Ensure your company is clean as a whistle

In the flurry of activity that comes with a new financial year, you may have overlooked a significant announcement from ASIC about its changes to the Corporations Act to better protect whistleblowers. Even if you’re confident everything is ‘above board’ in your business, the new requirements are noteworthy for all public companies and large proprietary companies because it states there must be a compliant whistleblower policy in place by 1 January 2020, and made available to all employees.
 

Digital Transformation within the Mining Industry

Amidst the current challenges of the global economy, the mining sector has a sense of optimism.  Demand has been supportive of gold and iron ore prices, and minerals used for batteries will remain in focus, not least due to the ongoing growth in the electric vehicle markets.  Long term fundamentals underpin future demand.
Alongside a favourable outlook for mining demand, the cost side of the sector is being impacted by the application of technology – enhancing margins and reimagining processes which in some cases have endured for decades.

Important Announcement

On 9 September 2019, Moore Stephens International publicly announced the Moore Stephens network will become Moore, a transition to take place globally over the next 12 months.
 
Here in Australia, Moore Stephens will adopt the new brand from 1 July 2020.

Business sales – Net Working Capital and cash adjustments

Looking at selling your business? If you think that agreeing on the business’ value is the hard part, think again.

Many owners overlook the question of the purchase price’s net working capital adjustments, let alone how much cash to leave in a business at the point of sale. These areas are not only complex but can often be a major source of tension towards completion of a business sale. So, while it’s best to ensure you have a skilled advisor on hand to help you navigate your way through, this article will help you understand some of the considerations involved before you head to market.

Working together to connect food and entrepreneurship

Introducing the Agri Food and Wine Category: An initiative of Moore Stephens and eChallenge Australia

Tapping into the South Australian entrepreneurial ecosystem the Australian eChallenge connects the business community to students, academics and the general public. 

The eChallenge: Agri Food and Wine is designed to generate new ideas to address local and worldwide problems using anything from software, hardware and other technologies to chemistry, marketing and farming.
 

Removal of Special Purpose Financial Statements – Does it impact you?

The AASB has issued ED 297 Removal of Special Purpose Financial Statements for Certain For-Profit Private Sector Entities.  ED 297, if approved, will remove the ability of for-profit large proprietary, unlisted public (other than companies limited by guarantee) and small foreign-controlled companies to lodge special purpose financial statements (SPFS) with ASIC (i.e. directors can no longer self-assess that they are a non-reporting entity).  Current estimates from the AASB predict 7,295 companies will be impacted by these changes.

Disclosures Required Under RDR Are Set to Tumble

ED 295 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities proposes to replace the current Reduced Disclosure Requirements (RDR) framework with a Simplified Disclosure Standard. All entities currently using the RDR framework will fall into this new regime. It is important to note the proposals in ED 295 are closely linked to those expected in the forthcoming Exposure Draft on the proposed removal of special purpose financial statements (SPFS).

To read more, please follow the link

Moore Stephens Victoria deepens focus to include legal services

Moore Stephens Victoria has expanded its already extensive offering, with the launch of its new legal services division this month. Headed by Alex Nielsen, an accomplished lawyer with over 10 years’ experience in corporate, tax, real estate and asset management matters, the division will enable a multi-disciplinary approach for its growing clientele.

What does Australia need to do to stay ahead?

As we look towards the future, it is broadly agreed that Australia cannot continue to rely on luck and location alone. The most recent economic survey by Credit Suisse placed Australian’s as the second wealthiest people on the planet, closely behind Denmark.

To maintain this standard of living, the Australian government is acutely aware that we need to do something different going forward. The rhetoric from industry and government has for some time stated, “we can’t just keep digging it up and selling it, if we want to maintain our standard of living.”

SA Budget 2019-20: At A Glance

Taking advantage of low interest rates and following in the footsteps of our mainland counterparts, South Australia will increase debt by $7 billion over the next four years to fund a massive $11.9 billion infrastructure spending program.
 
The second Marshall Government budget — and the sixth for Mr Lucas — whilst short on surprises, looks to save money across a range of portfolios and programs, with select areas of Government spending increasing. Here’s our rundown of the key measures. 

