Beyond the super cap

Superannuation as a retirement vehicle no longer has the allure of that new-car smell. These days it’s clocked its share of kilometres, the paint job has a few scratches, and in July 2017 when the tax-free contributions were capped at $1.6 million, it was the equivalent of a rear-end prang.

Taxing times

It’s something we all believe won’t ever happen to us. We tell ourselves tax audits happens only to the risk takers. We mistakenly find solace in the seeming randomness of those who do happen to capture the attention of the Australian Tax Office’s auditors, but the reality is that it’s rarely that haphazard. 
 

New Accounting Requirements for Local Government

New Accounting Requirements for Local Government


Several new accounting standards AASB 15, AASB 16 and AASB 1058 apply to Local Government from the 1st July 2019 to create new rules for the way local government recognises income and leases.

These changes will impact on the way contract services, grants, contributions, rates in advance and leases are accounted for and in some circumstances, require local governments to recognise the beneficial value of volunteer services.

The changes bring with them potential for an impact on the 2019-20 Budget, Annual Financial Reports (both 2018-19 and 2019-20) and Monthly Management Reporting.  

To cater for these new requirements, local governments will need effective systems for assessing, recording, and tracking contracts, grants and contributions over their lifecycle.  They may also need to develop systems to record the extent and value of beneficial volunteer services and change the accounting for prepaid property rates.