2026 Budget: negative gearing and CGT guidance updated - FED

The helpful guidance on the 2026 Federal Budget changes, found in the Looking to the future section of the Reference materials folder on every By Lawyers matter plan, has been updated.

The update assists practitioners advising clients now on changes that take effect on 1 July 2027.

The reforms are arriving in tranches. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has passed and received assent and contains the substantive negative gearing and CGT amendments. The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 has been released as an exposure draft for consultation, closing on 21 August 2026, and has not yet been introduced into Parliament. 

Until it is enacted, some aspects of the new regime, including the definition of a new residential dwelling, remain unsettled and advice must be framed accordingly.

The updated guidance covers:

• the quarantining of negative gearing losses on residential dwellings from the 2027–28 income year, the carry forward of quarantined losses, and the 2 exceptions, being new builds and assets acquired before 7.30 pm AEST on 12 May 2026, which are tested by reference to the contract date rather than the settlement date;
• the replacement of the 50% CGT discount with cost base indexation, the new 30% minimum tax on capital gains, and the exemptions and concessions that survive;
• the deemed disposal and reacquisition on 1 July 2027, and why the timing of a relevant CGT event turns on the date the contract is entered into;
• the discretionary trust roll-over window running from 1 July 2027 to 30 June 2030; and
• practical considerations for clients and for practitioners before 1 July 2027, including file notes, scope of retainer, and referrals for specialist tax advice.

A failure-to-warn window is open for practitioners in conveyancing, family law, estates, commercial and business matters, where a client's position may be materially affected by the timing of a transaction.

For more information, see the Looking to the future section in the Reference materials folder on all By Lawyers matter plans.

SMSFs can no longer borrow to buy residential property – FED

As part of the Federal budget changes, from 10 August 2026 self managed superannuation funds (SMSF) can no longer borrow to purchase residential real property. 

New s 67A(2)(c) of the Superannuation Industry (Supervision) Act 1993 restricts limited recourse borrowing arrangements to real property that is business real property as defined in s 66 of the Act. 

After that date, a SMSF cannot use limited recourse borrowing arrangements to acquire residential property. 

However, they can still purchase residential property with cash, and they can still borrow on a limited recourse basis to invest in commercial property and other assets.

Existing arrangements are not affected. Limited recourse borrowing arrangements already in place over residential real property, including refinancing of those arrangements, remain permissible.

Publication updates

The By Lawyers Self Managed Superannuation Fund commentary has been reviewed and revised to reflect the change:

The Fund borrowing section now sets out the new s 67A(2)(c) restriction, the business real property limitation, and the transitional arrangements.

An Alert has been added at the front of the commentary directing practitioners to the updated section.

Related borrowing content, including the assets a fund may acquire, the general investment rules, and the LRBA set-up steps, has been revised and reorganised for clarity.

The precedent To Do list and the client Fact Sheet for Limited Recourse Borrowing Arrangements on the matter plan have also been updated.

Visit the By Lawyers Self Managed Superannuation Fund guide to explore the full suit of resources available.

New precedents added to Companies guide – All states

The By Lawyers Companies guide has been updated with 6 new precedents to assist practitioners with common company formation, administration and corporate governance tasks. The new resolutions, letters and policy document include a consent of occupier, share offers and applications, share-issue and dividend resolutions, and a dividend payment policy.

The new precedents are:

• Consent of occupier for using premises as registered office;
• Letter of offer of shares to existing shareholders;
• Application for shares;
• Company resolution – Issue shares;
• Dividend payment policy; and
• Company resolution – Dividend payment.

These precedents help practitioners document key company decisions correctly and consistently, from confirming a registered office to issuing new shares and declaring dividends. Rather than drafting these documents from scratch each time, practitioners can rely on precedents that are prepared and kept current by experienced legal professionals, reducing the risk of errors or omissions that could expose a company, or its officers, to compliance issues down the track.

Using up-to-date precedents also means lawyers aren't left checking whether a document reflects the latest legislative requirements and market practice. By Lawyers monitors relevant law and practice on an ongoing basis, so firms can be confident that every resolution, letter and policy in the Companies guide is accurate and ready to use. This saves valuable drafting time, supports consistent processes across the firm, and lets practitioners focus on advising their clients rather than maintaining a precedent library themselves.

Why By Lawyers updates the precedent library

Keeping a precedent library current is a significant, ongoing undertaking, and one most firms don't have the time or resources to do in-house. By maintaining and expanding the Trusts guide, By Lawyers removes that burden from individual practices, allowing lawyers to:

• Work efficiently – access the right letter or prompt for the trust structure in front of them, rather than adapting a generic precedent or drafting from scratch.
• Practice with confidence – rely on costs disclosure and advice letters that are drafted by experienced practitioners and kept aligned with current law and practice.
• Manage practice risk – reduce the chance of error or omission when advising on less common trust structures, particularly special disability trusts, where getting the advice wrong can have real consequences for vulnerable beneficiaries.

For firms advising on hybrid, charitable, or special disability trusts, these additions mean the guidance and correspondence needed to run the matter properly is already there, ready to be tailored to the client.

Precedents and AI prompts added to Trusts guide – All states

The By Lawyers Trusts guide has been enhanced to ensure it delivers practical and up-to-date guidance and precedents for lawyers working on trusts matters. As part of this enhancement, 7 new precedents have been added including:

• Initial letter to client with costs disclosure - Hybrid trust;
• Initial letter to client with costs disclosure - Charitable trust;
• Initial letter to client with costs disclosure - Special disability trust;
• Prompt for letter to client with advice on hybrid trust deed;
• Prompt for letter to client with advice on charitable trust deed;
• Letter to client with advice on special disability trust deed; and
• Letter to client finalising the matter - Trusts.

These new precedents provide lawyers with the advice they need to give their clients on hybrid, charitable, and special disability trust structures. This gives firms ready-made, reliable resources to handle these types of matters consistently. Rather than each lawyer starting from scratch or adapting precedents built for discretionary or unit trusts, practitioners can now draw on precedents built specifically for these structures.

Why By Lawyers updates the precedent library

Keeping a precedent library current is a significant, ongoing undertaking, and one most firms don't have the time or resources to do in-house. By maintaining and expanding the Trusts guide, By Lawyers removes that burden from individual practices, allowing lawyers to:

• Work efficiently – access the right letter or prompt for the trust structure in front of them, rather than adapting a generic precedent or drafting from scratch.
• Practice with confidence – rely on costs disclosure and advice letters that are drafted by experienced practitioners and kept aligned with current law and practice.
• Manage practice risk – reduce the chance of error or omission when advising on less common trust structures, particularly special disability trusts, where getting the advice wrong can have real consequences for vulnerable beneficiaries.

For firms advising on hybrid, charitable, or special disability trusts, these additions mean the guidance and correspondence needed to run the matter properly is already there, ready to be tailored to the client.

New administrative disqualification for low-range drink driving – QLD

New ss 79H to 79J of the Transport Operations (Road Use Management) Act 1995 allow low-range drink driving to be dealt with by an infringement notice rather than in court, where the driver is eligible. Eligibility depends on the driver having no drink driving offence in the previous 5 years, holding an appropriate Queensland driver's licence, and the offence not having involved a commercial or public passenger vehicle.

An eligible driver who does not elect to go to court is automatically disqualified from holding or obtaining a Queensland driver's licence for 2 months, beginning 28 clear days after the date of the notice, and is taken to have been convicted of the offence. The disqualification does not start, or it ends immediately, if the driver elects to have the matter decided in a Magistrates Court, or if the notice is withdrawn or cancelled.

