Kickstarter, GoFundMe and other crowdfunding platforms have exploded in popularity in the past five years, and it’s essential for anyone running a campaign to know how the Australian Taxation Office (ATO) views the money involved.

There are four main crowdfunding models: Donation-based, reward-based, equity-based, and debt-based. Because debt-based and equity-based crowdfunding schemes are not widespread in Australia, they’ll be left out of this article. Instead, we’ll focus on how the two most popular types – donation-based and reward-based crowdfunding – are taxed.

Which types of crowdfunding are taxed?

Donation-based Funding

This funding is entirely philanthropic. Money raised in these campaigns is used for official charity appeals or to finance causes like a child’s medical treatment or a family funeral. If you seek donations to help with a charitable cause and you aren’t making a profit, then the funds you receive are usually not taxable.

Reward-based Funding

This is where the person seeking funding promises to give the funder something in exchange for their backing. These rewards are commonly organised under tiers. For example, if you give $500, you might get one of the advertised products early. If you give $1000, you might get two of the products early and a discount.

These sorts of funding ventures are almost always subject to tax. If you are trying to bring a commercial product to market, then the funds you receive will most likely be taxable income. If you are providing goods or services in exchange for funding, you may also have to pay GST.

Crowdfunding is an exciting new way for charities and businesses to access money and for individuals to support projects and causes they care about. But, like most innovations, it’s only a matter of time before closer attention is paid to the legal issues like taxation.

To speak to one of our business law experts about legally crowdfunding your next idea, or if you have an enquiry regarding any other area of commercial law, contact Phoenix Law on 07 3607 3274 or info@phoenix-law.com.au.

Are you flirting with the idea of an overseas elopement, but aren’t sure if you’ll need to remarry when you get back home? Or perhaps you’re already married and need to know if your overseas union is recognised in Australia? If so, this blog is for you!

According to the Marriage Act of 1961, if your marriage was valid under the laws of the country in which you were initially married, it will usually be recognised by the Australian government, and you won’t have to remarry. 

To have your marriage recognised, you’ll need to show your original marriage certificate, a certified copy, or a “record of marriage issued by a competent authority in a foreign country” to your local births, deaths and marriages registry.

Reasons Your Marriage Won’t Be Recognised

Sometimes an overseas marriage won’t be valid in Australia, either because it isn’t a proper legal contract or it doesn’t fit the Australian government’s definition of marriage.

Your overseas marriage may be invalid if:

  1. One of the parties wasn’t of marriageable age in Australia: Both parties must be at least 18 years old unless a court has approved a marriage where one party is aged between 16 and 18 years old.
  2. One of the parties was married to someone else at the time of marriage: This is known as bigamy, and in Australia it is an offence punishable by up to 5 years imprisonment.
  3. Parties are too closely related to marry: You can’t marry your parent, grandparent, child, grandchild or sibling.
  4. There is no consent: Marriages that are obtained by duress or fraud, because of a mistaken identity, with a party that didn’t understand the nature of the agreement they were entering into or with a party that was mentally incapable of consenting are all invalid in Australia.

Does Marrying an Australian Automatically Give Me Rights to Live There? 

Marriage doesn’t mean you automatically can live in Australia – you still need to be approved for a valid partner visa.

To find out more about family or migration law, contact Phoenix Law & Associates on 07 3607 3274 for an obligation-free confidential discussion, or email us at info@phoenix-law.com.au.

Grit, determination and the right amount of funding aren’t all that it takes to successfully go into business with someone. No matter how solid your partnership may seem at the outset, you need to nut out a few basic legal agreements before you start operating a business together.

This month we asked business owners what they wish they’d done before partnering – and their answers all revolved around one thing: Partnership agreements

1. Detailed Job Descriptions

You wouldn’t start a new job without a clear outline of what your responsibilities are going to be, and entering into a business partnership is no different.

The number one thing the business owners we polled said they wish they’d done differently was creating a partnership agreement with specific job descriptions and KPIs. 

From angel investors with no hands-on responsibilities to partners using their skills in the day-to-day operation of the business, all parties must have a clear understanding of what’s expected of them from the outset and what will happen if they fail to meet their obligations.

2. Mandatory Background Checks

Knowing who you’re going into business with is said to be more important than knowing who you’re marrying – especially if you’re a general partner with unlimited liability!

The business world is littered with people who didn’t realise the type of person they were partnering with until it was too late. Including a stipulation that requires partners to undergo police, background and credit history checks is a simple way to lower your chances of being taken for a ride.

3. Exit Strategy

People new to the business world have a bad habit of viewing an exit strategy as a sort of prenup – if we create one, we’re just setting ourselves up for failure. However, in reality, there are many reasons why someone might want to exit the partnership, and they have nothing to do with failure! Families can grow or fall apart, new opportunities in different cities and countries present themselves, health changes, and sometimes business just isn’t what one of the partners expected it to be.

It’s crucial for all partners to understand and agree to a set of rules governing how the partnership may be dissolved including:

  • How partners can retire
  • What the business will do in the event of a death, permanent injury, bankruptcy or divorce of a partner, and;
  • How a partner that doesn’t tow the line can be expelled

If you need a partnership agreement drawn up or simply want more advice on business structures and partnerships, contact Phoenix Law & Associates on 07 3607 3274 for a confidential discussion, or email us at info@phoenix-law.com.au.