SA Budget 2019: At a glance

It is the second budget delivered by Steven Marshall's State Government, with promises of funds for those wanting to get into the housing market and a new hospital. Treasurer Rob Lucas said if his latest budget were a person, it would be wearing "overalls and a high-vis vest". Find out what this year's budget means for you.

How incremental innovation can drastically help your business

If you are that person who thinks to be innovative your business needs to create the next great thing in the form of a new product or a new service, you are missing the whole point. Every business can bring innovation into its corporate culture just by adopting a ‘do better’ or aka incremental approach to innovation. Small changes in processes, service delivery and products can add huge value to your business with minimal impact on the expense items in your P&L. In fact, when done well, incremental innovation can be extremely profitable.

Is your company ready for its public debut?

Are you ready to take your company public? Moore Stephens’ latest corporate advisory recruit Benjamin Yeo has spent more than a decade skilfully guiding clients through the intricacies of preparing Initial Public Offerings (IPO) and outlines what’s necessary to successfully transform your company from private to public.
 

AASB 9 and the Expected Credit Loss Model

AASB 9 introduces a significant change in the way impairment is calculated and recognised compared to previous requirements.  This has created confusion as to how to apply these requirements to financial assets of organisations.  This article provides practical guidance for entities struggling to apply the new requirements.

I’ve worked really hard and things are taken care of…or are they?

You’ve worked really hard for a long time, made big sacrifices…family time, early mornings, late nights, taken risks and it has paid off. Time for you to enjoy the fruit of your labour that has been made possible by your sacrifices.
 
Unexpectedly something comes out of the woodwork and you find yourself in a legal battle. You didn’t expect this and suddenly everything you’ve worked so hard for could be gone. Have you done everything you can to protect your assets?

Should Loans be Classified as Current or Non-Current?

Issue

Loans that are in breach of covenants often pose difficult accounting considerations as to whether they should be classified as either current or non-current in the Statement of Financial Position.
This publication will highlight the key factors you should consider when deciding whether a loan should be classified as either current or non-current.
 

Moore Stephens Team Reflects On The 25th Annual Investing In African Mining INDABA

Moore Stephens partners from across Africa and the world gathered at a bumper Investing in African Mining Indaba in Cape Town in February. This year’s 25th anniversary Indaba was marked by more optimism than in the past few years.
 
“It was a lot more positive this year,” said David Tomasi, Global Sector Leader for Energy, Mining and Renewables (EMR) for Moore Stephens International.
Moore Stephens partners from across Africa and the world gathered at a bumper Investing in African Mining Indaba in Cape Town in February. This year’s 25th anniversary Indaba was marked by more optimism than in the past few years.
 
“It was a lot more positive this year,” said David Tomasi, Global Sector Leader for Energy, Mining and Renewables (EMR) for Moore Stephens International.

Not so private practice

If you’ve been in the unfortunate physical state to warrant a visit to your local physiotherapist or podiatrist recently, you may have noticed the mismatched waiting room furniture and dog-eared reading material has been replaced. Instead, you’re more likely to find thoughtfully designed lounge areas that maximise the opportunity to sell wellbeing products to a captured audience, not to mention herb-infused water served with a not-so tatty glossy.
 

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.

Moore Stephens Corporate Secretarial Services

Keeping your company records up-to-date is an important yet often overlooked task. Specialist skills are required to provide best-practice solutions and avoid expensive ASIC late penalties. Outsourcing this service is an efficient way to ensure that your company’s ASIC administration is handled efficiently and correctly.

Getting in Shape for a Healthy Exit

If you took the temperature of the allied healthcare sector this year, it would indicate that it’s ‘heating up’. Physiotherapists, podiatrists and chiropractors operating solo / group clinics with an annual turnover between one and twenty million dollars are all increasingly attracting the attention of private equity firms and listed entities.

Fee Synergy Collect

As part of our ongoing commitment to enhancing our systems and procedures, Moore Stephens will be changing the way we communicate with you about your invoices.
 

