Tax & Advisory
We can work together with you to alleviate the burdens of the commercial, operational and taxation landscape, whilst building efficiencies, and allowing you more freedom to focus on strategy and growth.
Audit & Assurance
Going beyond standard compliance reviews to look for areas for improvement in your business's financial reporting controls, processes and corporate governance practices.
Financial Services
Specialising in advice to trustees of Self-Managed Superannuation Funds, Family Trusts and Directors of Companies on a broad range of financial planning issues.
Consultancy
Complimenting our core service areas are our Real Time Reporting (Satellight) and Corporate Advisory divisions which aim to provide a well rounded and holistic commercial perspective to your operations.
We are passionate about the environment and the impact that our business has on it.
Because of this, we believe it is important to understand and measure our Scope 1, Scope 2 and Scope 3 carbon emissions, then take active steps to reduce our carbon emissions where possible.
We feel by doing our small piece for the environment; our people, clients and community will benefit as the economy continues to de-carbonise and transition to net-zero for the benefit of our future generations.
WALKER WAYLAND
LATEST NEWS
Walker Wayland NSW helps Suncorp Bank Achieve Carbon Neutral Status – Australia’s First Carbon Neutral Bank for both its operations and transaction services
Walker Wayland NSW helps Suncorp Bank Achieve Carbon Neutral Status – Australia’s First Carbon Neutral Bank for both its operations and transaction services Congratulations…
Investing in Australia’s Property Market
The Australian property market has always held great appeal to both domestic and foreign investors. With a relatively stable economy and continued demand for housing, the Australian market provides ideal conditions for a greater return on your investment.
As can be seen in the ‘2018 Russell Investments/Australian Stock Exchange (ASX) Long Term Investing Report’s’ graph below; as of December 2017, Australian residential property gave an average gross (before tax) return rate of 8% over the last 10 years followed closely by the ‘Global Shares’ market at an average annual return on investment at 7.2%.
10-Year Average of Return On Investment by Asset Class:
All you need to know about Electronic Signatures…
We are all familiar with the purpose of a signature however with the constant development of technology observed over the past few years – things have dramatically advanced.
We have experienced a shift away from hard copy and physical documents sent with ‘snail mail’, toward electronic documents shared via email, cloud-based software and online sharing services.
But the ease of electronic document usage presented us with a unique problem – how do we get the recipient to sign it?
Don’t fear however, as you may or may not be aware, there is now the ability to use electronic and digital signatures to avoid any issues and keep the document in soft copy form.
In fact, the E-Signature sector is booming – now on track to be worth an excess of $5 billion by the decades end according to DocuSign CMO Dustin Grosse (1)
Despite its growing popularity and use – the concept can be confusing and complex to understand so here is what you need to know.
New Visa Subclass Announced: Five-year sponsored parent visa subclass 870
The new sponsored Parent Visa Subclass 870 will allow Australian Citizens and some Permanent residents to be able to bring over a parent to live in Australia for up to 5 years and will be far more advantageous over previous subclasses offered.
What do the changes include?
It was announced that from 17 April 2019 applications to sponsor parents for either 3 years or 5 years under the new subclass 870 will be open. Visa applications will be open from 1 July 2019.
- The Government has announced that 15,000 visas in this category will be granted in each program year.
- There is no “balance of family” test for this visa as it provides for temporary entry of biological or step-parents.
- The sponsors must be Australian Citizens or Permanent Residents who are usually resident in Australia for four years.
Analysis & Comment:
This new subclass of visa been highly anticipated and it likely to prove popular with many Australian permanent residents and citizens who wish to bring out a parent for an extended period of time. The huge advantage of this visa over the other parent visa sub-categories is that the “balance of family” test will not apply. That will open the market to many more people who are now able to sponsor their parent to Australia.
Financial capability for the sponsor will be a necessary requirement to demonstrate that the sponsor is able to support the parent or parents in Australia for an extended period of time. This is particularly the case as the visa holders will not be granted work rights and will have to maintain health insurance while they are in Australia.
Government Assistance For Farms Doing It Tough
Since release, consistent extension and alterations throughout the first quarter of 2019 have been added to this package, now valued at over $1.1 billion with various beneficial Financial and Taxation assistance. If you have direct connection, or have affiliation with drought-affected taxpayers, it’s important in this current ambiguous climate to be aware of any financial assistance made available to taxpayers by the Australian Tax Office (ATO) to aid in the process of drought recovery affecting on-going rural businesses.
Federal Budget 2019-20
“Tonight, I announce that the Budget is back in the black, and Australia is back on track…paying its own way.”
“Australia is stronger than when we came to Government six years ago. Growth is higher. Unemployment is lower. There are fewer people on welfare. There are a record number of Australians with a job. School and hospital funding are at record levels.”
“So, tonight, I am pleased to announce a Budget surplus of $7.1 billion” (albeit a forecast surplus for 2019-20) …”a $55-billion turnaround on the deficit we inherited six years ago” … and “A total of $45 billion of surpluses over the next four years.”
So said Treasurer Josh Frydenberg, as he handed down his first Federal Budget on 2 April 2019, a Budget he said intended to focus on restoring the nation’s finances, create new jobs with a strong skills and infrastructure agenda, and guarantee schools, hospitals and aged care. And, as he frequently emphasised “all done without increasing taxes”.
Single Touch Payroll for Micro or Small Employers
Background
STP, also known as ‘pay day reporting’, transmits employee tax and super information to the Australia Taxation Office (ATO) directly or through third party software providers after each pay run. STP reporting commenced on 1 July 2018 for employers with 20 or more employees, and there are around 45,000 businesses currently doing STP reporting under this regime.
How can technology integrations improve my bottom line?
With the emergence of new technology every year it’s important for businesses of every size to adopt it as an integral part of their strategy and budget. Integrations between business processes and technology is no longer a luxury but a requirement to stay ahead of the curve and beat competition to have the most lean and efficient processes to increase that bottom line revenue.
According to a research piece by Gartner, organisations are facing immense competition on a local and global scale. To remain competitive and improve their bottom line, businesses are urged to turn to process improvement through ‘Business Process Management’ Automation (BPM).
The Cost of Space
Last Friday the 22nd of February, at 8:45pm, the Israeli spacecraft Beresheet launched atop a SpaceX Falcon 9 rocket from Cape Canaveral, Florida. At a cost of US$100 million, Beresheet was the first privately financed mission to the moon. On the 30th of March, 2021, NASA’s James Webb Space Telescope is set to be hurled into space, coming to rest 1,500,000 kilometres from Earth. This US$9.5 billion telescope will replace the Hubble Space telescope. That old timer was launched in 1990 and itself cost about US$4 billion. Exploring space costs a lot of money; money that many people will say could be better spent. Would it be more beneficial to forget about space, and worry about what’s under our feet? There would certainly be a lot of great ways to spend $10 billion on our own rocky planet. There is a never-ending list of important public issues that require funding, such as healthcare, education, and taking better care of the environment (to name a few). Smarter people than me are employed to make those choices, however, I would encourage anybody to consider the broader benefits to society that space exploration provides, before being so quick to dismiss the investment.
Considering Your Financial Future…
We are already half way through the first quarter of 2019, and if you have not already, now is a great time to consider exploring planning oppurtunities for either your business or personal tax affairs. Assessing the shape of your business before year end can offer various benefits and improved financial outcomes year end. Strategic planning of key financial situations ensures there are no surprises come end of year.
What do we mean by planning?
Essentially it is the process of proactively analysing the financial situation of the current year and developing the strategies ensure you are maximising the claims your business is entitled to.
It is recommended that this review activity is completed either in the middle or towards the end of the financial year, this allows you enough time to develop and implement new strategies. For example, an estimated tax obligation based on the current and projected business performance can then be forecasted and aligned with stakeholders. Knowing your future obligations is critical to managing cash flow planning for the year ahead.
It is important to note that this process is not limited to only complex structures and/or larger corporations. Taxpayers contemplating even the most ordinary transactions should thoroughly consider tax review and the consequences to ensure that they do not suffer adverse tax outcomes, below are a few key reasons as to why you should consider and implement planning tax activity for your business.
Single Touch Payroll
Single Touch Payroll is a new process in the way employers will be reporting their employee’s tax and super information to the ATO.
