SMALL businesses around Australia need to make the most of the $20,000 instant asset write-off while it’s still there, according to the Institute of Public Accountants (IPA).
“The IPA had long advocated for the write-off initiative but unless the time limit is extended in the upcoming Federal Budget, the door will close on 30 June 2017 and the limit will revert back to $1,000,” said IPA chief executive officer, Andrew Conway.
“The increase in the accelerated depreciation write off threshold to $20,000 has been a great assistance to small business cash flow.
“This initiative is bringing forward the tax deduction that would have been deductible over a number of years.
“Entities with turnover up to $10 million can now also avail themselves of this initiative if the amended Enterprise Tax Plan is passed by Parliament when it next sits.
“If this initiative reverts back to $1,000, there will be negative impact on the broader economy as the incentive for small businesses to reinvest in their future will be taken away; restricting potential growth, employment and prosperity.
“We are urging the Government to keep this forward thinking initiative alive come Budget night,” said Mr Conway.
THE Institute of Public Accountants (IPA) has welcomed a new global study conducted by the International Federation of Accountants (IFAC) which aims to reduce corruption within economies globally.
“Corruption is an economic cancer and this global report support our long-standing perspective that accountants can and do play a key role in combatting the disease,” said IPA chief executive officer, Andrew Conway.
“The report also highlights the significant importance of good governance across all organisations. The accounting profession’s skills ensures that accountants continue to play a pivotal role in the fight against corruption but we acknowledge it’s not a solitaire battle to be won.
“The IPA Group has continued active participation in consultations to further embed Anti-Money Laundering measures in Australia and our regional contributions through our involvement in and leadership of the development initiatives within the Asia Pacific through the Confederation of Asian and Pacific Accountants (CAPA) Professional Accountancy Organisation Development Committee.
“Collaboration across all sectors of our economy to create a culture of highest standard governance is critical to success,” said Mr Conway.
Fayez Choudhury, IFAC Chief Executive Officer, said, “The accountancy profession is a crucial part of strong national governance architectures that confront corruption, in partnership with good government and strong businesses. And vitally, the study shows professional ethics, education, and oversight—at the core of the global accountancy profession—are key to the profession’s positive impact in tackling corruption.”
Among the key findings, the study reveals that a higher percentage of accountants in the workforce strongly correlates to better outcomes in Transparency International’s Corruption Perceptions Index.
Highlighting the importance of strong cross-sectoral governance structures, the study found the profession’s impact was significantly greater in G-20 countries and member nations of the Financial Action Task Force.
“When public accountants such as our members are present in an economy, the positive correlation rises even further. Our members adopt the global profession’s ethical, educational, and investigation and discipline requirements,” said Mr Conway.
The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies. In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 35,000 members and students in over 80 countries. The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.
About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.
Written submissions to the inquiry, addressing one or more of the terms of reference, are due at the end of next week on Friday,28 April 2017.
The Committee is eager to hear from interested stakeholders, so submitters are reminded to lodge their submissions by the due date via the inquiry website. To assist stakeholders in formulating their submissions, the Committee has prepared a brief discussion paper expanding on the terms of reference.
In addition to written submissions, the Committee is also accepting answers to an online questionnaire, which asks households and businesses to share information about how they currently interact with the electricity grid, and about their expectations of the grid into the future.
The Chair of the Committee, Mr Andrew Broad MP, said the Committee is keen to learn about the challenges the community identifies with the current electricity grid.
“We also need to identify what opportunities exist to modernise this important and essential service’s infrastructure,” Mr Broad said.
The Deputy Chair of the Committee, Mr Pat Conroy MP, said written submissions and questionnaire answers are vital in guiding the Committee.
“This is a bipartisan inquiry, and we’ll focus on the issues that are important to the community and to stakeholders,” Mr Conroy said.
Further information about the inquiry—including the terms of reference, the discussion paper, and the online questionnaire—is available on the inquiry webpage. Information about how to make a submission to an inquiry can be obtained from the Parliament of Australia webpage.
Interested members of the public may wish to track the committee via the website.
TODAY'S announcement by BHP Mitsubishi Alliance (BMA) to invest over $200 million into the Bowen Basin will create hundreds of jobs and shows the ongoing strength of the state’s coal industry.
BMA announced it would invest US$204 million in the Caval Ridge Southern Circuit (CRSC) capital growth project. The CRSC is an 11 kilometre overland conveyor system that will transport coal from the company’s Peak Downs Mine to the Coal Handling Preparation Plant (CHPP) at the nearby Caval Ridge Mine.
Queensland Resources Council Chief Executive Ian Macfarlane said it was great news for the local community and the broader Queensland coal industry, which had been struggling through a downturn over the past few years.
“These investments are driven by companies willing to invest because they see the fundamental drivers of global demand for high-quality Queensland coal remain strong,” Mr Macfarlane said.
“We know demand remains strong as there is no viable substitute for coking coal in the production of blast-furnace steel – no ‘Uber’ process waiting in the wings.
“This announcement today is good news for the coal sector and the benefits will flow into local communities and local businesses.”
The project will create up to 400 new construction jobs and around 200 ongoing jobs and is scheduled to start this year.
QRC’s current data shows that in 2015-16, the state’s coal industry’s total contribution of $32.7 billion, supported more than 180,000 jobs. The coal industry spent $11.3 billion in Queensland on more than 10,700 local businesses and almost 500 community organisations.
On 24 November 2016 the committee tabled its first Report which contained 10 Recommendations designed to improve the banking system for Australian consumers. The second Report affirms these 10 Recommendations, and calls on Government to implement each of them.
The March 2017 public hearings provided the committee with an opportunity to scrutinise the banks over their response to the committee’s November Recommendations and the Carnell Report Recommendation into the use of non-monetary default clauses in small business loans.
Committee Chair David Coleman MP said that the second round of hearings had provided a useful forum in which to scrutinise the banks on the November recommendations.
“Each of these Recommendations should be implemented,” Mr Coleman said.
“The committee is open to some modest variations to the first report Recommendations but affirms the substance of each of them.
“In particular, it is important that the committee’s Recommendations on executive accountability, creating a new focus on competition, and opening up of consumer data are acted upon.”
Mr Coleman said that ANZ had been notably more constructive than the other banks during the hearings.
“Other than ANZ, the banks all argued against the committee’s recommendations to put in place a new executive accountability regime and increase the focus on competition in the banking sector,” Mr Coleman said.
“The reasoning of the banks on these matters was not in any way persuasive and their views should be rejected by the Government.”
As part of the hearings, the committee scrutinised the banks over their use of non-monetary default clauses in small business loans. This matter was examined by the Australian Small Business and Family Enterprise Ombudsman, Ms Kate Carnell, as part of her inquiry into small business loans.
The committee commends Ms Carnell on her important work on this issue and has recommended that non-monetary default clauses be abolished for loans to small business.
The report can be accessed from the Committee’s website.
Debtset – Bailiff-Sheriff Aust MEMBER Login
