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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 />

advertising material included are<br />

not necessarily endorsed by The<br />

Law Society of South Australia.<br />

No responsibility is accepted by the<br />

Society, Editor, Publisher or Printer for<br />

accuracy of information or errors or<br />

omissions.<br />

PUBLISHER/ADVERTISER<br />

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Layout: Henry Rivera<br />

Advertising<br />

Email: sales@boylen.com.au<br />

Printer<br />

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101 Mooringe Ave,<br />

Camden Park SA 5038.<br />

Ph: (08) 8376 1188<br />

Ex Officio Members<br />

The Hon V Chapman, Prof R Sarre,<br />

Prof M de Zwart, Prof T Leiman<br />

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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matter and client enquiries


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 />

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The Litigation Assistance Fund (LAF) is a<br />

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representation. For example, all Funding<br />

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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

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