STP is offered by some accounting or payroll software. Each time the payroll is run and employees are paid, tax and super information will be sent either directly to the ATO or through a third party, depending on the software. The information that will be reported to the ATO includes employees’ salaries and wages, allowances, deductions, pay as you go (PAYG) withholding and superannuation information. You can continue paying your employees weekly, fortnightly or monthly, you will not need to adjust your pay cycle.
Six Ways to Maintain Wellness in the Workplace
As we enter into another busy part of the corporate season, below are some tips to maintain a clear head and good mood in the office:
1. Get Healthy Sleep
Ensure a good night’s sleep. Sleep will help you lower your stress levels and improve cognition, concentration, and performance. This includes improving your problem-solving skills and enhancing your memory performance. Not surprisingly, all these qualities are affected negatively by sleep deprivation.
2. Move around
Oftentimes when we are under pressure (e.g. a looming deadline), and we end up bolted to our desks in an effort to get the “thing” done.
Regardless of how busy you are it’s important to move around, circulating oxygen around the body and keeping a clear head. Where you can, try to get out of the office for at least five minutes and breathe some fresh air, take a walk around the block. At the very least move the around office. Doing so could prevent you from developing brain fog, RSI, fatigue or eyestrain at work.
3. Green Tea
Coffee is a staple for many and may act as a short-term energy boost. Conversely, coffee can also often leave one anxious or jittery where there are sensitivities to caffeine, or it is consumed to excess. Where possible, opt for Green Tea instead. Green Tea contains L-Theanine which may help promote relaxation, reduce the bodies’ perception of stress, and slightly improve attention.
What you didn’t know about The Budget…
With the announcement that the Federal Budget will be unveiled early, in April 2019 and deliver a federal surplus, can we assume that the economy is performing as well as the federal government would have us believe?
Announced in the midst of a tough week politically, Prime Minister Scott Morrison is hoping that the announcement of the surplus budget will alleviate some of the pressure on the Liberal party. While a Federal surplus budget looks great at face value and appears to show the ‘big picture’ of the economy, the influence of individual states and their budgets cannot be ignored.
Since the Australian economy exists as a common market between all 8 territories and states, any federal announcement, that focuses solely on the federal economy has the potential to mislead us and be conveniently used to shift our attention in times of political stress.
Time’s up! AASB 15, the new revenue standard is here. Are you ready?
Are your clients ready for the new revenue standard – AASB 15 Revenue from Contracts with Customers? TIME IS UP.
Time has run out to understand and assess the implications of the new accounting standard, AASB 15 Revenue from Contracts with Customers. The impact of the application of AASB 15 must not be underestimated. The International Accounting Standards Board have fundamentally changed how entities recognise revenue.
For periods commencing on or after 1 January 2018, the new revenue standard, AASB 15 will replace the various existing accounting standards and interpretations applicable to revenue recognition with a single standard based on a principles-based model.
The new standard provides a five step process to ensure an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services.
Whilst understanding the application of AASB 15 on your clients various income streams will be complex and is fundamental, it is important to note that the impact of applying AASB15 goes far beyond revenue recognition and there are a number of wider implications that must be considered.
Thank you to our Secondee Francis Alita!
Francis Alita, a manager from Alas Oplas & Co (Philippines Office), joined a Business Services team at Walker Wayland NSW (Sydney Office) as a Secondee from mid-July through to mid-October 2018. Providing much needed help, Francis was involved in a variety of engagements and activities within the team.
Do you need to amend your discretionary trust deed before 31 December 2018?
If you have a discretionary or hybrid trust that owns residential land in NSW you may need to have your deed amended before 31 December 2018.
Duty and land tax surcharges were imposed from 21 June 2016 where residential land in New South Wales is to be acquired or is owned by foreign persons. Where the land is to be acquired or is owned by a discretionary trust, the trustee of the trust is a foreign person if any foreign persons are beneficiaries (whether or not named in the trust deed) under the trust.
Proposed Super Guarantee Amnesty
A one-off Amnesty opportunity was announced by the Minister for Revenue and Financial Service in May 2018. This 12-month Amnesty allows employers who voluntarily disclose previously undeclared SG shortfalls be able to claim a deduction for the catch-up payments made in the period.
This also allows employers not to be liable for the administration component and penalties that would otherwise apply to late SG payments.
Walker Wayland NSW Promotes Two Partners
Walker Wayland NSW is pleased to announce the promotion of two partners – Wali Aziz and Cameron Stone, effective July 2018.
These promotions will add considerable expertise and excellence to our existing clients and will be instrumental in shaping the future of our firm.
Government amends the start date of proposed small business CGT concessions measure
The government will amend the start date of their proposed small business CGT concessions measure. In amendments to the bill on 21 June 2018, the government has decided to push the start date back to 8 February 2018, the date the draft legislation was released for consultation. This will provide a transition period between announcement and the date of effect, a change that is also expected to bring welcome relief to tax advisers and their clients.
The new Lease Accounting Standard – Will your organisation be affected?
Most organisations in Australia undertake some form of leasing arrangement and many of these lease arrangements have been classified as operating leases with no impact to the balance sheet.
Over 85% of the leasing commitments do not appear on today’s balance sheets, making it difficult for investors and other users of financial statements to obtain an accurate picture of an entity’s future leasing commitments.
The new leases standard – AASB 16 is effective from the beginning of the 2019 calendar year. Property and equipment operating leases previously recognised off-balance sheet will be accounted for as a Right-of-Use (ROU) asset and lease liability. This will provide more transparency regarding a company’s leasing commitments and change key financial measurements such as gearing ratios, asset turnover and EBITDA. However, lessor accounting will remain unchanged from the current leases standard.
Asset Recoverability: SMSF Auditor fails to qualify opinion leading to losses for the trustee
“SMSF Auditor Failure to Qualify Opinion, leading to losses for Trustee’’
On 23 May 2018, the NSW Court of Appeal handed down a decision that the auditor of a self-managed super fund (SMSF caused the losses incurred by the trustee of the SMSF.
In the case Cam & Bear Pty Ltd v McGoldrick, the decision was held in the NSW Court of Appeal (NSWCA), that the Auditor of the SMSF had breached his duty of care to the trustees of the SMSF, in that negligence was displayed in the Auditors performance when issuing an unqualified audit opinion, albeit significant issues were present in the SMSF financial statements for the financial years 2003 to 2007.
This negligence ultimately resulted in the financial losses sustained by the plaintiff.
The decision by the NSW Court of Appeals resulted in a liability apportionment of 90/10 against the auditor. (See more details about the case here). The case findings provide a reminder to all audit practitioners about the requirements to comply with all relevant Australian Auditing Standards during the conduct of an audit, in particular; ASA 500 – Audit Evidence.
NSW Budget 2018/19
The New South Wales Treasurer, Mr Dominic Perrottet, handed down the NSW Budget for 2018/19 on 19 June 2018. The only tax-related measure announced in the Budget was an increase in the tax-free threshold for payroll tax from its current level of $750,000 to $1 million.
Powerpoint Test Kiahla
This is an embedded Microsoft Office presentation, powered by OfficeOnline.
Asset Recoverability – “SMSF Auditor Failure to Qualify Opinion, leading to losses for Trustee’’
“SMSF Auditor Failure to Qualify Opinion, leading to losses for Trustee’’
On 23 May 2018, the NSW Court of Appeal handed down a decision that the auditor of a self-managed super fund (SMSF caused the losses incurred by the trustee of the SMSF.
In the case Cam & Bear Pty Ltd v McGoldrick, the decision was held in the NSW Court of Appeal (NSWCA), that the Auditor of the SMSF had breached his duty of care to the trustees of the SMSF, in that negligence was displayed in the Auditors performance when issuing an unqualified audit opinion, albeit significant issues were present in the SMSF financial statements for the financial years 2003 to 2007. This negligence ultimately resulted in the financial losses sustained by the plaintiff.
The decision by the NSW Court of Appeals resulted in a liability apportionment of 90/10 against the auditor. (See more details about the case here)
Taxation of Cryptocurrencies
Federal Budget 2018-19
“There is a lot to gain and much to lose, we can’t ease off”.
“…it’s not a spend…this is their money…this is Australians keeping more of what they have earned.”
So said Treasurer Scott Morrison as he handed down his third Federal budget on 8 May 2018. The government had five aims, he continued:
- Tax relief for individual Australians
- Keep backing business to invest and create more jobs
- Guarantee essential services
- Keep Australians safe with new investments to ‘secure our borders’
- Ensure the government continues to live within its means
Trading Names are being removed from ABN Lookup
A grace period has been in effect to allow businesses time to transition over to the new business name register.
