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February 3, 2009

Small Business and General Business Tax Break

The Government has announced the Small Business and General Business Tax Break:

Small businesses (with a turnover of $2 million a year or less) will be able to claim a bonus deduction of 30 per cent for eligible assets costing $1,000 or more that they:

  • acquire or start to hold under a contract entered into between 12:01am AEDT 13 December 2008 and the end of June 2009, or start to construct between these times; and
  • have installed ready for use by the end of June 2010.

Small businesses will be able to claim a bonus deduction of 10 per cent for eligible assets costing $1,000 or more that they:

  • acquire or start to hold under a contract entered into between 1 July 2009 and the end of December 2009, or start to construct between these times; and
  • have installed ready for use by the end of December 2010.

A minimum expenditure threshold of $10,000 will still apply to all other businesses.

Assets eligible for the allowance are new tangible depreciating assets and new expenditure on existing assets used in carrying on a business for which a deduction is available under the core provisions of Division 40 (Capital Allowances) in the Income Tax Assessment Act 1997.

The deduction is on top of the usual capital allowance deduction claimable for the asset as part of the taxpayer's income tax return.

ALSO: one-off payments for low and middle income households and individuals

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Posted 3rd February 2009 by David Jacobson in Business Planning, Tax

The use of technology in the management of discovery and the conduct of litigation

The Federal Court of Australia has announced the much-anticipated revised Practice Note No.17 regarding the use of technology in the management of discovery of electronic records and the conduct of litigation ("e-discovery").

The Practice Note applies to any proceeding in which the Court has ordered that:
(a) discovery be given of documents in an electronic format; or
(b) a hearing be conducted using documents in an electronic format.

The new Rule means that businesses will need to have procedures to preserve emails and other electronic messages. Businesses will need to have technology in place to ensure that discovery orders can be complied with.

Wherever possible, the Rule requires parties to exchange documents in a usable, searchable format or in the format in which the documents are ordinarily maintained. The exchange format should allow the party receiving the documents the same ability to access, search, review and display the documents as the party producing the documents.

The Practice Note contains Document Management Protocols: 

  • the Default Document Management Protocol is to be used in all proceedings in which the number of Discoverable Documents is reasonably anticipated to be between 200 and 5,000, unless an alternative Document Management Protocol is agreed by the parties and accepted by the Court.
  • Where the number of Discoverable Documents is reasonably anticipated to exceed 5,000 Documents, the parties should agree to an Advanced Document Management Protocol.

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Posted 3rd February 2009 by David Jacobson in Business Planning

January 23, 2009

30 years of change in legal practice

This month marks 30 years since I was admitted as a Solicitor of the Supreme Court of Queensland.

What's changed in the practice of law in 30 years?

I was trained to concentrate on client service and client service remains the key to my practice. And my clients expect it. Yet it still seems to be the main source of complaints against other lawyers.

Mobile phones, personal computers and the Internet collectively have changed the practice of law (and many other businesses), They have made it possible to work anywhere. Even though there is now much more law in specific complex areas, I can now access information instantly that previously required inter-library transfers that took weeks. I can deliver advice by a number of channels to suit my clients' needs.

I can appreciate the technological changes because I remember our first Unix based computers, our first Windows PC, optical character readers (scanners) the size of photocopiers that cost tens of thousands of dollars and telex machines. When it took days for a property lease to be typed. And my first website.

I can't say that my office is totally paperless but I can say that the paper I do keep takes up less space.

I am constantly widening my range of skills in order to remain relevant to clients.

I prefer project-based fees to time charging but I'd like to think that fees (however calculated) will be less cause for complaint if they are disclosed in advance and clients perceive them as value for money.

I've practised commercial law in a large State firm, as a solo and now in a national firm. Lawyers have become a mobile profession.

Are we seeing the end of lawyers? No, but we're changing.

If you're interested in the topic, read The End of Lawyers? Rethinking the Nature of Legal Services by Richard Susskind OBE

And to show that other Australian lawyers are embracing technology and discussing issues look at the list I've compiled in Australian Law Blogs.

If you have any comments on how lawyers have changed (or need to change) add them below (but nothing obscene or defamatory).

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Posted 23rd January 2009 by David Jacobson in Business Planning

December 16, 2008

Designing projects: achieving results rather than completing tasks

This is the time of the year when we're either trying to resuscitate projects that have stalled or are designing new projects. In the course of a busy day it can be easy to focus on individual tasks rather than the results you are trying to achieve. Whilst doing things in "little pieces" might achieve a breakthrough if you're snowed under, it is also likely to emphasise the obstacles and defer the ultimate objective.

