Business News Releases

$3k Tax agents cap: policy looking for a problem says IPA

BY DECLARING tax deductions for accounting fees as a rort, Labor has not only attacked the accounting profession, it has attacked millions of hard working taxpayers who are doing the right thing in paying their fair share of taxation, said the Institute of Public Accountants (IPA).

“When the Opposition proposed to cap deductibility of tax agents’ fees to $3,000 (May 2017), it assumed a one-size-fits-all approach works, which is simply not the case,” IPA chief executive officer Andrew Conway said.

“The Prime Minister and Treasurer have issued a letter to accountants expressing concerns over this measure, which we will disseminate to our members.  If the Opposition provides a response to these concerns we will also distribute the correspondence to members.

“To be clear, we support the fact that all Australians should pay their due share of tax but they should also be able to access the appropriate tax deductions available to them to ensure they are not overpaying.

“Labor’s views on this matter shows a lack of understanding about, and respect for, what it takes for an accountant to appropriately manage an individual’s tax affairs.  It is not always a matter of a simple tax return; there may be many other factors associated with our highly complex tax system," Mr Conway said.

“For some, there can be considerable time spent in areas of tax audit, litigation, disputes and other interactions with the Australian Tax Office.

“Further complexities exist with the formation of partnerships, trusts, property acquisitions and disposals. 

“These are all factors of a change in someone’s life circumstances which may also include ordinary taxpayers involved in situations like restructuring, divorce and sale of a business, to name a few.

“To bundle all of this under the heading of ‘managing tax affairs’ does not reflect a genuine picture of a person’s life circumstances and undermines the value of the work performed by accountants.

“Simply put, genuine taxpayers are not rorters.  They should be seeking the right tax advice from their trusted adviser, the accountant, to make sure they continue to claim their rights and pay the correct amount of tax. 

“Labor’s proposed measure is genuinely and obviously a revenue grab. If you cap it at $3,000 the likelihood of a person engaging appropriate tax advice is reduced.  This could have disastrous impacts on the community.

“If you look at the people who are generally deserving of a tax deduction, based on this proposal, they would be unable to access it. This is not affecting the top end of town, it’s really affecting individuals including small business owners,” Mr Conway said.

www.publicaccountants.org.au

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ARA says Easter cracks up 'egg-citing sales' for retailers

WITH EASTER only a week away, the Australian Retailers Association (ARA) believes retailers across the nation will be packing their shelves with an assortment of Easter treats and delights.

ARA executive director Russell Zimmerman said that while many retailers stock their shelves with Easter products just after New Year, the majority of Easter sales do not occur until the week before Good Friday.

"Although the Easter trading period is shorter than the Christmas period, this holiday is still recognised as a busy trading event for retailers,” Mr Zimmerman said.

“We predict that sales of traditional Easter items including hot cross, buns, seafood, fresh produce, liquor and of course chocolate to increase during throughout this time, which is a welcome fillip for specialist retailers who sell these products.”

Sydney Fish Market general manager Bryan Skepper said he expected 50,000 people would visit the iconic market on Good Friday and estimates over 650 tonnes of seafood would be sold during the day.

“As Easter is celebrated widely, many Australians will be heading to retail outlets to buy fresh produce to cater for Easter lunches and feed their friends and families,” Mr Zimmerman said.

Fresh food markets won’t be the only ones to experience big crowds of shoppers over the coming week, as several bakeries and chocolatiers will also be crafting tantalising indulgences for the Easter holiday.

With hot cross buns recognised as an Easter staple, the CEO of Ferguson Plarre Bakehouses, Steve Plarre, said that while 60 percent of hot cross bun sales were generated from traditional fruit buns, sales of new flavours and Easter Chocolate Waffles continue to grow each year.

“Hot cross buns are still a top seller by volume. However, over the last few years, we have noticed a rise in the sale of our raspberry and white chocolate and our apple and cinnamon varieties,” Mr Plarre said.

With Easter arriving later in 2019 than last year, Mr Zimmerman said he expects retailers to experience higher sales during this time, as customers will be visiting retail stores to purchase new and innovative Easter creations.

“Each year we see many of our retailers taking traditional Easter products and transforming them into exciting new products that tantalise their customer’s tastebuds,” Mr Zimmerman said.

“Just like Christmas, Easter is a key trading period for retailers. With the colder season upon us, many retailers will be busy preparing their stores with new season fashion for winter.”

