Portal, Practitioner Overview n21 at 6<br />
33 National Trust South Australia, Heritage Living,<br />
Autumn <strong>2019</strong>,’What are Contributory Items and<br />
Historic Conservation Zones?’ p.6<br />
34 Botten, Jamie, ‘Heritage and the Law’, a paper<br />
presented at the Heritage and Planning SÁ Styletraining<br />
Seminar 18 July 2011, p 4<br />
35 National Trust South Australia, n33 p6<br />
36 SA Planning Portal, Practitioner Overview n21 at 7<br />
14<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
PROMOTION<br />
Managing the Financial<br />
Settlement Schedule<br />
South Australian legal practitioners<br />
continue to embrace digital settlements,<br />
having now processed over 10,000 transfer<br />
transactions through PEXA.<br />
Key to PEXA’s functionality is the<br />
Financial Settlement Schedule (FSS). This<br />
contains electronic financial transaction<br />
directions for all source and destination<br />
line items. All payments are disbursed<br />
automatically at settlement, meaning you’ll<br />
no longer spend time waiting for cheques<br />
to clear.<br />
These guidelines will assist you when<br />
completing the FSS, otherwise known as<br />
calculating your cheque directions in the<br />
“old” language.<br />
1. The Purchaser’s representative<br />
(Incoming Proprietor) needs to ensure<br />
they account for all lodgement fees<br />
for which they are responsible. This<br />
includes the lodgement fees for the<br />
new mortgage.<br />
2. Both parties need to ensure that one<br />
of their payments (you can think of it<br />
as one of your cheques) is the PEXA<br />
fee, which generates automatically.<br />
Think of it as one of the cheques<br />
you’re requesting to hand over to<br />
PEXA at settlement.<br />
Further, these steps will help you check<br />
your FSS balances and ensure you’re not<br />
collecting or providing too much money.<br />
• Stamp early – two days prior to<br />
settlement.<br />
• Sign off on your figures when you<br />
have completed them, don’t wait until<br />
they balance with the other side.<br />
• In the days leading up to settlement,<br />
check whether all parties have accepted<br />
the settlement date and time, especially<br />
if banks are involved.<br />
WHAT’S AHEAD FOR THE FSS<br />
PEXA has received feedback from its<br />
members requesting more guidance when<br />
completing inter-dependent tasks in time<br />
for settlement. In response to this, PEXA<br />
is developing an enhanced FSS summary<br />
that will assist in the calculation and<br />
confirmation of the financial components<br />
of settlement.<br />
This will guide practitioners through<br />
the calculation of the Total Funds<br />
Required to Settle and prompt Mortgagees<br />
to provide loan proceeds and indicative<br />
loan payout figures. Closer to the day of<br />
settlement, fees and charges will be added,<br />
allowing for confirmation of final figures<br />
and auto calculation of shortfall and<br />
surpluses amounts.<br />
You can learn more about using<br />
the FSS in PEXA by watching our free<br />
instructional webinar at your leisure -<br />
https://community.pexa.com.au/t5/<br />
<strong>Web</strong>inars/bg-p/<strong>Web</strong>inars
BUILDING & PROPERTY LAW<br />
THE WORKER’S LIENS ACT,<br />
STATUTORY CHARGES &<br />
INSOLVENCY: GOOD SECURITY?<br />
TRAVIS SHUEARD, ASSOCIATE & ALICE LYNCH, LAW GRADUATE, CHARLTON ROWLEY<br />
As is well known among South<br />
Australian building and construction<br />
lawyers, the Worker’s Liens Act 1893 (SA)<br />
(the Act) provides avenues for contractors<br />
and sub-contractors to recover monies<br />
owing for work undertaken. The Act<br />
allows a contractor to place a lien over<br />
real property which was the subject of the<br />
work. This lien prevents the registration<br />
of dealings on that property until the lien<br />
has been discharged through the payment<br />
of an amount equal to the contract price<br />
owing to the Court or Lands Titles Office. 1<br />
Worker’s liens are the more regularly used<br />
method of recovery under the Act.<br />
What is less well-known (or used) is<br />
that the Act also allows for the attaching<br />
of a charge over monies owed to<br />
subcontractors. This, in effect, allows a<br />
subcontractor to circumvent the usual<br />
contractual hierarchy of creditors. It also<br />
confers the benefits of a subcontractor<br />
becoming a secured creditor in the<br />
event of insolvency, providing a level of<br />
certainty in recovery for subcontractors<br />
who often bear the financial brunt of any<br />
fallout between the principal and main<br />
contractors.<br />
PURPOSE OF THE ACT<br />
Before delving into the mechanisms<br />
of the statutory charge, it is worth briefly<br />
revisiting the Act’s purpose and being clear<br />
that the Act has two individual methods of<br />
recovery: liens and charges.<br />
The purpose of the Act is ostensibly<br />
to allow workers and contractors relatively<br />
straightforward pathways to recovering<br />
monies owed for work performed. This<br />
is similar to the Building and Construction<br />
Industry Security of Payment Act 2009 (SA),<br />
though the Security of Payment Act is<br />
more commonly used in South Australia<br />
due to its streamlined process and “pay<br />
now, argue later” method of recovery.<br />
The Act is clear that there are two<br />
different mechanisms of recovery<br />
available to the worker/contractor; liens<br />
and statutory charges. Each mechanism<br />
has its own method of enforcement<br />
and remedy. These two remedies do not<br />
conflate because a party has either a lien<br />
or a charge South Australian case law has<br />
made clear that a worker’s lien-holder<br />
cannot “arrogate” to himself the rights of<br />
a charge-holder unless he/she also holds<br />
the statutory security of a charge given by<br />
the Act (or vice versa). 2<br />
In In Re RGP Constructions Pty Ltd<br />
(In Liquidation); Ewing v Hallett Brick<br />
Industries, 3 Walters J stated that the separate<br />
mechanisms of enforcement (being<br />
charges and liens) also lends itself to the<br />
“priorities and pro-rata distribution of<br />
payment” 4 system set out in section 8 of<br />
the Act. 5 Conflating the two remedies<br />
would undermine this priority payment<br />
system.<br />
STATUTORY CHARGE OVER MONIES<br />
The operation of the statutory charge<br />
is set out in section 7 of the Act. Section<br />
7(2) of the Act stipulates that a subcontractor<br />
may have a charge:<br />
“…on any money payable to the contractor<br />
or subcontractor with whom he shall have<br />
contracted for that portion of the contract price<br />
payable to the first mentioned sub-contractor in<br />
respect of work done or materials furnished or<br />
manufactured…”. 6<br />
In practical terms, if the contractor<br />
has been paid an amount by the principal<br />
for amounts carried out by the subsubcontractor,<br />
but the main contractor<br />
has not yet paid that amount to the<br />
subcontractor, the sub-subcontractor<br />
can claim a charge over those monies<br />
pursuant to section 7 of the Act. The main<br />
contractor must then pay those monies<br />
straight to the sub-subcontractor.<br />
As a result, a sub-subcontractor with<br />
a statutory charge under the Act has the<br />
benefit of “leapfrogging” over the typical<br />
contractual hierarchy to claim monies<br />
from the main contractor. This avoids the<br />
sub-subcontractor from having to waiting<br />
on payments “flowing down” from the<br />
subcontractor.<br />
Once this statutory charge has<br />
been attached to the monies by the<br />
sub-contractor, proceedings must be<br />
commenced within 28 days after the wages<br />
or contract price would become due. 7<br />
This is a strict timeframe – the charge will<br />
lapse if proceedings are not commenced<br />
within this time. Once commenced, the<br />
proceedings cannot be discontinued<br />
without an order by the Court, consent<br />
from the defendant or an order that the<br />
claimant has an extension of time to bring<br />
a fresh action. 8<br />
16<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
BUILDING & PROPERTY LAW<br />
Just as with the imposition of a lien,<br />
the requirement to commence proceedings<br />
in order to recover the monies owed<br />
means that attaching a charge under<br />
the Act will lead to further significant<br />
costs for the claimant. This should be<br />
a consideration for practitioners when<br />
acting for subcontractors who often face<br />
cashflow problems.<br />
STATUTORY CHARGES AND SECURED<br />
CREDITORS<br />
As mentioned, a claimant to a statutory<br />
charge over monies under the Act is also<br />
a secured creditor in the event that the<br />
subcontractor goes insolvent. Case law<br />
explains how this security arises.<br />
In the High Court decision of Stapleton<br />
v F. T. S. O’Donnell, Griffin and Co. (Q)<br />
Pty Ltd, 9 the sub-contractor in question<br />
had provided written notice (within the<br />
meaning of the Queensland equivalent<br />
legislation) of a charge upon moneys<br />
payable under the contract by the building<br />
owner to the contractors. Proceedings had<br />
been commenced, as required, to enforce<br />
the claim of a charge. Therefore, the<br />
charge to which the subcontractor became<br />
entitled to had attached to the moneys<br />
payable to the contractors once the owner<br />
had received notice of the charge from the<br />
subcontractor. This created a security in<br />
favour of the subcontractor. 10<br />
In explaining the mechanisms of<br />
secured creditorship through a statutory<br />
charge, McTiernan J stated that the Act<br />
creates rights over such moneys in the<br />
hands of the employer as well as in personam<br />
rights. In doing so, the Act does more than<br />
just preserve the property in medio until the<br />
rights of the claimant are determined. The<br />
Act requires the contractor or employer to<br />
retain an amount payable to the contractor<br />
to meet a claim – this, in effect, ensures<br />
that such money is kept separate for the<br />
benefit of the sub-contractor. 11<br />
It should be noted that while the<br />
money is kept separate for the benefit<br />
of the sub-contractor as security, section<br />
8’s priority and pro-rata payment system<br />
negatives the idea that “a workman,<br />
contractor or sub-contractor can reap advantage by<br />
prompt payment subsequent to attachment of the<br />
charge”. 12 It is not for the charge-holder to<br />
enforce, or to accept, payment, otherwise<br />
than under and in accordance with the<br />
provisions of the Act. 13<br />
It is important to note that this security<br />
ceases if the claimant does not commence<br />
proceedings within 28 days – a charge<br />
should not be issued without the client<br />
being prepared to commence proceedings<br />
soon thereafter to enforce their claim to<br />
the charge.<br />
PREFERENTIAL PAYMENTS<br />
Finally, another added benefit of the<br />
statutory charge is that in the event of<br />
insolvency, due to the contractor being<br />
a secured creditor, any payment made<br />
in satisfaction of this charge cannot be<br />
classified as a preferential payment within<br />
the meaning of section 588FA of the<br />
Corporations Act 2001 (Cth).<br />
This benefit is of course only if the<br />
claimant has complied with the Act in<br />
respect of the charge: in Ewing v Hallett,<br />
the appellant did not issue proceedings<br />
under section 7(3) of the Act in order to<br />
enforce a charge. As a result, the payments<br />
which had been made to the appellant<br />
were found to be preferential payments<br />
under the (then) Companies Act. 14 B<br />
Endnotes<br />
1 Worker’s Liens Act 1893 (SA) s 16.<br />
2 See, for example, In Re RGP Constructions Pty Ltd<br />
(In Liquidation); Ewing v Hallett Brick Industries Ltd<br />
[1982] 31 SASR 170, 174; Cladding and Roofing<br />
Contractors Pty Ltd v Canetti Constructions Pty Ltd<br />
[2013] SASC 102.<br />
3 In Re RGP Constructions Pty Ltd (In Liquidation);<br />
Ewing v Hallett Brick Industries Ltd [1982] 31 SASR<br />
170, 174.<br />
4 Ibid 175. See also Metropolitan Brick Co v Hayward<br />
[1938] SASR 462 (Cleland J).<br />
5 Priority of payments being the liens/charges<br />
of workers for wages, the liens/charge of<br />
subcontractors and then the liens contractors.<br />
6 Worker’s Liens Act 1893 (SA) s 7(2) (emphasis<br />
added).<br />
7 Ibid s 7(3).<br />
8 Ibid.<br />
9 Stapleton v F. T. S. O’Donnell, Griffin and Co. (Q) Pty<br />
Ltd (1961) 108 CLR 106.<br />
10 Ibid.<br />
11 Ibid 118-119.<br />
12 Metropolitan Brick Company v Hayward [1938]<br />
SASR 462, 476.<br />
13 Ibid.<br />
14 In Re RGP Constructions Pty Ltd (In Liquidation);<br />
Ewing v Hallett Brick Industries Ltd [1982] 31 SASR<br />
170, 176.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 17
BUILDING & PROPERTY LAW<br />
Industry Turmoil causing concern:<br />
is there a need for reform to protect<br />
owners and sub-contractors?<br />
NICHOLAS GRAHAM, PARTNER, COMMERCIAL & LEGAL<br />
The building and construction industry<br />
has recently been thrust into the<br />
spotlight with the defects of Mascot and<br />
Opal Tower garnering attention on a<br />
national level, while closer to home the<br />
ever increasing number of failed builders<br />
continue to dominate headlines.<br />
The consequences of these issues can<br />
affect not only the builders in question,<br />
but may also leave owners or developers<br />
with incomplete or defective homes or<br />
apartments and sub-contractors ailing<br />
and unable to recover their own costs and<br />
expenses.<br />
It ought to be considered whether<br />
current legislative protections for home<br />
and apartment owners are sufficient to<br />
safeguard against defective or incomplete<br />
building works. Yet any legislative reform<br />
must be balanced against the genuine<br />
commercial interests of builders in an<br />
already challenging industry.<br />
PROTECTIONS FOR OWNERS<br />
The main source of protection in the<br />
statutory framework in South Australia for<br />
home owners is the statutory warranties in<br />
the Building Work Contractors Act 1995 (SA)<br />
(the Act). These warranties imply into all<br />
domestic work contracts that:<br />
• The building work will be performed<br />
in a proper manner to accepted trade<br />
standards and in accordance with the<br />
plans and specifications agreed to by<br />
the parties;<br />
• All materials to be supplied by the<br />
contractor for use in the building work<br />
will be good and proper;<br />
• The building work will be performed<br />
in accordance with all statutory<br />
requirements;<br />
• The work will be performed with<br />
‘reasonable diligence’ unless the<br />
contract stipulates a period within<br />
18 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
which the building work must be<br />
completed;<br />
• The house will be reasonably fit for<br />
human habitation where the work<br />
consists of the construction of a<br />
house; and<br />
• If a particular purpose for the dwelling<br />
is made known to the builder, that the<br />
work and materials will be reasonably<br />
fit for that purpose or could be<br />
reasonably expected to achieve that<br />
purpose.<br />
Where statutory warranties are<br />
breached, orders can be made ranging<br />
from the builder performing work to<br />
remedy the breach, the payment of<br />
compensation or even the engagement<br />
of another builder at the builder’s cost to<br />
remedy the breach where it is found that<br />
the builder is unlikely or unable to perform<br />
the remedial work to a necessary quality.<br />
Proceedings must be commenced<br />
within five years after completion of the<br />
building work with no possibility of an<br />
extension. 1 There are, however, other<br />
avenues that can be pursued by an owner<br />
if outside of the statutory warranty<br />
period and common questions asked<br />
relate to whether the building work was<br />
ever complete, or if it was, when it was<br />
actually completed. If there is defective<br />
building work that does not comply with<br />
the Building Code, then a claim may be<br />
considered under the Development Act 1993<br />
(SA) after the expiry of warranty period in<br />
the Act or by the exercise of rights under<br />
the Australian Consumer Law.<br />
Where the builder dies, disappears<br />
or becomes insolvent, the statutory<br />
warranties and any contractual relief<br />
generally may not be available. Given the<br />
present concern with builders falling over,<br />
it is evident why the statutory warranties<br />
may not offer sufficient protection to<br />
owners when it is needed most, leaving<br />
affected owners to seek relief through<br />
the builder’s building indemnity insurance<br />
policy. But if a builder did not obtain<br />
that policy in compliance with the Act,<br />
an owner is exposed to the cost of the<br />
repairs.<br />
Owners of apartments have recourse<br />
under the statutory warranties for certain<br />
work, however it is for the body corporate<br />
to initiate action to address any defects in<br />
the common property.<br />
BUILDING INDEMNITY INSURANCE<br />
Under section 34 of the Act, a building<br />
work contractor must not perform<br />
domestic building work unless covered by<br />
a valid insurance policy and a certificate<br />
evidencing the taking out of that insurance<br />
policy is shown to the owner in a form<br />
that complies with the Building Work<br />
Contractors Regulations 2011 (SA) (the<br />
Regulations). Building work is broadly<br />
defined and encompasses anything from<br />
excavation to demolition and, of course,<br />
construction and renovations.<br />
A valid insurance policy protects the<br />
current and future building owner for the<br />
statutory warranty period if:<br />
• Faulty work has not been rectified or<br />
work has not been completed; and<br />
• The builder disappears, dies or is<br />
insolvent.<br />
The insurance policy must insure any<br />
person who is or may become entitled to<br />
the benefit of a statutory warranty under<br />
the Act against the risk of being unable<br />
to enforce or recover under that statutory<br />
warranty due to the insolvency, death or<br />
disappearance of the builder.<br />
However, not all owners are protected<br />
by the requirement for the builder to<br />
obtain an insurance policy. For example,<br />
minor domestic building works as defined in the
BUILDING & PROPERTY LAW<br />
Regulations as work costing under $12,000<br />
and domestic building works which do<br />
not require approval under the Development<br />
Act 1993 (SA) are expressly excluded from<br />
this requirement. This leaves an obvious<br />
category of home owners unprotected.<br />
Regulation 18 specifies that the lowest<br />
amount that the insurance policy is to<br />
cover is $80,000 which meant that insurers<br />
or the underwriting State Government do<br />
not cover affected homeowners for losses<br />
exceeding this amount. In mid-2017, the<br />
South Australian Government announced<br />
that QBE Insurance would become the<br />
sole provider of building indemnity<br />
insurance in South Australia and that the<br />
insurance indemnity limit would rise to<br />
$150,000, presumably as the result of an<br />