Advising on whether to pay the notice or elect to go to court is now the critical decision point for lawyers advising clients in these matters. The deemed conviction counts for penalty, alcohol ignition interlock, and licensing purposes, and driving while subject to an administrative disqualification attracts the same mandatory 2–5 year disqualification as driving while disqualified by court order.

These provisions were introduced by the Queensland Community Safety Act 2024 with effect from 31 August 2026.

See the By Lawyers Traffic Offences (QLD) guide for the details, including the eligibility requirements and practical considerations when advising clients on an election.

Conveyancing overhaul - VIC

Sale of land – Section 32 statements and deposit money

Significant changes are pending in Victorian conveyancing law and practice.

The omnibus Consumer Legislation Amendment Bill 2026 passed both houses of parliament on 26 August 2026.

Key aspects of the legislation affecting property law and conveyancing practice include:

• Part 9 of the Bill amends the Sale of Land Act 1962 in relation to section 32 statements and deposit money.
• Part 5 amends the Estate Agents Act 1980 in relation to property price statements and reserve prices.
• Part 3 amends the Conveyancers Act 2006 in relation to the suspension of licences.

Commencement

Commencement is as follows:

• amendments to the section 32 statement regime commence by proclamation, and no later than 1 June 2027;
• amendments dealing with the release of deposit money commence by proclamation, and no later than 1 July 2027;
• amendments to the Conveyancers Act 2006 and the licence suspension provisions of the Estate Agents Act 1980 commence on the day after assent; and
• general amendments to the Estate Agents Act 1980, including property price statements and reserve prices, commence on 1 October 2026.

Section 32 statement to be made available earlier

Section 32(1) currently requires a vendor to give a section 32 statement to a purchaser before the purchaser signs the contract. The Bill substitutes an obligation to make the statement available from the 'sale availability time'.

Make available is defined as making the statement available in electronic or hard copy format on the request of any prospective purchaser of land. The section 32 statement moves from a document given to the eventual purchaser to a document available to the market on request.

Sale availability time, as amended in the Legislative Council, means:

• for land publicly advertised for sale by auction or a fixed-date sale, the day that is 14 days before the first auction date or first fixed date;
• for land publicly advertised for sale in any other way, the day that is 14 days after the land is first publicly advertised for sale; and
• for land that is not publicly advertised, land to be sold within 14 days after it is first publicly advertised, or land to be sold on a day more than 14 days before a first auction date or first fixed date, before the purchaser signs the contract.

Fixed-date sale means a method of sale by which the vendor sets any date and time by which a prospective purchaser must make an offer to the estate agent or agent's representative.

A vendor is currently required to actively provide the s 32 statement to the purchaser. The amendments place the burden on the prospective purchaser, and their representative, to obtain the statement and read it. Where a statement is made available by link or online, it will need to be downloaded and reviewed before the contract is signed.

Written notice of changes to a section 32 statement

A vendor is required to give written notice to a purchaser of any changes to the statement made available under s 32(1) before the purchaser signs the contract. More updating may be required. Making the statement available at the start of a campaign rather than at the point of contract widens the period in which the disclosed position can change, for example, through a rates notice, an owners corporation certificate, or a planning certificate issued in the interim.

Rescission and offence provisions

Section 32K(3) currently allows a purchaser to rescind where the vendor fails to give a section 32 statement before the purchaser signs the contract. The ground for rescission now becomes a failure to make a section 32 statement available from the sale availability time. The offence in s 32L(c) is amended in the same terms.

Transitional period

Sections 30, 32, 32K and 32L as amended do not apply to a contract for the sale of land entered into within 28 days after the commencement day. The version of those sections in force immediately before commencement continue to apply.

Deposit not to be released unless provided by contract

Section 27 of the Sale of Land Act 1962, which sets out the statutory procedure for the early release of deposit money, is being repealed and replaced with s 26A. This new section provides that where a legal practitioner, conveyancer, or estate agent holds deposit money as a stakeholder under s 24, the deposit must not be released to the vendor or at their direction before settlement unless the contract includes a condition that provides for it.

Settlement is defined for this purpose as, in the case of a cash transaction, the time at which the purchaser becomes entitled to a transfer or conveyance of the land and, in the case of a terms contract, the time at which the purchaser becomes entitled to possession or to the receipt of rents and profits.

Section 25(1) is amended so that deposit money received by a vendor must be paid to a legal practitioner, conveyancer, or estate agent acting for the vendor, or into a special purpose account, unless released under s 26A.

Early release becomes a matter of contractual agreement rather than statutory entitlement. Release before settlement will depend on an express condition in the contract, and there is no equivalent of the current s 27 procedure to fall back on.

Estate agent not to retain amounts from the deposit

New s 26B provides that where an estate agent is authorised to pay deposit money to the vendor, or as the vendor directs, in accordance with s 26A, the agent must not retain out of the deposit money an amount for their commission, or for any auction expense or other amount to which the agent is or will become entitled, before settlement or rescission of the contract.

Property price statements and reserve prices

The statement of information under s 47AF of the Estate Agents Act 1980 is renamed the property price statement, and expanded to include the key features of the residential property with the vendor's reserve price expressed as a single dollar amount, not modified by words or symbols. Key features include the floor space and the total size of the land in square metres.

An estate agent or agent's representative is required to request the reserve price from the vendor in writing before the date of an auction or fixed-date sale, stating the proposed reserve price and the reasons for it. The vendor responds in writing by confirming that price, specifying another price, or requesting a further proposal. The reserve price must then be published for at least 7 days before the auction or fixed-date sale, and an auction or fixed-date sale cannot be conducted unless it has been published for that period.

Suspension of conveyancers' and estate agents' licences

A new Division 7A of Part 2 of the Conveyancers Act 2006 allows the Business Licensing Authority, where a licensee has not complied with the trust account requirements in s 84(1) or 85(1A), to give written notice that the licence will be suspended for a period of up to 12 months if the report required under s 85(1A) is not lodged by a date specified in the notice. While the licence is suspended the licensee is taken not to be licensed.

Equivalent provisions apply to estate agents under new sections 24E to 24G of the Estate Agents Act 1980, with the additional consequence that a suspended agent is ineligible to be or act as a registered agent's representative. Both sets of provisions commence on the day after royal assent.

Related amendments affecting property practice

The following provisions commence on the day after royal assent.

Owners corporations

Division 1 of Part 6 amends s 18 of the Owners Corporations Act 2006. An owners corporation is prohibited from commencing a proceeding in a court or tribunal unless authorised by special resolution, subject to 2 exceptions. An ordinary resolution is sufficient where the matter may be resolved by an order for payment of an amount, or relief, of no more than twice the total amount of the current annual fees set under s 23, and also where the order sought is non-monetary in nature. Each exception requires the court or tribunal to have jurisdiction to make an order of that nature.

VCAT applications in relation to a plan of subdivision

Part 10 amends s 34D of the Subdivision Act 1988 to expand the circumstances in which an application may be made to the Victorian Civil and Administrative Tribunal in relation to a plan of subdivision. The grounds extend to a member, or group of members, who refused consent to or did not vote on a proposed action, where more than half of the membership of the owners corporation, holding more than half of the total lot entitlement, consent to the action, and the purpose of the action is likely to bring economic or social benefits to the subdivision as a whole greater than the disadvantages to the members who did not consent.

Purchaser's right to rescind off-the-plan contract for residential apartment

A further amendment made in the Legislative Council inserts s 9AEA(3) into the Sale of Land Act 1962. The purchaser's right to rescind an off-the-plan contract for a residential apartment building does not apply where the developer is excepted from the requirement under s 137ZP(1) of the Building Act 1993 to arrange for the issue or execution of a developer bond.