Walker Wayland NSW takes on Touch Football
WWNSW has been participating in a great intiative called Lunchtime Legends at the Domain.
During the summer competition, our team of energetic staff heads down to the Domain each Thursday’s to play round robin touch football against other companies in the area.
CGT transitional relief potentially costing SMSF’s
The temporary Transitional CGT relief available to trustees of self-managed super funds commenced on 1 July 2017.
Industry commentators have noted that many professionals failed to appropriately analyse asset positions before the lodgment of their client’s 2017 SMSF tax return, and as a result have potentially introduced previously tax-free capital gains into a taxable environment; or, potentially removed the ability to apply capital losses resulting in unnecessary capital loss wastage.
Improving the integrity of the small business CGT concessions
Public consultation closed on 28 February 2018 on exposure draft legislation which is intended to implement the 2017 Budget announcement to improve the integrity of the small business capital gains tax (CGT) concessions.
The amendments include additional basic conditions that must be satisfied for a taxpayer to apply the small business CGT concessions to a capital gain arising in relation to a share in a company or an interest in a trust (the object entity).
What you should know before listing your home on Airbnb
There is no doubt that the “Sharing economy” is a trending topic around the world. The term refers to an economic model in which individuals acquire, provide or share access to assets or services through a community based online platform. Uber, Airbnb and Airtasker are just a few examples of successful online platforms using this model.
Labor confirms exemptions in its proposed reform of excess imputation credits
Following speculation that the federal opposition may have initially ‘overreached’ in its proposed reform of excess dividend imputation credits, Labor has today announced significant carve-outs for older Australians. In particular, a ‘Pensioner Guarantee’ scheme will operate to exempt pensioners from Labor’s proposals to end cash refunds for excess dividend imputation credits. The exemption will also apply to Self-Managed Superannuation funds (‘SMSFs’) with at least one pensioner or allowance recipient before 28 March 2018.
Why you shouldn’t buy shares for your minor child
When a child is born, it can be very tempting to set them up on the road to financial wisdom and stability, after all we only desire the best for our offspring. Before doing so, it is worthwhile noting that there is a wealth of complications when issuing shares to a minor, whether in listed or unlisted companies.
While there are no legal reasons why shares cannot be registered in the name of a minor, there are more than enough tax reasons to make you think twice.
There are two categories of ownership to consider for an owner of a share: The legal owner, who is the registered owner and, in this scenario, has their name recorded in the share registry, and the beneficial owner, who benefits from holding the shares. Children cannot legally own the property; however, they are entitled to the benefits and thus they can be deemed the beneficial owner.
ATO Audit of SMSF’s
This year the ATO intends to make the reviewing of compliance of SMSF auditors a focus. As part of the this intiative the ATO is preparing to audit around 300 SMSF audit firms over the course of the year.
To date they have already referred 30 firms to ASIC, predominantly due to concerns regarding sufficient evidence, and independence. Independence in particular has been noted as a key concern of the ATO. As a result they have requested that auditors identify threats to their independence and build in safeguards against those threats where necessary.
Some of the threats noted include the following:
- Reciprocal Audit arrangements – Where a firm audits their own SMSF auditor’s fund. In both the ATO’s and ASIC’s view this may give rise to familiarity, self-interest and possible intimidation threats;
- A family relationship between the SMSF auditor and their referral source;
- Two partner accounting firms where one partner audits the financials prepared by the other Partner;
- Single partner firms where the staff are preparing the accounts and the sole Auditor is signing off on the accounts directly
Can I still claim tax depreciation on my investment property since the new legislation passed?
Capital Claims, the tax depreciation specialists, have recently published this article Can I still claim tax depreciation on my investment property since the new legislation passed?, specifically targeted to investors to assist them with understanding the changes to the investment property property depreciation rules, the new legislation for which was passed in November 2017.
Downsizer Superannuation Contributions
From 1 July 2018 an individual aged 65 or older will be allowed to contribute up to $300,000 into superannuation from the proceeds of selling a home that has been owned for the past 10 or more years. The contribution is known as a downsizer superannuation contribution (DSC). A DSC can be made without reference to the age test, the work test and the 1.6m total superannuation balance limit.
Purchasers of New Residential Properties to Remit GST at Point of Settlement
From 1 July 2018, purchasers of new residential premises and new subdivisions of residential land will be required to remit GST on the purchase price to the ATO directly on or prior to settlement.
This will replace the current GST on a quarterly or monthly basis in their Business Activity Statements, which can be months after the settlement date. This new arrangement is expected to assist in reducing the delays or failure in remitting the GST on sales for some property developers.
Withholding GST from property transactions will affect the cash-flows of property developers
The Bill containing the legislation dealing with the withholding of GST by purchasers in property transactions was introduced on 7 February 2018. There is no change to the commencement date for the new regime, which remains 1 July 2018. The Bill contains a number of important changes from the Exposure Draft.
Cash flow impacts
The new legislation, will result in the supplier receiving the consideration for the property net of an amount representing the GST. Therefore, a supplier, such as a property developer, will not receive the full consideration as they do currently, because an amount representing an estimate of the GST will have been withheld by the purchaser to be paid directly to the ATO.
Under the current rules, the property developer would have had the use of this additional cash at least until some or all of it were paid to the ATO on the next BAS. This new legislation could have significant practical implications for the cash flow of property developers, as well as a knock-on effect for them in meeting bank covenants in respect of their cash reserves.
$20,000 instant asset write-off to cease from 1 July 2018
As you may be aware, you have until 30 June 2018 to utilise the write-off threshold of $20,000.
If you buy an asset and it costs less than $20,000, you can claim an immediate deduction in your tax return for the business portion of each asset (new or second hand) costing less than $20,000.
Adequate CGT record-keeping by SMSFs
As recently reported in SMSF Adviser, practitioners and trustees have been advised they will need to maintain CGT records well past the lodgement of their annual return, and may be required to keep records in addition to the CGT schedule.
Julie Steed, Australian Executor Trustees’ senior technical services manager, emphasised the importance of practitioners communicating to their clients that the record keeping obligations for the CGT relief stretches well beyond the date that the fund lodges its tax return for 2016-17, and potentially up to 10 or even 20 years into the future.
Mandatory Data Breach Notification Scheme
Mandatory Data Breach Notification Scheme
The new Mandatory Data Breach Notification laws come into effect from 22 February 2018. Under the new law mandatory data breach assessment and notification obligations will apply to all businesses bound by the Privacy Act 1988 (Cth).
The scheme will impose the following obligations on businesses:
- to carry out a prompt and thorough assessment within a maximum period of 30 days if they suspect there has been an ‘eligible data breach’; and
- make prescribed notifications to the Office of the Australian Information Commissioner and to affected individuals, as soon as it has reasonable grounds to believe there has been an ‘eligible data breach’.
Australian state level tax legislation targeting foreign persons
Australian state level tax legislation targeting foreign persons
As addressed in our recent article, Australian governments, both at the Federal and state level have for several years been targeting foreign individuals and other foreign investors in a range of ways. Most recently, 2017 has seen legislation at both the Federal and state levels which will introduce new provisions apply to foreign and non-resident persons or will extend laws already in place. In May 2017, the Treasurer announced several measures targeted specifically at foreign residents in the 2017-18 Australian Federal Budget.
Some of these provisions are in federal legislation and so apply to all Australia. Others were introduced by state governments. These will apply only to a particular state and may apply differently to similar provisions in other states. Having addressed the measures applying at the Federal level in a previous articles, this article addresses recent changes at the State level.
The effect of passive income on a company’s entitlement to a 27.5% tax rate
Legislative changes passed by the government in May 2017 reduced the corporate tax rate to 27.5% from 1 July 2016 for companies with aggregated turnover of less than $10 million (the threshold is set to increase to $25 million in the 2018 financial year and $50 million in the 2019 financial year).
However, following the decision in the Bywater case a recent draft ATO Interpretative Decision has been releaed that included the following comment by the Commissioner:
“This ruling is not concerned with what amounts to carrying on business. However, generally, where a company is established or maintained to make profit or gain for its shareholders it is likely to carry on business. This is so even if the company only holds passive investments, and its activities consist of receiving rents or returns on its investments and distributing them to shareholders.”