agreement between QBE and the State<br />
Government. 2 Although this increase was<br />
much needed, it nevertheless remains the<br />
case that this cover may not be sufficient<br />
to meet financial losses given that industry<br />
data indicates that the average cost of<br />
building a new home was $317,389 in<br />
2018. 3 Furthermore, builders are only<br />
required to obtain an insurance policy prior<br />
to the commencement of work, yet are<br />
legally entitled to a deposit of $1,000 for<br />
work costing under $20,000 and up to 5%<br />
of the total build price for work exceeding<br />
$20,000 following the execution of a<br />
building contract.<br />
As illustrated by the recent collapse<br />
of Coast to Coast Homes, the delay<br />
between the payment of the deposit<br />
and the commencement of works leaves<br />
owners particularly vulnerable to losing<br />
their deposit from any insolvency event or<br />
disappearance of the builder before the<br />
insurance was in place.<br />
REFORM TO THE PUBLIC REGISTER?<br />
It is often said that prevention is better<br />
than a cure and so due diligence remains<br />
the best strategy for home owners and<br />
sub-contractors to identify and avoid<br />
suspect builders with a history of defective<br />
or incomplete work.<br />
Under the Act, all building work<br />
contractors must be licensed to undertake<br />
building work and must have that building<br />
work supervised by a registered and<br />
approved supervisor. A list of registered<br />
builders, their directors (if a corporate<br />
entity) and nominated building work<br />
supervisors, along with any building<br />
conditions, disciplinary action and<br />
suspensions against them are publicly<br />
searchable through Consumer and Business<br />
Services’ Occupational Public Register.<br />
Yet it would appear that the public<br />
has little knowledge of the existence of<br />
the Public Register which also catalogues<br />
various other registered license holders,<br />
such as security and investigation agents<br />
and second-hand motor vehicle dealers.<br />
Across other jurisdictions, Western<br />
Australia has taken significant steps to<br />
regulate builders with the establishment<br />
of a Building Services Board. A function<br />
of the Board is its responsibility to<br />
maintain a separate Register of Builders<br />
which must be available for inspection<br />
by members of the public at the Office<br />
of the Building Commissioner during<br />
normal business hours and online from<br />
a website maintained by the Building<br />
Commissioner. 4 Although WA’s Register<br />
of Builders currently does not contain<br />
information that is not otherwise provided<br />
in South Australia’s Public Register it is<br />
interesting to note that under Division 6<br />
of the WA legislation, building services<br />
providers are already obliged to provide<br />
written notice to the Board of any changes<br />
in address, eligibility, financial difficulty,<br />
disciplinary action or criminal offending.<br />
Naturally, the inclusion of these<br />
notices in the Register of Builders there<br />
would be a sensible amalgamation which<br />
could significantly increase an owner’s<br />
ability to properly assess the risks and<br />
liabilities associated with certain builders<br />
during the due diligence process. Perhaps<br />
changes to allow sub-contractors to better<br />
assess the financial capacity of the builder<br />
to make payments and complete works<br />
prior to commencing any sub-contract<br />
work should be made.<br />
Similar proposals were outlined in<br />
an October 2018 report to the Minister<br />
of Commerce in WA, including the<br />
establishment of a “demerit point” system<br />
to be included on the Register of Builders<br />
specifying instances of builders who<br />
“demonstrate poor payment practices and<br />
contractual deficiencies”. The report went<br />
on to say that the State Administrative<br />
Tribunal should be empowered with the<br />
ability to suspend or cancel the registration<br />
of any builder who accrues three demerit<br />
points within three years.<br />
Although implementing WA’s existing<br />
and proposed regulatory frameworks may<br />
be a sensible basis for reform here in South<br />
Australia, it is crucial that any changes are<br />
balanced against the builder’s legitimate cash<br />
flow management policies and commercial<br />
interests and do not unreasonably increase<br />
the regulatory red-tape burden.<br />
Nevertheless, with the significant<br />
current public interest in the building<br />
industry, we will watch with interest<br />
as to whether the State Government<br />
turns to reform its regulation of the<br />
industry to better protect the interests<br />
of owners and subcontractors. Owners<br />
and subcontractors should proceed with<br />
caution but that wariness in the market is<br />
causing pressure on an already under fire<br />
industry. Well considered and measured<br />
policies could greatly increase transparency<br />
in the building and construction industry<br />
providing a much needed increase in public<br />
confidence during these challenging times,<br />
potentially leading to better outcomes for<br />
industry participants. B<br />
Endnotes<br />
1 Building Work Contractors Act 1995 (SA) s 32(5)-(6)<br />
2 QBE Insurance (Australia) Limited, Domestic<br />
Construction Residential Builders SA - Building<br />
Indemnity Insurance Policy (29 November 2016,<br />
effective 1 July 2017)<br />
3 ‘Window into Housing <strong>2019</strong>’ document<br />
published by the Housing Industry Association<br />
4 Building Services (Registration) Act 2011 (WA) s 30.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 19
CRIMINAL LAW<br />
Prasad Direction abolished by the<br />
High Court of Australia<br />
KRISTIE MOLLOY, BARRISTER, LEGOE CHAMBERS & LAW LECTURER, FLINDERS UNIVERSITY AND DAVID<br />
STILES, ACADEMIC, FLINDERS UNIVERSITY<br />
INTRODUCTION<br />
On 20 March, <strong>2019</strong> the Full Bench of<br />
the High Court of Australia in a joint<br />
judgment unanimously held: 1<br />
“The direction commonly referred to as the<br />
‘Prasad direction’ is contrary to law and should<br />
not be administered to a jury determining<br />
a criminal trial between the Crown and an<br />
accused person.”<br />
A Prasad direction is “directing a jury<br />
in a criminal trial that it is open at any time<br />
after the close of the prosecution case to<br />
acquit the accused if the jury considers<br />
the evidence is insufficient to support a<br />
conviction.” 2 Defence counsel makes an<br />
application to the judge (in the absence<br />
of the jury) at the end of the prosecution<br />
case that, whilst the prosecution has<br />
technically satisfied the evidential burden,<br />
the evidence is so weak, tenuous, vague or<br />
inconsistent that (even taken at its highest)<br />
a trier of fact or jury could not properly<br />
convict upon it. If the Court grants the<br />
application, the trial judge will give a Prasad<br />
direction to the jury. This usually results in<br />
the jury handing down an acquittal shortly<br />
thereafter.<br />
The High Court makes it clear that<br />
a “no case to answer” application is still<br />
valid and available in all matters. Defence<br />
can make this application at the close of<br />
the prosecution case. If the trial judge<br />
agrees that there is no evidence to prove<br />
an element of the offence then the trial<br />
judge will direct the jury to return a “Not<br />
Guilty” verdict.<br />
THE JUDGMENT<br />
Background<br />
The defendant was charged with<br />
the murder of her de-facto partner. At<br />
20 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
the close of the prosecution case in the<br />
Supreme Court of Victoria, defence<br />
counsel sought the Prasad application<br />
on the grounds that the prosecutor was<br />
unable to negate the defendant was acting<br />
in self-defence. The Court agreed over<br />
the prosecutor’s objection and issued the<br />
Prasad direction. The jury advised they<br />
wished to hear more evidence. At the<br />
close of the defence case (but prior to<br />
addresses) the trial judge again reminded<br />
the jury of the continuing operation of<br />
the Prasad direction. At this time, the jury<br />
returned with “Not Guilty” verdicts of<br />
both murder and manslaughter.<br />
The Director of Public Prosecutions<br />
(Vic) appealed on the question of law as to<br />
whether the Prasad direction was contrary<br />
to law and should not be administered.<br />
The Director acknowledged Chief Justice<br />
King’s obiter dictum comments in R v<br />
Prasad that “[i]t is within the discretion of<br />
the judge to inform the jury of this right”,<br />
challenging only the discretion rather<br />
than the existence of the right itself. 3 The<br />
majority of the Court of Appeal held that<br />
it was not contrary to law, rhetorically<br />
asking “why would it be unlawful for a<br />
judge to inform the jury of a right which<br />
it was conceded they could legitimately<br />
exercise?” 4<br />
Issue in the Appeal<br />
Special leave to appeal to the High<br />
Court was granted to the Director of Public<br />
Prosecutions on the grounds that the Prasad<br />
direction was contrary to law. The Director<br />
also successfully withdrew her concession<br />
as to the existence of the right.<br />
The High Court accepted that the<br />
practice of giving such a direction when<br />
a trial judge considered the evidence was<br />
tenuous had existed “since at least the<br />
middle of the last century”. 5 However, the<br />
Court also held that the “recognition of the<br />
practice does not carry with it the acceptance<br />
that the jury in a criminal trial possess a<br />
“long-standing right under common law” to<br />
return a verdict of not guilty of their own<br />
motion at any time following the close of the<br />
prosecution case.” 6<br />
After considering the authorities, the<br />
Court held that “the origin of the right,<br />
as distinct from the development of the<br />
practice, is obscure”. 7 It considered the<br />
recognition of the practice by the Courts<br />
in Australia and England demonstrated<br />
that the right was only exercisable at the<br />
invitation of the trial judge and the jury<br />
had no right to return a “not guilty” verdict<br />
of their own motion after the close of the<br />
prosecution case. As such, the Court stated<br />
the Prasad direction was an invitation only<br />
rather than a long standing common law<br />
right possessed by the jury. 8<br />
The High Court cited the dangers of<br />
giving a jury a Prasad direction, including<br />
risks the jury will react adversely to the<br />
perceived pressure to acquit or influenced by<br />
the perception that the trial judge considers<br />
the verdict should be an acquittal. 9<br />
Rationale for the Decision<br />
The High Court held that:-<br />
1. “The exercise of the discretion to give<br />
a Prasad direction based upon the trial<br />
judge’s estimate of the cogency of<br />
the evidence to support conviction<br />
is inconsistent with the division of<br />
functions between judge and jury and,<br />
when given over objection, with the<br />
essential features of an adversarial trial.” 10<br />
2. “The prosecution is entitled to have a<br />
full opportunity to explain the way its<br />
case is put, and to have a verdict from<br />
the jury that is based on the application<br />
of the law as explained by the judge to<br />
their factual determinations.” 11
CRIMINAL LAW<br />
3. Inviting a jury to stop a trial without<br />
hearing final addresses “and without<br />
the understanding of the law and its<br />
application to the facts that only the<br />
judge’s summing-up at the end of the<br />
trial can give them, is to invite the jury<br />
to decide the matter from a basis of<br />
ignorance which may be profound. If<br />
evidence taken at its highest is capable<br />
of sustaining a conviction, it is for the<br />
jury as the constitutional tribunal of<br />
fact to decide whether the evidence<br />
establishes guilt beyond reasonable<br />
doubt. A jury is not fully equipped to<br />
make that decision until and unless<br />
they have heard all of the evidence,<br />
counsel’s addresses and the judge’s<br />
summing-up. Anything less falls short<br />
of the trial according to law to which<br />
both the accused and the Crown are<br />
entitled.” 12<br />
CONCLUSION<br />
Defence counsel can still make a “no<br />
case to answer” application if prosecution<br />
fail to provide any evidence for all the<br />
required elements. However, defence<br />
will no longer be able to make a Prasad<br />
application at the end of the prosecution<br />
case if the evidence raised is tenuous,<br />
weak or vague. The High Court has<br />
made it clear that if there is any evidence<br />
“capable of supporting a verdict of guilty,<br />
the matter must be left to the jury.” 13<br />
Juries must not be invited to return a<br />
“Not Guilty” verdict without hearing the<br />
entirety of the case. B<br />
Endnotes<br />
1 Director of Public Prosecutions Reference No 1 of 2017<br />
[<strong>2019</strong>] HCA 9 (20 March <strong>2019</strong>) at [58].<br />
2 Ibid, at [1].<br />
3 (1979) 23 SASR 161 at 163.<br />
4 Director of Public Prosecutions Reference No 1 of 2017<br />
[<strong>2019</strong>] HCA 9 (20 March <strong>2019</strong>) at [15].<br />
5 Ibid, at [16].<br />
6 Ibid, at [17].<br />
7 Ibid, at [18].<br />
8 Ibid, at [32].<br />
9 Ibid, at [52].<br />
10 Ibid, at [56].<br />
11 Ibid, at [53].<br />
12 Ibid, at [57].<br />
13 Ibid, at [56].
YOUNG LAWYERS<br />
facebook.com/YLCSA<br />
Young Lawyers Survey sheds light<br />
on wellbeing & salary trends<br />
YOUNG LAWYERS COMMITTEE<br />
In March 2018 the Young Lawyers’<br />
Committee invited members of the<br />
legal profession under the age of 35, or<br />
within the first five years of practice, or a<br />
student of a South Australian University<br />
Law School, to participate in the inaugural<br />
Wellbeing and Salary Survey. The survey<br />
was designed to provide young lawyers<br />
with a greater understanding of their<br />
position in the profession, and to highlight<br />
issues associated with health and wellbeing.<br />
In particular, the survey was conducted to<br />
gain a greater insight into:<br />
• Remuneration and salary;<br />
• Workplace arrangements;<br />
• Job seeking behaviours;<br />
• Rates of workplace bullying;<br />
• Stress levels.<br />
COMPOSITION OF RESPONSES<br />
The survey attracted valid responses<br />
from 402 members. Of the responses,<br />
64% came from female practitioners<br />
and 34% were from male practitioners.<br />
Approximately 37% of responders had<br />
been admitted between 1 and 3 years, and<br />
approximately 37% of responders had<br />
been admitted between 4 and 10 years.<br />
A majority, 85%, were admitted<br />
practitioners, while the remainder were<br />
either not admitted, students or employed<br />
as law clerks. Twenty-nine per cent of<br />
responders were employed at law firms<br />
with 20-plus practitioners, and 26% of<br />
responders were employed at law firms<br />
with 2-5 practitioners. Approximately 15%<br />
were government employed, while the<br />
remainder were either in house counsel<br />
or sole practitioners. Seventy-four per<br />
cent of responders were based in the<br />
Adelaide CBD, while 17% were based in<br />
metropolitan Adelaide and 8% were based<br />
in regional SA.<br />
REMUNERATION<br />
A key aim of the survey was to provide<br />
young lawyers, and the profession, with<br />
an insight into average salaries based<br />
on practice areas, gender, and years of<br />
experience. The survey broke salaries<br />
down into bands of pay (in $10,000<br />
increments).<br />
While salaries were generally between<br />
$50,000 and $80,000 per year, some<br />
practitioners reported working full time<br />
and receiving salaries between $30,000<br />
and $40,000. Some of these practitioners<br />
reported having not received a salary<br />
increase since commencing practice, and in<br />
some cases had been in practice for more<br />
than three years.<br />
Fortunately, these results comprised<br />
a minority of responses. Most employees<br />
80,000<br />
70,000<br />
60,000<br />
50,000<br />
40,000<br />
30,000<br />
20,000<br />
10,000<br />
0<br />
LARGE FIRM<br />
MEDIUM FIRM<br />
BOUTIQUE<br />
GRADUATE SALARIES<br />
MEN<br />
SUBURBAN<br />
received salaries in line with the average<br />
across the sector.<br />
Some differences were seen in<br />
remuneration between types of firms and<br />
areas of practice.<br />
The greatest gender equality in pay was<br />
seen in the public sector.<br />
While starting salaries at Criminal<br />
and Family law firms were comparable to<br />
commercial firms, as practitioners increased<br />
in experience in criminal and family law<br />
their salaries became less competitive<br />
with those received by practitioners with<br />
comparable experience in areas including<br />
commercial, in-house, and public sector.<br />
The following tables indicate the peak<br />
pay bracket that average salaries fell within<br />
(and so the average salary may be up to<br />
$10,000 beneath that shown). Where no<br />
result is shown insufficient responses were<br />
received to provide useful data.<br />
Salary satisfaction was mixed amongst<br />
Young Lawyers, as shown below.<br />
REGIONAL<br />
IN-HOUSE<br />
WOMEN<br />
PUBLIC SECTOR<br />
CRIMINAL<br />
FAMILY<br />
22<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
FISHER BRENNAN CONSULTING<br />
Building Consultants<br />
Project Managers<br />
LITIGATION AND PRE-LITIGATION ADVICE AND EXPERT REPORTS<br />
EXPERT WITNESS SERVICES - CONSTRUCTION<br />
Magistrates Court<br />
District Court<br />
Supreme Court<br />
COMMERCIAL AND RESIDENTIAL PROPERTY DISPUTES<br />
ALTERNATIVE DISPUTE RESOLUTION:<br />
Facilitated Negotiation<br />
Mediation<br />
Expert Determination<br />
FISHER BRENNAN<br />
CONSULTING<br />
PO Box 690<br />
Unley SA 5052<br />
Guy Fisher<br />
guy@fisherbrennan.com.au<br />
0427 303 811<br />
Fisherbrennan.com.au<br />
PROPERTY CONDITION REPORTS:<br />
Practical Completion<br />
End of Lease – Defects And Making Good<br />
Dilapidation Surveys<br />
Guy Fisher, Principal, Fisher Brennan Consulting<br />
With over 30 years’ experience in the construction industry, Guy has procured and<br />
delivered multiple commercial and industrial facilities up to $100m both as a consultant<br />
and an award winning contractor.<br />
His professional background includes extensive tier one experience in the Defence,<br />
Laboratory and Education sectors. Having worked on both sides of residential and<br />
commercial construction, he brings a unique insight into both the risk and opportunity<br />
inherent in construction projects. Additionally, Guy has direct experience in facilities<br />
management, delivering services both in-house and as a consultant.<br />
Guy has a thorough understanding of the process of property development and whole<br />
of life considerations in facility ownership.<br />
Qualifications<br />
• Bachelor of Construction Management<br />
• Member of the Australian Institute<br />
of Building (MAIB)<br />
• Master Builders Association - Certified<br />
