With the arrival of a new year come new ideas, plans and goals. Sometimes these may come about because of a change in circumstances and needs. In other cases, these may be a necessary undertaking due to a change in law, regulation or requirements. Here are some legal issues that we think will be hot issues in 2025 and our tips to help you navigate them.
Estates and succession continue to be top of the list
With an ageing population and the largest intergenerational wealth transfer in Australia’s history continuing, estates and succession will continue to be front of mind for 2025.
For those in South Australia, recent changes to succession laws came into effect on 1 January 2025. These changes will affect will makers now, as well as their executors and beneficiaries when it comes time to administer an estate. Key changes include:
- Changes to the rules about who can challenge a Will if they feel they are entitled to a larger share of the estate, and how estate claim cases are run;
- Adding to and revising executor and estate administrator obligations;
- Changes to how an estate is distributed if a person does not have a valid Will; and
- Changes to who has rights to access a Will when a person dies.
You can read more about these changes here.
Even if you aren’t in South Australia, we encourage you to conduct a review of your existing estate planning documents to check that they are still current and reflect your wishes. If you don’t have estate planning documents in place, now is the perfect time to get these documents in order.
If you need an estate planning update and you’d like us to help, we’re here for you. Call us on 1300 654 590 or email us to get started.
Stay ahead of the curve by protecting your assets
It is well publicised that the Australian economy (particularly for SME business owners) is on shaky footing. ASIC data supports this claim, showing that 11,000 companies entered external administration for the first time in the last financial year. Construction, accommodation and food and other services were the top three industries represented in these numbers.
Australians and many local businesses are well known shut their doors a couple of weeks before the end of December and return to work in mid-to-late January. In this period, it can feel like business activity is at a standstill. It is more important than ever for business owners to plan ahead and ensure that future cashflow is available, invoices are being sent out and paid promptly and recurring payments and obligations (read: tax!) can and will be paid on time.
If you are a business owner, then we also recommend that you:
- Review your trading or supply terms and conditions, to ensure that these are still current and appropriate for your business, and tailor your trading terms and clarify your scope of works for any unique projects. If you are in the business of supplying goods or equipment, ensure that your terms include the right to take security.
- Look out for any personal guarantees that may be included in terms of engagement that you are provided and try to negotiate an alternative to keep the other party happy. Personal guarantees are commonly required of company directors. If personal guarantees cannot be negotiated, keep track of the personal guarantees you are committed to, and ensure that they are properly discharged once contractual obligations are satisfied, or revised if your role in the business changes (for example, if you resign as a company director).
- Ensure that you have taken steps to register any security interests by way of PPSR registration or registered mortgage, in accordance with your contract terms.
- Be proactive in collecting debts and remember, sometimes the quickest way to deal with an outstanding invoice is to pick up the phone. It is amazing how effective this can be.
- Consider your board composition. Company directors are exposed to increasing potential liability. For SMEs and family businesses, it is common for more than one family member to be appointed to the board. Ask yourself whether you are confidently across your directors duties and whether your personal asset structuring has been optimised for protection. Keep in mind that even if you aren’t formally a company director, if you exert control over or influence company decisions, you may be seen to be a ‘shadow’ or ‘de facto’ director and be exposed to liability.
Non-business owners should ensure that any loans made to family members or related entities are appropriately documented and secured. You may also need to consider tying these loans in with your estate planning.
Finally – if you feel that your debts are starting to catch up with you or your business, seek professional assistance as soon as possible. The sooner you seek help, the more likely you will be able to find a favourable solution.
Don’t get caught. We can help you protect your hard-earned assets. Call us on 1300 654 590 or email us to speak to a lawyer.
Ongoing compliance with changes to workplace law
2024 saw several new workplace laws come into effect. Businesses will continue to be affected by these changes in 2025, especially as many of the changes came into effect in the latter half of 2024.
Of these changes, issues to look out for include:
- How you employ casual employees, following a new definition of casual employee. Casual employees now have a right to become permanent employees in some cases;
- How you engage independent contractors, with laws allowing the Fair Work Commission to hear disputes about with unfair contracts for independent contactors; and
- How your business practices integrate with the your employees’ ‘right to disconnect’.
For those in South Australia, industrial manslaughter was criminalised in 2024. This means that any fatality that occurs in the workplace could lead to criminal prosecution for business owners and employees with work health and safety duties. Any South Australian business owners should take time now to review their work health and safety practices and identify any areas requiring an update. For those of you in New South Wales, industrial manslaughter has also been criminalised since 2024. However, now is as good a time as any to review your policies and procedures.
If you are a company director, this is one of the areas we alluded to above where your liability is continuing to increase. You need to ensure that any board you are on is keeping on top of any work health and safety obligations.
Australia’s employment law landscape is ever-changing and business owners are under increasing pressure to ensure they comply with evolving laws. The start of the year is often a good time to consider reviewing employment agreements and ensuring all of your employment and contractor arrangements are up to date and in place.
If you would like assistance with any of these matters or a review of your business’ employment documentation, we can help. Call 1300 654 590 or email us to get started.
The issues we have addressed in this article may seem daunting and overwhelming. However, it isn’t our intention to scare anyone – rather, we like to share our honest views on legal issues with the hope of empowering our readers to take proactive action.
Take stock and let 2025 shape up to be your best year yet!
The information contained in this post is current at the date of editing – 23 January 2025.