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.
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.
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.
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.
“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
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.