Construction Professional (CCP)<br />
• Member of The Society of Construction<br />
Law Australia<br />
• Member of the Association of<br />
Building Consultants<br />
Significant Projects<br />
• Air7000 2B (SA)<br />
• Flinders University at Tonsley (SA)<br />
• Aquatic Centre Rectification (SA)<br />
• Hardened and Networked Army (SA)<br />
• QUT Medical Engineering Research Facility (QLD)<br />
• QUT Z Block Expansion (QLD)<br />
• Brisbane Immigration Transit Accommodation<br />
Centre (QLD)<br />
• Associate Member - Resolution Institute
YOUNG LAWYERS<br />
facebook.com/YLCSA<br />
120,000<br />
100,000<br />
80,000<br />
60,000<br />
40,000<br />
20,000<br />
0<br />
120,000<br />
100,000<br />
80,000<br />
60,000<br />
40,000<br />
20,000<br />
0<br />
41%<br />
LARGE FIRM<br />
LARGE FIRM<br />
MEDIUM FIRM<br />
MEDIUM FIRM<br />
1-3 PQE<br />
BOUTIQUE<br />
SUBURBAN<br />
REGIONAL<br />
IN-HOUSE<br />
MEN<br />
WOMEN<br />
4-10 YEARS PQE<br />
BOUTIQUE<br />
SUBURBAN<br />
REGIONAL<br />
IN-HOUSE<br />
MEN<br />
WOMEN<br />
24%<br />
12%<br />
PUBLIC SECTOR<br />
PUBLIC SECTOR<br />
CRIMINAL<br />
CRIMINAL<br />
22%<br />
FAMILY<br />
FAMILY<br />
PERFORMANCE REVIEW<br />
The survey asked responders whether<br />
they had an annual performance appraisal<br />
process. Two out of three young lawyers<br />
who responded have had a performance<br />
review (66%). Those working in<br />
larger firms were most likely to have a<br />
performance appraisal process, with a 95%<br />
yes response rate. Those working within<br />
the public sector were also highly likely<br />
to have an annual performance appraisal<br />
process, with an 85% yes response rate.<br />
Less than half of young lawyers working<br />
in small law firms had a performance<br />
appraisal. Full time workers (74%) were<br />
more likely than part time workers (49%)<br />
to have a performance appraisal. Young<br />
lawyers that have an annual salary review<br />
process, were more likely to have received<br />
a salary increase within the last 12 months<br />
(78%).<br />
SALARY REVIEW PROCESS<br />
Young lawyers were asked whether<br />
their firm had a salary review process,<br />
of which 42% indicated that they did.<br />
Interestingly, responders with a higher<br />
salary were more likely to take part in<br />
an annual salary review, which suggests<br />
that young lawyers who are employed at<br />
firms with a formal salary review process<br />
in place are more likely to receive salary<br />
increases. 62% of young lawyers had<br />
received a salary increase in the last 12<br />
months and 12% say that they have never<br />
received a salary increase.<br />
Of those that did have a salary review<br />
process, 50% were dissatisfied with the<br />
review process, and 30% were satisfied<br />
with the process.<br />
DISSATISFIED<br />
NETURAL SATISFIED EXTREMELY SATISFIED<br />
Q: HOW SATISFIED ARE YOU WITH YOUR REMUNERATION?<br />
BASE: RESPONDENTS WHO PROVIDED A VALID RESPONSE, N/A INCLUDED BUT NOT SHOWN (N=397)<br />
OVERTIME<br />
Of those that participated in the<br />
survey, 13% were expected to undertake<br />
substantial out of hours or weekend<br />
work. Twenty-five per cent saw this as a<br />
24<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
YOUNG LAWYERS<br />
facebook.com/YLCSA<br />
regular occurrence and 38% stated that<br />
they were occasionally required to perform<br />
such work. Twenty-three percent of<br />
respondents did not undertake such work.<br />
By comparison, 7.95% of respondents<br />
in the Western Australian survey always<br />
undertook three or more hours of work<br />
over a weekend, whilst 28.41% never did.<br />
PARENTAL LEAVE<br />
Whilst 40% of respondents<br />
understood that their employer offered<br />
parental leave in line with government<br />
minimum standards, one in five employers<br />
offered parental leave above the minimum<br />
government requirements. Thirty-six per<br />
cent of respondents were unsure about<br />
the parental leave offered at their place of<br />
employment.<br />
FLEXIBLE LEAVE<br />
Of the one in four respondents that<br />
have sought flexible arrangements, 80%<br />
believe that their request was appropriately<br />
addressed. Almost three quarters of<br />
respondents have never sought flexible<br />
working arrangements.<br />
STRESS & BULLYING<br />
Only four percent of respondents<br />
were not stressed at all, whilst 32% were<br />
reasonably stressed and nine per cent were<br />
very stressed.<br />
The results demonstrated that sole<br />
practitioners had the highest levels of<br />
stress. Factors contributing to higher<br />
stress levels were workplace bullying and<br />
working in a regional area. Ten per cent of<br />
respondents who conduct weekend work<br />
consider themselves stressed.<br />
Whilst just over half of respondents<br />
have personally experienced bullying,<br />
almost two thirds have observed bullying,<br />
either in their current, or previous<br />
workplace. Six out of ten female<br />
practitioners experienced bullying, as<br />
4%<br />
50%<br />
DISSATISFIED<br />
NOT STRESSED<br />
AT ALL<br />
28%<br />
SLIGHTLY<br />
STRESSED<br />
20%<br />
Q: HOW SATISFIED ARE YOU WITH THE SALARY REVIEW PROCESS?<br />
BASE: RESPONDENTS WHO PROVIDED A VALID RESPONSE (N=391. UNSURE AND N/A INCLUDED BUT<br />
NOT SHOWN)<br />
Q: ON AN AVERAGE DAY, HOW STRESSED DOES YOUR JOB/STUDY MAKE YOU FEEL?<br />
BASE: RESPONDENTS WHO PROVIDED A VALID RESPONSE, N/A INCLUDED BUT NOT SHOWN (N=399)<br />
have four out of ten males. Fourteen<br />
per cent of those that were bullied, or<br />
observed bullying stated that it was a daily<br />
occurrence. Almost half of those bullied<br />
stated that it occurred rarely, whilst one<br />
third of those that observe bullying stated<br />
that it was a rare occurrence. Those on<br />
lower incomes tended to experience more<br />
bullying, whilst those working in firms<br />
of over 20 employees were less likely to<br />
experience bullying. Fifty-nine per cent<br />
32%<br />
REASONABLY<br />
STRESSED<br />
13%<br />
27%<br />
QUITE<br />
STRESSED<br />
17%<br />
NETURAL SATISFIED EXTREMELY SATISFIED<br />
9%<br />
VERY<br />
STRESSED<br />
of respondents experiencing bullying in<br />
their current workplace are either quite,<br />
or very stressed as compared to 27% not<br />
experiencing bullying.<br />
The Young Lawyers’ Committee<br />
will be releasing a more detailed report<br />
with respect to the findings of the<br />
Survey, which will include a number of<br />
recommendations to the Law Society with<br />
respect to supporting young lawyers in<br />
South Australia.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN<br />
25
PROPERTY LAW<br />
EXAMINING THE PROPOSED LAND<br />
TAX AGGREGATION LAWS FOR SA<br />
ELIAS FARAH, PRINCIPAL PARTNER, COMMERCIAL & LEGAL<br />
The South Australian State<br />
Government announced on 18 June<br />
<strong>2019</strong> that measures would be taken to<br />
help close and prevent “loopholes” that<br />
exist which enable owners of multiple<br />
properties to pay less land tax.<br />
Put simply, the intention of the<br />
State Government is to aggregate (i.e.<br />
group) land held by common owners and<br />
beneficiaries regardless of who actually<br />
owns the land (i.e. the legal entity).<br />
This article is intended to assist<br />
readers to better understand the proposed<br />
measures, will consider what the pending<br />
draft legislation may look like, and how<br />
such a change may affect the South<br />
Australian real estate market.<br />
WHY THE HYPE?<br />
For the past two months, there has<br />
been much discussion, speculation and,<br />
in some cases, resentment in our local<br />
real estate market in relation to the State<br />
Government’s proposal.<br />
At the present point, land tax is assessed<br />
for the most part based on the concept that<br />
each legal entity is assessed separately from<br />
other land that may be owned by the same<br />
or related entities or persons.<br />
So for example, that means land wholly<br />
owned in your name is assessed separately<br />
to land owned in the joint names of you<br />
and your partner (or another person), and<br />
again is assessed separately to land owned<br />
in a company that you may control or be<br />
a shareholder in, and again is assessed<br />
separately to a family trust or unit trust<br />
that you may hold a beneficial or fixed<br />
interest in.<br />
The reason why separate assessment<br />
is important, as opposed to grouped<br />
assessments (better known as “multiple<br />
holdings”), is because the rate of land tax<br />
26 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
applied varies and increases substantially<br />
the higher the value of total land holdings<br />
you have in an assessment. This is<br />
illustrated later within the article.<br />
It should be noted that utilising these<br />
separate assessments, disregarding antiavoidance<br />
laws for the time being, is not<br />
illegal and is in fact clearly outlined by<br />
RevenueSA on their website. Naturally this<br />
creates incentive for landowners to utilise<br />
different entities (and mixes of entities)<br />
when deciding to buy new properties, and<br />
this has developed as a common practice<br />
for some time now, to reduce one’s land<br />
tax assessments and increase net cashflows<br />
from property ownership.<br />
This is essentially the “loophole” that<br />
the State Government now wish to close,<br />
and concern of stakeholders revolves<br />
around a real estate market which fears it<br />
will be stung by an uncommercial rise in<br />
land tax costs.<br />
WHY THE CHANGE?<br />
The State Government says that it wants<br />
to facilitate competitiveness within the tax<br />
system, ensuring equity amongst taxpayers,<br />
intending to supplement, correct, and<br />
control the law by being fair and impartial.<br />
They consider that closing these<br />
“loopholes” in land tax does just that.<br />
Importantly, the State Government’s<br />
land tax reform proposal is part of a wider<br />
State Budget proposal responding to an<br />
estimated loss of $2.1 billion in GST<br />
revenues.<br />
They estimate that the aggregation<br />
measures will raise approximately $120<br />
million over the first three years, with some<br />
$40 million of additional revenue expected<br />
to go directly into the State Government<br />
coffers in the first year.<br />
In considering these figures, it<br />
has been widely speculated that the<br />
State Government has significantly<br />
underestimated the additional land tax<br />
revenue, some saying it could actually be in<br />
excess of $100 million per year.<br />
FURTHER DETAIL ON THE PROPOSAL<br />
The proposed changes are detailed<br />
in the <strong>2019</strong>-20 South Australian Budget<br />
that was recently released on 18 June<br />
<strong>2019</strong>. The State Budget papers are<br />
available at https://statebudget.sa.gov.<br />
au/#Budget_Papers<br />
For those who wish to obtain greater<br />
insight and detail on the proposed<br />
measures, we direct you to pages 8-9 of<br />
the Budget Speech, pages 42-43 and page<br />
168 of the Budget Statement, and pages<br />
4-6 of the Budget Measures Statement.<br />
WHAT ARE THE PROPOSED CHANGES?<br />
Outside of the State Budget papers,<br />
there has not been a great deal of<br />
information provided regarding how<br />
exactly the aggregation and surcharge<br />
measures will be implemented. At the time<br />
of writing this article, the draft legislation<br />
had not yet been distributed for comment<br />
by industry stakeholders.<br />
On the current available information,<br />
the changes are likely to cover the following:<br />
• Legal changes that allow various<br />
related entities to be grouped together<br />
for land tax purposes;<br />
• Properties will be aggregated based on<br />
a land owner’s interest in every piece<br />
of land they hold rather than only<br />
aggregating properties held in the same<br />
ownership structure;<br />
• RevenueSA will receive further<br />
authority and standards to determine<br />
the “true owner” of every parcel of<br />
land regardless of whether they are
PROPERTY LAW<br />
acting together or have a controlling<br />
interest; and<br />
• An additional surcharge rate will be<br />
charged on land owned in trusts where<br />
the trust beneficiaries are not disclosed<br />
or identified.<br />
Aggregation standards will identify<br />
the “true” multiple holdings for each<br />
individual owner, be it land held in sole<br />
name, joint names, in companies or in<br />
fixed interest trusts.<br />
In those cases where individual owners<br />
cannot be effectively identified, such as a<br />
discretionary family trust, it is proposed<br />
that they would have to pay a “surcharge”,<br />
being an additional rate of land tax,<br />
effectively dissuading anyone from trying<br />
to avoid grouping.<br />
These reforms will effectively group<br />
properties to the extent a common<br />
ownership can be identified, and will<br />
diminish incentives to own properties in<br />
other entities (such as trusts) if there is no<br />
other substantive benefit other than the<br />
minimisation of land tax.<br />
Although the draft legislation remains<br />
a work-in-progress, the proposed measures<br />
COMPANIES VICTORIA NEW SOUTH WALES SOUTH AUSTRALIA<br />
HOW WILL RELATED<br />
COMPANIES BE<br />
GROUPED?<br />
• The Commissioner of State Revenue, at its<br />
own discretion, may treat two or more related<br />
corporations as a single corporation and group<br />
corporations.<br />
• Each claim is on a case-by-case basis and will<br />
apply the following factors:<br />
ÆÆ<br />
ÆÆ<br />
ÆÆ<br />
ÆÆ<br />
ÆÆ<br />
Intention to avoid land tax;<br />
Degree of relatedness within the company;<br />
The degree of control by the Directors of<br />
the day-to-day operations of each related<br />
corporation;<br />
Use of the land; and<br />
Other relevant factors that will support the<br />
determination to group in any given case.<br />
• The Chief Commissioner may<br />
assess:<br />
ÆÆ<br />
ÆÆ<br />
ÆÆ<br />
All companies separately;<br />
Companies jointly; and<br />
Any 2 or more companies<br />
jointly and the remainder<br />
separately.<br />
• There is no guiding criteria<br />
or factors for the Chief<br />
Commissioner to consider.<br />
• It is likely that RevenueSA will be<br />
given similar discretion as both<br />
VIC and NSW have, but with<br />
guiding standards similar toVIC.<br />
HOW ARE ‘RELATED<br />
COMPANIES’<br />
IDENTIFIED?<br />
DOES A ‘CONTROLLING<br />
INTEREST’ EXIST IF A<br />
PERSON OR TWO OR<br />
MORE PERSONS ‘ACTING<br />
TOGETHER’ CAN CONTROL<br />
THE COMPOSITION OF A<br />
BOARD OF DIRECTORS OF<br />
THE COMPANY?<br />
• Controls the composition of the Board of<br />
Directors.<br />
• Holds or controls 50% or more of issued share<br />
capital.<br />
• Does not limit the circumstances in which the<br />
composition of a company’s board is taken to be<br />
controlled by a person or persons.<br />
• As per Victoria. • Likely to be same as VIC and<br />
NSW.<br />
• As per Victoria. • Likely that a similar broad<br />
authority will be provided to<br />
RevenueSA.<br />
UNIT TRUSTS VICTORIA NEW SOUTH WALES SOUTH AUSTRALIA<br />
HOW WILL TRUSTEES<br />
OF UNIT TRUSTS BE<br />
SUBJECT TO LAND TAX?<br />
WHAT OCCURS WHEN<br />
A COMMISSIONER HAS<br />
BEEN NOTIFIED OF THE<br />
UNIT HOLDERS?<br />
IS THE UNIT HOLDER<br />
ENTITLED TO A<br />
REDUCTION?<br />
• Trustees of unit trusts are subject to higher rates of<br />
land tax. This is distinguished as surcharge rates.<br />
• However, a trustee will be assessed at general rates<br />
if the Commissioner is notified of the unit holders.<br />
• The unit holders will be assessed on their interests<br />
in the land, which is held in the unit trust.<br />
• The unit holder’s interests are aggregated with all<br />
other interests on other taxable land they hold.<br />
• The trustee of the unit trust remains assessed for<br />
land tax.<br />
• To avoid double taxation, the unit holder may<br />
qualify for a reduction of their land tax liability<br />
to the extent land tax is paid by the trustee of the<br />
relevant unit trust.<br />
• However, if the unit holder’s land tax assessment<br />
is greater than the portion paid by the trustee (i.e.<br />
due to the individual’s multiple holdings being in<br />
a higher band of land tax), the unit holder will<br />
remain liable to pay the balance.<br />
• As per Victoria. • Likely to be same as VIC and<br />
NSW.<br />
• As per Victoria. • Likely to be same as VIC and<br />
NSW.<br />
• As per Victoria.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 27
PROPERTY LAW<br />
DISCRETIONARY<br />
TRUSTS<br />
VICTORIA NEW SOUTH WALES SOUTH AUSTRALIA<br />
HOW IS THE TRUSTEE<br />
OF A DISCRETIONARY<br />
TRUST ASSESSED?<br />
• Trustees of discretionary trusts are subject to<br />
higher rates of land tax, being the surcharge rate.<br />
• As per Victoria. • Likely to be same as VIC and<br />
NSW.<br />
CAN THE HIGHER<br />
SURCHARGE RATE BE<br />
REDUCED TO A GENERAL<br />
RATE IF A NOMINATED<br />
BENEFICIARY IS<br />
IDENTIFIED FOR THE<br />
TRUST?<br />
• At the time of introducing the land tax reforms<br />
(1 July 2005), trustees of discretionary trusts<br />
were afforded a period of 6 months to nominate<br />
a specified beneficiary for land held by the trust.<br />
• Where so nominated, the trustee is assessed at<br />
general rates only.<br />
• That nominated beneficiary is deemed to be the<br />
owner of the land, and that trust land is added<br />
to the beneficiary’s other land holdings for a<br />
grouped assessment.<br />
• There is no scope to nominate<br />
a beneficiary as recipient of<br />
the land tax assessment for<br />
discretionary trusts in NSW.<br />
• All discretionary trusts in NSW<br />
will be assessed at the surcharge<br />
rates.<br />
• It is unknown but likely that<br />
S.A legislation will afford<br />
discretionary trusts a similar<br />
period to VIC to nominate a<br />
beneficiary and avoid surcharge<br />
rates.<br />
IS THE NOMINATED<br />
BENEFICIARY<br />
ENTITLED TO A<br />
REDUCTION?<br />
WHAT ABOUT<br />
FUTURE LAND<br />
ACQUIRED BY A<br />
TRUST (NEW OR<br />
EXISTING)?<br />
• To avoid double taxation, the nominated<br />
beneficiary may qualify for a reduction of their<br />
land tax liability to the extent land tax is paid by<br />
the trustee of the trust.<br />
• However, if the beneficiary’s land tax assessment<br />
is greater than the portion paid by the trustee, the<br />
beneficiary will remain liable to pay the balance.<br />
• Any land acquired by a trust after the 6-month<br />
period (1 January 2006) cannot nominate a<br />
beneficiary and will be subject to surcharge duty.<br />
• This includes land acquired after 1 January 2006<br />
by a trust which has a nominated beneficiary<br />
prior to 1 January 2006.<br />
• Commissioner may permit a beneficiary<br />
nominated after 1 January 2006 if such<br />
nomination replaces a prior beneficiary who has<br />
either died or otherwise revoked their nomination.<br />
The Commissioner has discretion to determine if<br />
a subsequent nomination is just and reasonable.<br />
• N/A. • S.A likely to match that of VIC.<br />
• Surcharge rates apply. • S.A likely to match that of VIC.<br />
