Lewis v Bundrock

In the case of Lewis v Bundrock, the dispute centred on the calculation of management fees owed by the respondents to the trustee of a family trust. The matter was heard in the Federal Circuit Court of Australia. The primary issue before the Court was whether the management fees should be calculated based on the capital sum of the trust, including the management fees themselves, or on the capital sum alone. A secondary issue was whether the tax deductibility of the management fees should be taken into account when calculating the fees payable.

The Court considered the relevant authorities and concluded that the management fees should not be added to the capital sum for the purpose of calculating the fees payable. The Court held that the management fees should be calculated based on the capital sum alone, without including the fees themselves. Furthermore, the Court held that the tax deductibility of the management fees should not be taken into account when calculating the fees payable. The Court determined that the administration expenses payable by the respondents were $184,174. This amount was fixed by the Court, providing clarity and certainty to the parties involved in the dispute.