Practical implications for lawyers and conveyancers

The practical consequences of the section 32 and deposit amendments include the following:

• Vendor instructions, searches, and certificates will need to be obtained before the sale campaign begins rather than before the contract is signed. A campaign cannot be advertised for auction or a fixed-date sale unless the section 32 statement can be made available 14 days before the first auction date or first fixed date. For a private sale campaign, the section 32 statement must be available from the day that is 14 days after the land is first publicly advertised, and if the land sells before that day, the statement must be available before the purchaser signs the contract.
• Disclosure needs to be monitored between the sale availability time and the contract, as written notice of any change is required before the purchaser signs.
• The file should clearly record when the statement was first made available, to who, and in what format, as this becomes the evidence for the rescission right in s 32K(3) and the offence in s 32L(c).
• Contracts and special conditions need to be reviewed. Where the parties agree to release the deposit before settlement, a condition must be included in the contract, and existing conditions drafted around the s 27 procedure will be redundant.
• Vendors relying on the deposit to fund a related purchase or to pay agent's costs need to understand from the outset that release before settlement depends on the purchaser's agreement.
• Two sets of section 32 timing rules will operate concurrently for 28 days after commencement, which affects both file management and advice given during that period.
• Failure to comply with trust account reporting obligations under s 85(1A) of the Conveyancers Act 2006 can result in a 12-month licence suspension.
• The obligation of obtaining the section 32 statement shifts to the purchaser. Where a contract refers to the statement by a link or online, the file needs to show that the statement was retrieved and reviewed before the contract was signed.
• The effect of a deposit release condition in a contract needs to be explained to the purchaser before signing.

Publication updates

The By Lawyers Victorian Conveyancing and property publications will be updated when these amendments commence, including the commentaries, retainer instructions, to-do lists, the By Lawyers Contract of Sale of Land, and the Library of special conditions.

Change to substituted service of FVROs – WA

Practitioners dealing with restraining orders in Western Australia should be aware that the procedure for the police to seek substituted service of family violence restraining orders (FVROs) has changed slightly, with effect from 1 August, 2026.

If police seek to effect substituted service of an FVRO without a court order under s 60(1A)(b) of the Restraining Orders Act 1997, they now need to make only 2 unsuccessful attempts at service before doing so, following an amendment to regulation 9B of the Restraining Orders Regulations 1997.

This is a small but practical change that makes a substituted service order easier to obtain and affects how and when an order takes effect.

The commentary in the Service and duration of orders section of the By Lawyers Restraining Order (WA) guide has been updated. It covers all the relevant and important aspects of service concerning restraining orders, including personal and postal service, oral service by order of the registrar, substituted service by court order and without one, proof of service, and the duration provisions under s 16 of the Act.

Privacy obligations for AML/CTF regulated firms – Practice Management guide updated – FED/All States

New regulatory obligations

Law firms and other Tranche 2 entities coming to terms with regulation under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) need to be aware that AML/CTF compliance is not their only new regulatory obligation.

Section 6E of the Privacy Act 1988 (Cth) provides that a reporting entity under the AML/CTF legislation is an Australian Privacy Principles entity for the purposes of the Privacy Act 1988. This applies regardless of the entity’s turnover. The effect is that law firms previously exempt from compliance with the Privacy Act regime because they qualify as a small business with a turnover of less than $3M are no longer exempt.

As a result, law firms that are reporting entities under the AML/CTF regime must comply with the Privacy Act and the 13 Australian Privacy Principles.

The Australian Privacy Principles regulate the collection, use, disclosure, storage, security, access, correction, retention, and destruction of personal information. They also impose obligations concerning privacy governance, transparency, and accountability.

Compliance measures

For many law firms, particularly smaller practices that previously fell within the small business exemption, this will involve implementing formal privacy compliance measures for the first time.

Among other things, firms will need to:

• adopt and maintain a compliant privacy policy and notify clients of it;
• take reasonable steps to protect personal information from misuse, loss, unauthorised access, modification, or disclosure;
• establish procedures for responding to privacy complaints and data breaches;
• destroy or de-identify personal information when it is no longer required and there is no legal obligation to retain it; and
• provide appropriate privacy notifications when collecting personal information.

Australian Privacy Principle 5 requires individuals to be notified of certain matters when personal information is collected. This will generally require delivering a Privacy Collection Notice to the client at the commencement of the engagement, explaining how and why personal information is collected, used, stored, and disclosed.

Publication updates

To assist firms in meeting these obligations, the By Lawyers Practice Management guide, including the Staff Handbook, has been updated. 

The updates include new commentary on the application of the Privacy Act and the Australian Privacy Principles, a new precedent Privacy Collection Notice to send to clients, and a privacy Policy the firm can adopt immediately or adapt to its needs.

AI prompts live across By Lawyers guides and precedents – FED/All states

Practitioners can now access a full suite of AI prompts in By Lawyers publications, with the tools slotted into matter plans across an expanding list of practice areas.

The prompts have been drafted and tested by experienced lawyers with a focus on delivering practical tools that help law firms work more efficiently while reducing risk. They are integrated into By Lawyers matter plans so practitioners can leverage AI in a structured and reliable way, while maintaining professional standards and best-practice processes.

New prompts

The new prompts cover drafting, review, analysis, and client communication needs in areas including:

• Conveyancing and property;
• Family law;
• Wills and lifetime planning;
• Estate administration;
• Sale and purchase of business;
• Companies;
• Trusts;
• Partnerships;
• Joint ventures;
• Criminal and traffic offences; and
• Immigration.

Among the tasks now covered:

• Checking draft agreements against client instructions, spanning joint venture agreements, leases, loan agreements, trust deeds, partnership agreements, shareholder agreements, and business sale contracts;
• Drafting letters to clients that explain documents, court orders, judgments, and next steps in the process;
• Pulling together estate administration summaries and final estate accounts;
• Drafting advice to support family law matters; and
• Preparing submissions for criminal matters.

These prompts are built for LEAP's Matter AI, joining a library of more than 200 AI prompts spanning Affidavits, Letters, Statutory Declarations, Briefs to Counsel, and other core document types. They're also accessible directly through the By Lawyers website.

Full list of By Lawyers prompts currently available

By Lawyers AI prompts are available in all Australian jurisdictions. A full list of prompts is available below.

Conveyancing and Property:

• Prompt for letter to client with summary of contract and disclosure statement
• Prompt for letter to client with summary of Law Society contract
• Prompt for letter to client with summary of By Lawyers contract and vendor statement
• Prompt for letter to client with summary of LIV contract and vendor statement
• Prompt for letter to client with summary of REIWA contract of sale of land or strata title
• Prompt for letter to client with summary of strata inspection report
• Prompt for letter to client with advice on retail lease
• Prompt comparing instructions with draft lease
• Prompt comparing instructions with draft loan agreement
• Prompt for summary of loan terms
• Prompt for letter to client with advice on commercial and industrial lease
• Prompt for letter to client with advice on retail lease
• Prompt for letter to client with advice on rural lease
• Prompt for checklist for contract review for compliance with retirement villages legislation
• Prompt for contract review for compliance with retirement villages legislation
• Prompt for letter to client on moving out
• Prompt for outline of contract

Family Law:

• Prompt for letter to client with advice when agreement has been drafted by other side's solicitor
• Prompt for letter to client with advice when agreement has been drafted by us

Wills and Lifetime Planning:

• Prompt comparing retainer instructions with draft wills

Estate Administration:

• Prompt for initial summary of estate assets and liabilities
• Prompt for letter to executor summarising estate, responsibilities and action to be taken
• Prompt for statement of assets, liabilities and distribution

Sale and Purchase of Business:

• Prompt comparing instructions with draft sale of business agreement
• Prompt for letter to client with a summary of the contract for sale of business

Companies:

• Prompt comparing instructions with draft shareholders agreement
• Prompt for letter to client with advice on shareholders agreement

Partnerships:

• Prompt for letter to client with advice on partnership agreement
• Prompt comparing instructions with draft partnership agreement

Trusts:

• Prompt comparing instructions with draft trust deed
• Prompt for letter to client with advice on discretionary trust deed
• Prompt for Letter to client with advice on unit trust deed

Joint Ventures:

• Prompt comparing instructions with draft joint venture agreement
• Prompt for letter to client with advice on joint venture agreement

Criminal and Traffic Offences:

• Prompt for brief to counsel in a criminal matter
• Prompt for letter to medico-legal expert requesting a report for criminal sentencing
• Prompt for Section 10 application
• Prompt for Section 9 application
• Prompt for Submissions for section 19 application - No conviction

New precedents added to By Lawyers companies guide - FED

The By Lawyers Companies guide has been updated with 6 new precedents to assist practitioners with common company formation, administration and corporate governance tasks. The new resolutions, letters and policy document include a consent of occupier, share offers and applications, share-issue and dividend resolutions, and a dividend payment policy.