February may be the month for romance, but when it comes to relationship law, love cannot afford to be blind.

In this blog, we debunk the top three legal myths our family lawyers hear, and explain why believing them can cost you more than you’d think!

Myth #1: Consent is the only law I need to worry about when it comes to sex.

When it comes to who you can and can’t have sex with, and how you go about doing so, there are a number of laws you need to know about:

Age: In Queensland, it is illegal to conduct sexual activity with anyone under 16 years of age. These ages vary state to state, however, which is important to know if you plan on going on a weekend getaway with your love this Valentines Day.

Sexting: While the age of consent is 16, it’s still illegal to possess sexual images of anyone under 18 – something that all teenagers need to be aware of in the smartphone era!

STI Disclosure: If you knowingly expose a sexual partner to an STI you may be held accountable under the Public Health Act. Furthermore, if the person contracts a serious condition like HIV from you, you could be charged with grievous bodily harm or face civil action if you knew you had the condition.

Myth #2: When you’ve been living together as a couple for two years, there is a relationship law that says you get half of the other person’s stuff if you break up.

The laws surrounding a de facto “divorce” are a lot more complicated than this common urban legend implies.

What you may be entitled to when your relationship ends will depend on many factors including:

• What assets/property/money you brought into the relationship to begin with Whether you made any “significant contributions” to an asset (e.g. your labour spent renovating a house)

• How long you were together

• If you have children together

De facto separations rarely end in an even 50/50 split, which is why it’s a good idea to get legal advice.

Myth #3: Your will remains a valid legal document even after you’ve married.

Most couples don’t realise that once they officially tie the knot, any wills that either party had in place beforehand become invalid.

If you don’t want the majority of your estate going to your spouse, you need to update your will.

This law is particularly relevant for anyone who has children from a previous relationship.

For more information about how to protect yourself in a relationship, or to find out how family law affects you or your children, get in touch with our friendly team today by dialling 3607 3282 emailing info@phoenix-law.com.au or filling out our simple online contact form.

Revenge porn is a particularly insidious type of harassment where an ex-partner publishes sexually explicit images of a former flame online without their consent.  Unfortunately, because this is a relatively new crime there isn’t an Australia-wide law to deter offenders, but there are still other options for victims to pursue.

Copyright Takedowns

If your sexually explicit image is a selfie, then you own it, and this means that you can request that online publisher remove it from their sites. This process is called a “DMCA takedown”. There are many providers who offer this service, and a quick Google search will set you on the right path.

Google It

The search engine giant has recently announced that it is taking a progressive approach to the problem of revenge porn. 

In June 2015, the Senior Vice-President of Google Search declared, “Revenge porn images are intensely personal and emotionally damaging, and serve only to degrade the victims — predominantly women. So going forward, we’ll honour requests from people to remove nude or sexually explicit images shared without their consent from Google Search results”. 

Since then, the search engine has streamlined it’s reporting platforms to accomodate the massive number of requests it receives every day. Google’s removal process starts with this online form.

Seek Legal Help

While Australia does not have federal laws specifically relating to revenge porn, there may be other legal avenues you can take. Online harassment and defamation are both crimes that posts made about you may fall into – so it’s worth getting a lawyer to explain what you need to prove if you want to pursue legal action against the person who is distributing your explicit pictures.

If you’ve ever had a serious, long-term relationship, you’ll know how deeply intertwined lives can become – which is why a separation often makes for a difficult, painful, and volatile experience.  Like any situation, though, you can take steps to mitigate your hardship.  What follows is a guide to solving the pressing, but easily avoided problems that can arise in any separation.

1. Contact Your Bank

A breakup almost inevitably means financial stress.  Joint bank accounts, joint credit cards, joint home loans.  All these things can compound your suffering at a time when former partners can do things that are otherwise totally out of character, like withdrawing large sums of money from a joint account or using the credit card recklessly. 

The best thing to do is to contact your financial institution and inform them of your situation.  This way, they’ll alert you to any suspicious behaviour by your ex-partner.

2. Change Your Passwords

If the breakup was not on good terms, you should consider changing the passwords to your online banking and social media accounts.  A spurned partner can be vindictive, so this is a critical step towards ensuring your peace of mind. 

3. Update Wills & Other Legal Documents

If you have a will, it is vital that you update it as soon as possible after a separation.  Otherwise, your former partner is still entitled to whatever property you have left them under your old will.  If you’ve had a will drafted by a law firm, let them know that you will need to make changes to it.  You won’t necessarily need an entirely new will – your firm may simply delete clauses and insert new ones, so this needn’t be a costly endeavour.

The other major document that you may need to revoke is an Enduring Power of Attorney (EPOA).  If you and your ex-partner are each other’s Attorneys, then you will need to tell the law firm that drafted the documents that you need to revoke them.  Do this ASAP, because while the EPOA is still in place, your partner can sign legally binding documents on your behalf.