LAND TAX RATES VICTORIA NEW SOUTH WALES SOUTH AUSTRALIA<br />
WHAT IS THE TOP<br />
MARGINAL LAND TAX<br />
RATE?<br />
• 2.25% plus a fixed charge of $24,975, being for<br />
land holdings above $3,000,000.<br />
• 2%, being for land holdings<br />
above $3,846,000.<br />
• 3.7% (at present), being for land<br />
holdings above $5,000,000.<br />
• Note: It is proposed that top<br />
marginal rate may reduce by<br />
0.1% annually from FY2021<br />
onwards until it reaches 2.9%<br />
from 1 July 2027.<br />
WHAT IS THE<br />
SURCHARGE RATE<br />
PAYABLE FOR CERTAIN<br />
TRUSTS?<br />
• Trusts pay the general rate applicable for their<br />
land holding, PLUS a surcharge rate.<br />
• The surcharge rate is a higher fixed charge plus an<br />
additional 0.375% up to $1.8m.<br />
• The surcharge begins to phase out from $1.8m,<br />
and from $3m it is the same as the general rate<br />
(which is a fixed charge plus 2.15%).<br />
• It is simply a 1.6% flat rate up to<br />
the premium land tax threshold<br />
of $3,846,000.<br />
• 2% for land value thereafter.<br />
• It is difficult to predict whether<br />
they will propose a flat surcharge<br />
rate (as per NSW) or an<br />
additional surcharge rate above<br />
the general rate (as per VIC).<br />
COMPARISON OF<br />
ANNUAL LAND TAX<br />
PAYABLE, BASED ON<br />
A COMBINED LAND<br />
HOLDING OF SAY<br />
$5,000,000.<br />
• $69,975 (noting at this level land tax is same<br />
regardless if trust or otherwise).<br />
• $72,104 (assuming no surcharge).<br />
• $84,616 (assuming surcharge for<br />
trusts).<br />
• $150,070 (based on current rates<br />
and excluding surcharge rates).<br />
• Note: land tax rates for holdings<br />
valued $1.3m to $5m will reduce<br />
from 3.7% to 2.9% from 1 July<br />
2020. Estimate of land tax<br />
payable will drop to $120,544<br />
(again excluding surcharge rates).<br />
28 THE BULLETIN <strong>September</strong> <strong>2019</strong>
PROPERTY LAW<br />
are likely to be like those reforms<br />
previously introduced in New South Wales<br />
and Victoria (Victoria being the first State<br />
to introduce land tax aggregation laws).<br />
ANALYSIS OF THE PROPOSED FRAMEWORK<br />
Below is a comparison between the<br />
relevant aggregation land tax laws of New<br />
South Wales and Victoria, and the writer’s<br />
impression on what may be introduced in<br />
South Australia.<br />
IMPACT OF THE FRAMEWORK AND<br />
CONSIDERATIONS<br />
As illustrated above, assuming the State<br />
Government does not introduce additional<br />
surcharge land tax for land values of say<br />
$5 million, the land tax payable by a South<br />
Australian landowner from 1 July 2020 will<br />
be some $35,928 and $50,569 higher than<br />
the equivalent landowner in Victoria or<br />
NSW respectively.<br />
These calculations already factor in the<br />
approved reduction that commences from<br />
1 July 2020, whereas now the difference<br />
is much higher, being some $65,454 to<br />
$80,454.<br />
The existing framework and<br />
significantly higher land tax payable by<br />
South Australian landowners explains<br />
why many have strived to separate their<br />
landholdings as separate assessments<br />
where possible.<br />
With a national average top marginal<br />
land tax rate of 1.92% across all States<br />
and Territories (excluding NT which<br />
has none), our current top rate of 3.7%<br />
provides a significant issue for the State<br />
Government and landowners to overcome.<br />
Needless to say, the proposed reduction to<br />
2.9% by 2027 is not likely to be enough.<br />
Of further importance is the State’s<br />
current “Revaluation Initiative” whereby<br />
the Valuer-General has been provided with<br />
funding and mandate to comprehensively<br />
review the market value of all land in SA<br />
for rating purposes. The first cycle of this<br />
revaluation commenced in FY2020 across<br />
three Council areas (Walkerville, Unley<br />
and Adelaide Plains) and will continue to<br />
expand into other Council areas over the<br />
coming 1-2 years.<br />
This revaluation towards market rates<br />
presents its own issue for landowners, as<br />
it will doubtless lead to higher valuations<br />
and rate assessments as well as disputes<br />
around true market values. The proposed<br />
land tax aggregation laws overlapping with<br />
this revaluation initiative presents further<br />
challenges and costs for landowners to<br />
grasp.<br />
PASSING THE LEGISLATION<br />
To effect the proposed changes, the<br />
State Government will make amendments<br />
to the Land Tax Act 1936 (Act), which if<br />
passed, will come into effect on 1 July 2020.<br />
There is no draft legislation in circulation yet.<br />
It has been said that the draft legislation<br />
is likely to be circulated at some point in<br />
<strong>September</strong> <strong>2019</strong>, and that it will be provided<br />
to key industry stakeholders for comment.<br />
There is no indication of how long this<br />
consultation period may be or when the Bill<br />
is expected to be introduced to Parliament.<br />
The measures are not universally<br />
popular even within the State Government<br />
MPs. The Parliamentary Opposition has<br />
not taken an official position to support or<br />
oppose the proposed land tax aggregation<br />
measures.<br />
CONCLUDING COMMENTS<br />
For the time being, it is clear that the<br />
proposed land tax aggregation measures<br />
present significant concern to the South<br />
Australian real estate industry. B<br />
MEMBERS ON<br />
THE MOVE<br />
Grope Hamilton Lawyers have<br />
appointed Tiffany Irving as<br />
a solicitor practising principally in<br />
commercial litigation. Grope Hamilton<br />
Lawyers’ managing partner, Mark<br />
Hamilton, said: “Tiffany will be assisting<br />
the firm’s partners, but will play a special<br />
role assisting the firm’s property and<br />
construction disputes partner, Rino<br />
Marrone, with his practice.” Grope<br />
Hamilton has also appointed law graduate,<br />
Jim Coffey, as a paralegal assisting partner,<br />
Tony Kerin, with his civil litigation<br />
practice. Jim is shortly to be admitted as a<br />
solicitor in South Australia.<br />
Sam Ure has recently taken a room<br />
in Hanson Chambers for six months<br />
TIFFANY IRVING<br />
JAMES COFFEY<br />
whilst Anna Wells is on maternity<br />
leave. Sam is a barrister of 10 years<br />
call at the Victorian Bar and returned<br />
to South Australia in early <strong>2019</strong>. Sam<br />
practises in commercial litigation, tax and<br />
administrative law. Sam can be contacted<br />
at Hanson Chambers on 8212 6022 or by<br />
email on ure@hansonchambers.com.au<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN<br />
29
BUILDING & PROPERTY LAW<br />
THE NON-JURISDICTIONAL ERROR<br />
OF LAW ON THE FACE OF THE<br />
RECORD AND THE CASES BEFORE<br />
THE HIGH COURT OF AUSTRALIA<br />
DR AUKE STEENSMA, BARRISTER AND SOLICITOR, STEENSMA LAWYERS<br />
In January, 2017, Robert Fenwick Elliott,<br />
and the author of the seminal work,<br />
10 Days in Utopia, 3 stated that the state<br />
Supreme Courts did not have jurisdiction to<br />
review the determinations of adjudicators<br />
under security of payment (SOP)<br />
legislation 4 , relating to non-jurisdictional<br />
error of law on the face of the record.<br />
The statement has created considerable<br />
controversy for counsel and legal<br />
practitioners.<br />
The Lexus Nexus Concise Australian<br />
Legal Dictionary, defines “error of law<br />
on the face of the record” as; “a ground<br />
of judicial review available where a nonjurisdictional<br />
error appears on the face of<br />
the record of an inferior court.” 5<br />
As Fenwick Elliot noted, two cases<br />
considered by the High Court of Australia<br />
(HCA) to determine if the security of<br />
payment (SOP) legislation would bar<br />
judicial review on the grounds of an error<br />
of law on the face of the record.<br />
On 14 February, 2018, Kiefel CJ,<br />
Bell, Gageler, Keane, Nettle, Gordon and<br />
Edelman JJ of the HCA, dismissed two<br />
appeals that came from the enjoined cases<br />
from NSW; Probuild Constructions (Aust) Pty<br />
Ltd v Shade Systems Pty Ltd & Anor, 6 and the<br />
30 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
other; Maxcon Constructions Pty Ltd v Vadasz<br />
(No 2), 7 from South Australia.<br />
Probuild concerned a payment claim<br />
submitted by Shade. After rejection<br />
by Probuild the claim progressed to<br />
adjudication. The adjudicator determined<br />
in favour of Shade. Probuild later alleged<br />
a denial of procedural fairness, and that an<br />
error of law in the determination was made<br />
by the adjudicator.<br />
At first instance primary Judge, Emmett<br />
J, held that “the Court’s supervisory<br />
jurisdiction permitted a review of nonjurisdictional<br />
errors of law on the face of<br />
the record” 8 and the determination. Shade<br />
appealed. They argued “that there was no<br />
power to intervene in a case where the only<br />
errors identified were non-jurisdictional<br />
errors of law.” 9<br />
On 23 December, 2016, Bathurst CJ,<br />
Beazley P, Basten, Macfarlan & Leeming<br />
JJA, of the NSW Supreme Court Court<br />
of Appeal handed down their judgement.<br />
They held unanimously that “the Security<br />
of Payment Act did not permit a review<br />
of an adjudicator’s decision other than for<br />
jurisdictional error.” 10<br />
Probuild then sought leave to appeal in<br />
the HCA claiming:<br />
The NSW Court of Appeal erred in holding<br />
that the NSW Supreme Court’s power to<br />
make orders in the nature of certiorari for error<br />
of law on the face of the record is ousted in<br />
relation to determinations under the Security of<br />
Payment Act. 11<br />
Two months later, the Full Court of the<br />
Supreme Court of South Australia, dismissed<br />
an appeal sought by Maxcon Constructions Pty<br />
Ltd v Vadasz (No 2) (2017) 127 SASR 193.<br />
The case related to a payment claim<br />
against Maxcon, determined in favour,<br />
of one Vadasz. The contract was for<br />
the “design and construct piling for<br />
an apartment building.” 12 However,<br />
unbeknown to Maxcon, at the time of the<br />
contract agreement, Mr Vadasz was an<br />
undischarged bankrupt.<br />
The adjudicator concluded that the<br />
contract between Maxcon and Vadasz<br />
included retention provisions that the<br />
adjudicator determined were “pay when<br />
pay provisions”. The adjudicator found<br />
that the retention provisions were<br />
prohibited pursuant to s 12(1) and s 12(2)<br />
(c) of the Building and Construction Industry<br />
Security of Payment Act 2009 (SA). 13 The<br />
adjudicator held the provisions as void,
BUILDING & PROPERTY LAW<br />
There is no real immediate prospect of non-jurisdictional<br />
error of law sufficing as a ground for challenge under the<br />
West Coast model any more than the East Coast model.<br />
Construction Law Barrister Robert Fenwick Elliott<br />
3 January 2017 1<br />
Being an adjudicator under the Building and<br />
Construction Industry Security of Payment Act 2009 (SA)<br />
is like walking around with a target on your back.<br />
Construction Law Barrister Martin Frayne SC<br />
9 February 2017 2<br />
and therefore, Maxcon did not have an<br />
entitlement to the retention sum.<br />
Maxcon initiated proceedings in the<br />
Supreme Court of South Australia. Stanley<br />
J held “that there was no jurisdictional<br />
error (or other error of law) made by the<br />
adjudicator.” 14 Maxcon then commenced<br />
an Appeal before the Full Court of the<br />
South Australian Supreme Court.<br />
The Full Court quorum consisting of;<br />
Blue J, Lovell JJ and Hinton J, dismissed<br />
the appeal (with Hinton J dissenting).<br />
The Full Court held that there was no<br />
jurisdictional error. It held that there had<br />
been an error, but that error was an error<br />
of law on the face of the record. They<br />
held that the authority for “proposition<br />
that the remedy of certiorari 15 was<br />
impliedly excluded under the Act”. 16<br />
Maxcon then appealed. The appeal was<br />
made on the following ground: that the<br />
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BUILDING & PROPERTY LAW<br />
Full Court had made an error by applying<br />
the NSW case of Shade Systems Pty Ltd v<br />
Probuild Constructions (Aust) Pty Ltd (No.2).<br />
They concluded that the Building and<br />
Construction Industry Security of Payment Act<br />
1999 (NSW) prevented judicial review on<br />
the ground of error of law on the face of<br />
the record. Vadasz “contended that the<br />
adjudicator had made no error of law”. 17<br />
The determination as to whether the<br />
Acts allowed the issue of judicial review<br />
on the ground of error of law on the face<br />
of the record, would move to the HCA.<br />
Both cases were granted special leave<br />
by the HCA. They were enjoined on 12<br />
May, 2017. The hearing was held on 9<br />
November, 2017, adjourned until Tuesday,<br />
14 November, 2017. The HCA handed<br />
down the decision on 14 February, 2018.<br />
The HCA held in Probuild Constructions<br />
(Aust) Pty Ltd v Shade Systems Pty Ltd 18 :<br />
The only question in this appeal is whether<br />
the scheme established by the Security of<br />
Payment Act for claims for, and payment of,<br />
progress payments ousts the jurisdiction of<br />
the Supreme Court of New South Wales to<br />
make an order in the nature of certiorari to<br />
quash a determination by an adjudicator for<br />
error of law on the face of the record that is<br />
not a jurisdictional error. The answer is yes:<br />
the Security of Payment Act does oust that<br />
jurisdiction. 19<br />
The HCA further added in Maxcon<br />
Constructions Pty Ltd v Vadasz 20 :<br />
However, it is important to add that, for the<br />
reasons explained in Probuild, the Supreme<br />
Court of South Australia may grant<br />
relief (whether in the nature of certiorari<br />
or otherwise) for jurisdictional error by an<br />
adjudicator appointed under the Security of<br />
Payment Act; but the provisions of the Security<br />
of Payment Act, like the provisions of the<br />
New South Wales Act, oust the Supreme<br />
Court’s jurisdiction to make an order in the<br />
nature of certiorari to quash an adjudicator’s<br />
determination for error of law on the face of<br />
the record that is not a jurisdictional error. 21<br />
CONCLUSION<br />
The decision appears to have been<br />
well received by adjudicators. Adjudicators<br />
32 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
operate in an environment in which<br />
Andrew Wallace termed; “decision is an<br />
interim one and given that it is often made<br />
in a “pressure cooker” environment under<br />
extremely tight timeframes, 22 trying to<br />
achieve what Lord Ackner coined in the<br />
House of Lords, the ‘quick and dirty fix”. 23<br />
Adjudication requires independence<br />
and involves analysis of copious quantities<br />
of documentation that make up the<br />
application and the response, 24 and has, in<br />
most states, 10 business days to make often<br />
challenging determinations. To make the<br />
issue more complicated, most adjudicators<br />
come from the building and construction<br />
industry, not lawyers. They usually have<br />
backgrounds as civil engineers, project<br />
managers, architects, and builders.<br />
For example in WA in 2017-18, there<br />
were 84 registered adjudicators of which<br />
57 (or 68%) were non-lawyers, and 27<br />
(32%) lawyers. 25 In the NT in 2017-18,<br />
there were 42 registered adjudicators of<br />
which 25 (or 60%) were non-lawyers, and<br />
17 (40%) lawyers. 26<br />
The HCA rightly recognises that<br />
non-lawyer adjudicators may apply<br />
the incorrect law, or make incorrect<br />
conclusions of the facts presented to<br />
them. The HCA concluded in Probuild: 27<br />
The Security of Payment Act did not<br />
authorise adjudicators to take unlawful steps<br />
by making errors of law. What it did do, by<br />
implication based upon a background legislative<br />
assumption, was to immunise from judicial<br />
review any non-jurisdictional error of law on<br />
the face of the record.<br />
It is unlikely that those who initially<br />
championed security of payment<br />
legislation saw adjudication in terms of<br />
legal purity as opposed to what Lord<br />
Ackner coined in the House of Lords,<br />
the “quick and dirty fix”. 28 The former<br />
Building Commissioner of Western<br />
Australia, Mr Peter Gow affirmed; “The<br />
adjudicator may have much more freedom<br />
to balance cost and time against legal<br />
purity”. 29 Non-jurisdictional error of law<br />
on the face of the record “would imply<br />
an expectation from the Judiciary that<br />
an adjudicator would have the same legal<br />
qualifications as a lawyer has.” 30<br />
Had the HCA held differently, Frayne<br />
SC would have been further vindicated by<br />
his assertion. However, common sense<br />
prevailed. The HCA decision confirmed<br />
that Fenwick Elliott, was correct; “there<br />
is no real immediate prospect of nonjurisdictional<br />
error of law sufficing as a<br />
ground for challenge under the West Coast<br />
model any more than under the East Coast<br />
model”. 31<br />
Dr Steensma specialises in Construction<br />
Law and ADR. He is an Arbitrator (Gde 3),<br />
Adjudicator (WA & NT), Mediator (NMAS),<br />
and Expert Determination Practitioner. He has<br />
been a member of the Society’s ADR committee<br />
since 2017.<br />
The Author would also like to thank Professor<br />
Philip Evans for his guidance in this paper. B<br />
Endnotes<br />
1 Robert Fenwick Elliott, Maxcon in The Shade,<br />
(03 Jan 2017), https://feconslaw.wordpress.<br />
com/2017/01/03/maxcon-in-the-shade/#_<br />
ftnref2<br />
2 Resolution Institute - SA Chapter CPD - Recent<br />
case law affecting adjudication Security of<br />
Payment (SOP) Acts in SA and other states,<br />
9 February 2017 in Adelaide. Guest presenter<br />
Martin Frayne SC.<br />
3 Robert Fenwick Elliott, ‘10 Days in Utopia’<br />
(Proceedings of the Institute of Arbitrators &<br />
Mediators Australia, Glenelg, South Australia, 02<br />
June 2007), 5.<br />
4 Building and Construction Industry Security of Payment<br />
Act 1999 (NSW); Building and Construction Industry<br />
Security of Payment Act 2002 (Vic); Building and<br />
Construction Industry Payments Act 2004 (Qld)<br />
(later Building IndustryFairness (Security of Payment)<br />
Act 2017 (Qld); Construction Contracts (Security of<br />
Payments) Act 2004 (NT); Building and Construction<br />
Industry (Security of Payment) Act 2009 (SA);<br />
Building and Construction Industry Security of Payment<br />
Act 2009 (ACT); Building and Construction Industry<br />
Security of Payment Act 2009 (Tas).<br />
5 Peter Butt, et al, LexisNexis – Concise Australian<br />
Legal Dictionary, (LexisNexis Butterworths,<br />
Chatswood NSW, 4th Ed, 2011), 34.<br />
6 [2016] NSWCA 379.<br />
7 [2017] SASCFC 2.<br />
8 High Court of Australia, ‘Short particulars,<br />
Probuild Constructions (Aust) Pty Ltd v Shade Systems<br />
Pty Ltd & Anor (S145/2017), http://www.<br />
hcourt.gov.au/assets/cases/08-Sydney/s145-<br />
2017/Probuild_SP.pdf, 1.<br />
9 Ibid.<br />
10 High Court of Australia, ‘Short particulars,<br />
Probuild Constructions (Aust) Pty Ltd v Shade Systems<br />