The new precedents are:

• Consent of occupier for using premises as registered office;
• Letter of offer of shares to existing shareholders;
• Application for shares;
• Company resolution – Issue shares;
• Dividend payment policy; and
• Company resolution – Dividend payment.

These precedents help practitioners document key company decisions correctly and consistently, from confirming a registered office to issuing new shares and declaring dividends. Rather than drafting these documents from scratch each time, practitioners can rely on precedents that are prepared and kept current by experienced legal professionals, reducing the risk of errors or omissions that could expose a company, or its officers, to compliance issues down the track.

Using up-to-date precedents also means lawyers aren't left checking whether a document reflects the latest legislative requirements and market practice. By Lawyers monitors relevant law and practice on an ongoing basis, so firms can be confident that every resolution, letter and policy in the Companies guide is accurate and ready to use. This saves valuable drafting time, supports consistent processes across the firm, and lets practitioners focus on advising their clients rather than maintaining a precedent library themselves.

These new precedents reflect By Lawyers ongoing commitment to giving practitioners the practical tools they need to serve their clients efficiently.

New precedents for Self-Managed Superannuation Funds - FED

The By Lawyers Self Managed Superannuation Fund guide has been updated with seven new precedents to assist practitioners with the administration of SMSFs. The new resolutions and letter cover three common and compliance-sensitive areas of fund administration: transferring real property to a member, acquiring assets from a member or related party, and paying death benefits. 

The new precedents are:

• Resolution of individual trustees - Transfer of real property to member;
• Resolution of corporate trustee - Transfer of real property to member;
• Resolution of individual trustees - Acquiring asset from a member or related party;
• Resolution of corporate trustee - Acquiring asset from a member or related party;
• Resolution of individual trustees - Payment of death benefit;
• Resolution of corporate trustee - Payment of death benefit; and
• Letter to superannuation beneficiary requesting details.

These precedents help practitioners document trustee decisions correctly, supporting compliance with the Superannuation Industry (Supervision) Act 1993 and the fund’s trust deed. Rather than drafting resolutions from scratch, practitioners can rely on tested precedents, saving time, reducing the risk of errors, and giving trustees clear records to satisfy auditors and the ATO.

Valuation of matrimonial property in family law matters – New letters added - FED

At By Lawyers, we work with law firms to ensure they have all the precedents they need to handle a matter, so nothing has to be drafted from scratch or tracked down separately. As a result of a recent user request in our Property Settlement guide, we have added 2 new letters for the appointment of a valuer to value matrimonial property when required by court orders:

• Letter to the Australian Property Institute requesting nomination of a valuer; and
• Letter to the Real Estate Institute of New South Wales requesting appointment of a valuer.

These letters, along with hyperlinks to the relevant application forms, can be found in folder H. Finalising the matter on the Property Settlement matter plan.

Getting the valuer appointment process right is an important step in finalising a property settlement. Errors or delays at this stage can hold up the whole matter. Having a trusted, ready-to-use precedent for this correspondence means practitioners don't need to draft these letters from scratch or track down the correct application forms each time a valuation is required.

By Lawyers precedents are written by experienced lawyers and are continually reviewed to stay current with the relevant forms and requirements. This gives practitioners confidence that the correspondence they're sending is accurate and appropriate, reducing the risk of error that could lead to delay or complaint, and helping firms manage property settlement matters efficiently and consistently.

Comprehensive update to Estates precedents – All States

By Lawyers team of experienced practitioners are currently reviewing and enhancing the precedents in our Estates publications across all jurisdictions to ensure they remain practical, comprehensive, and aligned with current legal practice.

Regular reviews of legal precedents are essential to maintaining an efficient and risk-adverse legal practice. Estates matters often require practitioners to deal with a wide range of institutions, government agencies, and professional service providers. Using carefully drafted and up-to-date precedents helps ensure requests are clear, appropriate, and effective, reducing delays and minimising the risk of overlooking important procedural requirements.

Most recently, the Estates review has seen the Gathering Information folder on the Probate and Letters of Administration matter plans renamed to Notifications and Requests, reflecting the purpose and use of the precedents contained within that section.

As part of the review, several existing precedents have been enhanced for ease of use:

• Retainer instructions – Estate administration
• Executor checklist
• Applicant and administrator checklist
• Letter with general authority to obtain documents
• Letter to previous solicitor with authority to obtain documents
• Letter to client re caveat
• Letter to caveator’s solicitor for details
• General authority to obtain documents
• Authority of applicant to obtain will from another solicitor
• Authority to obtain will and other documents

The review has also resulted in the addition of several new precedents:

• Initial letter to client with costs disclosure – Probate – Concise
• Initial letter to client with costs disclosure – Probate – Extensive
• Initial letter to client with costs disclosure – Letters of administration – Concise
• Initial letter to client with costs disclosure – Letters of administration – Extensive
• Letter with general authority to obtain documents
• Letter to previous solicitor with authority from applicant to obtain will
• Letter to previous solicitor with authority from executor to obtain will
• Letter to caveator for details 
• Authority from executor to obtain will
• Authority to act and obtain documents - ATO
• Authority to receive payment with optional indemnity

Other updates include:

• New, amended, and renamed Initial letters to beneficiaries, with more helpful options and enhanced content;
• An amended and renamed Letter to Registry of BDM with hard copy application for a death certificate for situations where the application is not made online;
• An enhanced Letter to renouncing executor with renunciation; and
• Enhanced Deeds of disclaimer for when beneficiaries or those entitled on intestacy are disclaiming their inheritance;

By Lawyers publications are written and maintained by experienced practitioners who understand the realities of everyday practice. This helps firms work efficiently, manage risk, and practise with confidence using resources they can trust.

We value feedback from the firms using our precedents. Listening to practitioners is an important part of our commitment to practicality and helping lawyers enjoy practice more.

Comments on these updates to our Estates precedents are welcome at askus@bylawyers.com.au.

Costs agreements updated for new reporting rules under AML/CTF reforms – All States

A new rule 12 has been added to the Legal Profession Uniform Legal Practice (Solicitors) Rules 2015, which provides that a retainer agreement should, in addition to any other provisions about ending the retainer, inform the client that:

• solicitors are subject to statutory obligations, including reporting obligations that may require the disclosure of confidential information;
• the retainer may be terminated where continuing to act would require a breach of ethical duties or professional responsibilities; and
• the law may prevent a reason from being provided to the client for ending the retainer in those circumstances.

The new rule is in response to the anti-money laundering and counter-terrorism financing reforms that extend to legal practices from 1 July 2026.

While this new rule only applies to jurisdictions that have adopted the Legal Profession Uniform Law framework, as the anti-money laundering and counter-terrorism financing reforms apply to the legal profession in all jurisdictions from 1 July 2026, this clause has been added to all costs agreements. This clause will be reviewed as professional conduct rules are updated in the other jurisdictions to ensure strict compliance with those rules.

