rules

Road Rules Awareness Week

26 February – 4 March 2018 is Road Rules Awareness Week in New South Wales and is part of Transport for NSW’s Towards Zero campaign.

Here is a guide to the Top 10 misunderstood Road Rules which provides simple answers to many road rule questions, including using roundabouts, when you can and can’t use high-beam and fog lights, and when it is permitted to make a u-turn.

Top 10 Misunderstood Road Rules

Below are some short videos on each topic in the top 10.

Road Rules Awareness Week provides an annual opportunity for drivers to refresh their knowledge of road rules. It also allows pedestrians, motorcyclists, passengers and bicycle riders to better understand the rules and improve their safety on or near the road.

 

 

Payment surcharge changes

If your business charges customers a surcharge on transactions, be aware that from 1 September 2017, all businesses that impose payment surcharges on card transactions need to comply with the the Competition and Consumer Amendment (Payment Surcharges) Act 2016 which bans ‘excessive’ payment surcharges.

The new laws cover surcharges on typical card payment methods:

  • EFTPOS (debit and prepaid);
  • MasterCard (credit, debit and prepaid);
  • Visa (credit, debit and prepaid); and
  • American Express companion cards (issued through an Australian financial service provider, rather than directly through American Express*).

*Note that the benchmarks will not apply to foreign-issued cards. American Express proprietary cards (issued by American Express directly) are not covered by the ban, nor are BPAY, PayPal, Diners Club cards, UnionPay, cash or cheques.

The purpose of the legislative ban is to stop excessive surcharges – those charged at a price more than the actual cost of accepting that payment method. The cost to a business of accepting each payment method known as the ‘cost of acceptance’ for that method and is determined according to the Reserve Bank of Australia (RBA)’s standards set by the RBA Payments Systems Board.

A payment surcharge is generally considered excessive if it exceeds the ‘cost of acceptance’.

If your cost of acceptance for Visa credit cards is 1%, then you can only charge a maximum of 1%, not 2% or 3%.

The cost of acceptance can include merchant service fees, fees paid for the rental and maintenance of payment card terminals, any other fees incurred in processing card transactions, fraud prevention services, insurance etc but these must be able to be verified by contracts, statements or invoices.

Businesses cannot include any of their own internal costs when calculating their surcharges (for example, labour or electricity costs).

The Australian Competition & Consumer Commission (ACCC) is responsible for enforcing the ban and can:

  • issue an infringement notice with penalties of up to $2,160 (individuals, partnerships), $10,800 (body corporate) or $108,000 (listed corporation
  • take court action seeking pecuniary penalties of up to $1,164,780, injunctions and other orders.

Receiving such a penalty would be a disastrous hit to small business, so make sure you comply with the payment surcharge changes. Ask your financial institution to let your know what the average cost of accepting cards is and review it annually so you don’t get caught out.

You may also need to update your business’s Terms of Trade.

Westpac notes costs of acceptance here, NAB here and ANZ here

FURTHER INFORMATION

Craig Pryor is principal solicitor at McKillop Legal. For further information in relation to business law, litigation and dispute resolution or any commercial law matter, contact Craig Pryor on (02) 9521 2455 or email craig@mckilloplegal.com.au.

This information is general only and is not a substitute for proper legal advice. Please contact McKillop Legal to discuss your needs.

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Trust & Superannuation Deed Amendments

Do you or any of your clients have a family/discretionary trust, unit trust or self-managed superannuation fund and want to change the deed?

Often the change is to remove and replace a trustee with a new one. In other situations, it may be changing a class of potential beneficiaries, dealing with the power of appointment, bringing forward the termination date or changing the trustee’s rights and/or obligations.

Care needs to be taken not to vest the trust or to cause a resettlement, which can give rise to unintended consequences, including:

  • CGT and
  • stamp duty.

There is no real “one size fits all” solution. Deeds can vary greatly as to the process and requirements.

McKillop Legal can assist in reviewing the relevant Deed/Rules and drafting an appropriate document to give effect to the required change.

FURTHER INFORMATION

Craig Pryor is principal solicitor at McKillop Legal. For further information in relation to trusts, estate planning, business succession or any other commercial law matter, contact Craig Pryor on (02) 9521 2455 or email craig@mckilloplegal.com.au.