Much discussion followed as to whether companies holding passive investments would be eligible for the lower 27.5% tax rate provided their aggregated turnover was less than the relevant threshold. However, the government was quick to state that this was not an intended outcome of the policy and, albeit some months later, the Parliament has now moved to determine through legislation the circumstances where passive income earning companies will be entitled to the lower tax rate.
JP Morgan Centennial Park Fun Run
JP Morgan Centennial Park Fun Run
Wednesday evening, 1st of November held the annual JP Morgan Centennial Park fun run. We had 7 keen WW team members participate who all enjoyed themselves immensely. The event accommodated over 8,000 runners and walkers and saw over 135 companies involved.
The event was a success with all staff achieving quality results. Once the team had crossed the finish line we enjoyed some well-earned beers and pizzas at the Hotel Centennial.
I urge anyone interested in team events to participate next year, it was a great experience for all involved.
Checklist of important tax changes in 2017/18
With all the recent changes in tax, it can be hard to keep up! That being the case, CCH has helpfully compiled a checklist of the top tax changes for this financial year. Note that, in some cases, implementation of these changes may be dependent on the future passage of the necessary legislation.
Excluding passive investment companies from the reduced corporate tax rate
Chartered Accountants Australia and New Zealand has reported the following today:
After much uncertainty surrounding which companies can access the lower corporate tax rate, the government has released exposure draft legislation to clarify that passive investment companies cannot access the lower company tax rate for small business. The government has effectively introduced an 80:20 test.
Recent Australian tax changes targeting foreign persons
Recent Australian tax changes targeting foreign persons
Australian governments, both at the Federal and state level continue to target foreign individuals and other foreign investors in a range of ways. This has been the case for several years and has included such measures as introducing a higher basic tax rate for non-resident individuals as well as removing the 50% discount that would otherwise apply to capital gains crystallised on assets owned for more than 12 months.
Most recently, 2017 has seen legislation at both the Federal and state levels which will introduce new provisions applying to foreign and non-resident persons or will extend laws already in place. In May 2017 the Treasurer announced several measures targeted specifically at foreign residents in the 2017-18 Australian Federal Budget.
The recent Federal budget changes will have the following impacts:
- The loss of the main residence exemption for non-residents selling their homes
- Limiting the benefits for non-resident investors of the newly introduced tax incentive for investments in afforable housing
- Restricting foreign ownership in new housing developments; and
- Introducing an annual charge on foreign owners of underutilised residential property
Following the Federal Budget, the list of key issues tht apply to property transaction for non-residents has grown to include:
- The loss of the main residence exemption;
- Capital gains tax (CGT) withholding tax;
- A $5,000 Vacancy Tax;
- The loss of the 50% CGT discount;
- Stamp duty surchage with implications for trusts; and
- Land tax surchage with implications for trusts.
Some of these provisions are in federal legislation and so apply to all Australia. Others were introduced by state or territory governments. These will apply only to a particular state or territory and may apply differently to similar provisions in other states.
This article addresses the measures applying at the federal level, and we will address recent changes at the state level in a separate article.
Increase in the unincorporated small business tax discount
The Treasury Law Amendment (Enterprise Tax Plan) Bill 2016 was passed on 19 May 2017 and will be effective from 1 July 2016. The bill brings into play multiple benefits for small businesses including a progressive increase in the unincorporated small business tax discount, and an increase in the small business turnover threshold for the purposes of applying the discount.
The proposed new similar business test
The government has recently introduced draft legislation (Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017) that proposes amendments to the existing law for determining whether a business can carry forward and use tax losses and bad debts it incurred prior to a change of control or ownership of that business.
The proposed legislation introduces a new test, the ‘similar business test’ to supplement the existing, and less flexible ‘same business test’. It is intended the similar business test will give companies (and certain trusts) greater scope to innovate and expand their business following a change of ownership without risking losing their tax losses.
The proposed new law will apply to businesses that have had, or are expecting to have, a change of ownership and will apply to losses or bad debts incurred from 1 July 2015.
City To Surf 2017: Tales from the front line (and from the middle of the running pack)
This year’s City to Surf felt just that little bit more special than usual. Our team, 18-employees strong, were fit and raring to go. With an added spring in our collective step from knowing our goal of raising $3,000 for our selected charity, Lyceum Group Foundation, had already been surpassed. A wonderful achievement from the team and their supporters, made up of colleagues, clients, contacts, family and friends. A little extra glow was provided by our gold hats representing the Lyceum Group Foundation, a terrific organisation that provides much needed medical equipment to children in need. This year Walker Wayland NSW had chosen to run for them.
ATO provides additional 7 years to repay unpaid present entitlement loans
The Australian Taxation Office (‘ATO’) has recently released Practical Compliance Guideline PCG 2017/13 (‘PCG 2017/13’). This guideline will allow trusts an additional 7 years to repay certain unpaid present entitlement (‘UPE’) loans to corporate beneficiaries (i.e. private company beneficiaries of such trusts).
Walker Wayland NSW running the City2Surf for the Lyceum Group Foundation
Sydney will host the annual City to Surf fun run on 13 August 2017 with the participants raising millions of dollars for a varieties of charities.
Walker Wayland NSW will again be entering a team and have 20 eager participants ready to raise money for our selected charity. This year we are participating – running and walking – in support of The Lyceum Group Foundation, a charity that provides medical equipment to children with disabilities. We are delighted to have the opportunity to support such a worthwhile charity to provide vital support to the children and their families, many of whom are doing it tough.
Apportioning the income of professional sportspersons to their other entities
On 19 July 2017 the Australian Taxation Office (ATO) released Practical Compliance Guideline PCG 2017/D11 (‘the Guideline’).
The Guideline addresses the matter of the extent to which lump sum payments for the provision of a professional sportsperson’s services and the use and exploitation of their ‘public fame’ or ‘image’ under licence can be apportioned. The Guideline sets out a ‘Safe Harbour’ for doing so.
This PCG can be relied upon in circumstances where:
- a professional sportsperson grants an “associated resident entity” (such as a trust) a non-exclusive licence to use and exploit the sportsperson’s ‘public fame’ or ‘image’,
- that resident entity (and not the sportsperson) is contractually entitled to receive the income from the use and exploitation of the professional sportsperson’s ‘public fame’ or ‘image’, and
- the payment is not referable to the use or exploitation of rights which are recognised and specifically protected under Australian law, such as copyright, trademarks or registered design rights.
GST on supplies of digital products and other services to consumers from 1 July 2017
With effect from 1 July 2017, GST applies to supplies of digital products and other services to Australian consumers by foreign entities. Such supplies will be subject to GST in a similar way to equivalent supplies made by Australian entities to domestic consumers. In particular:
- supplies of things other than goods or real property made to a recipient who is an “Australian consumer” (see below) are taken to be connected with Australia. This will generally bring the following into the GST net:
- supplies of digital products such as streaming or downloading of movies, music, apps, games and e-books
- other services such as consultancy and professional services supplied from overseas to an Australian consumer.
- where a supply of anything other than goods or real property supplied to an Australian consumer from offshore (an inbound intangible consumer supply) is made through an “electronic distribution platform”, the operator of the platform instead of the actual supplier is taxed. This represents a significant departure from the general rules that make the actual supplier liable, although there are some exceptions.
Changes to Higher Education Loan Program (HELP) and Trade Support Loan (TSL) repayment obligations
The Australian Government has recently introduced changes relating to Higher Education Loan Program (HELP) and Trade Support Loan (TSL) repayment obligations.
If you live and work overseas and earn worldwide income that exceeds the minimum HELP and TSL repayment thresholds, you are required to make repayments against your loan. The two main changes the Australian Government has introduced require you to do the following:
update your contact details and submit an overseas travel notification if you have an intention to reside, or already reside, overseas for 183 days or more in any 12-month period; and
lodge your worldwide income or a non-lodgment advice.
These changes apply to new and existing HELP and TSL debts.
Draft tax ruling on deductibility of employees’ travel expenses
Further to removing the deductibility of travel expenses in relation to rental properties in the 2017-18 Federal Budget, the Commissioner has issued Draft Tax Ruling TR 2017/D6 which addresses the deductibility of employee travel expenses.
Under the general tax principles, an employee’s travel expenses are deductible for income tax purposes if they are:
- incurred for the purpose(s) of gaining or producing assessable income, and
- not capital, private or domestic in nature.
A variety of travel claims have been examined in TR 2017/D6, outlining situations where employees are, or are not able to claim an income tax deduction for travel expenses.