 


About the Australian Retailers Association

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $320 billion sector, which employs more than 1.3 million people. As Australia’s leading retail peak body industry, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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QRC on Election 2019: like your vote, Queensland resources count in every electorate

THE Queensland Resources Council has welcomed the announcement of a May 18 Federal election by releasing the mining and petroleum industries’ $60 billion annual economic contribution across the state’s 30 Federal electorates.

QRC chief executive Ian Macfarlane said the resources sector employed Queenslanders and supported local businesses in every electorate from Leichhardt in the north to McPherson in the south, Maranoa and Kennedy in the west.

Mr Macfarlane said winning Queensland electorates would be critical to who wins the election, and the most marginal seats – Capricornia, Herbert, Flynn and Dawson – were among the biggest beneficiaries of the resources sector.

“Every vote counts in every Federal electorate and resources contribute to each electorate and that contribution can be counted in jobs created, local businesses supported and economic growth for all Queenslanders,” he said.

Mr Macfarlane said the electorate of Brisbane, in the heart of South East Queensland, was the biggest beneficiary with 64,807 full-time equivalent (FTEs) jobs and an economic contribution of $13.8 billion.

“I am one of 316,000 Queenslanders who are employed thanks to the resources industry. We work and we vote,” he said.

“On behalf of those Queenslanders, the QRC urges every candidate to commit to working with resources for the benefit of all Queenslanders and particularly the electorates, communities, businesses and families they aspire to represent.

“By the time polling booths close at 6pm on May 18 in 36 days’ time, the resources sector will have created 934 jobs, exported more than $6 billion in commodities and generated more than $500 million in royalty taxes for the Palaszczuk Government in Queensland.”

Find links to the economic contribution for each of the 30 Federal electorates here: https://www.qrc.org.au/contributiontoqueensland/federal-electorates/ and a table of all electorates.

www.qrc.org.au

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Resource sector commitment key to who gets in (seats) like Flynn: QRC

ALL CANDIDATES vying for the marginal Federal electorate of Flynn should make their commitment to the resources sector clear before the May 18 election, Queensland Resources Council chief executive Ian Macfarlane said.

Mr Macfarlane said the resources sector contributed $6.3 billion to the gross regional product in the Flynn electorate, which includes the energy powerhouse of Gladstone.

“The resource sector’s contribution to the economy of Flynn equates to $17.2 million every day,” he said. “In Flynn, the resources sector supports 34,773 full-time equivalent jobs with a wage bill of $3.4 billion. That's an average salary of $100,000."

Mr Macfarlane said it was critical for the people of Flynn that there is support for the resources sector – coal, metals and gas - from all candidates.

He said it was also essential the Palaszczuk Labor Government restated its support for the resources sector.

“There is growing concern among employers and employees of the resources sector that instead of encouraging the resources sector the Palaszczuk Government is starting to target it.  Undermining mining is undermining the Queensland economy and local communities like those in the Flynn Federal electorate,” he said.
 
QRC report on the economic contribution from the resources sector to the Flynn electorate: https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Flynn_FedElectorate.pdf 

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Expert says disability service providers unprepared for NDIS registration

A LEADING risk management and auditing organisation says the majority of disability service providers seeking registration with the NDIS Quality and Safeguards Commission have been under-prepared, and lack knowledge of their regulatory obligations.

It is providing guidelines to Victorian, Queensland, NT, Tasmanian and ACT providers to help them expedite their registration before July 1.

SAI Global has audited more than 200 providers looking to meet their NDIS obligations since July 1 last year, with many more conducted to other State and Federal standards over the past 16 years. Since the new audit requirements commenced July 2018 in South Australia and NSW, more than 100 providers have been unaware of their requirements for NDIS compliance.

Nathan Temple, national human services programme manager at SAI Global, said, “Providers looking for registration this July need to prepare now, as many have already had to make improvements to their internal systems and documentation to obtain NDIS approval. Many are also looking to ‘purchase systems’ but don’t realise they need to have suitable implemented systems that suit the scale and size of their organisation.”

Mr Temple said the lack of clarity on what is required for registration has been challenging for many, and that greater transparency around the process is needed.

"Plenty of information is available – but the challenge for providers has been keeping up with the regulatory changes alongside running their operations," he said. "Partnering with a quality audit provider who can work closely with your team is the first step to understanding your obligations.