All By Lawyers costs agreements have been updated to meet the new requirement. A sub-clause has been added to the Termination of this agreement clause covering the matters above. The updated costs agreements are now available on all By Lawyers matter plans.

Significant workers’ compensation reforms - NSW

The Workers Compensation Legislation Amendment Act 2025 and the Workers Compensation Legislation Amendment (Reform and Modernisation) Act 2026 introduce substantial reforms to the workers compensation scheme. 

The reforms have commenced in stages, with administrative amendments effective from 27 March 2026 and the principal reforms affecting primary psychological injuries on 1 July 2026.

New statutory framework for compensation

A new statutory framework governs when a primary psychological injury is compensable. To satisfy the statutory test, the injury must:

• arise from a relevant event or series of relevant events;
• have a real and direct connection with the worker's employment; and
• be mainly attributable to the worker’s employment.

The reforms also amend the operation of the reasonable management action exclusion by:

• expanding the categories of management action considered reasonable; and
• clarifying that a primary psychological injury is not compensable if it was predominantly caused by reasonable management action taken or proposed to be taken by an employer. 

Bullying, harassment and excessive work demands

A new claims process applies for primary psychological injury claims arising from bullying, racial or sexual harassment, and excessive work demands.

Pending the insurer's liability decision, eligible workers are entitled to receive interim weekly compensation and medical treatment expenses. The insurer must determine liability within 42 days. 

If liability is disputed on the basis that the alleged conduct did not occur, an internal review must first be sought before the matter can be referred to the Industrial Relations Commission for the determination of the relevant conduct. 

Thresholds and limits

The reforms increase the required whole-person impairment thresholds for permanent impairment compensation and work injury damages claims for primary psychological injuries from 15% to 25%. 

Weekly compensation for most workers with a primary psychological injury is limited to 130 weeks, unless the statutory requirements for ongoing entitlement are met.

The By Lawyers Workers Compensation (NSW) publication has been updated to reflect these amendments.

ILARS funding changes – NSW

The Workers Compensation Legislation Amendment Act 2025 introduces significant changes to the Independent Legal Assistance and Review Service (ILARS) from 1 July 2026.

The reforms introduce new statutory funding criteria, including a merit test requiring the Independent Review Office (IRO) to consider:

• whether funding is justified by the likely benefit to the worker or to workers generally;
• the reasonable prospects of success of the matter; and
• whether a prudent self-funded person would incur the expense.

The new statutory funding criteria apply to all ILARS applications, including applications for additional funding and funding for later stages of a matter. The reforms also extend ILARS funding to new matters created by the workers' compensation reforms, including relevant conduct proceedings in the Industrial Relations Commission.

The ILARS Funding Guidelines have been amended by an Amending Instrument, with new consolidated guidelines expected to be published later in 2026.

The By Lawyers Workers Compensation (NSW) guide has been updated to reflect these amendments. 

New Supreme Court Personal Injuries Practice Note - VIC

A new Supreme Court of Victoria Practice Note SC CL 3 – Personal Injuries commenced on 1 July 2026, replacing the previous SC CL 3 – Personal Injuries List (Second revision).

The new practice note consolidates the court's procedures for the:

• Personal Injuries List;
• Institutional Liability List; and 
• Dust Diseases List. 

The revised practice note provides a consistent framework for the case management of personal injury proceedings in the Common Law Division. It also reflects current court practices, with an emphasis on pre-action procedures, active case management, efficient interlocutory processes, early identification of issues, appropriate use of alternative dispute resolution, and modern electronic procedures. 

The By Lawyers Personal Injury (VIC) Guide has been updated accordingly. The commentary dealing with Supreme Court proceedings has been reviewed and amended to reflect the new practice note.

This update is part of By Lawyers ongoing commitment to keeping our publications current with changes to legislation, court practice and procedure, ensuring practitioners can rely on practical, up-to-date guidance and precedents.

Minor amendments to County Court Civil Procedure Rules - VIC

Minor amendments to Chapters I and II of the County Court Civil Procedure Rules, effective from 13 July 2026 in the Common Law and Commercial Divisions, include:

• a new definition of, and provision for service on, persons under a disability;
• provision for costs by agreement on discontinuance or withdrawal; and
• other miscellaneous amendments to improve the operation of the rules.

The relevant sections of commentary in the By Lawyers County Court (VIC) Acting for the plaintiff and Acting for the defendant guides have been updated accordingly.

1 July updates – All states

Keeping legal publications current is one of By Lawyers' core commitments, and 1 July is one of the busiest update periods of the year.

The start of each financial year brings a wide range of scheduled legislative indexation across Commonwealth and state jurisdictions. Government fees, monetary thresholds, compensation amounts, and penalty units are routinely adjusted, affecting many areas of legal practice.

The Lawyers team of legal professionals closely monitors these changes and promptly updates our publications so subscribers can continue to practise with confidence, knowing their guides and precedents reflect current law and practice.

This year's 1 July updates include, where applicable:

• court filing fees;
• property lodgment fees;
• land tax thresholds;
• minimum weekly workers' compensation amounts; and
• penalty units used to calculate fines and civil penalties.

These updates have been applied, or are being applied as the relevant instruments are released, across numerous By Lawyers publications, including:

• Conveyancing and Property;
• Business and Franchise;
• Criminal;
• Wills;
• Estates; and
• Injuries.

The annual 1 July indexation program is only one part of By Lawyers ongoing commitment to keeping subscribers up to date. Throughout the year, our team monitors legislative amendments, procedural changes, and significant court decisions, updating publications whenever changes affect legal practice. 

In addition to annual indexation, 1 July is also a common commencement date for new and amending legislation passed by Commonwealth and state parliaments. This year is no exception. By Lawyers has made substantive amendments across a range of publications to reflect these legislative changes. Details of those updates are available in the related By Lawyers News & Updates articles.

By Lawyers stays up to date so practitioners can focus on serving their clients with confidence, supported by trusted legal guides and precedents that reflect the latest law and practice.

New Intellectual Property guide – FED

By Lawyers is pleased to announce the publication of an Intellectual Property guide, a comprehensive and practical resource for Australian legal practitioners advising on intellectual property matters.

Practical, reliable, and up-to-date

This significant new publication has been years in development, drawing on the expertise of leading intellectual property lawyers from across Australia and the experienced By Lawyers editorial team.

The result is a practical, reliable, and up-to-date guide covering the key areas of intellectual property law that are most relevant to everyday legal practice.

Comprehensive IP coverage

The guide includes commentary and precedents for:

• trade marks;
• passing off;
• patents;
• copyright;
• moral rights;
• design rights;
• plant breeder’s rights.

Intellectual property issues arise in many areas of law. From business sales and purchases, commercial transactions, and franchising matters, through to disputes, succession planning, and business structuring, intellectual property rights are often among a client’s most valuable assets. Understanding and protecting those rights is increasingly important for firms across all practice areas.

Whether assisting clients with applications through IP Australia, advising on ownership and protection of intellectual property rights, or dealing with intellectual property considerations in commercial transactions, practitioners can now access clear guidance and practical precedents in a single, dedicated resource, with helpful hyperlinks to all relevant IP Australia and other resources.

Fresh content. Trusted expertise.

As with all By Lawyers publications, the Intellectual Property guide is:

• designed to help practitioners work efficiently, manage risk, and advise clients with confidence;
• focused on real-world applications, with practical commentary and plain-English precedents that can be used immediately or adapted for bespoke arrangements;
• fully maintained by the By Lawyers authors and editorial team, ensuring subscribers have access to current law, procedure, and practice as intellectual property law continues to evolve.

