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In November 2018 the government released draft regulations with the aim of reducing the financial reporting burden for some proprietary companies by increasing the thresholds for determining what constitutes a large proprietary company under the Corporations Act.
In September the QBCC released a discussion paper with proposals to strengthen the MFR and improve regulation. Changes to legislation may follow which would be implemented in a phased approach.
Legislation was passed in June 2018 which resulted in ASIC’s fees reflecting the cost associated with the work undertaken by them. While around 90% of ASIC’s regulatory activities will be now be recovered in the form of industry funding levies, the remaining 10% will be recovered via fees for service.
We have noted when assisting AFSLs with their FS70 lodgement that no lodgement fees were payable because of this new regime. As all lodgements are now completed online this is logical given that the marginal cost to ASIC would be minimal.
Under the Franchising Code of Conduct, where a franchisor operates a marketing fund, they must, in addition to including details of the fund in the Franchise Agreement:
A franchisor in Australia must maintain a disclosure document in a prescribed form to provide information to existing or prospective franchisees. Franchisors will in most cases seek advice from a lawyer specialising in this area to assist them with the preparation of this document.
In 2018 the 30th June fell on a Saturday, increasing the chance that SMSF trustees who left decisions on contributions to the last minute will not end up with the result they intended. It may be too late to fix this for 2018 but we thought we would make our position as SMSF auditors clear in relation to our views on when contributions have been received by a fund.
For our not-for-profit clients or potential clients registered with the Australian Charities and Not-for-profits Commission one of our first steps when commencing work is to review the charity’s details on the ACNC website. We would encourage registered charities to do the same and consider if the information presented is up to date and accurate. These are some areas where corrections may be needed.
The Federal Budget in May 2018 included a proposal that would allow more time for Australians aged 65 to 74 to boost their retirement savings, by introducing an exemption from the superannuation work test if specific circumstances apply.
The latest research by Gallup indicates that workplace engagement is as low as twenty-five percent.
This figure is alarming because it means that a significant amount of employees are not motivated, productivity is low, and they are more than likely willing to ‘jump ship’ if they believe a better opportunity is available.
When people look to run an SMSF rather than invest their super into an industry or retail fund, there are many investment classes that are available depending on the individual's appetite to risk.
However, with the rise of cryptocurrency as an alternative payment mechanism over the past few years and its subsequent crash in the later stages of 2017 and 2018 proved that this asset class is volatile, unpredictable and in essence a high-risk investment.
Accountants are often seen by society as organised and meticulous. The reality is most accountants are managing a huge amount of tasks, clients, meetings, reporting and deadlines for both their clients and their own businesses.
When it comes to task and time management, there are five easy hacks to help you get on top of your action.
If a licence is suspended or cancelled, a contractor must cease any building work and can’t provide quotes or tenders for building work or sign a building contract.
Understanding Audit Reports for Not-For-Profits
In general conversation, the word “qualified” is often considered to be a positive attribute implying that a person has adequate skills for the job at hand and can be trusted. In the context of audit reports, however, a qualified report is not something to aspire to.
Our director James Kenward attended a training course held at the Institute of Public Accountants last month aimed at external examiners. There are some changes to LPR2017 which commenced in September 2017 and will be applicable to the upcoming March 2018 trust account year-end examinations.
On March 19, the ATO released further details on some of the regulatory considerations of cryptocurrency for SMSFs including valuations in particular contributions and ownership of assets.
In a recent article from the SMSF Adviser, it's been found that the ATO's chief compliance concerns continue to centre around the same mistakes re-occurring year in and year out.
The common compliance issues are causing a knock on effect for the ATO with the stand out issue being the failure to lodge on-time being the headline item on the ATO's compliance watch list.
The Fair Work Ombudsman has used accessorial liability laws to obtain penalties against an accounting firm for knowingly assisting one of its clients to exploit a worker.
Victorian firm Ezy Accounting 123 Pty Ltd was penalised over $50,000 last year after the Federal Circuit Court found the firm to have facilitated underpayments by its client to two employees, both Taiwanese workers.
The rollout of the Notifiable Data Breaches (NDB) scheme has sent a shockwave through the accounting industry due to the wide range of protocols and notification procedures that will be put in place from February 22nd, 2018.
The Brisbane Times has recently published an article outlining a sophisticated digital scam that has seen two Queensland law firms losing several millions of dollars after falling victim to scammers.
The cyber criminals sent an email scam under the guise of a potential new client - once the law firm’s victims clicked on the email hackers quickly took over the email accounts of staff at the law firms and hijacked payments from their clients.
These days the business landscape is filled with digitalisation and automation, and the process of implementing new technology can be unclear for SMSF firms and a range of businesses.
While the process of adopting new technology can be a minefield, the benefits are tremendous for improving business systems and enhancing the overall functioning of the workplace to ensure your business is firing on all cylinders.
