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Melbourne, Australia: Global mid-market accounting and advisory services network Moore Stephens today announced a significant expansion of its Australian presence, with two local firms merging to form Moore Stephens Queensland and Northern New South Wales (Moore Stephens QNNSW), trading as such from May 1.

 

Single Touch Payroll (STP) is coming into effect from 1 July 2018 for all ‘substantial employers’. It will change the way employers send employee's tax and superannuation information to the ATO with payments such as salaries and wages, pay as you go (PAYG) withholding and super information sent to their Accountants directly from their payroll solution at the same time they pay their employees.

There are currently a number of government financial assistance programs on offer that may be able to help your business.

Today's Technical Tip looks at the impact of the new AASB 16 leases standards on clients who don't lodge accounts or prepare special purpose accounts.

The Australian Labor Party proposes policy to stop SMSFs from receiving tax refunds for the franking credits they receive in conjunction with the dividends paid from Australian companies they own.

The International Accounting Standards Board (IASB) published IFRS 1 Revenue from Contracts with Customers in May 2014 effective for reporting periods commencing on or after 1 January 2018.  Since IFRS 15 replaces all the existing guidance on revenue recognition and applies to all entities and industries, there has been considerable confusion (and debate) as to what the likely impacts are going to be across different industries when adopted. 

A boost in commodity prices, an improved political outlook for South Africa and Zimbabwe and a greater appetite for investment in the mining sector has prompted new leads and partnerships for Moore Stephens. This follows the successful Investing in African Mining Indaba in Cape Town.

After 10 great years at Pulteney St, the Moore Stephens team in South Australia is on the move.

New GST laws targeting property developers come into effect on 1 July. Is your company prepared? Taxation specialist Ross Sicuro, director of Moore Stephens, shares his insights.

Announced in the 2017 federal budget, the new GST laws promise to crack down on ‘phoenix activity’ – where companies strip the assets and cash from a business before liquidating and restarting it under a different name.

The business rises from the ashes, but leaves creditors, including the ATO, high and dry.

With over 20 years’ experience in the delivery of Strategy Consulting, Performance Improvement, Information Systems and Corporate Finance engagements; Stuart Whitehead has joined the Moore Stephens Victoria team as a Director to head up the new Consulting division.

Laura Osborne provides insights and analysis from 'Shark Tank' - Season 3

Moore Stephens recently sat down with brothers Peter and Brian Turnley to discuss early lives, key business lessons, success and strange hair trends.

Transitioning a family business to the next generation can be an incredibly confronting process.

AASB 16 Leases is part of the new accounting requirements becoming mandatory over the next two years. 
 

As new accounting standards come into force over the next two years, property companies need to understand the implications for their businesses, says Moore Stephens’ director Ross Sicuro.

From 1 January 2019, a new Australian Accounting Standards Board standard will start to influence leasing decisions.

The ASIC industry funding model commenced on 1 July 2017. This model will see a new system of levies introduced across the range of different entities which come under ASIC’s control.

Update of the previous article, 'Investment companies miss out on tax relief' written by Tim Elliot after the bill was introduced to the Parliament of Australia on the 19 October 2017. 
 

As part of the Government’s Enterprise Tax Plan, the corporate tax rate for small business entities (aggregated turnover of less than $10m) has been;

• cut to 27.5% for the 2017 income year, 

with the turnover threshold for small business entities;

• increasing to $25m for the 2018 income year, and
• again increasing to $50m for the 2019 to 2024 income year.  

Note important due dates for October - December 2017

Property Council Australia interviews Simon Alford, director at Moore Stephens about the housing affordability measures that were announced in the May 2017 Federal Budget. 

Have we missed the opportunity for meaningful tax reform?

The recent company tax rate reduction drives a wedge between small companies, with draft legislation and the Explanatory Memorandum not addressing key ambiguities.

In a world that is growing increasingly competitive, Australia requires leadership in tax reform and proper implementation more than ever.

** Updated 20 October 2017: Please note this bill was introduced to the Parliament of Australia on the 19 October 2017 and as a consequence elements of this article are no longer correct.  Please refer to our update 'Greater certainty on company tax rates for small business entities' by clicking here.