The launch of the Intellectual Property guide represents a significant addition to the By Lawyers library, reinforcing our commitment to providing comprehensive, practical resources that support legal practitioners in delivering quality legal services to their clients.

AML/CTF obligations commence – FED

From 1 July 2026, law firms providing designated services under Australia's new anti-money laundering and counter-terrorism financing (AML/CTF) regime must comply with the new obligations. 

To help practitioners navigate the changes, By Lawyers has updated its publications across multiple practice areas, providing practical guidance and precedents that integrate the new requirements into everyday practice.

Updates include:

• amendments to all Retainer Instructions precedents to address the new AML/CTF requirements at the commencement of a matter;
• amendments to all To Do List precedents to incorporate AML/CTF compliance into everyday workflows;
• a new AML/CTF Policy precedent has been added to By Lawyers Practice Management guide to assist firms in developing their internal compliance framework;
• expanded commentary in the Practice Management guide explaining the new obligations and practical compliance considerations; and
• updates to the First Steps section of all By Lawyers commentaries, highlighting the new requirements at the beginning of every matter.

These updates ensure practitioners have practical guidance and precedents available at the point they need them, making it easier to build AML/CTF compliance into existing firm processes.

Keeping legal precedents and commentary current is essential when significant legislative reforms commence. By Lawyers continuously monitors changes to legislation, practice and procedure so practitioners can work confidently, knowing their By Lawyers publications reflect current law and best practice.

For a more detailed explanation of the new AML/CTF regime, including the legislative changes and the obligations applying from 1 July 2026, see our original news post: AML/CTF changes impact law firms from 31 March 2026.

New superannuation tax – FED

The Federal Government’s Division 296 superannuation tax will take effect from 1 July 2026, introducing higher taxes on earnings attributable to superannuation balances above the large superannuation threshold of $3 million.

The tax imposes an additional 15% tax on earnings attributed to the portion of an individual’s Total Superannuation Balance (TSB) that exceeds the large superannuation balance threshold of $3 million; and 25% exceeding the very large superannuation balance threshold of $10 million.

As a result, individuals with TSBs between $3 million and $10 million will pay a total tax rate of 30% on earnings from TSBs in that range. For balances exceeding $10 million, the effective tax rate will rise to 40% on earnings from TSBs above the threshold.

The By Lawyers Self Managed Superannuation Fund guide has been updated, including amendments to:

• the Commentary outlining the new tax arrangements; and
• Product Disclosure Statements precedents for establishing a superannuation fund.

The Self Managed Superannuation Fund guide provides a trusted source of up-to-date commentary and precedents, helping firms work efficiently, manage risk, and advise clients with confidence as the Division 296 superannuation tax change commences.

FCFCOA Practice Direction on the use of AI - FED

The Federal Circuit and Family Court of Australia have issued a new Practice Direction governing the use of artificial intelligence in all proceedings before the Court.

The Practice Direction: Use of Artificial Intelligence (PD-AI) commenced on 29 May 2026 and applies to lawyers, litigants, experts and all other court users.

Professional obligations remain unchanged

The practice direction confirms that lawyers' existing professional and ethical obligations continue to apply when using AI. Practitioners remain responsible for the accuracy and appropriateness of all material filed with, or relied on, in the court.

The court emphasises that AI-generated content must be independently checked and verified. Users must not assume that content is accurate simply because it was generated by a commercial or subscription-based AI product.

Verification of AI-generated content

Court users who use AI to assist in preparing documents must ensure that the output is:

• accurate, relevant and current;
• authentic and not fabricated or manipulated;
• appropriately adapted to the circumstances of the case; and
• compliant with confidentiality and privacy obligations.

References to legislation, case law, textbooks and articles generated by AI must be independently verified before being relied on.

No general disclosure requirement

The practice direction does not require practitioners to disclose the use of AI in preparing court documents.

However, if requested by the Court, practitioners must be able to explain:

• whether AI was used;
• which AI tool was used;
• how the output was checked and supervised; and
• how the requirements of the practice direction were met.

Confidentiality and sensitive information

The practice direction contains detailed guidance regarding confidential and sensitive information.

Information obtained through discovery, subpoena or disclosure processes, or material subject to non-publication or suppression orders must not be entered into any GenAI tool unless its confidentiality is protected.

Practitioners must be satisfied that any AI platform used provides appropriate safeguards to prevent disclosure and use of information outside the relevant proceeding.

Consequences of misuse

Inappropriate use of AI may result in the court disregarding material, excluding evidence, making adverse costs orders, or referring the matter to a regulatory body.
However, the court also acknowledges that the responsible use of AI has the potential to improve efficiency, reduce costs and enhance access to justice. 

Publication updates

The By Lawyers Divorce, Children and Property Settlement guides have been updated to reflect the new practice direction and assist practitioners in complying with its requirements.

The By Lawyers Staff Handbook, part of the Practice Management publication, has been updated to reflect this and other Court-issued directions and guidance. 

Updated AI use policy – All states

The AI use policy within the By Lawyers Staff Handbook has been updated to help firms align their use of AI with a clear compliance structure.

The Staff Handbook, part of the By Lawyers Practice Management Guide, contains a complete set of essential policies and procedures for law firms. Firms can adopt these directly or use them as a framework to create their own bespoke policies.

Enhanced AI use policy 

The AI use policy within the By Lawyers Staff Handbook has been significantly enhanced.

This update reflects the rapidly evolving professional environment in which courts, regulators, and professional bodies are increasingly making one point very clear: AI tools may be used, but they must be used responsibly, and their output verified.

AI use environment

Across Australian jurisdictions, a growing number of practice directions, practice notes, and judicial guidance materials have reinforced courts’ consistent expectations, underpinned by lawyers’ existing professional and ethical obligations, including that:

• AI is a tool, not an authority;
• Legal practitioners remain fully responsible for all material they file or rely on in court; and
• Outputs generated by AI must be checked for accuracy, relevance, and authority.

In short, the professional obligation not to mislead the court remains as binding as it ever was, despite the ease with which it can now be neglected.

Utility of an AI use policy

The updated By Lawyers AI use policy brings these expectations together in a clear, practical format for day-to-day use in practice.

In practical terms, it allows firms to align their use of AI with a clear compliance structure, reducing uncertainty, improving supervision, and lowering risk exposure.

Integration with practice tools: LEAP Matter AI

The enhanced By Lawyers AI use policy is designed to be readily adopted by firms using integrated AI tools such as LEAP Matter AI.

For LEAP users, this means:

• The By Lawyers AI use policy can be embedded as the firm’s governing framework for AI-assisted drafting within matters;
• It provides a consistent baseline for staff training and supervision across all workflows; 
• It supports firms in applying a single, documented standard of AI verification; and
• It helps ensure that AI-generated material within LEAP Matter AI is subject to the same professional checks required for any other source of legal content.

The Pinsent Masons case: a cautionary tale

The update also reflects recent international developments, including the widely reported matter of Anthony Malcolm Cork & Anor v Mark Smith [2026] EWHC 1199 (Ch), involving the UK law firm Pinsent Masons.

In that case, AI-generated material was relied upon without adequate verification, with erroneous material repeatedly submitted to the court. The detailed forensic examination that Judge Mullen conducted provides both an exemplar of the risks of using AI in legal practice and the way to avoid them: namely to verify AI output against authentic sources, every time. 

The enhanced By Lawyers AI use policy is drafted with the Pinsent Masons case in mind. It includes the requirement to record all AI use and the method of verification.

Publication updates

The updated policy is now available in the Staff Handbook in By Lawyers Practice Management Guide to help firms align with current court expectations and emerging regulatory thinking, while also drawing on real-world lessons for the profession globally.