Pty Ltd & Anor (S145/2017), http://www.<br />
hcourt.gov.au/assets/cases/08-Sydney/s145-<br />
2017/Probuild_SP.pdf, 1.<br />
11 Ibid.<br />
12 High Court of Australia, ‘Short particulars,<br />
Maxcon Constructions Pty Ltd v Michael Christian
BUILDING & PROPERTY LAW<br />
Vadasz (Trading As Australasian Piling Company)<br />
& Ors (A17/2017), http://www.hcourt.gov.au/<br />
assets/cases/01-Adelaide/A17-2017/Maxcon_<br />
SP.pdf, 1.<br />
13 Building and Construction Industry Security of Payment<br />
Act 2009 (SA), s 12 which states:<br />
12—Effect of “pay when paid” provisions<br />
(1) A pay when paid provision of a construction<br />
contract has no effect in relation to any<br />
payment for construction work carried out or<br />
undertaken to be carried out (or for related<br />
goods and services supplied or undertaken to<br />
be supplied) under the contract.<br />
(2) In this section—<br />
money owing, in relation to a construction<br />
contract, means money owing for<br />
construction work carried out or undertaken<br />
to be carried out (or for related goods<br />
and services supplied or undertaken to be<br />
supplied) under the contract;<br />
pay when paid provision of a construction<br />
contract means a provision of the contract—<br />
(a) that makes the liability of 1 party<br />
(the first party) to pay money owing<br />
to another party (the second party)<br />
contingent on payment to the first party<br />
by a further party (the third party) of<br />
the whole or a part of that money; or<br />
(b) that makes the due date for payment of<br />
money owing by the first party to the<br />
second party dependent on the date on<br />
which payment of the whole or a part of<br />
that money is made to the first party by<br />
the third party; or<br />
(c) that otherwise makes the liability to<br />
pay money owing, or the due date for<br />
payment of money owing, contingent or<br />
dependent on the operation of another<br />
contract.<br />
14 High Court of Australia, ‘Short particulars,<br />
Maxcon Constructions Pty Ltd v Michael Christian<br />
Vadasz (Trading As Australasian Piling Company)<br />
& Ors (A17/2017), http://www.hcourt.gov.au/<br />
assets/cases/01-Adelaide/A17-2017/Maxcon_<br />
SP.pdf, 1.<br />
15 the Lexus Nexus Concise Australian Legal<br />
Dictionary, fourth edition defines ‘certiorari’ as;<br />
‘a type of prerogative remedy issued by a court<br />
to bring before it the decision or determination<br />
of a tribunal or inferior court to quash it on the<br />
ground of nonjurisdictional error of law on the<br />
face of the record, or for jurisdictional error or<br />
denial of procedural fairness. (p 83).<br />
16 High Court of Australia, ‘Short particulars,<br />
Maxcon Constructions Pty Ltd v Michael Christian<br />
Vadasz (Trading As Australasian Piling Company)<br />
& Ors (A17/2017), http://www.hcourt.gov.au/<br />
assets/cases/01-Adelaide/A17-2017/Maxcon_<br />
SP.pdf, 1.<br />
17 Maxcon Constructions Pty Ltd v Vadasz [2018]<br />
HCA 5 A17/2017, [4].<br />
18 [2018] HCA 4 (14 February 2018) S145/2017.<br />
19 Probuild Constructions (Aust) Pty Ltd v Shade Systems<br />
Pty Ltd [2018] HCA 4, [2].<br />
20 HCA 5 (14 February 2018) A17/2017.<br />
21 Maxcon Constructions Pty Ltd v Vadasz [2018]<br />
HCA 5 , A17/2017, [5].<br />
22 Andrew Wallace, Final Report of the Review of<br />
the Discussion Paper – Payment Dispute Resolution<br />
in the Queensland Building and Construction Industry<br />
(Building Services Authority, 2013), 221.<br />
23 Becky Davey, Upcoming changes to the law applying to<br />
construction contracts, (2011), website: <br />
24 In 2014, the author, as an adjudicator to a<br />
payment claim dispute, received an application<br />
for adjudication that was encumbered by some<br />
23 lever arch folders of A4 and A3 documents.<br />
It contained 7977 pages. The total quantum of<br />
the submissions by both parties was 34, A4 & A3<br />
size folders, and contained 11906 pages. This is<br />
still a record in Western Australia.<br />
25 Government of Western Austrlia, Department<br />
of Mines and Industry Regulation and Safety<br />
(Building Commission), (<strong>2019</strong>), Find an<br />
adjudicator, website.<br />
26 Government of the Northern Territory -<br />
Construction Contracts Registrar, (<strong>2019</strong>), List of<br />
registered adjudicators, website<br />
27 Probuild Constructions (Aust) Pty Ltd v Shade Systems<br />
Pty Ltd [2018] HCA 4, [108].<br />
28 Becky Davey, Upcoming changes to the law applying to<br />
construction contracts, (2011), website: <br />
29 Peter Gow, ‘The Construction Contracts Act<br />
in Western Australia’, (2008) The Arbitrator<br />
& Mediator, The Institute of Arbitrators &<br />
Mediators Australia Vol 27. Number: 2 (Date:<br />
Dec 2008), 33.<br />
30 Auke Steensma, ‘A statutory review of<br />
adjudicators’ determinations under the<br />
Construction Contracts Act 2004 (WA) by the<br />
State Administrative Tribunal and the Courts<br />
of Western Australia’ (PhD Thesis, Curtin<br />
University, 2018), p 291.<br />
31 Robert Fenwick Elliott, Maxcon in The Shade,<br />
(03 Jan 2017), https://feconslaw.wordpress.<br />
com/2017/01/03/maxcon-in-the-shade/#_<br />
ftnref2<br />
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SOCIAL MEDIA<br />
Social Media, Jurors and the<br />
Right of an Accused to a Fair Trial<br />
JEMMA HOLT, RESEARCH FELLOW, TASMANIAN LAW REFORM INSTITUTE<br />
The right to a fair trial is a central<br />
pillar of our criminal justice system.<br />
An accused is entitled to a trial before an<br />
impartial jury that makes its determination<br />
in accordance with evidence that has been<br />
properly admitted and tested during the<br />
course of the trial.<br />
A current concern is how to preserve an<br />
accused’s right to a fair trial at a time when<br />
social media and other internet platforms<br />
are omnipresent in our everyday lives.<br />
USE OF SOCIAL MEDIA AND OTHER<br />
INTERNET PLATFORMS<br />
The majority of Australians are<br />
continuously online and engaged; at<br />
home, at work and in-between on our<br />
smartphones.<br />
If individuals continue this behaviour<br />
when they are jurors sitting in a criminal<br />
trial they thereby risk adversely affecting<br />
the accused’s right to a fair trial.<br />
GETTING A ‘HANDLE’ ON THE PROBLEM<br />
Commentators have coined many<br />
terms which refer to the phenomena of<br />
jurors inappropriately using social media<br />
or internet platforms during a criminal trial<br />
and the consequences for the accused’s<br />
right to a fair trial: googling jurors; internetsurfing<br />
jurors; trial by google; google mistrials;<br />
E-jurors; do-it-yourself or DIY jurors; the twitter<br />
effect; internet-tainted jurors; digital injustice; wired<br />
jurors; and rogue jurors. There is no single<br />
expression that encapsulates the full range<br />
of possible juror misconduct of this kind.<br />
In 2013, a juror in New South Wales<br />
Googled “murder” and “manslaughter”,<br />
admitting to her fellow jurors, whilst<br />
reading material from her iPhone: “I’m<br />
having trouble determining the difference<br />
between murder and manslaughter”. 1 It<br />
is solely for the trial judge to direct jurors<br />
on matters of law. When jurors go online<br />
to conduct enquiries on legal terms and<br />
concepts, the reliability and accuracy of<br />
the source is unknown. There is also<br />
the risk of obtaining information from<br />
another jurisdiction on a jurisdictionspecific<br />
matter. Further, it relies on the<br />
34 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
juror correctly identifying the legal term/<br />
concept in the first place and, thereafter,<br />
not straying once online.<br />
Jurors have also been found to<br />
conduct internet searches on “expert”<br />
topics, regardless of whether an expert<br />
witness had given evidence in the trial:<br />
e.g. on retention of body heat in an infant<br />
(NSW, 2007) 2 , and methylamphetamine<br />
production (WA, 2016) 3 . Obvious issues<br />
arise as to the accuracy and reliability of<br />
such technical information that is sourced<br />
by jurors from unknown online sources.<br />
Moreover, the use that an unskilled and<br />
unassisted juror makes of such information<br />
in the context of the trial is completely<br />
unknown, including whether the juror<br />
disseminates the information to fellow<br />
jurors as an in-house jury room “expert”.<br />
Jurors have also, on occasion,<br />
conducted online investigations into<br />
defendants and witnesses. In South<br />
Australia in 2016, two jurors sitting in a<br />
blackmail trial against multiple defendants<br />
were discovered to have conducted online<br />
searches on the accused which disclosed<br />
past outlaw motorcycle gang affiliations. 4<br />
Such information was legally irrelevant,<br />
inadmissible and highly prejudicial to the<br />
case being tried. Similarly, jurors have<br />
also obtained information via the internet<br />
on an accused’s prior convictions and<br />
previous allegations against an accused,<br />
including those for which the accused was<br />
acquitted. For example, in New South<br />
Wales in 2002, multiple jurors in a murder<br />
trial, alleging the accused had murdered<br />
his first wife, were discovered to have<br />
conducted internet searches to obtain<br />
information about previous allegations<br />
that the same accused had murdered his<br />
second wife (for which he was previously<br />
tried and acquitted). 5 This information<br />
could significantly prejudice the accused<br />
in the eyes of the jurors so that they<br />
could not decide guilt or innocence in a<br />
dispassionate manner.<br />
Jurors’ online searches have also<br />
located information about the history of<br />
the particular prosecution, including the<br />
fact that the present trial is a retrial and the<br />
reasons behind this, such as a hung jury or<br />
a successful appeal against conviction. For<br />
example, in a 2014 murder trial in Western<br />
Australia, a juror’s girlfriend conducted<br />
online searches in relation to the accused<br />
and located information about the history<br />
of two previous trials, which she then<br />
passed onto her partner, who, in turn,<br />
shared the information with his fellow
SOCIAL MEDIA<br />
jurors. 6 Such information can mislead<br />
jurors and affect their ability decide the<br />
case on a proper basis.<br />
Online communications between<br />
sitting jurors is potentially problematic<br />
for many reasons, including simply<br />
because such online ‘banter’ is capable of<br />
distracting jurors from the trial itself. For<br />
example, in New South Wales in 2013,<br />
multiple jurors on a long-running fraud<br />
trial became Facebook friends. Their<br />
online communications included posts<br />
such as a digitally altered photo of one of<br />
the jurors wearing a judge’s wig. 7<br />
Jurors have also been found to publish<br />
material on the internet and social media<br />
platforms which suggests that they may<br />
have already made their mind up about<br />
the guilt of the accused, including in<br />
circumstances where they are yet to be<br />
empanelled on a particular trial. In 2010,<br />
a potential juror in Victoria posted on his<br />
Facebook page, ‘everyone’s guilty,’ 8 and in<br />
2016 a juror who had been empanelled<br />
in a West Australian murder trial posted<br />
on Facebook the day the trial was due to<br />
commence, ‘At Perth District Court, guilty!’ 9<br />
Jurors have also published material that<br />
discloses prejudice in relation to certain<br />
types of offending. For example, in 2016,<br />
a juror sitting in a sexual offending trial in<br />
Broken Hill, posted on Facebook the day<br />
before the guilty verdict was returned:<br />
‘When a dog attacks a child it is put<br />
down. Shouldn’t we do the same with sex<br />
predators?’ This post was accompanied<br />
with a photograph that showed images of<br />
rooms and implements by which lawful<br />
executions are carried out. 10 The same<br />
concerns apply to jurors with apparent<br />
sympathetic biases. In 2014, a juror<br />
in a murder trial in New South Wales<br />
conducted online research to locate a<br />
photograph of the victim. The juror<br />
viewed a media photograph depicting the<br />
victim’s parents holding a photograph<br />
of the victim. The juror explained: ‘I just<br />
wanted to see his [the deceased’s] face …<br />
that poor boy and I just wanted to see his<br />
face without any injuries, anything, just see<br />
him … put a face to the name.’ 11<br />
Senior School<br />
Tuesday 29 October, 9.30am<br />
Junior School and<br />
Ignatius Early Years<br />
Thursday 7 November, 9.30am<br />
Book online at ignatius.sa.edu.au<br />
CRICOS no: 00603F
SOCIAL MEDIA<br />
Posts like these potentially bring the<br />
justice system into disrepute because they<br />
suggest that justice is not being done<br />
and similarly it is not seen to be being<br />
done. Whether or not a juror’s use of the<br />
internet/social media is representative<br />
of genuine bias, prejudice, and/or<br />
predetermination is not the entirety of the<br />
matter. The requirement of impartiality on<br />
the part of jurors may be adversely affected<br />
by both actual and perceived irregularities.<br />
Significantly, when jurors publish<br />
material about jury service on the internet<br />
or social media, they have no control over<br />
what material they may receive by way of<br />
a response. Even apparently innocuous<br />
material posted by jurors, or the simple<br />
act of a juror ‘tagging’ their location as<br />
the courthouse, may elicit unsolicited and<br />
inordinate replies capable of interfering<br />
with the juror’s impartiality (or being<br />
perceived as capable of doing so).<br />
GOING VIRAL?<br />
There has been some limited research<br />
conducted in this area in Australia and<br />
overseas, however, the prevalence of juror<br />
misconduct of this kind remains largely<br />
unknown and unknowable.<br />
Whilst the detection of juror misconduct<br />
of this kind may be rare, this does not<br />
necessarily mean that such misconduct<br />
is, in fact, rare. Rather, all indications are<br />
that juror misconduct of this kind is under<br />
reported, at least to some extent, and<br />
that the reported cases represent the bare<br />
minimum of cases of misconduct of this<br />
kind.<br />
It is not a phenomenon that is peculiar<br />
to larger jurisdictions and high-profile<br />
criminal trials.<br />
‘DROPPING THE PIN’: WHERE TO FROM<br />
HERE?<br />
The Tasmania Law Reform Institute is<br />
currently researching jurors’ use of social<br />
media and other internet platforms during<br />
criminal trials. The Institute released an<br />
Issues Paper on 21 August, which seeks to:<br />
• assess, as far as is possible, the nature<br />
and gravity of this phenomenon;<br />
36 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
• explore how and why juror misconduct<br />
of this kind occurs and the causes<br />
and/or motivations that underlie juror<br />
misconduct of this kind;<br />
• canvas the laws and practices which<br />
currently exist to safeguard against<br />
juror misconduct of this kind as well<br />
as those that exist to remedy and/or<br />
otherwise deal with such misconduct<br />
after it occurs; and<br />
• examine the operation and efficacy of<br />
these measures as well as the possible<br />
alternatives.<br />
The TLRI invites submissions on this<br />
topic until 4 October <strong>2019</strong>.<br />
All submissions will inform the<br />
Institute’s final report which will ultimately<br />
consider whether reform of the current<br />
laws and practices is justified and, if so,<br />
what form that should take.<br />
The Issues Paper is available at:<br />
https://www.utas.edu.au/lawreform/publications/ongoing-lawreform-projects2<br />
Jemma Holt is currently working as a Research<br />
Fellow at the Tasmania Law Reform Institute<br />
and prepared the Issues Paper jurors’ use of<br />
digital media during criminal trials. The Paper<br />
is the result of joint research and collaboration<br />
between the Tasmania Law Reform Institute<br />
and South Australian Law Reform Institute.<br />
Jemma also works part time as a Prosecutor at<br />
the Office of the Director of Public Prosecutions<br />
in Hobart. She has previously worked as a<br />
Prosecutor at the Office of the Director of<br />
Public Prosecutions in Adelaide and the Crown<br />
Solicitor’s Office in Adelaide. She is returning<br />
to practice in Adelaide in 2020. B<br />
Endnotes<br />
1 The juror later told fellow jurors that, based on<br />
her research, the difference between the two<br />
involved ‘malice’: R v JP (No 1) [2013] NSWSC<br />
1678; R v JP (No 2) [2013] NSWSC 1679. The<br />
juror was discharged, and the trial proceeded to<br />
verdict.<br />
2 R v Folbigg [2007] NSWCCA 371. The<br />
misconduct was discovered after the jury had<br />
been discharged. On appeal, it was held that<br />
irregularities had occurred, but the appeal was<br />
dismissed.<br />
3 In Western Australia in 2016, a juror in a drugrelated<br />
trial researched methylamphetamine<br />
production online. See Heather McNeill, ‘Calls to<br />
Overhaul WA Jury System After Juror Dismissed<br />
for Facebook Post’. WA Today (online, 13<br />
October 2016) .<br />
4 Registrar of the Supreme Court of South Australia v S;<br />
Registrar of the Supreme Court of South Australia v C<br />
[2016] SASC 93. Both jurors were dismissed and<br />
the balance of then jury discharged. Both jurors<br />
were subsequently convicted of contempt, had<br />
convictions recorded and were fined $3000 each.<br />
5 R v K (2003) 59 NSWLR 431.<br />
6 See Joanne Menagh, ‘Judge “almost speechless<br />
with rage” after third Ronald Pennington trial for<br />
1992 murder aborted’, ABC News (online, 31 July<br />
2014) .<br />
See also R v K<br />
(2003) 59 NSWLR 431.<br />
7 Brenden Hills, ‘Jury Getting off Their<br />
Facebooks’, The Daily Telegraph (online, 12 May<br />
2013) . The<br />
judge became aware of this conduct two months<br />
into the trial after being alerted by the trial<br />
prosecutor. The judge ordered a court officer<br />
to examine the material to see if it included any<br />
prejudicial material. It was ultimately concluded<br />
that the material was not such so as to warrant<br />
the jury being discharged.<br />
8 Andrea Petrie, ‘No-show juror in hot water<br />
over “stupid” action’, The Sydney Morning Herald<br />
(online, 17 April 2010) .<br />
The juror<br />
was referred for potential prosecution.<br />
9 See Heather McNeill, ‘Calls to Overhaul WA<br />
Jury System After Juror Dismissed for Facebook<br />
Post’. WA Today (online, 13 October 2016)<br />
.<br />
10 Michaela Whitcourne, ‘Social media post sparks<br />
probe into jury conduct in sex crime trial’ The<br />
Sydney Morning Herald (online, 15 April <strong>2019</strong>)<br />
.<br />
See<br />
also Agelakis v R [<strong>2019</strong>] NSWCCA 71: On 29<br />
March <strong>2019</strong>, the NSW Court of Criminal Appeal<br />
ordered an investigation into the alleged juror<br />
misconduct, pursuant to s 73A of the Jury Act<br />
1977 (NSW).<br />
11 R v JH (No 3) 2014 NSWSC 1966, [8]. Juror<br />
dismissed, trial proceeded to verdict.