Our top tax tips for businesses and individuals ahead of the FY17 year-end
Businesses
- Drop in company tax rate: The company tax rate is currently 27.5% for companies with aggregate turover of less than $10M. From 1 July 2017 the 27.5% rate will also apply to companies with aggregate turnover of between $10M and $25M. Therefore tax deductions may be available for such companies at the 30% rate to 30 June 2017 and 27.5% thereafter. Accordingly:
- to the extent you can ensure suppliers invoice you prior to 1 July 2017, the deduction will reduce tax at the rate of 30% in FY2017, thereby providing an additional 2.5% reduction in tax;
- review your trade debtors listing and write off all bad debts where appropriate before 30 June 2017;
- review inventory and assets schedules for obsolete items and items that can be scrapped; and
- fully franked dividends declared and paid before 1 July 2017 will carry franking credits at 30%. Thereafter they would be franked at 27.5%.
- $20K instant asset write-off: Businesses that are small business entities (generally those with aggregated turnover of less than $10m) can claim an immediate deduction for assets acquired prior to 1 July 2017 if the cost of the asset is less than $20,000.
- Prepay expenses: Small business entities can prepay up to 12 months’ worth of expenses and claim the full amount in the current year.
- Payment of superannuation contributions: To claim a tax deduction for employee superannuation contributions in the 2017 financial year, the business needs to ensure that the payments have cleared the business bank account by 30 June 2017.
Changes to foreign resident capital gains withholding payments system
On 9 May 2017 as part of the 2017-2018 Federal Budget, the Government announced two changes to the system whereby a purchaser is required to withhold an amount (currently 10%) of the purchase price from the seller and pay the amount withheld to the ATO as part of the settlement process when selling or buying real property or interests in real property in Australia.
The changes announced are to the threshold and the withholding payment rate, and will apply to any contracts of sale entered into on or after 1 July 2017. However, the current threshold and withholding payment tax rate will apply for any contracts which are entered into prior to 1 July 2017, regardless of whether they settle after that date.
Federal Budget 2017/18: Skilling Australians Fund levy introduced
The Skilling Australians Fund levy was introduced as part of the 2017/2018 budget. This measure has the potential to impact many Australian businesses that employ foreign workers, We encourage you to contact your Walker Wayland NSW advisor if you wish to discuss this or any other aspects of the Budget further.
Businesses that employ foreign workers on certain skilled visas will be required to pay a levy that will provide revenue for a new Skilling Australians Fund from March 2018.
Small business entity turnover increased to $10 million
The Government has announced that it will accept changes made by the Senate to the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016, which implements the Government’s plan to increase the Small Business Entity (“SBE”) turnover from $2m to $10m. These changes will apply from 1 July 2016.
The changes are regarded as a significant benefit to small businesses as they will allow a wider range of businesses to access the benefits afforded to SBE’s. As a result, businesses will be able to grow to a greater extent without the loss of the concessions available to a SBE. These changes will immediately benefit taxpayers as they will apply for the 2017 financial year.
It is expected the Bill will be passed by the House of Representatives in the next parliamentary session.
Federal Budget 2017-18: Property purchasers to pay GST to the ATO
Under a proposal contained within the recent 2017-18 Federal Budget, property purchasers rather than property developers must remit the GST directly to the Australian Taxation Office (ATO) as part of the settlement process. This plan to shift the responsibility of accounting for GST from property developers to purchasers will apply to newly-constructed residential properties and new subdivisions from 1 July 2018.
Federal Budget 2017-18
“Practical governments deal with problems and solve them. This is not a budget for ideologues, this is a budget for a government that is doing its job,” the treasurer Scott Morrison said as he handed down his second Budget on Tuesday night, perhaps speaking as much to critics in his own party as to anyone else.
Under measures unveiled by the government on Tuesday night, the Government also imposed a new $6.2bn levy on the big banks, a move that received an early endorsement from the ALP, but that has already met with widespread criticism from the banking sector.
Most Australians will face a 0.5% increase in the Medicare levy in 2018-19, money that will be used to fund the National Disability Insurance Scheme. While conceding that the increase was “an insurance levy on all Australians, pretty much” the Treasurer also said looking after Australians with disabilities was “all our responsibility … and therefore we all have to bear it”. Wealthier workers will bear the greatest burden from the increase in the Medicare Levy, which will see a worker on $100,000 paying $500 more each year.
Small business tax cuts pass Parliament but larger corporates miss out on relief
On Friday 31 March 2017 the Government struck a deal with the Senate crossbench to pass the reduction of the company tax rate to 25% over 10 years. In the event what was passed was a much watered-down version of what was previously intended to be the Government’s key economic policy initiative.
Under the deal reached, small and medium businesses will benefit as:
- the company tax rate reduces to 25% over the 10 year period; and
- the turnover threshold increases so that more company businesses can access the lower tax rate.
The standard company tax rate will remain at 30% for companies with an annual turnover in excess of the small/medium business turnover cap.
Dividend franking
There will be no changes to the application of the dividend imputation provisions as the standard corporate tax rate will remain at 30%. Large companies will continue to frank dividends at 30%, as will small and medium businesses, notwithstanding they pay company tax at the lower rate.
Unincorporated small/medium businesses
There will be an increase in the rate used to calculate the small business tax offset for unincorporated small/medium businesses. But the offset will remain capped at $1,000, so the offset will continue to be of limited practical effect; certainly not as advantageous as the small/medium business company tax cuts.
Superannuation reforms: total superannuation balance
The Australian Taxation Office released a final version of Law Companion Guideline LCG 2016/12 on 20 March 2017. This addresses how an individual’s total superannuation balance will be calculated from 30 June 2017. The guideline was previously issued in draft as LCG 2016/D12.
Changes to Transition to Retirement Pensions from 1 July 2017
The recent changes to superannuation will have a variety of impacts on members of superannuation funds depending on their individual circumstances. For fund members who are receiving Transition to Retirement Pensions (TTRs) in particular, the tax advantage on the earnings within a TTR pension will be removed from 1 July 2017.
The Impact on you of the Upcoming Superannuation Changes
The Impact on you of the Upcoming Superannuation Changes
The superannuation changes, which take effect on 1 July 2017 will affect both concessional and non-concessional superannuation contribution options and could have a substantial impact on workers, who may end up paying more tax, particularly the wealthy.
Therefore, you may need to take action prior to 1 July 2017 to ensure you take advantage of advantages that still exit to ensure you are better placed to face retirement.
Superannuation reform: transitional CGT relief for superannuation funds
The ATO has now finalised its Law Companion Guideline LCG 2016/8 Superannuation reform: transfer balance cap and transition-to-retirement reforms: transitional CGT relief for superannuation funds addressing the contentious issue of the potential CGT implications of the new rules rule limiting superannuation balances to $1.6 million per member from 1 July 2017. Having published a draft guidline in November 2016 this is the consolidated guideline and is intended to provide clarity around the issue of CGT for transition to retirement income.
Potential ATO crackdown on valuations of assets in superannuation funds
As previously mentioned in previous articles on our website, far-reaching changes have been made to the superannuation system with many changes taking effect from 1 July 2017. The most significant change is the introduction of the $1.6 million transfer balance cap which will restrict the balance of superannuation a member can commute from accumulation to pension phase. However, the imposition of this legislation brings with it some practical considerations for Trustees of Self-Managed Superannuation Funds (SMSF) in particular the revaluation of assets at 30 June 2017.
New Australian law applying GST to imported digital products and services
New Austraian law applying GST to imported digital products and services
Australia has introduced a new law applying the Australian Goods and Services Tax (GST) to international sales of digital products and services provided to Australian consumers. Under the new law, overseas suppliers will be required to pay GST on these sales from 1 July 2017.
The Smith Family Toy & Book Appeal
This year we will be supporting The Smith Family’s Toy & Book appeal. This is an opportunity to help bring a smile to the face of a disadvantaged child this Christmas. This year The Smith Family will deliver 14,715 Toy and Book Packs to disadvantaged children around Australia. They need our help to collect over 45,000 new toys and 30,000 new books to make this happen.
Operation of the foreign resident capital gains withholding system
As we previously advised, where a foreign resident disposes of certain taxable Australian property, the purchaser is required to withhold 10% of the purchase price (as defined) and pay that amount to the Australian Taxation Office (ATO) under legislation enacted and applying to contracts entered into on or after 1 July 2016.