Having an AI use policy is a must for any firm, to make its AI use safer, more disciplined, and ultimately more defensible.

New portal for criminal cases in the Magistrates’ Court - VIC

A new Case Management System (CMS) Portal for the criminal jurisdiction of the Magistrates’ Court in Victoria is being introduced by Court Services Victoria as part of a broader program to modernise the court’s legal infrastructure.

The portal will launch on 30 June 2026 and replace older platforms, including eDocs and the Electronic Filing Appearance System (EFAS), which will be phased out by 25 June 2026.

The CMS Portal will provide a single-entry point for filing and managing criminal cases, improving the flow of information between the courts and related agencies, including Victoria Police, Corrections Victoria, prosecuting bodies and legal practitioners.

Key features

The key features of the new CMS Portal include:

• Electronic case initiation and online document filing
• Online access to case records, including filing history, and related documents
• Real-time court diary access to assist with date selection and listings
• Automated court notifications and downloadable orders

Access

At this stage, access is limited to authorised professional users, including police informants, government prosecutors, legal practitioners, and court staff. Self-represented parties and members of the public cannot use the portal to file documents and must continue to use existing physical and legacy channels.

The By Lawyers Criminal and Traffic Offences guides have been updated to help practitioners navigate this change.

Wills commentary reviewed and enhanced - VIC

By Lawyers Wills (VIC) commentary has been comprehensively reviewed and enhanced by our in-house team, in consultation with our authors.

The review delivers significant improvements to both content and usability, ensuring practitioners have access to practical, up-to-date guidance for this important area of practice.

Key enhancements include:

• an updated and more concise Overview;
• an enhanced Summary of the process, including consideration of having the client sign the retainer instructions as an informal will;
• extended coverage of Multi-jurisdictional and international wills;
• enhanced commentary on wills for blended families, including the issues with long-term arrangements like life estates and mutual wills;
• updated coverage and considerations for Testamentary discretionary trusts;
• updated links and references to relevant legislation;
• enhanced cross-referencing to 101 Succession Answers (VIC) for information and case law;
• re-ordered and rationalised commentary headings and matter plan to improve accessibility and workflow.

The matter plan currently also includes our article on how the foreshadowed changes under the 2026 Federal Budget impact testamentary discretionary trusts. See Looking to the Future in the Reference materials folder.

By Lawyers is committed to keeping all publications current through ongoing review and enhancement by experienced legal practitioners. This enables lawyers to focus on serving their clients with confidence, knowing their legal resources reflect current law and practice.

These latest enhancements to the Wills (VIC) publication further strengthen its value as a practical, trusted resource for lawyers conducting estate planning matters, providing comprehensive guidance, best-practice workflows, and authoritative commentary from instruction through to completion.

Advising clients on the 2026 Budget’s proposed tax changes - FED

The 2026 Budget foreshadows several tax changes that are relevant to lawyers advising clients now. The relevant proposed changes are summarised below and may be modified before being legislated.

Discretionary trusts

From 1 July 2028, trustees will pay a minimum tax of 30% on the taxable income of discretionary trusts. Beneficiaries, other than corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee.

Imposing a non-refundable 30% minimum tax at the trustee level removes the flexibility to stream income and utilise losses.

If the beneficiary’s marginal tax rate prior to the distribution is already 30% or more, the measure should not result in any additional tax overall, because the trustee-level tax is fully creditable against the beneficiary’s liability. For beneficiaries on lower tax rates, the non-refundability of the credit means a higher tax is paid overall.

To discourage the use of corporate beneficiaries, no credit will be available for tax paid by the trustee on a distribution from a discretionary trust to a company. Amounts distributed to a corporate beneficiary may be taxed twice, first at 30% and then again at 30% of the remaining 70%. Franked distributions flowing through a discretionary trust will be subject to the 30% tax rate, however, the credit is used to offset and reduce the trustee’s tax liability.

The minimum tax will not apply to fixed trusts and widely held trusts, complying superannuation funds, charitable trusts, special disability trusts and deceased estates.

Income carved out of the regime includes primary production income, certain income derived by vulnerable minors, amounts that are already subject to non-resident withholding tax, and testamentary trusts in existence on 12 May 2026.

The minimum tax does not apply to income from assets held by testamentary trusts in existence on 12 May 2026. It applies to testamentary trusts established after 12 May 2026, and new assets contributed to existing testamentary trusts after that date.

The Government has announced that it will introduce expanded roll-over relief to facilitate restructuring out of discretionary trust structures. The proposed relief is intended to ensure that, for a limited period, restructures from discretionary trusts into alternative ownership vehicles, such as companies or fixed trusts, can occur without adverse income tax consequences, including capital gains tax. The rollover relief will be available for a 3-year period from 1 July 2027 to 30 June 2030.

Capital gains tax

Pre-19 September 1985 assets

From 1 July 2027, assets acquired before 19 September 1985 will no longer be fully exempt from CGT. Instead, capital gains arising after 1 July 2027 will become taxable, while gains accrued before 1 July 2027 will continue to be exempt. Gains will be calculated by reference to a deemed cost base equal to the asset’s market value on 1 July 2027.

Market value on 1 July 2027 may be determined by one of two methods: a formal valuation, or a prescribed methodology that estimates the asset’s value based on its rate of growth over the ownership period.

General

From 1 July 2027, the existing 50% CGT discount for assets held for more than 12 months is replaced by inflation-adjusted indexation of the cost base, subject to a minimum 30% tax rate on the resulting capital gain. Note:

• The existing 50% CGT discount continues to apply in full to assets both purchased and sold before 1 July 2027;
• Indexation and minimum 30% tax will apply for all assets purchased and sold from 1 July 2027; 
• Assets purchased prior to 1 July 2027 will be subject to transitional measures, which will preserve the 50% CGT discount on the difference between the asset’s cost base and its value as at 1 July 2027.
• Investors who purchase new residential properties from 1 July 2027 will have the option of choosing to apply the existing 50% CGT discount or the indexation and minimum tax model.

The By Lawyers guides will be updated when these tax amendments commence.

New clause for testamentary discretionary trust wills – All states

The By Lawyers Wills creating testamentary discretionary trusts have been amended to include an ‘opt-out’ clause that allows the trust’s primary beneficiary to request that the executor transfer all or part of their share of the estate to them absolutely.

This clause provides flexibility where assets may be better held personally, avoiding potential tax consequences that could arise if those assets are first held in the trust and later transferred to the beneficiary.

In consideration of the 2026 Budget’s proposed tax changes this will be advantageous to a primary beneficiary who may need to reconsider the consequences of holding their share in trust.  

The By Lawyers precedents that have been amended are:

• Individual will creating testamentary discretionary trust;
• Individual will creating multiple testamentary discretionary trusts;
• Client 1 will creating testamentary discretionary trust with client 2 as executor;
• Client 2 will creating testamentary discretionary trust with client 1 as executor;
• Client 1 will creating multiple testamentary discretionary trusts with client 2 as executor;
• Client 2 will creating multiple testamentary discretionary trusts with client 1 as executor;
• Testamentary discretionary trust provisions – Extensive; and
• Testamentary discretionary trust provisions creating several trusts.

See the By Lawyers Wills and Lifetime Planning publications for the updated precedents.

Pets and alternate residue clauses added to Wills – All states

The By Lawyers Wills and Lifetime Planning publications have been updated to include 3 new wills precedent clauses:

• Pets – Gift of pets, that gifts a testator’s pets and a sum of money to a nominated person;
• Pets – Gift pets with trust provisions, which establishes a fund to care for the testator’s pets, and nominates a person to care for the pets; and
• Residue – Child’s spouse, and grandchildren, which contemplates a situation where the testator’s child predeceases the testator with a spouse who the testator wants to inherit in place of the child.