IN HONOUR<br />
Vale Damon Ind: A passionate<br />
lawyer & animal rights champion<br />
Empathy for the underdog and an<br />
unwavering commitment to fair play<br />
underpinned Damon Ind’s approach to law.<br />
He has been widely described by colleagues<br />
and magistrates as a compassionate man,<br />
going out of his way to help defendants<br />
who were trying to represent themselves<br />
and showing mercy to people facing<br />
allegations of terrible crimes.<br />
Driven by the belief that our legal<br />
system is weighted against people who are<br />
already oppressed, Damon had ambitions<br />
to become a magistrate. He felt that was<br />
the role in which he could make the most<br />
positive impact on his community. Sadly,<br />
he did not live to fulfil this ambition.<br />
The much-loved lawyer, known equally<br />
for his larrikin nature and deep respect for<br />
the law, suffered a fatal heart attack outside<br />
the Stepney offices of his employer,<br />
RSPCA South Australia, in June. He was<br />
47 years old.<br />
Damon launched his 14-year legal<br />
career after graduating with a law degree<br />
from Flinders University in 2005,<br />
commencing practise at the Salisbury<br />
offices of Nicholls Gervasi Lawyers.<br />
His employment in Adelaide’s northern<br />
suburbs continued with a move to Dixon<br />
Gallasch Barristers and Solicitors at<br />
Elizabeth South in 2007. It was here<br />
that Damon cut his teeth in the area<br />
of criminal defence, working under the<br />
mentorship of Brett Dixon, who Damon<br />
referred to fondly as his Atticus Finch.<br />
During these two years Damon became a<br />
familiar face at the Elizabeth Magistrate’s<br />
Court, managing client files and acting as<br />
defence counsel in summary, minor and<br />
major indictable matters.<br />
It was inside the Magistrate’s Court that<br />
Damon met and fell in love with fellow<br />
lawyer Jessica Kurtzer. Friends and family<br />
have described the couple as soulmates.<br />
A reputation for preparing thorough,<br />
accurate briefs and establishing solid<br />
rapport with diverse clients helped<br />
Damon secure employment in Adelaide<br />
firms Michael Woods and Co Barristers<br />
& Solicitors and Tindall Gask Bentley<br />
Lawyers, before he moved into the role of<br />
Prosecutor for SA Police.<br />
This switch to the other side of the<br />
bench was not all smooth sailing for<br />
Damon, whose empathy and compassion<br />
for some defendants at times ran counter<br />
to the expectations of him in the<br />
prosecution role. After nearly two years<br />
with SA Police’s Special Prosecution<br />
Unit, Damon left the complexities and<br />
constraints of law to work as a tiler at a<br />
friend’s business.<br />
It was the opportunity to take on a<br />
position that united two of his life’s great<br />
passions – animals and the law – that lured<br />
Damon back into legal practice in 2016.<br />
As RSPCA South Australia’s sole legal<br />
counsel, he fronted court to give voice to<br />
the voiceless animal victims of cruelty and<br />
neglect. Disappointed that the law didn’t<br />
appear to take animal welfare as seriously as<br />
he believed it should, he was determined to<br />
raise the bar for RSPCA to be considered a<br />
significant prosecuting authority. Like many<br />
people, he struggled to understand the cruel<br />
treatment some people inflicted on animals<br />
that they owned and claimed to love.<br />
Colleagues who on occasion attended<br />
court with Damon recall he brought<br />
both kindness and a sense of calm to<br />
proceedings, irrespective of what the<br />
allegation against a defendant was, or who<br />
was on the other side. Despite the often<br />
heavy nature of the animal cruelty cases he<br />
prosecuted, outside of Court Damon has<br />
also been remembered as an immensely<br />
positive thinker with a contagious passion<br />
for life and “the ultimate practical joker”.<br />
Always generous with his time, Damon<br />
provided pro-bono legal advice on many<br />
occasions to colleagues and friends<br />
and also gained a reputation for multiskilling<br />
as RSPCA South Australia’s office<br />
handyman and removalist.<br />
Damon and Scooby<br />
Outside of work, Damon’s priority<br />
was spending time with Jessica and his two<br />
sons from a previous marriage, Harrison<br />
and Samuel. Weekends away with Jessica<br />
and his sons, fishing and camping, were a<br />
favourite escape from the demands of the<br />
courts and the cases he dealt with.<br />
Football was another of Damon’s<br />
enduring passions. He played 189 games<br />
for Hectorville football club and was<br />
heavily involved in the club community,<br />
filling coaching and mentoring roles.<br />
He was proud to be named Best and<br />
Fairest in the over 35s division in 2016.<br />
Harrison’s membership of the “Heccies”<br />
junior football team was a source of much<br />
spoken pride, as he watched his eldest son<br />
play with both determination and fairness.<br />
Damon is survived by his partner<br />
Jessica, sons Harrison and Samuel, mother<br />
Pam, brother Travis, sister-in-law Joanna<br />
and his rescue dog, Scooby, who regularly<br />
came to work with him at the RSPCA. B<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 37
TAX FILES<br />
No deductions for vacant land<br />
PAUL TANTI, PARTNER, THOMSONS GREER<br />
The Federal Government has<br />
introduced a bill which denies tax<br />
deductions for some taxpayers who own<br />
vacant land.<br />
Treasury Laws Amendment (<strong>2019</strong> Tax<br />
Integrity and Other Measures No. 1) Bill<br />
<strong>2019</strong> (Bill) was introduced into Parliament<br />
on 24 July, <strong>2019</strong>. If passed in its current<br />
form, the new measures will apply from<br />
1 July, <strong>2019</strong>, regardless of when taxpayers<br />
acquired the land.<br />
The Bill denies some taxpayers<br />
deductions for the cost of holding vacant<br />
land. These costs will include interest,<br />
other borrowing costs and other holding<br />
costs such as rates and taxes.<br />
The Explanatory Memorandum to the<br />
Bill states that the purpose of the new<br />
measures is to deny “taxpayers who have been<br />
claiming deductions for the costs associated with<br />
holding vacant land when it is not genuinely held<br />
for the purpose of gaining or producing assessable<br />
income” (EM paragraph 3.4).<br />
The Bill does not apply to all taxpayers.<br />
Those taxpayers which are exempt are:<br />
• corporate entities;<br />
• superannuation funds which are not<br />
self-managed superannuation funds;<br />
• managed investment trusts; and<br />
• public unit trusts.<br />
Therefore, the provisions effectively<br />
apply to individuals, self-managed<br />
superannuation funds and closely held<br />
trusts (both discretionary trusts and unit<br />
trusts). These entities will be subject to<br />
the new provisions even if they have a<br />
corporate trustee,<br />
Proposed section 26-102 will deny<br />
losses or outgoings relating to holding<br />
land if “there is no substantial and permanent<br />
structure in use or available for use on the land,<br />
having a purpose that is independent of, and not<br />
incidental to, the purpose of any other structure or<br />
proposed structure”.<br />
If this provision denies the taxpayer<br />
a deduction, the deductions will only be<br />
available to the extent that the land is in<br />
use or available for use in carrying on<br />
a business conducted by the taxpayer,<br />
persons related to the taxpayer or an entity<br />
that is connected with the taxpayer. For<br />
these purposes, related persons include<br />
affiliates of the taxpayer, the spouse of the<br />
taxpayer and any of the taxpayer’s children<br />
who are under the age of 18.<br />
38 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
The “affiliate” and “connected with”<br />
provisions are similar to those which are<br />
contained in the active asset requirement<br />
in the Capital Gains Tax Small Business<br />
Concessions.<br />
The new provisions apply to land on<br />
a “Certificate of Title basis”. Therefore,<br />
land comprised in one title may meet<br />
the requirements whereas an adjoining<br />
property, which is intended for the same<br />
use but may not contain a substantial<br />
and permanent structure, may result in<br />
deductions being denied for that property.<br />
For example, if a house is situated<br />
on one title and a shed or garage is<br />
being constructed on an adjoining title,<br />
the land on which the shed or garage is<br />
situated will not satisfy the “independent<br />
purpose” requirement. Garages and sheds<br />
and the like do not have an independent<br />
purpose, but rather have a purpose which<br />
is incidental to or related to the residential<br />
premises (EM paragraph 3.23).<br />
If the buildings on the land are<br />
residential premises which are being<br />
constructed or substantially renovated,<br />
deductions will not be allowed until the<br />
premises are available for use. This means<br />
they must be lawfully able to be occupied<br />
and are actually leased, hired or licenced<br />
or available for lease, hire or licence. This<br />
will effectively deny deductions during<br />
the planning, construction and renovation<br />
phases of building or renovating<br />
residential premises.<br />
The buildings on the land must be<br />
substantial. The term “substantial” refers<br />
not only to the size of the structure but<br />
can also include value or some other<br />
criteria of importance to the relevant<br />
property (EM paragraph 3.18).<br />
The substantial characteristic must be a<br />
feature of the building on the land and not<br />
of another structure which is situated on<br />
other land.<br />
If deductions are denied for a<br />
particular property on the basis there is<br />
no substantial and permanent structure in<br />
use or available for use on the land with<br />
an independent purpose, deductions will<br />
only be available to the extent the land is<br />
in use or available for use in carrying on a<br />
business.<br />
Whether a business is being carried<br />
on will always be a question of fact. In<br />
determining this issue, the treatment<br />
of the land for other tax purposes will<br />
be relevant. Therefore, the taxpayer’s<br />
treatment of the gains from the<br />
proposed property as income or capital,<br />
its registration for GST purposes and<br />
whether it considers itself to be carrying<br />
on a business will all be relevant to the<br />
question of whether the taxpayer (or its<br />
affiliates or connected entities) is carrying<br />
on a business.<br />
Taxpayers who are subject to<br />
these provisions should review their<br />
landholdings to ensure that, to the extent<br />
possible, they satisfy the requirements for<br />
deductibility for holding costs in the 2020<br />
financial year. B
WELLBEING & SUPPORT<br />
Breaking the stress cycle<br />
TONI VOZZO, CHAIR, WELLBEING & RESILIENCE COMMITTEE<br />
At its core, “legal work is mental work” 1 .<br />
Good mental health is therefore an<br />
essential part of lawyering as it affects a<br />
lawyer’s ability to be productive and make<br />
responsible decisions for their clients. It is<br />
part of a lawyer’s ethical duty of competence.<br />
Studies suggest that having at least two<br />
weeks off and taking two good breaks a<br />
year is optimal for breaking the stress cycle.<br />
In 2009, Canadian researchers reported<br />
that taking vacations helped to buffer the<br />
detrimental effects of excessive job demands<br />
among a sample of almost 900 law firm<br />
lawyers renowned for working in highly<br />
stressful work settings. They also found<br />
that participating in active and social leisure<br />
activities or taking a vacation are important<br />
in reducing the prevalence of depression. 2<br />
Yet for many lawyers it can seem difficult to<br />
get away, to leave the team and your matters<br />
behind.<br />
“Vacations have the potential to break into the<br />
stress cycle. We emerge from a successful<br />
vacation feeling ready to take on the world again.<br />
We gain perspective on our problems, get to relax<br />
with our families and friends, and get a break<br />
from our usual routines.” 3 (Added emphasis.)<br />
I was fortunate to escape the miserable<br />
cold winter to spend two weeks this July on<br />
Rhodes, the largest of Greece’s Dodecanese<br />
islands. Rhodes is known for its spectacular<br />
beaches, ancient ruins and medieval Old<br />
Town. Was it a successful vacation? Ναί<br />
(actually means “yes” in Greek).<br />
I emerged from the vacation in a<br />
positive state of wellness, slightly heavier<br />
and suntanned with lots of photos of great<br />
scenery and capturing good times. I did<br />
a number of my favourite things: I spent<br />
quality time with family and friends; I walked<br />
around a foreign city and immersed myself<br />
in the culture and history; I ate good food<br />
(I consumed calamari many ways including<br />
grilled, stuffed, fried and crumbed…all<br />
delicious); I shopped ‘til I dropped; I swam<br />
in the clear, calm and warm Aegean; I read<br />
fiction. I generally did nothing that required<br />
much brain power. I re-energised.<br />
But like many lawyers on vacation, I<br />
continued to closely monitor what was<br />
happening on my matters on the other<br />
side of the world. I did not completely<br />
disconnect. How could I?<br />
My two children were more than 13,000<br />
kilometres away so I was therefore always<br />
going to have my iPhone close to hand. But<br />
apart from the kids, I intended to monitor<br />
my work emails because despite my best<br />
efforts to plan and put in place appropriate<br />
arrangements to deal with my matters during<br />
the vacation, things just happen beyond my<br />
control – Judges seem to have a sixth sense<br />
for when solicitors go on leave and relist<br />
cases unexpectedly!<br />
To be clear, I had no intention of<br />
spending any substantive time reading or<br />
replying to emails. I also limited the time I<br />
spent checking emails – being in a different<br />
time zone where half the Australian working<br />
day is over before you wake up helps too!<br />
I did NOT feel guilty about<br />
“monitoring” my work emails. Some people<br />
can turn off the mobile data and suspend all<br />
contact with work. I’m just not one of those<br />
people. Knowing what was happening (at a<br />
high level) allowed me to relax and enjoy the<br />
down time.<br />
Nevertheless, when you take a decent<br />
break from your usual routines, whether it’s<br />
somewhere as beautiful as Rhodes, closer to<br />
home, or even at home, it can make a positive<br />
difference to your state of wellbeing. So if<br />
you want to be a better lawyer, do things that<br />
you enjoy. Spend time with your friends and<br />
family, get away from the office, and don’t<br />
feel guilty for taking regular vacations or<br />
staycations. It’s ok to check emails, but try<br />
limiting this to a short time during the day<br />
that fits in with your holiday plans or routines.<br />
Endnotes<br />
1 Taking a Summer Vacation Will Make You a Better<br />
Lawyer (Yes, Really) by Allison Wolf http://www.<br />
slaw.ca/2011/08/03/taking-a-summer-vacationwill-make-you-a-better-lawyer-yes-really/<br />
2 Joudrey A, Wallace JE: Leisure as a coping<br />
resource: a test of the job demand- control<br />
-support model. Hum Relat. 2009<br />
3 https://www.psychologytoday.com/au/blog/<br />
fulfillment-any-age/201006/the-importancevacations-our-physical-and-mental-health<br />
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FAMILY LAW<br />
Does living apart preclude ‘living<br />
with’ when applying for declarations<br />
of domestic partnership?<br />
MARK TAYLOR, EDMUND BARTON CHAMBERS<br />
The answer to the question posed in<br />
the headline turns, unsurprisingly,<br />
on the facts and circumstances of each<br />
case. This article focuses primarily upon<br />
the court’s interpretation of “living with/<br />
living together.” The factual and temporal<br />
requirements of domestic partnership<br />
declarations will not be addressed but<br />
remain crucial considerations for a<br />
practitioner applying for declaratory relief.<br />
Section 11A Family Relationships Act<br />
1975 (FRA) states that:<br />
“A person is, on a certain date, the<br />
domestic partner of another if—<br />
…<br />
(b) the person is, on that date, living with<br />
the other in a close personal relationship<br />
and [the temporal requirement- not<br />
discussed in this article.]”<br />
A close personal relationship means:<br />
“… the relationship between 2 adult persons<br />
… who live together as a couple on a genuine<br />
domestic basis…”<br />
INTRODUCTORY POINTS<br />
• A court is not relieved of its obligation<br />
to assess an application even if all<br />
affected parties are unanimous in their<br />
view of the purported relationship. 1<br />
• Interstate authority demonstrates<br />
the interpretive approach of other<br />
Australian courts.<br />
• The common judicial interpretation of<br />
a de-facto spouse has been used by way<br />
of analogy in South Australia. 2<br />
• Though interstate and analogous<br />
authority may be useful in assessing the<br />