As part of the Government’s Enterprise Tax Plan, the corporate tax rate for small business entities (aggregated turnover of less than $10m) has been cut cut to 27.5% from FY17, with the turnover threshold for small business entities increasing to $25m in FY18 and increasing to $50m in FY19.

However, there has been significant uncertainty in relation to whether companies receiving primarily passive income (including corporate beneficiaries) constitute small business entities and therefore qualify for the lower corporate tax rate. Recent commentary amongst practitioners has certainly supported the possibility.

We are in the middle of a period of significant change in accounting standards.  This article highlights 3 specific issues which will impact upon schools and bursars should begin preparing for.

1. AASB 1058 Income of Not-for-Profit Entities
2. AASB 15 Revenue from Contracts with Customers
3. AASB 16 Leases

Of late we’ve seen both the major parties make their case for changes to the tax system. Whilst tax reform has been part of the political, business and social landscape for many years, the commitment of government to tackle this issue head on has been somewhat “lukewarm”. One can understand that from a political perspective  addressing wholesale tax reform can be difficult when you do not have a majority government, or the public have become disenchanted and their votes continuously “swing”.

This paper sets out various items to consider prior to 30 June 2017, for effective tax planning.

• Taxing of Trade Income

• Record Keeping

• Individual Income Tax Rates

• Temporary Budget Repair Levy

• Medicare Levy Surcharge and Private Health Care Rebate

• Contactor's Income

Key Items

• Company Income Tax Rates

• Franking Account

• Company Loans

Key Items

• ​Deferring Assessable Income

• Settlement Discounts

• Bad Debts Recovered

• Deferring Livestock and Produce Sales

• Income Splitting

• Interest Earned

• Employee Share Schemes

• Qualifying Employee Share Schemes

• Government Grants

Key Items

• ​Fringe Benefits Tax Payment (Accruals Basis)

• Commissions Owing (Accruals Basis)

• Interest (Accruals Basis)

• Salaries and Wages (Accruals Basis)

• Commercial Bills (Accruals Basis)

• Rent (Accruals Basis)

• Legal Costs

Key Items

• ​Prepayments - Small Business Entity Taxpayer

• Prepayments - Not Defined as Small Business

• Prepayments "Excluded Expenditure"

• Deductions Under the General Prepayment Rules

• Bringing Forward Deductions

• Interest on Investment Loans

• Bad Debts (if taxation return prepared on an accruals basis)

• Staff - Bonuses

• Staff - Holidays

• Superannuation

• Superannuation Minimum Contribution

• Superannuation Co-Contribution – for 2016/17

• Interest on Loan Funds

• Repairs and Maintenance

• Directors’ Fees

• Travel Deductions

• Expense Substantiation

• Depreciation

• Negative Gearing

• Building Allowance

• Borrowing Costs

• Entertainment

• Research and Development

• Property Owner's Deductions

• Donations and Gifts

• Audit Fees

• Salary Packages

• Working from Home Expenses

• Expenses for Shareholding Investments

• Taxation Advice

• Motor Vehicle Expenses

Key Items

• ​Small Business Tax Payer

• Simplified Trading Stock Rules for Small Business Entities

• Audit Review Period

• Prepaid Expenses

Key Items

• Stock on Hand

• Value of Stock

• Stock Taking

Key Items​

• ​PAYG Withholding Tax

• Payment Summaries

• Payroll Tax (If You Are Liable)

• WorkCover/Workers' Compensation

• Fringe Benefits Tax

• Living Away from Home Allowance

Key Items

• Property Income

• Work Related Motor Vehicle Expenses

• Work Related Expenses

Key Items

• Building and Construction Industry

• ​Notification of Superannuation Payments

Key Items

• ​Cash Count

• Creditors (if preparing tax return on an accruals basis)