There is a myriad of different concerns to bear in mind during a separation, but these are a few of the most important.  If you’re unsure about your next step is, seek legal advice – it can be the difference between a relatively painless breakup and a whirlwind of heartache.

Embattled politicians, disgruntled ex-spouses and badly reviewed builders are just some of the Queenslanders who have successfully taken their detractors to court for Facebook defamation in the last 12 months.

In the age of social media, when hitting enter can end up costing you tens of thousands of dollars, it’s more important than ever to know where you stand when it comes to defamation law.

To help you protect yourself from both defaming and being defamed, we’ve put together this blog answering the top questions people ask our defamation hotline.

1. Are private posts or messages classed as defamation?

Yes, they can be!

If you communicate a defamatory message – something that a reasonable member of the community would say is damaging to another’s reputation – you may be liable, regardless of whether that communication is sent to one or ten people.

Most people don’t realise that they may be defaming someone simply by spreading defamatory words or pictures in private posts or even instant messages between them and another person.

2. Can I be sued for something I said on Facebook years ago?

Probably not.

Complainants have one year from the date of publication of the defamatory material to take the matter to court.

The person who is defamed may apply for an extension of this time limit if they can show the Court “that it was not reasonable in the circumstances to commence action in time” but this can’t extend for more than three years from the date of publication.

3. If what I said is true, can I still be sued for defamation?

Truth is a defence. However, it is up to the person who is being sued to prove that their statements were true.

So, while you’re within your rights to publish the truth, you had better have the evidence to back your claims up!

4. Can a bad review of a business be classed as defamation?

Yes! If you’ve spread information that will damage the reputation of the following entities you may be liable:

  • A living person
  • A not-for-profit corporation
  • A corporation which employs fewer than 10 persons and which is not related to another corporation

If you’d like to discuss a potential defamation case with a legal professional, call 3607 3274 today for an obligation-free appointment with one of our lawyers. Or, for more information about defamation law in Queensland check out the Act

The tiny house movement is rapidly gathering momentum. Reduced bills, small to no mortgage payments, and a simpler way of life are all major draw cards of extreme downsizing.

Before you start building, the one thing you must know is where you’re going to put your tiny house as different laws apply to different locations.

Here’s a breakdown of the three placement options, and which rules apply to each:

1.Setting Up In A Backyard

A tiny house on the same lot as a ‘main dwelling’ can be classified as a granny flat. Granny flats have their own size and structure regulations (set by the local council).

While you’ll need to get a granny flat approved by a private certifier, you won’t necessarily have to get council approval, which is a huge advantage of choosing this option.

Just be careful that the combined number of occupants in the tiny house and main property doesn’t exceed the local council’s limits. In Brisbane, for example, only five unrelated people are allowed to dwell on the same lot!

2. Using A Vacant Lot

If you build your tiny house on a vacant lot, you’ll need to have your construction approved by the local council. This means you’ll have to conform to the building codes that apply to regular houses including minimum sizes, smoke alarm rules, plumbing and electrical standards and more.

You can find these codes the Building Act of 1975, or, better yet, get a lawyer to inform and review your plans.

3. Tiny Houses on Wheels

Many tiny house enthusiasts build their homes on wheels, so that they can vacate the jurisdiction of city and town planning authorities at a moment’s notice.

The catch is, of course, that once your home has wheels it is no longer a “permanent structure” and instead is classified as a caravan or light truck.

No matter where you roam in Australia, you’ll need to comply with the Motor Vehicle Standards Act 1989.

In addition to this, you’ll need to comply with state laws relating to movable dwellings. In Queensland, these include the Residential Tenancies and Rooming Accommodation Act 2008 and the Transport Operations (Road Use Management) Act 1995.

You’ll save time and money in the long run if you seek legal advice before you build and ensure your home is the right shape, size and weight and that you’re meeting safety requirements (e.g., fire extinguisher installation).

Vendor – Why is the business being sold?
Costs – What variable and fixed costs will there be?
Profits – Do previous financial statements show that the business is profitable?
Assets – What assets are owned by the business?
Liabilities – Does the business have any outstanding or substantial debts?
Tax – Always ensure that GST, Capital Gains Tax, and stamp duty implications are in the equation when drafting a business plan
History – What has and hasn’t worked in the business in the past?

Purchasing a business is a far more complex and serious transaction than most others, a small or careless decision can leave you financially damaged. Luckily the skilled team at Phoenix Law can advise you throughout and ensure that you avoid common mistakes.

Before deciding whether to commence legal action, you must identify your ideal outcome, whether it be compensation, reinstatement of a job or just an acknowledgement of fault. Our lawyers will use this information to determine whether a court could in fact help you achieve your desired outcome.

The next important consideration is whether there is a case to answer for and if you have a cause of action. A cause of action is a legal framework that gives rise to entitlement for you to take action. For example, a negligence claim has 3 separate elements to be satisfied, and if but one element cannot be satisfied your claim will not go ahead.

Finally there must be sufficient evidence to support your claim. Your word against theirs will not be satisfactory so you must ensure that there is enough admissible evidence for the court to assess.
If court is not for you, feel free to ask us about the wealth of alternatives to court.