New Year Countdown for New Leasing Standards

What’s on your New Year’s resolution list? Do you want to achieve a better work/life balance? Perhaps strike-off an exotic travel destination on your bucket list? Maybe you intend to finally launch that genius business idea you’ve pondered for months? Or, how about getting your lease arrangements into shape to comply with the new financial reporting requirements under AASB 16?

Five Facts About Doing Business in Asia

Much hype has surrounded the Asian economic growth since it all began in the 1960s with a series of strong economic expansions known as the “Asian Miracle”. Many now predict that the 21st century will be remembered as the “Asian Century”. 

Undeniably, Asia presents enormous business and investment opportunities and much has been talked about 'doing business in Asia’ to best realise the opportunities coming out of this region. 

Looking to Make an Exit?

Any person who has ever built a business from the ground up, understands the sacrifices it takes to make it successful. The early years often require a 24/7 commitment, when family holidays are few and far between and the sessions burning the midnight oil are frequent. 

Practical Governance for NFPs

There’s no denying not-for-profits operate in pursuit of a higher cause – whether it’s working to eradicate poverty, keeping the local sporting club operating or providing much-needed support to our most vulnerable members of our community. But sometimes, NFPs can become entangled in financial, or even legal difficulty because they’ve relied solely on the altruistic motivations of their cause rather than ensuring on good governance.

Top 10 takeaways from International Secondment

Mncedisi (Disi) Ndlovu is a senior external auditor at Moore Stephen's WA firm. He is originally from Zimbabwe and migrated to Australia in 2009. He commenced his audit career in 2013, and joined Moore Stephens in 2016. 

An avid traveller, he expressed interest in the Moore Stephens secondment program to broaden his experience, not only within the audit profession, but also to gain general life experience.

Through our international network of member firms, he was able to obtain a 6 month position at a firm in New York, New York.

The following is a list of key takeaways from his experience.

Navigating the Visa Landscape in Australia

It’s not hard to understand why Australia offers such an attractive proposition to migrants. Our place in the Pacific is the epitome of stability with a transparent and well regulated business environment, a stable political environment, a diverse industry base and a demonstrated track record of economic growth.
 

A Message From the CEO

A fresh financial year always serves as a pertinent milestone to take pause and reflect on the accomplishments of the previous 12 months, while also setting our sights on future opportunities.

The Guide Every Expat Needs to Know, Beyond What to Pack in Your Suitcase

Expatriate life is a heady existence. There’s the opportunity to fast-track career aspirations, the novelty of travelling to new countries for just a long weekend, not to mention the experience of being exposed to new cultures, new traditions, and new friendships. And then, of course, there’s the lucrative expatriate package which can ensure an overseas posting is not just emotionally rewarding but financially rewarding too.

However, for many expatriates, myself included, there comes a time when Australia’s big open blue skies and the desire to be closer to family and friends lures us home. What can separate a happy homecoming from a sharp thud back to reality, is some essential financial planning.

2018 End of Year Tax Planning Checklist

The Moore Stephens Tax Team have prepared this guide to help you navigate the various items that may require consideration, prior to 30 June 2018, for effective tax planning. This information will assist you in identifying items that you may like to discuss with us.

How will IFRS 15 Revenue from Contracts with Customers impact the aged care sector?

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 for for-profit entities and 1 January 2019 for not-for-profit entities in Australia.  During December 2016 the Australian Accounting Standards Board also released AASB 1058 Income of not-for-profit Entities effective for the same date as IFRS 15.  There has been considerable debate as to how these two new accounting standards interact with each other and also the likely impacts. 

ASIC industry funding – indicative levies

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. The first invoices are expected to be issued in January 2019 and will recover costs for regulatory services for the 2017-2018 financial year.
 

How will IFRS 15 Revenue from Contracts with Customers impact the property development and construction industry?

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. Since IFRS 15 replaces all of 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.

How will IFRS 15 Revenue from Contracts with Customers impact the property development and construction industry?

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. Since IFRS 15 replaces all of 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.

