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A wake-up call for all: Tax Gap

THE ‘Individuals not in business tax gap’ report issued by the ATO should be a wake-up call for all taxpayers, regulators, government and tax practitioners, according to the Institute of Public Accountants (IPA).

“The report identifies that 72 percent of the 858 cases in the ATO’s random sample, contained errors and that is a worrying statistic, given the quantum of the gap and considering Australia’s current fiscal position,” said IPA chief executive officer, Andrew Conway.

“Even if you question the robustness of the methodology, the ‘tax gap’ is a guestimate at best; however, you can’t argue that this report points to a serious issue.

“There are many aspects to the problem, including complacency and people who simply flaunt the system, including individuals and rogue agents.

“The complexity of the tax system also makes it easy to make errors.  For example, the substantiation rules for work related deductions up to $300 have inappropriately driven the perception of getting a ‘free kick’.

“The report which spans a two year time frame is acknowledged by the ATO as not being adequate to define a trend so it is a timely reminder that individuals and Tax Agents must commit to raising the bar.

“It should be noted that often the work of the Tax Agent is only as good as assertions made by their client.  The Tax Agent is not required to validate all client assertions.

“It is also human nature for individuals to want to maximise refunds and in doing so may mislead their Agent in the course of preparing their return.

“The IPA continues to carry out quality assurance of its members and actively seeks to weed out unprofessional behaviour and reduce error rates.

“It is also important not to tar those Agents doing the right thing with the one ATO brush.  If a Tax Agent deliberately flaunts the law, we will work with the ATO and weed them out.

“We must keep in mind that a vast number of Tax Agents are highly professional and endeavour every day to comply with their legal and ethical obligations in an increasingly complex tax system,” said Mr Conway.

www.publicaccountnats.org.au

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Government turns off the lights on manufacturing industry

A NEW Federal Government proposal will turn off the lights on one of Australia’s few remaining viable manufacturing industries, a peak body warns.

Lighting manufacture in Australia provides nearly 5000 manufacturing jobs across the country, with thousands of downstream jobs reliant on the survival of the industry.

“This is a sucker punch to an industry that should be the darling of government.  We create manufacturing jobs, reduce energy consumption for Australian households and businesses, and we innovate and develop cutting edge products in Australia," said Roman Gowor, Lighting Council Australia national marketing and environment manager.

He said bureaucrats in the Commonwealth Government have put forward a revised National Construction Code that dramatically cuts the scope for architectural and decorative lighting in commercial buildings.  The Code will affect all new builds and redevelopments across Australia.

“In addition to costing jobs, this proposal will dramatically reduce the ability of designers to make buildings anything but drab and sterile.”

The concerns of lighting manufacturers and suppliers about the National Construction Code are echoed by lighting designers and engineers.  Together, the affected industries provide 2500 jobs and produce $400 million worth of economic activity annually.

www.lightingcouncil.com.au

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Qld can lead the way in new baseload power - QRC

THE Queensland Resources Council has welcomed the focus of an ACCC report calling for more competition in the electricity market, including more baseload power alternatives to underwrite supply for industry.

QRC chief executive Ian Macfarlane said energy costs were one of the biggest inputs for the resources sector.

“The resources sector relies on stable and affordable power to support a range of jobs, including at mine sites and in associated industries such as processing and refining,” Mr Macfarlane said. 

“We welcome the National Energy Guarantee and look forward to it being settled between the Commonwealth and the States.

“But the ACCC report released today drives home that greater competition and long-term stability of energy supply is needed in the National Electricity Market (NEM), and that action is necessary to underwrite new sources of dispatchable power.

“North Queensland would be the ideal location for a High-Efficiency, Low-Emissions (HELE) coal-fired power station that could help reinforce the NEM with reliable dispatchable power.

“If we want to keep our resources jobs, and create more in the future, we must have access to affordable and reliable energy.

“It’s fitting that the Prime Minister spoke in Queensland today to further outline the importance of settling the National Energy Guarantee, because Queensland is the leader in resources and energy development on the East Coast.

“Queensland is home to the high-quality thermal coal that is powering advanced low-emissions coal-fired power stations in Asia, and we have developed the gas industry that has ensured the southern states here in Australia can keep the lights on. Our state is also the national leader in investing in renewables.

“We must continue to make the most of our natural resources, and Queensland can continue to lead the country with the addition of new advanced, baseload power for the NEM. This will support jobs and investments across the East Coast, especially with the addition of a stronger interconnector with NSW.

“We call on both the State and Federal Governments to support a full range of energy sources and technologies to add the extra baseload power into the national grid to support resources jobs and industries.”