In today’s workplace, there is often a mix of both younger and older employees, and strategies should be in place to ensure that business owners and managers are creating a flexible and attractive work environment.
Each year SAAS conducts external examinations of trust accounts operated by Queensland based Law Practices. We thought it would be useful to outline our role, the work conducted and list the most common breaches we reported in the 2017 reporting season.
The information presented is not intended to provide guidance for the operation of a Law Practice Trust Account – we always suggest a good first step for this purpose would be to refer to Queensland Law Society’s Trust Accounting Guide.
Changes in the NFP and charity sector have tightened up the reporting requirements and standards for the industry, paving the way for more guidance required from accountants and auditors.
A recent article on nestegg.com.au has outlined findings from the ACCC which have shown in the eight months leading up to September 2017, Australian investors have lost more than $19 million to online scams. Out of the $19 million lost to online scams, the lion's share comes from phone scams or social networking scams.
Some days it's a challenge to keep your energy at work when you're powering through audits or energy zapping work that can make your brain feel like it needs a re-charge.
Just like our phones often run out of batteries so too can your body and if you're looking to ensure you don't get burnt out or stressed in the workplace, here are a few simple ways to conserve your energy and ensure you are firing on all cylinders.
In a recent update from the ATO Commissioner Chris Jordan has warned that work-related expenses will be flagged and a crackdown will be carried out to ensure the 12 million people in Australia's workforce are doing the right thing in regards to claiming work-related expenses (WRE).
In the 2014-2015 business year, around $22 billion was claimed in WRE's and there has been a warning issued to taxpayers that if there are considering claiming deductions that are not actually work-related expenses they should think again.
These days if you have a business website, you need the highest level of security, and this means far more than anti-virus software and changing your password on a regular basis.
Businesses who are looking to supercharge their web safety need an SSL certificate installed on their website.
Many clients might not understand that the entity they manage may or may not require an audit.
These days there are options, and clients have the choice of a review rather than an audit in some circumstances - which may be more cost effective for the organisation.
If you're looking to start off your new financial year successfully within your business, there are some simple and effective goals and objectives you can create that will give you a clear direction of where you're going and keep the big picture in your mind.
By creating 'SMART' goals and objectives, you can help your business to achieve financial goals.
The ATO has released information on the most commonly reported contraventions this past financial year compared to the same time last financial year.
Interestingly, there has been a significant drop of around 10 per cent in the number of ACRs received.
It seems the same types of contraventions continue to be reported by SMSF auditors with the most common being loans to members and in-house assets.
The ATO is tipping tax-related scams to rise five-fold as Australians work to lodge their tax returns and gather sensitive financial and personal information.
As we head quickly towards the end of the financial year, it is always interesting to gaze back at the past year to review the trends and changes in the industry.
2016/2017 saw a wide range of new changes for the accounting industry as a whole, in particular, a massive increase in cloud-based accounting software users with QuickBooks Online seeing an increase of 41% for subscribers and Xero experiencing growth of 51% online.
Are you struggling under a mountain of work? If you find you’re always tired and feel mentally drained at work, there are a few simple ways to combat mental fatigue.
When it comes to business, technology is by far one of the biggest changes over the past few decades and with many businesses moving to the cloud, there appears to be a reluctance for the accounting industry to follow their advice to clients and do the same.
With over 9,500 accounting firms in Australia, only a small percentage have migrated their systems to the cloud and their reluctance to move could be a threat to their capabilities in the long term.
With the threat of cyber attack on the increase, accountants and auditors should be aware of the need to manage cyber risks as part of their daily business operations.
With cyber attacks an issue of national security, Australian businesses should be aware that the risk is increasing and business should be taking steps to ensure they adapt and put in place systems to cope with cyber crime.
The ATO has released valuable data that outlines where the highest proportion of contraventions occurred in the previous financial year and how many have since been rectified.
The review has shown that 7,900 SMSF's had auditor contravention reports lodged with a total of 20,500 contraventions.
The report shows there has been a decrease compared to the previous year of 4% in the number of SMSFs with an ACR and a decrease of contraventions by around 7%. Just under half of those contraventions reported to June 2016 were reported as rectified.
The ATO has been clear that risks to independence are a focus in the 2016-2017 financial year, as is the assurance that SMSF auditors are complying with all of the independence requirements set out by the APES Code of Ethics for Professional Accountants.
Here are a number of key threats to auditor independence which are being focused on by the ATO in the current financial year:
A recent article in SMSF Adviser has provided an overview of the issues some SMSF trustees are facing by exposing themselves to potential compliance risks by paying fund expenses from their personal bank accounts.
It’s important to be aware of the fact that any weak links in your client’s SMSF documentation chain could break their entire estate plan.