Superannuation reform bills passed by both Houses of Parliament
As previously mentioned on our website, two superannuation bills were passed by both Houses of Parliament on 23 November 2016.
The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and the Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016 will now go to the Governor-General’s office to receive Royal Assent, thereby enacting superannuation reforms outlined in the 2016 Federal Budget and subsequent changes released in September 2016.
Superannuation reform bills passed by both houses
Two superannuation bills, which include the proposed introduction of the $1.6 million transfer balance cap and changes to concessional contributions, have been passed by both houses.
The Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 amends five separate acts including:
Changes to NSW association laws from 1 September 2016
Amendments to enhance the way incorporated associations are administered and to clarify the way associations operate took effect on 1 September 2016.
Following three years of public consultation, the Associations Incorporation Act 2009 has been amended to include a new Associations Incorporation Regulation 2016 with effect from 1 September 2016. It is intended the changes to the Act and the new Regulation will assist associations comply with the legislative requirements and improve governance.
Walker Wayland 2016 City to Surf
What a fantastic day August the 14th was. 80,000 people gathered in Hyde Park and came together to participate in the annual 14km City to Surf race. The weather was perfect with Walker Wayland sporting 20 eager competitors. We had a great mixture of first timers, record breakers and experience takers.
Walker Wayland NSW – 2016 City To Surf
The 14th of August hosts the annual City to Surf fun run in a bid to raise money for charities. Walker Wayland will again be entering a team for the event and have 19 eager participants ready to raise money for our selected charity ‘Beyond Blue’. This is a charity close to many of our hearts and we hope to raise $3,000 to be put towards depression awareness. We are nearly half way to our donation target and need your help to keep up the awareness.
Junior Team Assistant
[ POSITION FILLED ]
Key responsibilities in this role will include:-
- You will be assisting the administration team with a wide range of administrative support
- Provide back-up support to 4 personal assistants
- Answering & directing of incoming calls
- Meeting & greeting external visitors and clients
- Filing
- Maintaining kitchen & supplies
- Ordering office stationary
- Book couriers
- Boardroom bookings
- Organise catering for internal and external meetings
- General work flow requests from the Business Services, Audit and Financial Services Departments.
Federal Budget 2016-17
There has been a different flavour to the speculation around this year’s Budget. While election year budgets are often chock full of juicy promises, a certain new spice has been added to this one due to its very close proximity to a double dissolution poll being officially called.
An interesting balancing act was foreseen between the promises of the Prime Minister Malcolm Turnbull and Treasurer Scott Morrison that this Government will “live within its means”, and the need to provide their Party with a launch pad for a marathon election campaign.
Expectations were high – or low depending on your viewpoint – for a distinct lack of expensive promises from a Government keen to prove it can responsibly manage the economy, and for the terms “jobs and growth” to feature prominently.
Walker Wayland is proud to announce new appointments.
Walker Wayland – Sydney is proud to announce a significant change to the structure of its business.
From February 2016, the business will introduce a role of Principal which will be incorporated within the management and leadership structure of the Walker Wayland – Sydney group. The Principals will provide ongoing support to the Partner Group within the organisational structure to manage designated business units and lead specific business opportunities.
We are pleased to announce the first appointments to the role of Principals: Wali Aziz, Ian Hillsdon and Cameron Stone.
These individuals have provided significant support to Walker Wayland – Sydney over a number of years. Their appointment is in recognition of the services they have provided in the development of the business to-date and to the vision and skills which they offer for the future of the organisation.
ATO attempt to close a contributions loophole
Integrity measures in the form of contribution caps are limits on how much a member can contribute to an SMSF. They are intended to limit the amount of tax benefits anyone can get out of using a SMSF.
Prior to 2007 the Reasonable Benefit Limits (“RBLs”) enabled a member to put as much into a SMSF as they wanted although not all of it would be tax-deductible. If the member took out more than was considered reasonable, they paid extra tax. From 2007, the tax system reverted to placing limits on the amount that could be contributed to a SMSF.
2015 City 2 Surf
On August 9th staff from Walker Wayland NSW along with participants from Walker Wayland Australasia member firms participated in the annual City 2 Surf fun run with staff members successfully completing the course to raise much needed funds to fight GI cancers and to support the GI Cancer Institute.
New South Wales Small Business Grant
The Small Business Grant is designed to encourage small businesses in New South Wales that do not pay payroll tax to hire new employees and expand their business. To be eligible for the grant your business must have an active ABN and not have a payroll tax liability during the 12 month employment period of a new person as at 30 June of the financial year.
Federal Budget 2015-16
Having been roundly savaged for his first Budget in 2014, which contributed in no small part to a ‘rocky’ first 18 months for the Abbott government, there has been much speculation about how the Federal Treasurer, Mr Joe Hockey, would address this in his second Budget.
Whether it was what the 2014 Budget actually contained, or how it was ‘sold’ to the electorate was the bigger problem remains a point of much contention (and depends on which side of the House you ask) but there is little likelihood of this second Budget being undersold. As we already know, significant new measures contained in the Budget have already been much touted through a series of high profile press releases and press conferences – not to mention the official “leaks”, a mainstay of 21st Century politics as it exists within a 24-hour news cycle. The question therefore was “What else is in there?”
SuperStream is coming..are you ready?
SuperStream for Employers
SuperStream is a new process requiring employers to pay their employees’ superannuation contributions using the government’s new data standards.
From 1 July 2015, employers with 20 or more employees will be required to comply with the following:
- The payment must be made electronically to the nominated superfund; and
- Details of the payment transaction, such as the employee’s name, Tax File Number and superannuation fund member number are also sent to the superfund.
Employers with 19 or less employees have until 1 July 2016 to comply.
Taxpayers receive hoax emails purporting to be from the ATO
Some taxpayers have recently received fraudulent or hoax emails purporting to be from the Australian Taxation Office (“ATO”).
The various variations of these phishing emails often share a number of the following characteristics;
• The email requests personal information by:
- requesting that the taxpayer completes a form requiring personal information; or
- requesting that the taxpayer verifies their identify by emailing photographs or copies of their personal identification documents.
Discussion Paper on Tax Regime Overhaul Released
Australian Treasurer Joe Hockey has published Re:think, a discussion paper that marks the launch of the long-awaited Tax White Paper process.
The discussion paper begins a formal government process for considering future directions for Australia’s tax system. The paper provides information about the challenges the system faces, identifies potential opportunities for reform and points to some of the “trade-offs” that would need to be considered. The Government is seeking feedback on whether the current tax system can be refined or whether it requires more fundamental change, and where fairness can be improved. The discussion paper asks how important it is to reform taxes to boost economic growth, and to what extent reducing complexity should be a priority.
NZ Launches Tax Modernization Program
New Zealand’s Revenue Minister, Todd McClay released two documents on 31 March 2015 setting out the nation’s plans to modernize and simplify the tax system. The first document, Making Tax Simpler – a Government green paper on tax administration, aims to inform New Zealand taxpayers of the proposed initiatives and seeks feedback on the options. The second document, Better Digital Services, outlines proposals to expand the tax authority’s use of online systems that would enable faster, more accurate, more convenient interactions with the Inland Revenue Department (IRD).
International Women’s Day Breakfast
On March 8 is International Women’s Day and to celebrate, Walker Wayland NSW took a small group of clients to attend the Business Chicks Sydney International Women’s Day Breakfast. We have a large group of strong women in our client base and events such as these are a great way to bring them together to interact in a room full of like minded women.
Simplified Transfer Pricing Record Keeping
The ATO has introduced an online Simplified Transfer Pricing Record Keeping options guide which provides relief from preparing full transfer pricing documentation for perceived low risk taxpayers. This was introduced in recognition of the fact that compliance with the requirements of Subdivision 284-E imposed administrative burden that would be disproportionate to the taxpayers non compliance risk. Where a taxpayer is eligible and opts to rely on a simplified option, it will not need to prepare documentation in accordance with Subdivision 284-E. In general the Simplified Transfer Pricing Record Keeping options are available for taxpayers that meet one of the following criteria:
Tax Accounting / Audit Cadet – Ideal for 2015 HSC Graduate
[ POSITION FILLED ]
Interested in accounting but not sure where to start? An Accounting Cadetship is the ideal way to launch your professional career. Gain hands-on experience at one of Sydney’s fastest growing accounting firms.