The ACCC report also makes recommendations directly relevant to Queensland, including a recommendation that Queensland’s generation assets should be split into three portfolios which are separately owned and operated. It also recommends that action should be taken to address over investment or gold-plating of electricity networks.

The QRC calls on the State Government to give appropriate consideration to those recommendations in the interests of reducing costs to all energy users.

www.qrc.org.au

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Creative industry alarmed about new government proposal

PROFESSIONALS working in the decorative lighting sector are alarmed about proposed changes to the National Construction Code.

The National Construction Code regulates the design and construction of new buildings and redevelopments across the country.  Under the draft slated to take effect in July 2019, existing allowances for decorative lighting will be significantly reduced.  The manufacture, design and engineering of decorative lighting supports 2500 jobs across Australia.

Trent Dutton, President of the Illuminating Engineering Society (Australia New Zealand), is worried that the changes will have a significant negative effect. 

“We have seen very little technical data to support the proposal and we suspect that limited assessment has been made of the economic impact of the change on our industry,” Mr Dutton said.

Mr Dutton is also concerned about the impact of the proposal on his company Rubidium Light, a lighting design and engineering company headquartered in Brisbane but operating across Australia. 

“I worry that these kinds of increasing government interventions will end up making the places Australians live, work and play become dull, uninspiring and unproductive places," he said.

“Australia’s lighting engineering and design sector has some of the most talented people in the world.  Governments should be cultivating this industry, not jeopardising its future.”

The concerns of Mr Dutton and the Illuminating Engineering Society are shared by the peak bodies representing lighting supply and manufacture and lighting engineers.

“Many of our members manufacture high-quality, bespoke lighting fixtures for lighting installations across Australia," said David Crossley, acting CEO, Lighting Council Australia.

“We’ve seen too many manufacturing companies driven to the wall and we’ve seen that once we lose manufacturing jobs, they are gone for good.  Government needs to step in and halt this proposal before it is too late.”

www.lightingcouncil.com.au

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ARA: Have you got your ticket to the 2018 Retail Realm?

TICKETS are now on sale for the Australian Retailers Association’s (ARA) 2018 eftpos ARA Australian Retail Awards – The Retail Realm.

These prominent Awards are renowned for being the country’s largest and longest running national retail awards program with last year’s Awards being crowned the best retail awards in the country.

Russell Zimmerman, ARA executive director, said this year’s Awards breakfast will be held at the iconic Mural Hall in Melbourne, a venue rich with retail history and known for its revolutionary nature.

“This year’s Awards are themed around the Retail Realm and focuses on retailers who think outside the shop, because it’s crucial for retailers to not just think of the shopfront in today’s marketplace,” Mr Zimmerman said.

“With retail now touching every aspect of consumers lives, this year’s ARA Retail Awards will search for retailers who encompass every element of the Retail Realm within their business as the dynamic nature of retail means businesses needs to engage with consumers through a myriad of channels.”

With the 2018 eftpos ARA Australian Retail Awards touching on every element in the retail sphere, retail businesses across the country have already started submitting their entries.

“We’ve had small, medium and large retailers around the country already submit their entries across our three Award categories - customer experience, retail workers and industry leaders,” Mr Zimmerman said.

“This year’s Awards breakfast will celebrate the breadth of talent across customer experience, technology, payments, sustainability, employee development, supply chain management, business growth and corporate social responsibility within the retail marketplace.”

The 2018 eftpos ARA Australian Retail Awards will be held on Thursday 18 October at the Myer Mural Hall in Melbourne in front of 500 guests. With 13 awards up for grabs, the ARA believe this symbolic venue will draw a variety of retailers around the country to learn and share their insights on the Retail Realm.

“Our keynote speaker, yet to be announced, knows a lot about the Retail Realm and thinking beyond the shopfront,” Mr Zimmerman said.

“Not only is she an icon in the retail world, she has a strategic mind for business and I think retailers across the country will try to get tickets just to see her in action.”

The 2018 eftpos ARA Australian Retail Awards will be held on Thursday 18 October at the Myer Mural Hall in Melbourne. 

The ARA encourage retailers of all sizes to submit an entry, nominate an influential leader or instrumental employee before Friday 10 August via the 2018 eftpos ARA Retail Awards platform. To secure your seat for the 2018 eftpos ARA Australian Retail Awards buy tickets here.

The Retail Realm.

 

About the eftpos ARA Australian Retail Awards:

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail. Relaunched in 2008, the annual 2018 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 18 October at the Myer Mural Hall in Melbourne. For more information regarding the 2018 eftpos ARA Australian Retail Awards email This email address is being protected from spambots. You need JavaScript enabled to view it..

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, 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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