SMSF specialists have a duty to keep things on track and ensuring estate planning documentation is in order is essential.
If you're the master of doing 10 things at once or you're focused on increasing your productivity by trying to work simultaneously on tasks, it could be working against you in your work life.
A recent article in SMSF Adviser suggests automated data feeds have both a positive and negative effect on the accuracy of client data.
Automated data feeds have led to efficiency improvements for auditors processing SMSFs however at the same time they are causing some significant headaches for auditors and are compromising the accuracy of data, making data feeds a ‘double-edged sword’ for auditors.
New SMSF returns are due 28th February.
As most of the industry will be aware, the annual return for new SMSFs is due on the 28th February 2017.
If you’re in the process of arranging an annual return for a new SMSF, there are plenty of things to keep in mind.
Considerations such as whether the SMSF needs to lodge, any establishment costs and the status of the fund should be reviewed ahead of this deadline.
How do you know whether you need to do an annual return for a new SMSF?
Due to the fact that SMSFs are a type of trust and deposits of cash are made into a super fund bank account, a new SMSF will require financial statements and tax returns regardless of the size of the fund.
All SMSFs need their financial statements audited annually by a registered super fund auditor for compliance and with the 28th February deadline looming it’s important that any new fund gets their return organised to ensure no red flags are raised.
Managing compliance requirements with the rise of automation and price pressures can be a serious balancing act for SMSF auditors.
As auditors experience the pressure to reduce their audit fees to meet with a competitive market, there is an increased pressure from the ATO and the Australian Auditing Standards to maintain the same high level of integrity and quality. This pressure is a challenge for auditors who are already under pressure to master & comply with new technologies.
A number of auditors have approached the ATO with serious concerns their auditor numbers are being misused on SMSF annual returns they were not responsible for.
This startling revelation has been revealed as the ATO admits there is nervousness from within the SMSF auditing community that misuse is being detected due to administrative error but also misappropriation of auditor’s numbers.
There is nothing we do in life that doesn’t come without some modicum of risk. Business is no exception, with business risks continually needing to be managed. Take cash flow as an example – it is the life blood of any business and needs to be managed carefully.</p
Meet and greets, corporate catch ups and professional networking are all essential elements of building your circle of contacts in the workplace and climbing the corporate ladder. Done well, networking can be tremendously beneficial with research suggesting 80% of jobs and promotions are not advertised formally but are offered to individuals who have a positive reputation within the organisation.
The ATO has encouraged self-managed retirees to expose dodgy SMSF practitioners that are pushing illegal tax schemes and giving the industry a poor reputation. After identifying a significant number of retirement planning schemes that were created purely to help people avoid tax as opposed to providing retirement benefits, the ATO is looking to close down the schemes with the help of SMSF retirees.
The roll out of the new SMSF regime will make it mandatory for accountants to refer new clients to a specialist SMSF advisor if you don't have your AFS licence.
Accountants should be aware of the implications of the changes and how it will affect the way they offer SMSF advice to clients. Namely, accountants will no longer be able to provide SMSF advice for clients without an AFS licence and while they will still be the primary contact their clients, the customer will need to seek the support of an AFS licenced specialist financial advisor to manage their SMSF.
While is it relatively unknown; it is possible to buy investment property in your SMSF. As well as being able to buy property with your SMSF, it is also possible to borrow money using a limited recourse borrowing arrangement. This arrangement means that the lender only has "security against the single property investment and not the other assets in the super fund".
A new set of template rules were announced in March 2016 from the Australian Charities and Not-for-profits Commission outlining a set of steps which help small unincorporated charities manage their registration and governance.
As we approach the end of the 2016 financial year, those companies that require an audit should be making preparations for the annual audit now.
If you're in an intermediate management position, it is estimated that you will spend approximately 35% of your time in a meeting. That's a significant figure and will involve removing key team members from their positions for a large portion of that time too.
Financial security and independence are two of the most popular reasons that Australians are turning towards SMSFs in their droves. There is no doubt that managing your super fund is as appealing as it sounds for those dedicated to spending their retirement in affluence.
Lost fund records & historical records are a common issue approached by accountants and auditors particularly in the areas of SMSF.
While they can be tracked down via the fund’s trust deeds, there are some details which cannot be found including Applications for Membership, Consents to Act, Declaration as to Status and Trustee Declarations.
The Australian Charities and Not-for-profits Commission has been retained by Government.
In news out of Canberra on the 4th of March 2016, the government announced it would provide certainty to the charitable sector & NFP’s by retaining the Australian Charities and Not-for-profits Commission (ACNC).
The rules surrounding valuations for SMSFs have seen a range of changes over the past few years and it's vital that practitioners are across the various requirements to ensure their clients are legally protected.
The newly released lease accounting standard brings transparency to lease obligations, bringing all leases onto the balance sheet.