• Filing

Key Items

• ​Commercial Tests

Key Items

• ​Zone Offset

• Sickness and Accident Insurance Payments

• Home-Office Expenses

• Utilising Tax Free Threshold

• Tax Offsets Net Medical Expenses

• Work Related Expenses

• Dividends, Interest, Managed Funds Distributions

• End of Year Tax Schemes

• Salary Packaging

• Superannuation Contributions

• Splitting of Superannuation Contributions

• Australian Taxation Office Monitoring

• Motor Vehicle Expenses

Key Items

• Contributions to Superannuation Funds

Key Items

• Hecs

Key Items

• Luxury Car Threshold

• Fuel Efficient Cars

Key Items

• First Home Buyers and Superannuation

Key Items

• GST Systems Review

Key Items

• Affordable Housing

Key Items

• Downsizing and Superannuation

Key Items

• Australian Taxation Office

Key Items

• Deductions

• Income Issues

Key Items

• Capital Gains Tax

• Matching Capital Losses and Capital Gains

• Consideration of Capital Gains Tax Implications

Key Items

• PAYG Instalment Variation

The Federal Government’s company tax cut initiative is no doubt great news for small to medium businesses although local shareholders will ultimately be stung with higher personal tax bills being levied on taxed corporate profits paid as dividends. This is because the tax cuts will not be passed through to individuals. 

This Budget is premised on the principles of fairness, security and opportunity with the Treasurer reporting an underlying cash balance deficit of $29.4 billion for 2017-18. The Government anticipates a significant improvement to the bottom line with a forecasted $7.4 billion surplus by 2020-21 supported by economic growth of 2.75% in 2017-18 and 3% in 2018-19.

Key points

• HECS repayment thresholds to change from 1 July 2018

• University fees to increase

• Needs based funding for schools introduced with $18.6 billion increase in funding to 2027

• $1.5 billion Skilling Australians Fund created for up to 300,000 extra apprenticeships

Key points

• Medicare levy to increase by 0.5% from 1 July 2019

• Subclass 457 visas to be abolished

• $1.5 billion Skilling Australians Fund created for up to 300,000 extra apprenticeships

• Estimated increase in wage growth from approximately 2% to over 3% in the next four years

• $263 million to assist parents of young children to re-enter the work force

Key points

• Medicare Levy to increase by 0.5% from 1 July 2019

• Medicare Levy low-income thresholds increased

• Medicare Guarantee Fund to be established to ensure Medicare is fully funded

• The freeze on the indexation of the Medicare Benefits Schedule (MBS) has been lifted

• Retention of bulk billing incentives for diagnostic imaging and pathology services

• Affordable access to medicines continued

Key points

•  Measures aimed at foreign resident property owners

• Restricting ownership by foreign ownership in new developments

• GST integrity measure on property transactions

• Limiting plant and equipment depreciation claim for property investors

• Integrity measures regarding the Small business Capital Gains Tax (CGT) concessions will be introduced

Key points

• Compliance framework introduced for welfare recipients

• $263 million to assist parents of young children to re-enter the work force

• Single Jobseeker Payment to replace seven existing payments

• Childcare subsidy to be capped for high income families

Key points

• Limited Recourse Borrowing Arrangements to be included in a member’s superannuation balance and transfer balance caps

• First home owners will be allowed to salary sacrifice to superannuation for home deposits

• Home sellers 65 years or over can make non-concessional contributions to superannuation

Key points

• $75 billion in infrastructure funding and financing over the next 10 years

• Western Sydney Airport to be built

• Funding of Melbourne to Brisbane Inland Rail project

• $10 billion National Rail Programme

• Establishment of a $472 million Regional Growth Fund to deliver job-creating infrastructure

Key points

• Medicare levy to increase by 0.5% from 1 July 2019

• Investment property related plant and equipment deductions to be limited

• Investment property travel deductions to be disallowed

• HELP repayment thresholds to change from 1 July 2018

• 2% budget deficit levy to end on 30 June 2017

Key points

• Over $100 million will be contributed to the Advanced Manufacturing Fund to boost innovation, skills and employment in advanced manufacturing.

• A 2030 Strategic Plan and a Research Infrastructure Investment Plan will be commissioned to guide future investment in innovation, science and research.