Five Pillars of a Resilient Business

It’s not uncommon for business owners to lie awake at night, worrying about a raft of operational problems, from cashflow concerns to personnel pressures and everything in between.
Often, there’s precious little time for any strategic, big picture thinking amid the myriad day-to-day issues that constantly command their attention.
In reality, though, there’s really only one issue that should demand a leader’s laser-like focus from the very beginning.
And that’s the end.
 

How will IFRS 15 Revenue from Contracts with Customers impact the not-for-profit sector?

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 2019 for not-for-profit entities in Australia. During December 2016 the Australian Accounting Standards Board also released AASB 1058 Income of not-for-profit Entities effective for the same date as IFRS 15. There has been considerable debate as to how these two new accounting standards interact with each other and also the likely impacts. 

How will IFRS 15 Revenue from Contracts with Customers impact the mining industry?

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. Since IFRS 15 replaces all of 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. 

2018-19 Federal Budget Report: Executive Summary

Treasurer Scott Morrison handed down the 2018-19 Federal Budget on Tuesday 8 May 2018 announcing it is a whole package for all Australians.

The Treasurer emphasised the need to set a “tax speed limit” and respect taxpayers (due to too much tax revenue being pulled out of people’s pockets) noting that half of the tax base is coming from people getting in jobs.

2018-19 Federal Budget Report: Health

Investing in Australia’s Health

Record investment in health-related measures were announced to guarantee essential services for a “longer, healthier and safer life”.

The measures also extend to finances and job skills so that “Australians can “live life to the full” and plan ahead.

2018-19 Federal Budget Report: Infrastructure (including Resources and Energy)

Building a better Australia

The 2018 Budget commits the Coalition to a $75 billion infrastructure investment over 10-years. Projects include: reducing congestion, creating more jobs and improving safety.
Digital infrastructure will also be given a boost with improvements to the accuracy of GPS and satellite imagery, with flow-on effects to the competitiveness of sectors such as agriculture, mining and marine industries.
 
The 2018-19 Budget includes a continuation of the $37.6 million (allocated in 2017-18) over five years to support the improvement of energy affordability, reliability and sustainability.

How will IFRS 15 Revenue from Contracts with Customers impact the Local Government sector?

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 2019 for not-for-profit entities in Australia. During December 2016 the Australian Accounting Standards Board also released AASB 1058 Income of Not-for-profit Entities effective for the same date as IFRS 15. There has been considerable debate as to how these two new accounting standards interact with each other and also the likely impacts.

Single Touch Payroll is coming - are you ready?

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.

How will IFRS 15 Revenue from Contracts with Customers impact the software industry?

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. 

Getting our heads around new GST regime

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.

Stuart Whitehead joins Moore Stephens


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.

Are you ready for the new lease standard?

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.

Greater certainty on company tax rates for small business entities

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.  

Company tax changes, a missed tax reform opportunity?

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.

Investment companies miss out on tax relief

** 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.

Are parties really committed to tax reform?

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”.

2017 Tax Planning Checklist: Introduction

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

2017 Tax Planning Checklist: Deductions

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

2017 Tax Planning Checklist: Personal Planning

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

2017-2018 Federal Budget Expert Analysis - Executive Summary

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.

2017-2018 Federal Budget Expert Analysis - Health

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

2017-2018 Federal Budget Expert Analysis - Property

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

2017-2018 Federal Budget Expert Analysis - Superannuation

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

2017-2018 Federal Budget Expert Analysis - Infrastructure

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

2017-2018 Federal Budget Expert Analysis - Housing Affordability

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

Test - Business Taxation

Business taxation changes impact a wide variety of businesses in the 2017-18 budget but only changes to corporate tax rates look to impact the majority of businesses in the short term.

New withholding tax regime for property

“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.
 

Simplifying income recognition for not-for-profit-entities

On the 28th 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.

How will IFRS 15 Revenue from Contracts with Customers 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.

ATO Key Agent Program

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.

Globalisation and the tax system - how taxation affects individuals moving to and out of Australia

 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.
 

Moore Stephens expands presence in SA and NT

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.

Ease of doing business in Australia

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.

What does your size say?

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. 
 

IFRS 16 Leases - What does it mean for you?

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.