After three decades, investors will now enjoy reliable information about leasing obligations, with less need for “rules of thumb” and guesses about the impact of lease obligations on a lessee’s debt gearing/leverage. The change will be effective 1 January 2019.
Up to now, accounting has not been fully reflecting the economics of leasing transactions with analysts routinely making adjustments for operating leases.
SAAS Audit is pleased to announce that James Kenward, currently a director of SAAS Audit Pty Ltd, has formally become an equity partner in SAAS T/A Specialised Audit and Assurance Services.
James is a Chartered Accountant, holds a public practice certificate and is a registered company auditor. James hails from the UK however has recently become an Australian citizen following 6 years in Australia.
Many business owners don’t realise that their business has outgrown its structure until something comes up – which begs the question, are your assets at risk?
Here is a compilation of things to consider to check if your business structure is working for or against you.
Up till recently email scams were pretty easy to identify. Common email scams were emails alerting the recipient of a massive windfall in an international lottery or even a politely penned request from fancy diplomat in Nigeria.
SMSF's that hold collectables or personal use assets including paintings, coins, antiques, artifacts, memorabilia, recreational boats, jewellery, books, wine or motor vehicles acquired before 30 June 2011, should be aware of significant changes that will take effect on 1 July 2016.
A new set of rules will be rolled out for SMSF’s and investors should be aware of the rules to protect their investment and ensure their collectables have the appropriate level of documentation, insurance and legal support.
It’s important for accountants and business advisors to be up to date on reporting requirements for their clients operating in the building and construction industry in Queensland.
In Queensland, minimum financial requirements were updated on 1 October 2014, prior to this businesses with income above the self-certification limit where required to have their financial statements independently reviewed at licence renewal time.
The introduction of new technologies over the past decade has seen massive growth and change within the workplace, particularly with the finance industry.
Day-by-day, week-by-week, year-by-year, new advancements and discoveries are made within the digital technology area; drastically changing the way businesses operate and interact with their customers.
We all know having an online presence enables small businesses to expand the reach of our products and services to a wider range of customers however we must be cautious in managing the risks our reliance attracts.
Late one Friday afternoon in 2011 an unemployed truck driver chose a small online business to hack – Distribute.IT. This attack eventually destroyed Distribute.IT’s production data, backups, snapshots and any information the highly competent IT savvy owners attempted to salvage. 30,000 of their clients’ websites were taken offline with some ultimately unrecoverable. Distribute.IT’s owners were eventually forced to sell the remainder of their business, their homes and put ten years of their, once profitable, business behind them because of this apparent random malicious hack.
With ASIC having an online register of all registered SMSF auditors as well as a list of those suspended, pressure is on for auditors within the industry to make sure all superannuation laws, regulations and codes of practice are carried out precisely.
ATO is currently working with the Tax Practitioners’ Board (TPB) and ASIC to establish clear boundaries and are looking at the various threats to independence as outlined below.
SAAS is proud to support the Pink Ribbon Breakfast 2015.
While we have donated to this worthy cause before this if the first time we are hosting our own breakfast to help raise greatly needed funds for The National Breast Cancer Foundation
We have set ourselves a goal to raise $500.00 and we need your help with a donation, big or small. Simply click the link below to view our fundraising page and donate.
Saving for retirement might not be one of the most exciting things to think about, but it’s time to put the fun back into super funds.
Let’s face it, the world of superannuation can be dry to say the least, but preparing for retirement doesn’t mean you have to be boring.
Choosing the best accountant for your needs.
Whether you chose to engage a Certified Practising Accountant (CPA) or Chartered Accountant (CA) the fact is they are both accountants and as such, with regards to education and affiliation to a professional association, are deemed responsible to handle a company’s financial statements.
The ATO is beginning to target low-cost self managed super fund auditors in an effort to ensure audits are undertaken thoroughly and efficiently.
Low-cost auditors require a high turnover of work to make ends meet which is leading the ATO to examine whether the individuals are examining contraventions closely enough.
ACNC Here To Stay
Recent news out of Canberra has indicated the ACNC has secured its future following the dropping of plans to scrap the commission. Minister for Social Services Scott Morrison has declared that plans from his predecessor former Social Services Minister Kevin Andrews to abolish the Australian Charities and Not-For-Profits Commission is not a priority in his new portfolio.
The introduction of new technologies has seen massive growth and change within the workplace. Day-by-day, week-by-week, year-by-year, new advancements and discoveries are made; drastically changing the way businesses operate and interact with their customers.
One of the main changes with the introduction of these new technologies is the way we communicate with our customers. The average Australian Internet user spends 17.6 hours per week online (Neilsen’s 2010 Internet and Technology Report). Customers now have an excess of information at their fingertips and consumers are better equipped to make informed buying decisions.
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