Key points

• First home buyers can salary sacrifice into their superannuation account

• Up to $300,000 from the proceeds of the sale of the family home can be contributed to superannuation for persons aged 65 and over

• Increasing the CGT discount to 60% for investments in affordable housing

• Allowing managed investment trusts (MITs) to be used to develop and own affordable housing

• Further initiatives to increase housing supply

Key Points

• Small business $20,000 instant asset write-off extended to 30 June 2018

• $300 million provided to state and territory governments to remove red tape

• Medicare levy to increase by 0.5% from 1 July 2019 – Other tax rates to change

Key points

• Major bank liability levy to be introduced

• Multinational Anti-Avoidance Law regime strengthened

• Commitment to Ten Year Enterprise Tax Plan reiterated

• Black economy to be targeted

Key Items

• Provision for Holiday Pay and Long Service Leave

• Provision for Doubtful Debts

Key points

• Limited Recourse Borrowing Arrangements to be included in a member’s superannuation balance and transfer balance caps

• First home owners will be allowed to salary sacrifice to superannuation for home deposits

• Home sellers 65 years or over can make non-concessional contributions to superannuation

After lying empty for nearly a decade, private investment has revived the century-old Magill Institute, bringing people back to the once thriving community hub and breathing new life into a sleepy Adelaide street.

Following the Senate deal on Friday the 31^st March 2017, a gradual reduction in the company tax rate will apply. We have outlined what impacts this is likely to have on financial reporting.

The Annual Reporting Requirements and the Home Care Package funding model for operators in the Aged Care Industry are due to change in 2017. Are you prepared? Here is what you need to know.

There has been a lot of discussion (including one of our own publications) about the disclosure initiative or decluttering financial statements. 

Have you heard people talking about the disclosure initiative or decluttering financial statements?  What does it mean for your financial statements?

“The Australian Tax Office is concerned that non-resident taxpayers are not meeting their tax obligations when they sell Australian property. The solution is this new withholding tax regime,” Costanzo, Moore Stephens’ director of tax and business advisory in WA explains.

When a non-resident sells property with a market value of $2 million or more, the purchaser is now required to withhold 10 per cent of the purchase price, and remit this amount to the ATO.
 

Our technical accounting update provides useful information for those preparing 31 December 2016 accounts.  We have separated the update into what is applicable for 31 December 2016 and what is on the horizon including a discussion of key changes.

AASB 10XX and AASB 2016-X changes are set to change income recognition for Local Government. Our national Head of Technical Accounting has outlined the key features you need to know about.

The AASB has issued new new income recognition requirements, what do these new changes mean for NFP Aged Care Operators? This article covers the key features you need to know

On the 28^th September 2016 the AASB issued new income recognition requirements for not-for-profit (NFP) entities:

• AASB 10XX Income of Not-for-profit Entities; and
• AASB 2016-X Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities.

AASB 2016-X will provide NFPs with guidance on how best to apply AASB 15 Revenue from Contracts with Customers.  These draft standards are now available for comment as a ‘fatal flaw’ draft until 21 October 2016.

AASB 9 Financial Instruments has been a project completed in sections over the past decade. Now that it is finally complete and applicable for reporting periods beginning on or after 1 January 2018[1], how will it affect you?

The International Accounting Standards Board (IASB) published IFRS 15[1] Revenue from Contracts with Customers in May 2014 effective for reporting periods commencing on or after 1 January 2018.  During the development of IFRS 15 the construction and property industry was identified as one of those most likely to be impacted upon by the new standard[2].  Given the long term nature of contracts within the construction and property industry it is vital that you understand and prepare for the impacts of IFRS 15 now.

Our technical accounting update provides useful information for those preparing 30 June 2016 accounts. 

Moore Stephens is proud to be partnering with the Australian Taxation Office (ATO) on the Key Agent Program that was implemented last year. This program has been co-designed with key stakeholders and influential partners as a way to work through and address the changing environment of taxation in Australia. This whole-of-ATO approach is designed to engage industry leaders and provide the opportunity to feedback on administrative issues and upcoming changes.

It is now just over one week since the Liberal party handed down their budget, followed by the Labor party taking centre stage the next day with their reply speech.  Since both of these announcements, Malcolm Turnbull confirmed what we have suspected for some time, by calling an early election for July 2, 2016.