The precedent clauses add to the many potential clauses that a testator may want to include in their will.

The clauses are found in the Library of clauses, deeds, contract, and codicils in By Lawyers Wills and Lifetime Planning publications.

Amended DV rules – QLD

Changes under the Domestic and Family Violence Protection Amendment Rule 2026, which commenced on 29 May 2026, include procedural changes to support broader legislative reforms – see our previous News and Updates post.

The rules amendments update court processes and approved forms to accommodate the new police protection directions and related applications, streamline the management of domestic violence matters, and facilitate the operation of the expanded protection framework introduced by recent legislative amendments.

The changes are intended to improve access to protection orders and the efficient administration of domestic and family violence proceedings.

The By Lawyers Domestic Violence Order (QLD) publication has been updated accordingly.

New Local Court Practice Note for AVOs and DV offences – NSW

One new, and three revoked, practice notes

New Local Court Practice Note - Domestic and Personal Violence Proceedings applies to matters commenced on or after 4 May 2026 and recasts the procedures for ADVOs, APVOs, SDAPOs, and DV charges.

The new practice note revokes and replaces the following practice notes, except that they continue to apply under a transitional provision for matters already on foot:

• Local Court Practice Note 2 of 2012, Domestic and Personal Violence Proceedings, issued 12 April 2012; 
• Local Court Practice Note Specialist Family Violence List Pilot, issued 25 September 2023; and 
• Paragraphs 10.1-10.4 of Local Court Practice Note Crim 1, issued 24 April 2012. 

New procedure

The new practice note provides for:

• continuity of case management, where possible, by the court, the police, police Domestic Violence Liaison Officers, and other providers of support services;
• dedicated days at each court complex for an AVO list;
• listing AVO applications and any related criminal charges on the same first mention date, and, if not, for the application to be adjourned to the same date as the charges;
• listing AVO applications and any cross-applications together;
• case management timetables for contested AVO applications with no related criminal charges, a Compliance Mention 5 weeks later with the parties to file a Listing Advice to obtain a hearing date, and all evidence in chief to be given by written statements unless the Court orders otherwise;
• strict procedures for applications to vary or revoke interim orders, including the requirements for the parties to attempt agreement and notify the court of any Family Law orders, and determination of the matter based only on the written grounds of the application and submissions; 
• strict procedures for First Mentions, Compliance Mentions, Readiness Mentions, Contested Hearings of standalone AVO applications, and Defended Hearings of AVO applications with related criminal charges;
• separate procedures for private AVO applications, ex-parte applications, property recovery orders, and Serious Domestic Abuse Prevention Orders; and
• adjournments of no more than 14 days at the First Mention, for limited reasons that do not include making representations to the prosecution.

New forms

The following new forms are annexed to the Practice Note:

• Notice of Readiness (Prosecution and Defence) – DV Charges: Annexure A
• Timetable for Statements: Annexure B
• AVO Listing Advice – for Compliance Mention: Annexure C
• Application for Property Recovery Order: Annexure D
• Timetable for statements – SDAPO only: Annexure E
• SDAPO Listing Advice – for Compliance Mention: Annexure F
• Application to stay a SDAPO: Annexure G
• Application to vary/revoke a SDAPO: Annexure H

Publication updates

The By Lawyers Apprehended Violence Orders (NSW) and Local Court Criminal (NSW) guides have been updated to help practitioners adjust to the new procedure.

New list in the Supreme Court - VIC

The Supreme Court of Victoria has introduced a new Regulatory and Civil Penalties List within the Commercial Court, supported by Practice Note SC CC 10, effective from 1 May 2026. 

The new list streamlines the management of regulatory proceedings and civil penalty matters. The Practice Note introduces tailored procedures and focused case management for these matters. 

Key changes

New list

The new judge-managed list deals with proceedings relating to commercial activities, business transactions, and community undertakings involving federal or state regulators. 

Concise statements

Proceedings may be commenced using a concise statement, enabling parties to identify the key factual and legal issues, and the relief sought, in a clear, narrative form. If a concise statement is used, no further originating material is required unless the court orders otherwise. 

Expedited case management

The list adopts procedures aimed at the just, efficient, timely, and cost-effective conduct of proceedings, with an emphasis on early identification of issues and streamlined preparation for trial. 

Publication updates

By Lawyers Supreme Court Civil (VIC) publication has been updated to ensure practitioners have access to accurate, practical resources when acting for clients in regulatory and civil penalty matters.

New AI Practice Note in the Supreme Court - VIC

The Supreme Court of Victoria has issued a new Practice Note, SC Gen 25 – The use of Artificial Intelligence by Court users, together with separate Guidelines: The use of Artificial Intelligence by Judicial Officers. Both commenced on 14 May 2026.

The reforms reflect the rapidly increasing use of AI tools within legal practice and the courts, while reinforcing the continuing importance of professional judgment, accuracy and human oversight. 

Application of the practice note

The Practice Note applies to all court users, including lawyers, litigants, witnesses and experts. 

Court users may use AI in preparing court documents, provided they comply with the requirements of the Practice Note. Importantly:

• all court users remain responsible for the content of documents filed with the Court, irrespective of whether AI has been used;
• lawyers must continue to comply with their professional and ethical obligations, including duties of competence, diligence, candour to the Court and client confidentiality; and
• practitioners may face adverse cost consequences or professional conduct issues if they rely on unverified AI-generated material. 

Court users are specifically warned not to enter confidential or sensitive information, including information subject to suppression or non-publication orders, into public AI tools.

The Practice Note has practical implications for firms developing or reviewing AI policies and workflows, particularly regarding document verification, supervision, confidentiality, and staff training. 

Benefits and risks of AI use

The Court recognises that AI can enhance access to justice and improve participation in court processes. However, the practice note also highlights significant risks associated with its use, including:

• fictitious or inaccurate case citations and legal propositions;
• outdated or incomplete legal analysis;
• jurisdictional inapplicability if legal material from other jurisdictions is relied on; and
• privacy and confidentiality concerns arising from the use of public AI platforms.

The Court’s guidance reflects growing judicial and regulatory concern about practitioners relying on unverified AI-generated material in litigation and court documents. 

Verification requirement

Content produced using AI must be verified with meaningful human control. 

Court users are responsible for ensuring that content produced by AI is current, complete, accurate and applicable to the jurisdiction. This may involve independently verifying all authorities, quotations, legal propositions and factual assertions using reliable primary sources. 

Any extracts or quotes relied on must be verified as accurate and attributed to the correct source. 

Another AI tool cannot be used for verification.

Use of AI to prepare evidence

Caution must be exercised when using AI to prepare affidavits, witness statements or expert reports. 

Any sworn or affirmed material must reflect the witness’s own knowledge and words. 

Expert reports must continue to comply with the expert’s existing obligations under the court rules and expert witness code of conduct. When using AI in preparing their report, experts must ensure that:

• the opinions expressed are genuinely their own;
• the reasoning process reflects their own expert analysis; 
• the report accurately reflects their knowledge and conclusions; and 
• any AI-assisted content has been independently verified.

Judicial officers

Separately, the Court’s new Judicial Guidelines confirm that judicial officers must not use generative AI for judicial decision-making. 

However, approved AI tools may be used for supportive administrative purposes, such as organising materials, preparing summaries and assisting with legal research.

Commencement and future developments

The Practice Note and Guidelines commenced on 14 May 2026 and apply immediately to all Supreme Court proceedings.

Court users can expect the Practice Note and Guidelines to continue to be refined as AI technology develops and the Court gains further experience with AI use in litigation and court administration.

By Lawyers will continue to monitor developments relating to the use of AI in legal practice and court proceedings.

The By Lawyers Supreme Court Civil (VIC) guide has been updated accordingly.