A Supply of a Going Concern – Purchaser’s Requirement to be Registered
Legislation
Subdivision 38-J of the A New Tax System (Goods and Services Tax) Act 1999 provides that a supply of a going concern is GST free if certain conditions are satisfied.
Requirements
One of these conditions is contained in section 38-325(1)(b) of the Act which requires the recipient to be registered or required to be registered.
Retail Leases Act 2003 – Excluded Retail Premises
Legislation
Section 4(2)(f) of the Retail Leases Act 2003 allows the Minister to make a determination under section 5(1)(c) to exclude certain premises from the definition of retail premises.
Requirements
One of the determinations made by the Minister (contained in the Victorian Government Gazette No. S75 30 April 2003) excludes the following premises from the Retail Leases Act 2003:
Premises that are located entirely within a building which, under the terms of the lease relating to the premises, or part of the premises, are used, or are to be used, wholly or predominantly for the retail provision of services, other than premises located entirely on any one or more of the first three storeys in a building, excluding any basement levels.
Changes to Gaming Machine Arrangements in Victoria Post 2012
The Personal Properties Securities Act 2009 was passed on 14 December 2009 and is expected to commence operation in October 2011. The Act makes comprehensive changes to the registration of security interests in personal property, and radically alters notions of legal title over such property. The reforms will have a wide-ranging impact on the conduct of business, particularly commercial dealings involving securities interests including fixed and floating charges, conditional sale agreements, leases of goods, hire purchase agreements or chattel mortgages.
Liquor Licensing Update
The Government’s ‘Alcohol Action Plan’ and the attitude of relevant decision makers is leading to increasingly conservative assessments in relation to liquor licensing. Notable recent developments include:
- The imposition of the following measures in the City of Melbourne (including Docklands), City of Stonnington, City of Port Phillip and the City of Yarra:
- A three (3) month ‘trial’ 2:00am lock-out in. A total of 457 premises were affected with approximately 130 venues obtaining exemptions through a VCAT negotiation process. The Director’s application to contest 6 of the exemptions was refused by the Tribunal. The temporary lock-out expires on 02 September 2008. There has been no confirmation in relation to the imposition of any more permanent lock-out measures.
- The imposition of a freeze prohibiting the granting of liquor licenses with trading beyond 1:00am (except where exceptional circumstances can be demonstrated). This applies to both new licence applications and variation applications. This freeze expires on 01 May 2009.
- Clients are reporting to us high incidence of inspections by not only Licensing Inspectors but by undercover members of the Director’s taskforce. Licensees should refresh their memory as to the conditions on their liquor licenses and ensure they have a copy of their red-line plan on the premises at all times.
- Licensees contemplating opening new premises or undertaking alteration works to existing premises should note the following:
- Applications for new liquor licenses and planning permits as well as variations to planning permits and licenses are becoming increasingly difficult, with the control of off-site amenity impacts the critical issue to address, particularly in relation to outdoor areas.
- Pursuant to current policy, variation applications within the currently approved red line area may attract the requirement of a variation application.
- We strongly suggest that licensees contemplating opening new premises or undertaking variations to existing premises contact Bazzani Scully Brand to discuss the relevant implications and considerations and to determine the approvals required.
Gaming Update
Applications to the Victorian Commission for Gambling Regulation (the VCGR) for approvals to operate gaming machines at a newly established premises, or to increase gaming machines at an existing venue, are becoming increasingly complex.
Bazzani Scully Brand has recently been involved in successful applications for obtaining approval to install:
- Sixty (60) gaming machines at the new Casey Towers development, a One Hundred Million Dollar ($100,000,000.00) commercial/entertainment facility to be constructed in Narre Warren; and
- Eighty (80) gaming machines at a new Twenty-Six Million Dollar ($26,000,000.00) hotel development (including accommodation) at Caroline Springs.
The location of premises seeking approval for gaming machines is increasingly important. Gaming machines cannot be located in areas defined under the relevant planning scheme as a strip shopping centre. Recent VCAT decisions have taken a conservative approach to the interpretation of the definition of a strip shopping centre.