method by which the judiciary interpret<br />
such applications, practitioners must<br />
be aware of the varying definitions and<br />
eligibility criteria.<br />
• A court will analyse the relationship in<br />
the round to identify the true nature<br />
of the relationship by weighing up<br />
the various non-exhaustive statutory<br />
40 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
factors 3 to determine that the applicant<br />
was “living with the other in a close<br />
personal relationship” 4 on a certain date.<br />
• The Briginshaw 5 principle applies<br />
to such applications: a court must<br />
be convinced “…on the balance of<br />
probabilities but with due regard to the<br />
gravity of the consequences of making<br />
the declaration sought.” 6<br />
• In Simonis v Perpetual Trustee, it<br />
was held that“the expression<br />
under consideration constitutes a<br />
single composite expression of a<br />
comprehensive notion or concept,<br />
and therefore has to be approached by<br />
considering the expression as a whole<br />
and not in several parts.” 7<br />
To account for the infinite scope<br />
of relationships, “living with” has been<br />
interpreted widely. In 1919, the English<br />
Court of Criminal Appeal held that a<br />
husband and wife were “… living together,<br />
not only when they are residing together<br />
in the same house, but also when they are<br />
living in difference places… provided the<br />
consortium has not been determined.” 8 In<br />
Australia, the High Court required both a<br />
physical separation and the destruction of<br />
the consortium vitae of the relationship<br />
to demonstrate that a couple was living<br />
“separately and apart.” 9 In an earlier<br />
case, the House of Lords contrasted<br />
partners being located in different places<br />
with situations where there has been a<br />
“rupture” 10 in matrimonial relations.<br />
More recently, the South Australian<br />
Supreme Court held that cohabitation (as<br />
it was defined then) “does not necessarily<br />
imply that they are always living together<br />
under the same roof, and there may be<br />
states of cohabitation where they see as<br />
much of each other as they can, and yet<br />
are not separated because there has not<br />
been any real suspension of their ordinary<br />
conjugal relation.” 11<br />
It is contended that the above<br />
considerations provide a sensible starting<br />
point as to how a court might interpret one<br />
person living with another. Whilst living<br />
apart does not necessarily preclude living<br />
together, the central question is whether<br />
there has been a determination, rupture or<br />
destruction of the relationship in question.<br />
An attempt to rely upon a narrow<br />
interpretation of “living with” was<br />
expressly rejected in Victoria, the phrase<br />
“… should not be construed on narrow,<br />
formal, pedantic or merely geographical<br />
criteria but should be considered taking into<br />
account the human reality of the personal,<br />
emotional and cultural complex.” 12 Partners<br />
may be physically separated for a range<br />
of reasons whilst still maintaining a close<br />
personal relationship; it would be wholly
FAMILY LAW<br />
improper to preclude declarations in such<br />
circumstances and would “place people<br />
claiming under [the Domestic Partnership]<br />
provisions at the very disadvantage which<br />
the provision is designed to remove.” 13<br />
Recently “living together” was<br />
considered in the light of the “peripatetic<br />
lifestyle” of an airline pilot 14 and his partner.<br />
The couple spent their limited contact time<br />
at a wide range of locations. In making the<br />
declaration, the court considered the longterm<br />
plan of sharing a house and the public<br />
presentation of the couple to be important.<br />
It was held that although the test of “living<br />
together” is not primarily locational, it has<br />
an important locational element.<br />
SITUATIONS TO CONSIDER<br />
In practice, there are numerous issues<br />
that one might encounter in regard to one<br />
person “living with…” another. The writer<br />
has encountered the following situations in<br />
various contexts:<br />
Two partners took a “break” in their<br />
relationship. Was the applicant “living<br />
with…” the deceased in a close<br />
personal relationship?<br />
Like Ross and Rachel, applicants must<br />
be conscious if they took a “break” in their<br />
relationship: “Where one partner determines<br />
not to live together with the other and in that sense<br />
keeps apart, the … relationship ceases even if the<br />
separation is merely to enable one party or the other<br />
to decide whether the relationship should continue.” 15<br />
There is evidence that a couple<br />
separates but hours before the death of<br />
a partner. Are they “domestic partners”<br />
at the date of death?<br />
The answer would depend on when the<br />
couple separated. If separation took place<br />
on the same calendar day, the declaration<br />
could still be made as the legislation<br />
requires the declaration to relate to a “certain<br />
date.” 16 If, however, the separation occurred<br />
before or at 23:59.59, and the deceased<br />
died at, or after, 00:00.00 (so technically the<br />
next day), the court would technically be<br />
unable to make the declaration at the date<br />
of death.<br />
What if one partner spent time in<br />
hospital due to health issues or moved<br />
away to work?<br />
As long as the applicant could convince<br />
the court that they have satisfied the<br />
factual and temporal basis for a domestic<br />
partnership, it is unlikely that the above<br />
situations would preclude a declaration.<br />
Both the applicant and the deceased<br />
own separate residential properties.<br />
Would this affect the merits of a<br />
declaration application?<br />
This is a common issue and one that is<br />
frequently targeted in cross-examination.<br />
Whilst not a determinative factor, multiple<br />
residences might dilute the contention<br />
that the relevant persons were “living<br />
together.” Conversely, it has been held<br />
that “the maintenance of separate residences is<br />
necessarily inconsistent with parties having a de<br />
facto relationship.” 17 If such issues are live<br />
in a contested application, it is imperative<br />
that they are carefully considered and<br />
addressed before trial.<br />
The applicant and the deceased only<br />
live together in the same residence<br />
for a small part of each week. Is an<br />
application for a declaration likely to<br />
fail?<br />
There are several cases that consider<br />
this question; it is “clearly established …<br />
that the fact that, for example, the parties live<br />
in the same residence, for only a small part of<br />
each week does not exclude the possibility that<br />
they are “living together as a couple on a genuine<br />
domestic basis...” 18 Addressing this issue will<br />
be specific to the facts of each case. For<br />
example, repeated visits by an applicant to<br />
the residence of a deceased for a “singular<br />
purpose, without more…” was deemed<br />
insufficient to satisfy the court of the<br />
existence of domestic partnership.<br />
The couple was forced apart by<br />
circumstance such as drug addiction,<br />
child protection intervention or fear<br />
for the safety of a person. Could those<br />
parties still be deemed to live together?<br />
This question is very much determined<br />
by the unique circumstances of a particular<br />
case. The court would consider the nonexhaustive<br />
statutory factors carefully.<br />
Evidence to support such a declaration<br />
could include:<br />
• Written evidence of the reasons for<br />
separation;<br />
• Telephone records showing frequent<br />
calls;<br />
• Receipts for purchases or taxis near to<br />
the other partner;<br />
• Text and email messages;<br />
• Photographs;<br />
• Oral evidence of other witnesses.<br />
The applicant maintained “singlestatus”<br />
for Centrelink or other meansrelated<br />
benefits during the lifetime of<br />
the deceased. Does this mean that a<br />
declaratory application will fail?<br />
Evidence of lies within, or<br />
inconsistency with, official documents<br />
such as Centrelink applications are<br />
not uncommon; nor are they strictly<br />
determinative. 19 Practically, proving<br />
a propensity to deliberately mislead<br />
government agencies would reflect poorly<br />
upon the misleading party. Evidence of<br />
such conduct may create more serious<br />
problems for an applicant.<br />
FINAL REMARKS<br />
Though it may appear at first blush<br />
that an Applicant did not “live with” their<br />
partner, there might be circumstances that<br />
explain the separation without determining<br />
the relationship. Living apart does not<br />
necessarily preclude living with and<br />
practitioners must carefully consider the<br />
unique circumstances of each case. B<br />
Endnotes<br />
1 R v Bong [2013] SASC 39<br />
2 M, S v Public Trustee [2017] SASC 71<br />
3 Section 11B(3) FRA 1975<br />
4 Section 11A(B) FRA 1975<br />
5 Briginshaw v Briginshaw (1938) 60 CLR 336<br />
6 Re Fagan (1980) 23 SASR 454 amongst others<br />
7 (1987) 21 NSWLR 677<br />
8 R v Creamer [1919] 1KB 564, 569<br />
9 Main v Main [1949] 78 CLR 636<br />
10 Nugent-head v Jacob [1948] AC 321, HL<br />
11 Re Fagan (dec’d) (1980) 23 SASR 454, 464<br />
12 Re Estate of Sigg (dec’d) [2009] VSC 47<br />
13 Re Estate of Sigg (dec’d) [2009] VSC 47<br />
14 Re Hawkins [2018] NSWSC 174<br />
15 Hibbertson v George (1989) 12 Fam.L.R. 725<br />
16 Section 11A FRA 1975<br />
17 Jonah v White [2011] FamCA 221<br />
18 Jonah v White [2011] FamCA 221<br />
19 Aranas v Berry [2002] NSWSC 355<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 41
FAMILY LAW CASE NOTES<br />
Family Law Case Notes<br />
ROB GLADE-WRIGHT, THE FAMILY LAW BOOK<br />
CHILDREN – THRESHOLD HEARING ON RICE<br />
& ASPLUND – APPLICATION DISMISSED<br />
In Mahoney & Dieter [<strong>2019</strong>] FamCAFC<br />
39 (7 March <strong>2019</strong>) the Full Court<br />
(Alstergren DCJ, Ryan & Kent JJ)<br />
dismissed the mother’s appeal against<br />
dismissal of her application for variation of<br />
a final parenting order made by the Family<br />
Court Division of the District Court of<br />
New Zealand (NZ) and registered in 2018<br />
in Australia where the father lived with<br />
the parties’ child pursuant to that order.<br />
The order, made after a finding that the<br />
mother posed a risk of harm, removed the<br />
child from the mother’s care and permitted<br />
the father to relocate with the child from<br />
NZ to Australia, the mother to spend<br />
supervised time with the child during<br />
school holidays in NZ.<br />
The mother later obtained a medical<br />
report that she was mentally stable, and<br />
applied to the Family Court of Australia<br />
for the child to spend unsupervised time<br />
with her (and ultimately live with her in<br />
NZ). Austin J dismissed the application<br />
as the mother had failed to establish a<br />
sufficient change in circumstances to<br />
warrant reconsideration of the order.<br />
On appeal, the Full Court said ([10]):<br />
“In describing the reason for the child’s<br />
removal from the mother’s care … the<br />
[NZ] court explained that:<br />
‘ … The transfer was necessary for<br />
the welfare and safety of [the child]<br />
because of the mother’s intense fixed<br />
and wrong beliefs about the father’s<br />
behaviour … These beliefs are not<br />
related to his parenting … If [the child]<br />
learns about these beliefs the damage to<br />
her will be adverse and lifelong.’”<br />
The Court continued ([12]):<br />
“At the final parenting hearing the<br />
mother attributed the cause of her<br />
42 THE BULLETIN <strong>September</strong> <strong>2019</strong><br />
parental difficulties … to … a brain<br />
injury and hypothyroidism, which she<br />
had addressed. However, the evidence<br />
before the [NZ] court revealed that<br />
the mother continued to hold fixed<br />
and wrong beliefs about the father’s<br />
behaviour … (including that the child<br />
was conceived through rape). ( … )”<br />
The Court concluded ([39]):<br />
“A proper reading of the [NZ] judgment<br />
demonstrates that … the decision turned<br />
not on whether or not the mother had a<br />
mental illness, but that [her] fixed beliefs<br />
… whatever their genesis or label, posed<br />
a risk of harm to the child. … ”<br />
CHILDREN – MOTHER’S SECRETLY TAKEN<br />
VIDEO OF HAND OVERS ADMISSIBLE<br />
– HER AUDIO OF FATHER’S PRIVATE<br />
CONVERSATIONS WITH THE CHILDREN<br />
INADMISSIBLE<br />
In Coulter & Coulter (No. 2) [<strong>2019</strong>]<br />
FCCA 1290 (15 May, <strong>2019</strong>) Judge<br />
Heffernan heard the father’s application to<br />
exclude the mother’s secretly made video<br />
recordings of the father’s attendance at<br />
her home for hand overs and two audio<br />
recordings of conversations between him<br />
and the children.<br />
After referring to a court’s discretion<br />
(under s 135 the Evidence Act 1995 (Cth))<br />
to exclude evidence if its probative value<br />
is substantially outweighed by the risk of<br />
prejudice, being misleading or wasting time<br />
or (s 138) exclude improperly or illegally<br />
obtained evidence unless the desirability of<br />
admitting it outweighs the undesirability of<br />
doing so, the Court said ([10]):<br />
“I am satisfied that it was not improper<br />
for the mother to make the video<br />
recordings of the two hand overs. …<br />
Hand overs occur in circumstances<br />
where the mother has a legitimate<br />
interest in her personal safety … and<br />
in preventing the children from being<br />
exposed to conflict and unpleasantness<br />
between the parties. At the time that<br />
the mother made the video recording,<br />
it is her evidence that she had been<br />
having ongoing difficulties of that<br />
sort with the father. The mother had<br />
an ongoing concern about the father’s<br />
apparent obsessiveness with matters<br />
personal to her and his abusive, coercive<br />
and controlling behaviours and past<br />
episodes of violence. She was in the<br />
process of seeking an intervention<br />
order against him to deal with those<br />
issues. … Recording his behaviour<br />
was not improper in that context, even<br />
allowing for the secrecy with which it<br />
was done. In considering the question<br />
of impropriety, I also give weight to<br />
the conclusion … that the conduct<br />
in recording the hand over was not<br />
contrary to a relevant Australian law.<br />
[11] In my view, it was improper of the<br />
mother to make secret audio recordings<br />
of private conversations between the<br />
father and the children. It involved a<br />
significant breach of trust with respect<br />
to the children, who were entitled to<br />
privacy in their conversations with<br />
their father irrespective of any motives<br />
he may have had to enlist them in his<br />
dispute with the mother.<br />
The Court found ([12]-[23]) that the<br />
video was not illegal but that the audio<br />
contravened the Listening and Surveillance<br />
Devices Act 1972 (SA) and that ([24]-<br />
[25]) discretion should be exercised to<br />
exclude the audio recordings because the<br />
desirability of admitting that evidence<br />
(as relevant to the mother’s case of<br />
parental alienation) was outweighed by the<br />
undesirability of doing so, having regard<br />
to the children’s right to have private<br />
conversations with their father. B
RISK WATCH<br />
Details, details, details – they matter<br />
GRANT FEARY, DEPUTY DIRECTOR, LAW CLAIMS<br />
Checking the details are<br />
correct is vitally important<br />
for all practitioners. Not<br />
doing could land your<br />
client, and you in hot water.<br />
This month we take a look at another<br />
recent case from the South Australian<br />
Supreme Court which contains important<br />
Risk Management lessons. The case –<br />
Monsere Pty Ltd v RDM Nominees Pty Ltd<br />
[<strong>2019</strong>] SASC 126 – shows the critical<br />
importance of taking care to ensure that<br />
all details are correct and the potentially<br />
serious consequences of not doing so.<br />
The defendant (RDM) sent a Statutory<br />
Demand to the plaintiff (Monsere) on 19<br />
March <strong>2019</strong> in relation to a debt RDM<br />
claimed was owed by Monsere. Monsere<br />
asserted that there was a genuine dispute<br />
and an off-setting claim in relation to the<br />
debt claimed by RDM. Monsere instructed<br />
its solicitors to make an application<br />
pursuant to s.459G of the Corporations Act<br />
2001 (Cth) for the Statutory Demand to<br />
be set aside. Such an application must be<br />
made within 21 days of the service of the<br />
Statutory Demand, otherwise the company<br />
to which the Demand is directed will be<br />
deemed to be insolvent.<br />
The Corporations Rules 2003 (SA)<br />
provide that an application to set aside a<br />
Statutory Demand “must be in accordance with<br />
Form 2”. Form 2 is used for a number of<br />
different types of applicants and contains<br />
a number of parts. One part (Part B)<br />
provided for the details of the return<br />
date of the application to be filled in and<br />