Tax Accounting / Audit Cadet – Ideal for 2014 HSC Graduate
[ POSITION FILLED ]
Interested in accounting but not sure where to start? An Accounting Cadetship is the ideal way to launch your professional career. Gain hands-on experience at one of Sydney’s fastest growing accounting firms.
ATO initiative: “Project DO IT”
The ATO initiative known as “Project DO IT: disclose offshore income today” is an amnesty which allows eligible taxpayers to come forward and voluntarily disclose unreported foreign income and assets.
The Commissioner of Taxation has urged taxpayers with offshore assets to declare their interests ahead of a global crackdown on people using international tax havens.
Six months from a shell to ASX listing
When Singapore-based venture capital firm 8Capita spotted an opportunity in cloud-based software services, it called on Walker Wayland NSW to assist with its plans.
The 8Capita team explained that they wanted to set up an Australian company that would buy an Australian software developer. The new company would then add a compatible product from a Canadian developer that an 8Capita subsidiary already owned. The company would then list on the Australian stock exchange. The project was to be completed in just six months.
Walker Wayland NSW Appoints Chairman
The partners of Walker Wayland NSW wish to announce that Stephen Roger has changed his role from managing partner to consultant effective July 1, 2014.
In conjunction with this change, the partners welcome the appointment of Scott Arnold as the firm’s inaugural chairman effective July 1, 2014.
Proposed removal of GST-free concession on the supply of a going concern
Although the Federal Government recently announced that it will be removing the current GST free concession on the supply of going concerns and replacing it with a ‘reverse charge’ mechanism, no date has been set for the commencement of the change. However, draft legislation is due to be released by mid 2014, with a bill expected before Parliament by the end of the year.
Federal Budget 2014-15
The Federal Treasurer, Mr Joe Hockey handed down the 2014-15 Federal Budget, his keenly awaited first budget, on 13 May 2013 at 7.30pm (AEST). Anticipation was high that significant changes would be announced following the recent release of the National Commission of Audit report and the Government did indeed release its formal response to the Commission’s report.
However, in the event, the Budget was relatively “light on” from a taxation point of view. Although, it did include the expected 2% budget deficit levy and the re-indexation of fuel excise, tax measures were relatively few. Progress on announced but un-enacted measures was however noted.
The much debated 2% budget deficit levy (tax) was a key announcement and the levy will apply from 1 July 2014. However it will apply only on taxable income above $180,000 per annum and it will last for only 3 years i.e. for the 2014-15, 2015-16 and 2016-17 years.
The budget did contain a significant range of welfare benefit changes including the freezing of certain eligibility thresholds. It is projected savings from the welfare measures will run into billions of dollars and form a substantial part of the Government’s debt/deficit reduction drive.
Government makes decision on outstanding superannuation measures
Government makes decision on outstanding superannuation measures
The Abbott government has stated that it is keen to keep regulation of superannuation to a minimum, and has agreed to proceed with only four of the 16 taxation and superannuation proposals made by the previous government.
Company Loss Carry-back
Existing law
In the 2012–13 federal budget, the previous government announced its intention to provide tax relief for companies by allowing them to carry-back tax losses to receive a refund against previously paid tax. The measure received royal assent on 28 June 2013 and applies from the 2012–13 year.
Charities Act 2013 to commence on 1 January 2014 after all
Further to the Government’s announcement two weeks ago in its Social Services and Other Legislation Amendment Bill 2013 that it would delay the commencement of the Charities Act 2013 (Cth) to 1 September 2014, matters have once again changed and the1 January 2014 start date remains.
Proposed removal of the small business instant asset write-off of $6,500 with effect from 1 January 2014
At the conclusion of the parliamentary sittings for the week ending 13 December 2013, the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 had not been passed by the Senate.
Changes to how super excess concessional contributions are taxed
Excess superannuation concessional contributions made from 1 July 2013 are included in an individual’s assessable income and taxed at their marginal tax rate. As part of the assessment process taxpayers will receive a non-refundable tax offset of 15% of their excess concessional contributions along with an additional excess concessional contribution (“ECC”) charge.
Walker Wayland breaks into top tier
Walker Wayland NSW is celebrating news that the Walker Wayland Australasia accounting network continues to expand, breaking into the Top 25 firms in Australia ranked by influential business magazine BRW.
Walker Wayland NSW is one of the founding members of the organisation, dating back to 1991.
Timetable for small business asset write-off changes announced
If you are contemplating low cost equipment or vehicle purchases, you may wish to bring forward your purchase.
During the recent Federal Election campaign, the Coalition announced that if elected it would make the small business asset write-off rules less generous as follows:
ATO activity: further crack-down on the use of trusts in the 2013/14 financial year announced
With very little fanfare the 2013/14 federal budget allocated an additional $67.9 million to the ATO over the next four years to target the misuse of trusts.
These funds are intended to enable to ATO to further increase its audit capacity in this area, something of a windfall for an ATO under increasing pressure to maximise tax receipts given the size of the federal deficit in recent years, After considerable ATO activity in this area in the past few years, and while the ATO acknowledges that trusts are still often legitimately used for managing business and family affairs, the ATO also claims that its “recent compliance operations have uncovered evidence of increased manipulation of trusts as vehicles that can be at the centre of tax avoidance or evasion arrangements”.
ETS bring forward to be partly funded by abolition of FBT statutory formula method for company cars
The Prime Minister and the Treasurer have today formally announced that the Government will bring forward the start date of emissions trading to 1 July 2014. From that date, a floating price on carbon will apply. Under the previous arrangements, the carbon price was to be $25.40 per tonne from 1 July 2015. Under a floating price, the figure is expected to be around $6 a tonne. Government assistance to emissions-intensive trade-exposed industries will continue unchanged.
ATO targets returning expatriates
The Australian Taxation Office (ATO) is currently targeting expatriates returning to Australia, sometimes after an extended time living and working overseas.
The ATO approach may be to suggest an expatriate was an Australian tax resident during the period they were overseas and therefore the expatriate’s income earned from overseas employment should be reported as taxable in their Australian income tax returns.
Walker Wayland Expands in Victoria
Walker Wayland community focus attracts Melbourne firm
Australia’s fastest-growing accounting network has further expanded in Melbourne with Advantage Advisors joining the group.
Advantage Advisors had been a member of rival network Bentleys.
Partner Martin Phelan said the firm decided to move to Walker Wayland to take advantage of the network’s powerful co-operative structure.
NSW Stamp Duty Abolition deferred yet again
NSW has announced it will temporarily defer the abolition of stamp duties that were due to be abolished from 1 July 2013.
Premier Barry O’Farrell announced on 23 April 2013 that NSW will implement the Gonski national education reforms and the taxes will be retained to help with the $1.7 billion in additional funding required.
Federal Budget 2013-14
The Federal Treasurer, Mr Wayne Swan, handed down his sixth budget at 7:30 pm (AEST) on 14 May 2013. The 2013/14 Federal Budget could be described as a moderate one in the context of the current budget deficit of $18b. It sets a pathway to return the budget to balance in 2015/16 and to surplus by 2016/17 but with continuing investment in the economy.
In terms of revenue measures, the budget largely aims to protect the corporate tax base from international profit-shifting and erosion, close loopholes and better target concessions, as well as targeting the medical tax offset and the Baby Bonus for individual taxpayers. Here are the tax and superannuation highlights.
Walker Wayland continues organic growth in NSW
The Walker Wayland Australasia accounting community is continuing organic expansion as its member in the NSW regional city of Orange merges with a firm in Bathurst.
Yates Baker McLean has completed a merger with Bathurst firm Lesley Bull & Associates.
The move follows a merger in Western Australia when Walker Wayland Western Australia announced a heads of agreement Attalus. The merger will be completed in six months.
Walker Wayland teams with Law Central for online documents
Law Central, a leading provider of online legal documents
THURSDAY, DECEMBER 13, 2012 – Leading accounting network Walker Wayland Australasia Limited has introduced a new legal services product to help members streamline their service to clients.
Walker Wayland Australasia Chairman Grant Allsopp announced today that the network has signed an agreement with Law Central, a leading provider of online legal documents.
“Accountants need access to legal documents on a daily basis,” Allsopp said. “Without this new service we have to refer our clients to a lawyer for some day-to-day documentation.
“Law Central offers us online legal documents covering a range of services, including loan agreements, equity transactions, some business sale agreements and a number of ATO-related tax issues,” he said.