How do you know when you will achieve your goal in a project? How do you measure success? Sometimes radical change can be more effective than continuous improvement.

Confused by all the management theories?

Here are 3 of the things I've seen and read this year that might help you.

Benjamin Zander on possibilities

Jill Bolte Taylor video on left brain, right brain

Lean Management White Paper

I'll be working over January if you'd like to discuss how to kick start your project.

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Posted 16th December 2008 by David Jacobson in Business Planning

December 14, 2008

Parliamentary timetable

Commonwealth Parliament is now in recess until 3 February 2009.


According to the Parliament website there are 133 Bills still being considered by Parliament or awaiting Royal assent.

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Posted 14th December 2008 by David Jacobson in Business Planning

November 30, 2008

Rules for developing business regulation

The Administrative Review Council has published a report, ‘Administrative accountability in business areas subject to complex regulation’.

The report focuses on accountability and transparency in the development of business rules by government.  A key suggested principle is that "There should be an opportunity to seek review of any decision that applies a business rule in a way that directly affects the rights or interests of a person or business. "

The report encompasses regulation by way of ‘black letter’ law and ‘soft law’ guidelines and codes.

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Posted 30th November 2008 by David Jacobson in Business Planning, Deregulation

November 11, 2008

Electronic Transactions Review

Attorney-General Robert McClelland has released a discussion paper on the proposal that Australia accede to the United Nations Convention on the use of Electronic Communications in International Contracts.

Developed by the Commonwealth in collaboration with the States and Territories, the paper proposes that amendments be made to Australia’s electronic transactions regime to bring our laws into line with new international standards.

Currently, the Electronic Transactions Acts in each jurisdiction are based on the 1996 Model Law on E-commerce. The UN Convention on Electronic Communications updates the Model Law to address significant advancements in technology.

Submissions close on 30 January 2009.

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Posted 11th November 2008 by David Jacobson in Business Planning, Web/Tech

November 6, 2008

Commonwealth Mid-Year Economic And Fiscal Outlook

The Commonwealth's Mid-Year Economic And Fiscal Outlook 2008-2009 outlines the impact of the global financial crisis on Australia and the impact on the government's policy decisions.

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Posted 6th November 2008 by David Jacobson in Business Planning

October 21, 2008

The role of rumour and the media in public confidence in financial institutions

I'm in Darwin for the Australian Mutuals conference until Thursday so posts will be "light" but this article was mentioned by CommSec economist Craig James yesterday and is worth reading: Bringing Down Bear Stearns.

It raises the question whether investigative journalists seeking to make a reputation for themselves have published unsubstantiated (even vicious) rumours which could generate a "run" on financial institutions. And how should financial institutions subjected to rumours respond?

APRA Chair John Laker's speech.

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Posted 21st October 2008 by David Jacobson in Business Planning

October 14, 2008

Australian Government’s Economic Security Strategy

The Prime Minister has announced a $10.4 billion Economic Security Strategy containing five key measures:

  • a lump sum payment of $1,400 to single pensioners and $2,100 to pensioner couples. People who are receiving Carer Allowance will also receive $1,000 for each eligible person in their care. Self-funded retirees who are eligible for a Commonwealth Senior Health Care Card or are Veterans Gold Card holders eligible for Seniors Concession Allowance will receive a payment of $1,400 if they are single or $2,100 to couples.

    These pension payments will be made from 8 December 2008 and are intended to provide additional support in the 9 months between now and when long-term reforms are introduced from the beginning of the next financial year.

  • a one-off payment of $1,000 for each eligible child in their care will be made to:
    • Families who receive Family Tax Benefit (A); and
    • Families with dependent children who receive Youth Allowance, Abstudy or a benefit from the Veterans' Children's Education Scheme payment.
  • First home buyers will be eligible for grants of up to $21,000 as follows:

    • First home buyers who purchase established homes will have the grant which they are currently entitled to doubled from $7,000 to $14,000; and
    • First home buyers who purchase a newly-constructed home will receive an extra $14,000 to take their total grant to $21,000.

    First home buyers will be eligible for the First Home Owners Boost from 14 October, 2008.

    All contracts entered into by 30 June, 2009 will be eligible for this new additional assistance.

  • 56,000 new training places in 2008-09.
  • Accelerate the implementation of the Government's building funds in the key areas of:
    • Education and Research;
    • Health and Hospitals;
    • Transport and Communications. 
    • and bring forward, the commencement of investment in infrastructure projects to 2009.

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Posted 14th October 2008 by David Jacobson in Business Planning
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