"Certification and verification has improved processes and procedures for numerous providers, which are improving outcomes for participants. We’re hoping our guidelines may clarify the steps involved for all providers seeking registration before 1 July.”

SAI Global has clarified the 10 steps disability service providers need to take to obtain NDIS registration this July:

    1. Know when you can begin offering your services to NDIS participants. In a soon-to-be competitive market, most disability service providers will seek to offer their services to NDIS participants as soon as they can. Provided they are registered with the NDIS Commission, providers in NSW and South Australia could offer their services from 1 July last year; providers in Victoria, Queensland, Tasmania, the ACT and NT can offer their services from 1 July this year; and West Australian providers can service NDIS participants from 1 July 2020.
    2. Important state approval deadline for Queensland providers. Queensland disability service providers seeking to work with NDIS participants under the current Human Services Quality Framework (HSQF) had until 1 April 2019 to register for this process. If their application for HSQF assessment and approval was not submitted by this date, they will need to revisit the process via the NDIS Commission, detailed below.[1]
    3. Important state approval deadline for Victorian providers. Victorian disability service providers seeking to work with NDIS participants under the current Victorian Department of Human Services (DHSS) will not be able to gain State approval, if they didn’t commence the registration process before 1 March. Instead, they will need to begin a new application with the NDIS Commission from 1 July.[2]
    1. Know how to register with the NDIS. Service providers can register with the NDIS Commission by completing and submitting the application form on its website (www.ndiscommission.gov.au/providers/application-form). A provider’s self-assessment forms part of this application process, and will help to advise what kind of audit the provider will need: verification or certification.
    1. Know whether you will need verification only, or certification. All providers seeking registration will need to be audited, to ensure they meet the regulatory obligations set by the NDIS Commission. Sole traders and partnership organisations need a verification audit only, as they provide services that are considered in the lower risk registration groups. A verification audit – required once every three years – is a desktop audit of the provider’s documents and records, including the provider’s police checks, Working With Children checks, processes and procedures. Companies and incorporated associations (and any provider of higher-risk services) will need a certification audit. This includes a Stage 1 audit to ensure systems and processes are in place, a Stage 2 Certification Audit which includes a review of system documentation, a review of records to ensure systems are implemented, site visits (for multi-site organisations), staff records, participant interviews and file reviews. Certified organisations will require annual surveillance audits and a re-certification audit every three years.
    1. Engage an approved quality auditor. The audit will need to be conducted by an NDIS-Approved Quality Auditor. Providers should ensure that the auditing organisation has appropriately qualified auditors in their State to minimise travel expenses and ensure they are confident in their knowledge and audit approach.
    1. Prepare for your audit. The audit will identify any service gaps that might comprise the best interests of NDIS participants, or any lack of understanding of the new regulations. It’s best that providers have conducted a thorough self-assessment of their policies, procedures and processes before their audits, and that they commence their audit at least three months prior to their registration expiry date (if registered). This will give them the time to put the necessary measures in place before going to market. It’s best that Victorian and Queensland providers seeking to offer their services from 1 July organise their audit now.
    1. Allocate resources and time to make improvements after the audits. The majority of audits by SAI Global have required the provider to make improvements to their documents, processes or procedures before they are verified or certified as an NDIS provider. To ensure a smooth process, it is best that the provider allocate the people and the time to make improvements before registration.
    1. Expect 1-2 weeks for the Commission to approve the registration. The auditor will make the certification recommendation to the NDIS Commission, which will then make the decision to approve the provider’s registration. The audit is just one key component of its decision.
    2.  Receive your certificate of registration. Providers will receive their certificate of registration from the NDIS Commission, after which they can begin offering their services, provided it is from the deadline set for providers in their State by the Commission. The certificate of registration will include details such as the range of supports and services the provider is registered to provide, and certain conditions to follow.

     www.saiglobal.com/en-au/ndis 

    [1] NDIS, ‘Apply for NDIS registration under current HSQF process by 1 April,’ (15 March 2019): https://www.nds.org.au/news/apply-for-ndis-registration-under-current-hsqf-process-by-1-april; and NDIS, ‘QLD – Registering as a provider’: https://www.ndis.gov.au/providers/quality-and-safeguards/qld-registering-provider.

    [2] NDIS, ‘VIC – Registering as a provider’: https://www.ndis.gov.au/providers/quality-and-safeguards/vic-registering-provider

 

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