 In the modern world, you can conduct business from a coffee shop, on a beach or in an office. With this change and the way products and services are being delivered, we are noticing now more than ever an inflow and outflow of people into and out of Australia. This fundamental shift in society has wider implications and the affects of globalisation on the tax system need to be understood so you can manage your assets.
 

Changes to business taxation and superannuation are central to the 2016-20178 Federal Budget. What are they key changes? Check out our Federal Budget snapshot infographic for a quick overview

The focus of this year’s budget is growing jobs and supporting small businesses, while targeting superannuation concessions and multinational profit shifting.

Moore Stephens Australia is pleased to announce it will be expanding its national presence in the South Australian and Northern Territory markets to meet growing client demand. From April 1, Hayes Knight South Australia and Northern Territory will be joining the Moore Stephens network as the new representatives of the respective locations.

The International Accounting Standards Board (IASB) published IFRS 15 Revenue from Contracts with Customers in May 2014 effective for reporting periods commencing on or after 1 January 2018.  During the development of IFRS 15 the construction and property industry was identified as one of those most likely to be impacted upon by the new standard.

We are often asked the question “how easy is it to do business in Australia?”
 
The World Bank Group annually ranks all countries for the ease of doing business and Australia currently ranks in the top 15 amongst the 217 countries measured.

Last year at the National ASBA conference we asked the education industry what the key challenges facing the sector are, and here is what you had to say.  We have segmented the results by school size based on net recurrent income and here is what we found to be the highest rated challenges. 
 

Last week the International Accounting Standards Board (IASB) issued IFRS 16 on Leases. The changes introduced by this standard is likely to increase both assets and liabilities on your balance sheet and you will need to consider the possible impact on any bank covenants such as Debt/Equity ratios. At Moore Stephens, our expert advisors are well equipped to assist you in applying this revised standard. For more information on the change, read the article below and contact us today.

If you are planning to do business in Australia, Asia Pacific or China, Moore Stephens has a guide that explains everything you need to know including the regulatory and tax environment.

In conjunction with the 2015 ASBA conference, Moore Stephens ran an industry  survey titled ‘Key Challenges your School Faces’ to assist industry development. 

HMRC are introducing new rules which will restrict the amount of tax relief available to landlords for finance costs relating to residential properties. 

Company directors need to keep in mind that the Corporations Act holds directors personally liable for many of the legal and financial obligations expected from a company. 

Have you ever let a room on the popular accommodation site Airbnb? Ever shared a ride with pseudo taxi service Uber? If you participate in what’s now called the “sharing economy”, you may have some tax to pay.

With the fall of the Australian dollar, inbound property development and investment activities into Australia by cashed up foreign resident multinationals and high net wealth individuals is a more attractive proposition, and such activities continue to drive the Australian property market. 

In April this year, Milliman Australia published its report ‘Discount Rates for Australian Employee Benefit Liability Valuation’.  The report was commissioned by the Group of 100 to examine whether Australia has a ‘deep’ market in high quality corporate bonds. 

Victorian based accounting and consultancy firm Nexia Melbourne is to join the global practice Moore Stephens as its state representative in the coming months

The $5.5b small business package, centerpiece of the Federal Budget 2015-16, has attracted bipartisan support from all major parties last week, despite debate around funding measures and reducing the overall deficit still raged on at the end of budget week.

Moore Stephens has partnered with LexisNexis® Capital Monitor to provide you with a complimentary 2015-2016 Federal Budget Report.

Moore Stephens Perth have announced they will be joining forces with well respected accounting and advisory firm, UHY Haines Norton (Perth) on 1 July 2015. 

With the Federal Budget looming, Moore Stephens Accountants & Advisors has partnered with LexisNexis® Capital Monitor, to provide you with a comprehensive 2015-2016 Federal Budget Report. 

The Australian Accounting Standards Board (AASB) has published AASB 15: Revenue from Contracts with Customers. Except for some limited exceptions, AASB 15 will provide a single source of accounting requirements for all contracts with customers. 

Moore Stephens welcomes the long awaited China-Australia Free Trade Agreement (ChAFTA). The agreement paves the way for a range of benefits that under the agreement are currently only available to Australia.