Environmental Harm, Fines & Notices

A $60,000 FINE!? Know your legal obligations when it comes to notifying contaminated land!

Are you aware that your property or the property that you are working on could be contaminated? If you are aware, and you fail to notify the Department of Environment and Heritage Protection (EHP), serious fines could apply.

What is a “notifiable Activity”?

This is an activity that is likely to cause contamination. In town, these activities might include some types of manufacturing or disposal operations, printing, petroleum or chemical storage. On a rural property, you might have a livestock dip or spray race.

Who is required to notify EHP?

Just about everyone! Employees/employers, company directors, contractors and agents, engineers, project managers, auditors, local government, owners and occupiers of Land.

When must notification occur?

If contamination or environmental harm is likely to occur or has occurred, notification to EHP has to be given within 24 hours of an event occurring. You must also give notification to an owner or occupier of land (so say a tenant) if it is likely that their land could be affected.

What happens if you do not notify?

Fines of up to almost $60,000 can apply in certain circumstances so the fines are significant. Tenants and Occupiers of Land should be aware that they must notify the owners of the Land or Fines also apply if the owner is not notified.

How do I notify?

There are particular forms and guidelines you can use online through EHP, or you can contact them directly.

What about if I am purchasing a property?

This positive duty to notify should result in an increase in properties being noted on the Contaminated Land Register. Appropriate searches and advice should be obtained when you purchase a new property or if you take on a long term lease of a premises.

Contact Energy, Environment & Agribusiness Partner, Melanie Findlay on (07) 4927 6333 or at enquire@reesjones.com.au.

CGT Withholding Regime may affect rural land sales

Rural Conveyancing just got even more difficult for our Rural and Agribusiness clients. From 1 July 2016, Vendors and Purchasers of rural land could be impacted by the new Tax and Superannuation Laws Amendment Bill 2015. 

The new Capital Gains Tax (CGT) Withholding Regime was intended to target foreign sellers of land, but rural land transfers are likely to be affected. The way the new regime will work is as follows:-

Generally, if a Vendor enters into an option or contract to transfer any land or lease of Australian land, the Purchaser will be required to withhold 10% of the purchase price from the settlement funds. This money is then paid to the ATO. The funds are taken on account for the Vendor’s potential CGT liability. The new CGT Withholding Regime will apply, unless there is an exemption.

Exemptions include land or leases with a market value of less than $2,000,000.00 or where a “Clearance Certificate” has been obtained. These days, rural properties are often sold for over $2,000,000.00. It is the Purchaser’s responsibility to make sure that the CGT is withheld and so there are changes in the wind for both Buyers and Sellers.

At this stage, it is a case of “watch this CGT space”, but be aware of the impending change.