Client Information Newsletter – Tax & Super – Dec 2012
Key Tax and Superannuation Changes in 2013
Several changes to tax and superannuation legislation have been put forward over the year, with many coming into effect at different dates over the 2013 calendar year. We run through the key changes to keep an eye on.
Client Information Newsletter – Tax & Super – Nov 2012
Death Benefits: Tax Exemption win for Super Funds
In a win for SMSF members taking a pension from their fund, the government’s Mid-year Economic and Fiscal Outlook review announced that the tax exemption on investment earnings that support a pension can continue to apply even after the death of a member.
Client Information Newsletter – Tax & Super – Oct 2012
Small Business CGT concessions explained
Small business plays a central role in Australia’s economic fortunes — so much so that the government has seen fit to give smaller enterprises a break on a range of tax considerations, including specific concessions for capital gains tax. Make sure you qualify — and if you do, make sure you don’t miss out.
Client Information Newsletter – Tax & Super – Sept 2012
Tax and your Business’s Website Cost
Having an online presence can be essential for many businesses, especially as nowadays most consumers hit the keyboard first when looking for services or supplies. But the proper tax treatment of the expenditure in setting up and then running a website require careful consideration.
With the SMSF annual tax return deadline looming (it’s October 31), we run over all the information and requirements generally expected from trustees. As well, there are some new obligations SMSF trustees will need to cover.
Client Information Newsletter – Tax & Super – Aug 2012
Tax Returns and the Taxman
More than 70% of individual taxpayers, and 95% of businesses, call on a tax professional to prepare their tax returns, making Australians among the world’s highest users of tax agent services. But to get the most out of a tax professional – to help them help you – some basic records and documents are essential. We run through the information required that may help your tax agent put you in a better tax position, and also look at the areas we know the Tax Office will be paying close attention to this tax time.
Client Information Newsletter – Tax & Super – July 2012
Medical Expenses: What you can claim?
With bricks and mortar continuing to be the investment of choice for a great many Australians, we run through the claims you can and can’t make for rental property this tax time. But if you are investing via an SMSF, borrowing for an investment must follow certain strict rules. We explain the regulations, which have recently been updated and clarified.
Accounting network leaps into top 30 in Australia
THURSDAY, NOVEMBER 8, 2012 – The Walker Wayland network is Australia’s fastest-growing accounting organisation according to the latest rankings of accounting firms by national business magazine BRW.
The network’s Australian members recorded 73.7 percent revenue growth in the past year to post total revenues of $36.1 million.
The growth spurt helped the network jump five places since last year to 27th in BRW’s annual Top 100 rankings.
Walker Wayland Australasia chair Grant Allsopp said the group is continuing to grow with acquisitions since the survey closed and more planned over the next few months.
Working Overseas – Not just for Multinationals
The buzzing, fast-paced lifestyle of Hong Kong is one many Australians have experienced as tourists.
But having the chance to live and work in that environment has been the domain of ex-pats and employees of multinational organisations. Choosing to work for a local firm with all the benefits of easy access to senior management and working directly with clients at an early stage has meant sacrificing the overseas option.
Australian Federal Government Mid-Year Economic and Fiscal Outlook update
The Australian Federal government released its mid-year economic fiscal outlook (MYEFO) on 22 October 2012, somewhat earlier that would be expected.
The MYEFO contained a number of key tax-related announcements, including the following:
Walker Wayland expands
International accounting group expands in Australia
MONDAY, SEPTEMBER 24, 2012 – International accountancy network Walker Wayland Australasia has announced further expansion as two independent firms joined the community in September.
The network has grown by more than 50 percent in the past year and now includes 13 mid-tier accounting firms across Australia and New Zealand.
Kothes joins Walker Wayland as a New Member Firm
Accounting firm sees better service by networking
Kothes Chartered Accountants has moved to bolster services and resources for its clients throughout south-east New South Wales with a tie-in to an international business network.
The network, Walker Wayland Australasia, is a fast-growing community of mid-tier accounting firms across all mainland states of Australia and New Zealand.
Power Tynan joins Walker Wayland as a new Member Firm
Walker Wayland Australasia provides international boost for Toowoomba businesses
MONDAY, SEPTEMBER 3, 2012 – Many businesses in the Toowoomba region of south-east Queensland are gaining an international boost in their financial support following a move by local accounting firm Power Tynan.
Business owners and managers in the region can now draw on the extensive resources and experience of the expanding Walker Wayland Australasia accounting and business services network following the announcement that Power Tynan is now a part of the group.
Client Information Newsletter – Tax & Super – June 2012
New contractor tax reporting requirements
A Change to the reporting requirements for businesses in the building and construction sector is about to become a reality from June 1, 2012. The new ‘Taxable Payments Report’ will require operators to report on certain payments made to contractors. The Tax Office says data from the Taxable Payments Report will improve compliance and detect contractors who have either not lodged returns or not included all of their income.
Accountancy network gears for growth
WEDNESDAY, MAY 16, 2012
Accountancy group Walker Wayland Australasia has completed a restructure to prepare for an aggressive growth phase in the region.
According to Walker Wayland Australasia chairman Grant Allsopp, “Our focus is to become the pre-eminent mid-tier accountancy network in the region.”
He said the network now includes 11 mid-tier accounting firms across Australia and New Zealand. Three have joined since the restructure.
Proposed LAFHA Changes – Update
The Federal Government is set to introduce the draft legislation in respect of the Living Away From Home Allowance (LAFHA) changes in the upcoming sitting of the Parliament. Advice from Treasury indicates they propose to issue a LAFHA Exposure Draft in May 2012.
The proposed Tax Laws Amendment (2012 Measures No 3) Bill 2012, which includes the provisions first proposed by the Consultative Paper released in November 2011 will be introduced into the Parliament after the 2012 Federal Budget, which is to be handed down on 8 May 2012.
Federal Budget 2012-13
On 8 May 2012 the Treasurer, Mr Wayne Swan handed down his fifth Federal Budget. A fiscally tight Budget designed aiming to give rise to that oft-mentioned surplus for 2012-13 it contained anticipated tax changes, but also had a raft of other tax measures including changes to previously announced measures and significant changes to the tax loss measures. Previously announced measures the government decided not to proceed with included the standard tax deduction and the interest discount.
Treasurer Wayne Swan said the budget would deliver a small ($1.5bn) surplus in the year to 30 June 2013, thanks largely to cuts in spending on defence and foreign aid and abandoning planned tax cuts for companies and savers.
The PPSR is here – Are you ready?
The Personal Property Securities Register (PPSR) commenced on Monday, 30 January 2012.
If you provide credit terms to your customers or you have other commercial arrangements under which your goods or equipment are in the possession of a third party or related entity (for example consignments, leases) then you will probably need to register your rights on the PPSR, or risk losing any interest in your goods and equipment.
Overview of Carbon Price Package
The Federal Government announced details of its Carbon Price package at noon on Sunday 10 July 2011. The proposals are intended to reduce carbon pollution and secure a clean energy future with a Renewable Energy Target of 20% by 2020.
In summary the Governments proposals are as follows:
- A carbon price of $23 for each tonne of pollution beginning 1 July 2012
- Prices are expected to rise by 2.5 % a year in real terms during three-year fixed period until 1 July 2015 then it is proposed Australia will transition to an emission trading scheme
- The price of each tonne will be fixed, like a carbon tax
Federal Budget 2011-12
On 10 May 2011, the Treasurer Mr Swan handed down his fourth budget, the 2011-12 Federal Budget that is focused on getting back to surplus by 2012-13 and getting more people into jobs while addressing a number of tax system shortcomings and revenue leakages from the government’s coffers.
There were therefore a raft of tax changes announced covering specific areas such as superannuation, income tax, CGT, GST, FBT and charities.
Walker Wayland NSW appoints new partners
Walker Wayland NSW is delighted to announce the appointment of the following new partners effective 1 January 2011: Michael S Walker David M Ross
Make an Enquiry – thankyou
Thank you for your enquiry. One of our team will get back to you soon.
BKR International
BKR Worldwide Bulletin {phocadownload view=filelist|id=1} {slider title=”BKR Worldwide Bulletins Archived” open=”false”}{phocadownload view=filelist|id=2|limit=100}{/sliders} BKR Asia Pacific E-Update Newsletters {phocadownload view=filelist|id=3} {slider title=”Asia Pacific E-Update Newsletters…
SATELLIGHT
Introducing Satellight
Our Culture
OUR PARTNERS AND AFFILIATES