another part (Part C) was a section to be<br />
completed if the originating process was<br />
seeking an order that the company be<br />
wound up in insolvency on the ground<br />
that the company had failed to comply<br />
with a Statutory Demand.<br />
The Court noted that it was common<br />
for the wording under Part C to be deleted<br />
if it was not applicable. Part C – which<br />
contained spaces for the insertion of the<br />
details of the service of the Statutory<br />
Demand (i.e. something which had already<br />
occurred) – was not applicable in this<br />
instance because the relief sought was<br />
to set aside a Statutory Demand and not<br />
wind-up a company.<br />
Upon filing of a Form 2 the Registrar<br />
must fix a time, date and place for hearing<br />
and endorse those details on the document<br />
at Part B. What occurred in this case is<br />
that on 5 April <strong>2019</strong> (four days before<br />
the 21 day period expired) the solicitor<br />
for Monsere attended at the Registry<br />
himself to file the set-aside application.<br />
The Registry Staff filled in the date, time<br />
and place of the hearing at Part C of the<br />
Form 2, not at Part B. The solicitor did not<br />
notice that the Registry Staff had written<br />
the return date (“30 April <strong>2019</strong> at 2:15pm”)<br />
in the wrong part of the document and did<br />
not check that the document was correctly<br />
filled out. After attending at the Registry<br />
Monsere’s solicitor served the documents<br />
himself on RDM’s solicitor.<br />
RDM then disputed that an application<br />
to set aside the Statutory Demand had<br />
been filed because the application did<br />
not comply with Form 2 and s.459G by<br />
reason of the fact that it did not bear<br />
the return date at Part B. RDM said that<br />
because the matter was not one to which<br />
Part C applied, the date written in Part C<br />
could not be read as the return date for<br />
the hearing, and that strict compliance was<br />
required.<br />
Monsere submitted that in the<br />
circumstances of this matter, where Part<br />
C of the Form was not engaged, and<br />
where the date at Part C was a future date,<br />
it should have been obvious to RDM<br />
that the Registry had made a mistake and<br />
that the date in Part C was actually the<br />
return date. Monsere submitted that there<br />
was therefore substantial and sufficient<br />
compliance with the requirements of the<br />
Act.<br />
Judge Bochner examined a number<br />
of the authorities on s.459G, although<br />
she acknowledged that none of them<br />
specifically related to a situation where<br />
the date was on the wrong section of<br />
the Form. It was clear from previous<br />
cases that it was fatal to the validity of<br />
the application if no return date at all<br />
appeared on the document, whether or<br />
not it was fault of the applicant – see for<br />
example Bache Business and Printing Services<br />
Pty Ltd v SA Hub Productions [2009] SASC<br />
369 and Cooloola Dairys Pty Ltd v National<br />
Foods Milk Ltd [2004] 211 ALR 293.<br />
Judge Bochner concluded that:<br />
“It was not for the defendant [RDM] to<br />
attempt to ascertain the true meaning of<br />
Part C; the time and date for the hearing<br />
must be evident on the face of the document,<br />
without requiring the defendant to make any<br />
assumptions. In my view, this case cannot be<br />
distinguished from Cooloola Dairies, despite<br />
the factual differences both cases required the<br />
defendant to guess, make an assumption or take<br />
some other step to ensure that it was aware of<br />
the hearing date for the application”.<br />
Monsere’s application to set aside<br />
the Statutory Demand was therefore<br />
dismissed thereby exposing Monsere<br />
to being wound up. It is understood<br />
that Monsere may be appealing this<br />
decision. Even if an appeal is lodged and<br />
is successful it is abundantly clear that<br />
it would have been better for Monsere<br />
and its solicitor had the proper details<br />
of the return date been checked and the<br />
document corrected before service on<br />
RDM.<br />
Much of what practitioners do<br />
depends greatly on getting the details<br />
correct. This case shows that not doing<br />
so can cause significant problems. In<br />
cases where the solicitor is not primarily<br />
responsible for the error the “buck” will<br />
often stop with the solicitor. Even when<br />
things are busy (perhaps especially<br />
when things are busy) stop, take a<br />
moment to check and double-check<br />
that you have the details correct.<br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 43
BOOKSHELF<br />
MILITARY LAW IN AUSTRALIA<br />
Abstract from Federation Press<br />
Military Law in Australia covers<br />
contemporary legal practice in a military<br />
context. It is written by a stable of experts<br />
drawn from the profession, including a judicial<br />
officer, barristers, legal practitioners within<br />
Defence, legal academics, and public lawyers<br />
in government and the private sector. This is<br />
the first comprehensive book on military law in<br />
Australia for nearly a century, filling a hitherto<br />
neglected area of jurisprudence.<br />
R Creyke, D Stephens and<br />
P Sutherland (eds)<br />
The Federation Press <strong>2019</strong><br />
PB $130.00<br />
J Tarrant<br />
The Federation Press <strong>2019</strong><br />
HB $130.00<br />
LEGAL AND EQUITABLE PROPERTY RIGHTS<br />
Abstract from Federation Press<br />
This book provides a precise understanding<br />
of legal and equitable property. John Tarrant<br />
sets out a unifying theory of legal and equitable<br />
property rights and shows how property rights<br />
fit within private law. Tarrant shows how legal<br />
and equitable property rights fit within private<br />
law by demonstrating that private law only has<br />
two purposes: first, to protect personal integrity;<br />
and second, to protect private property (our<br />
things) through the availability of a range of<br />
private law remedies. In simple terms, private<br />
law provides remedies for people and for their<br />
tangible and intangible things in interactions<br />
with other legal persons.<br />
J Carter & L Chang<br />
The Federation Press <strong>2019</strong><br />
PB $69.95<br />
CONTRACT AND THE AUSTRALIAN CONSUMER LAW<br />
Abstract from Federation Press<br />
Contract and the Australian Consumer<br />
Law analyses the way the Australian Consumer<br />
Law has modified contract law. In particular,<br />
provisions in the Australian Consumer Law in<br />
relation to consumer guarantees for goods and<br />
services, unfair contract terms, misleading or<br />
deceptive conduct and unconscionable conduct<br />
are considered and analysed. The book discusses<br />
recent cases on these topics and extracts guiding<br />
principles from the legislation and the cases.<br />
The text is intended to be read from cover<br />
to cover so as to present a birdseye view on the<br />
operation of the legislation in the context of<br />
contract law.<br />
S Graw, D Parker, K Whitford,<br />
E Sangkuhi & C Do<br />
9th ed LexisNexis<br />
Butterworths <strong>2019</strong><br />
PB $155.00<br />
UNDERSTANDING BUSINESS LAW<br />
Abstract from LexisNexis<br />
Understanding Business Law covers a range<br />
of business law topics including contract law,<br />
sale of goods, employment law, consumer<br />
law, business structures, property (including<br />
intellectual property), civil wrongs, debt recovery<br />
and financial transactions. The authors use case<br />
examples and real-life scenarios to illustrate<br />
how legal principles are applied in a business<br />
context. This ninth edition has been extensively<br />
updated and new content includes discussion<br />
on statutory interpretation, security interests<br />
in property, payment systems, corporate social<br />
responsibility, the new ‘safe harbour rules for<br />
company directors…<br />
44<br />
THE BULLETIN <strong>September</strong> <strong>2019</strong>
GAZING IN THE GAZETTE<br />
3 JUL <strong>2019</strong> – 2 AUG <strong>2019</strong><br />
A MONTHLY REVIEW OF ACTS, APPOINTMENTS, REGULATIONS<br />
AND RULES COMPILED BY MELLOR OLSSON’S ELIZABETH OLSSON.<br />
ACTS PROCLAIMED<br />
Residential Parks (Miscellaneous) Amendment<br />
Act <strong>2019</strong> (No 1 of <strong>2019</strong>)<br />
Commencement ss 6-19; 21; 22; 26;<br />
Sch 1 clauses 3-6: 12 August <strong>2019</strong><br />
Gazetted: 4 July <strong>2019</strong>, Gazette<br />
No. 31 of <strong>2019</strong><br />
Statutes Amendment (Domestic Violence) Act<br />
2018 (No 38 of 2018)<br />
Commencement ss 7; 11; 12:<br />
1 <strong>September</strong> <strong>2019</strong><br />
Gazetted: 18 July <strong>2019</strong>, Gazette<br />
No. 33 of <strong>2019</strong><br />
ACTS ASSENTED TO<br />
Statutes Amendment (Child Exploitation and<br />
Encrypted Material) Act <strong>2019</strong>, No. 13 of<br />
<strong>2019</strong> (amends Child Sex Offenders Registration<br />
Act 2006, Criminal Law Consolidation Act<br />
1935, Evidence Act 1929 and Summary<br />
Offences Act 1953<br />
Gazetted:<br />
11 July <strong>2019</strong>, Gazette<br />
No. 32 of <strong>2019</strong><br />
Statutes Amendment (SACAT) Act <strong>2019</strong>,<br />
No. 14 of <strong>2019</strong><br />
(amends Mines and Works Inspection Act<br />
1920, Pastoral Land Management and<br />
Conservation Act 1989, Residential Parks Act<br />
2007, Retirement Villages Act 2016 and South<br />
Australian Civil and Administrative Tribunal<br />
Act 2013)<br />
Gazetted:<br />
11 July <strong>2019</strong>, Gazette<br />
No. 32 of <strong>2019</strong><br />
Victims of Crime (Offender Service and Joinder)<br />
Amendment Act <strong>2019</strong>, No. 15 of <strong>2019</strong><br />
Gazetted: 11 July <strong>2019</strong>, Gazette<br />
No. 32 of <strong>2019</strong><br />
Parliamentary Committees (Petitions)<br />
Amendment Act <strong>2019</strong>, No. 16 of <strong>2019</strong><br />
Gazetted: 11 July <strong>2019</strong>, Gazette<br />
No. 32 of <strong>2019</strong><br />
Criminal Law Consolidation (Assaults on<br />
Prescribed Emergency Workers) Amendment Act<br />
<strong>2019</strong>, No. 17 of <strong>2019</strong><br />
(amends Criminal Law Consolidation Act<br />
1935, Criminal Law (Forensic Procedures) Act<br />
2007 and Summary Offences Act 1953)<br />
Gazetted: 1 August <strong>2019</strong>, Gazette<br />
No. 37 of <strong>2019</strong><br />
APPOINTMENTS<br />
Judge of the Industrial Relations Court<br />
of South Australia<br />
Peter Dennis Hannon<br />
Gazetted:<br />
25 July <strong>2019</strong>, Gazette<br />
No. 34 of <strong>2019</strong><br />
Chairman of the Electoral Districts<br />
Boundaries Commission<br />
(from 19 July <strong>2019</strong>)<br />
The Honourable Justice Patricia Kelly, a<br />
Judge of the Supreme Court of South<br />
Australia<br />
Gazetted:<br />
26 July <strong>2019</strong>, Gazette<br />
No. 36 of <strong>2019</strong><br />
Adelaide Cemeteries Authority Board<br />
Director:<br />
from 2 August <strong>2019</strong> until 1 August 2023<br />
Joanna Louise Andrew<br />
Gazetted: 2 August <strong>2019</strong>, Gazette<br />
No. 38 of <strong>2019</strong><br />
RULES<br />
Magistrates Court Rules 1992<br />
Amendment 75<br />
Gazetted: 4 July <strong>2019</strong>, Gazette<br />
No. 31 of <strong>2019</strong><br />
Magistrates Court Rules 1992—<br />
Corrigendum<br />
Amendment 74<br />
Gazetted:<br />
25 July <strong>2019</strong>, Gazette<br />
No. 34 of <strong>2019</strong><br />
REGULATIONS PROMULGATED (3 JULY <strong>2019</strong> – 2 AUGUST <strong>2019</strong>)<br />
REGULATION NAME REGULATION NO. DATE GAZETTED<br />
Associations Incorporation Act 1985 185 of <strong>2019</strong> 4 July <strong>2019</strong>, Gazette No. 31 of <strong>2019</strong><br />
Advance Care Directives Act 2013 186 of <strong>2019</strong> 11 July <strong>2019</strong>, Gazette No. 32 of <strong>2019</strong><br />
Teachers Registration and Standards Act 2004 187 of <strong>2019</strong> 18 July <strong>2019</strong>, Gazette No. 33 of <strong>2019</strong><br />
Evidence Act 1929 188 of <strong>2019</strong> 18 July <strong>2019</strong>, Gazette No. 33 of <strong>2019</strong><br />
Intervention Orders (Prevention of Abuse) Act 2009 189 of <strong>2019</strong> 18 July <strong>2019</strong>, Gazette No. 33 of <strong>2019</strong><br />
National Parks and Wildlife Act 1972 190 of <strong>2019</strong> 18 July <strong>2019</strong>, Gazette No. 33 of <strong>2019</strong><br />
Maralinga Tjarutja Land Rights Act 1984 191 of <strong>2019</strong> 18 July <strong>2019</strong>, Gazette No. 33 of <strong>2019</strong><br />
Land Acquisition Act 1969 192 of <strong>2019</strong> 25 July <strong>2019</strong>, Gazette No. 34 of <strong>2019</strong><br />
Victims of Crime Act 2001 193 of <strong>2019</strong> 25 July <strong>2019</strong>, Gazette No. 34 of <strong>2019</strong><br />
South Australian Museum Act 1976 194 of <strong>2019</strong> 1 August <strong>2019</strong>, Gazette No. 37 of <strong>2019</strong><br />
Essential Services Commission Act 2002 195 of <strong>2019</strong> 1 August <strong>2019</strong>, Gazette No. 37 of <strong>2019</strong><br />
Fisheries Management Act 2007 196 of <strong>2019</strong> 1 August <strong>2019</strong>, Gazette No. 37 of <strong>2019</strong><br />
Highways Act 1926 197 of <strong>2019</strong> 1 August <strong>2019</strong>, Gazette No. 37 of <strong>2019</strong><br />
Associations Incorporation Act 1985 198 of <strong>2019</strong> 1 August <strong>2019</strong>, Gazette No. 37 of <strong>2019</strong><br />
<strong>September</strong> <strong>2019</strong> THE BULLETIN 45
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LITIGATION ASSISTANCE<br />
FUND<br />
The Litigation Assistance Fund (LAF) is a<br />
non-profit charitable trust for which the<br />
Law Society acts as trustee. Since 1992<br />
it has provided funding assistance to<br />
approximately 1,500 civil claimants.<br />
LAF receives applications for funding<br />
assistance from solicitors on behalf of<br />
civil claimants seeking compensation/<br />
damages who are unable to meet the<br />
fees and/or disbursements of prosecuting<br />
their claim. The applications are<br />
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test. Two different forms of funding exist –<br />
Disbursements Only Funding (DOF) and<br />
Full Funding.<br />
LAF funds itself by receiving a relatively<br />
small portion of the monetary proceeds<br />
(usually damages) achieved by the<br />
claimants whom it assists. Claimants who<br />
received DOF funding repay the amount<br />
received, plus an uplift of 100% on that<br />
amount. Claimants who received Full<br />
Funding repay the amount received, plus<br />
15% of their damages. This ensures LAF’s<br />
ability to continue to provide assistance<br />
to claimants.<br />
LAF recommends considering whether<br />
applying to LAF is the best course in the<br />
circumstances of the claim. There may be<br />
better methods of obtaining funding/<br />
representation. For example, all Funding<br />
Agreements with LAF give LAF certain<br />
rights including that funding can be<br />
withdrawn and/or varied.<br />
For further information, please visit<br />
the Law Society’s website or contact<br />
Annie MacRae on 8229 0263.<br />
LawCare<br />
The LawCare Counselling<br />
Service is for members of<br />
the profession or members<br />
of their immediate family<br />
whose lives may be adversely<br />
affected by personal or<br />
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If you have a problem, speak<br />
to the LawCare counsellor Dr<br />
Jill before it overwhelms you. Dr<br />
Jill is a medical practitioner<br />
highly qualified to treat social<br />
and psychological problems.<br />
The Law Society is pleased to<br />
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financial year.<br />
All information divulged to the<br />
LawCare counsellor is totally<br />
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member is voluntary.<br />
To contact Dr Jill 08 8110 5279<br />
8am-8pm, 7 days a week<br />
LawCare is a member service<br />
made possible by the generous<br />
support of Arthur J. Gallagher<br />
Family Law - Melbourne<br />
Marita Bajinskis<br />
formerly of<br />
Howe Martin & Associates<br />
is a Principal at<br />
Blackwood Family Lawyers<br />
in Melbourne<br />
Marita is an Accredited Family<br />
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all family law matters including:<br />
• matrimonial and de facto<br />
• property settlements<br />
• superannuation<br />
• children’s issues<br />
3/224 Queen Street<br />
Melbourne VIC 3000<br />
T: 03 8672 5222<br />
Marita.Bajinskis@<br />
blackwoodfamilylawyers.com.au<br />
www.blackwoodfamilylawyers.com.au<br />
CONSULTING<br />
ACTUARIES<br />
FOR PROFESSIONAL<br />
ACTUARIAL ADVICE ON<br />
- Personal Injury -<br />
- Workers Compensation -<br />
- Value Of Superannuation -<br />
Contact<br />
Geoff Keen or Bruce Watson<br />
08 8232 1333<br />
contact@brettandwatson.com.au<br />
Ground Floor<br />
157 Grenfell Street<br />
Adelaide SA 5000<br />
46 THE BULLETIN <strong>September</strong> <strong>2019</strong>
We manage one of SA’s largest<br />
social media accounts.<br />
boylen.com.au<br />
P 08 8233 9433<br />
A Level 3, 47 South Tce, Adelaide SA