THE TWO major political parties are foreshadowing divergent tax changes but it will be left to tax agents who fully understand the implications to advise their clients on what it all means, according to the Institute of Public Accountants (IPA).

“The upcoming tax season will be the last opportunity for our members before the next election to communicate what these policy changes will mean for their clients, so we want them to explain the ramifications of what is proposed for informed decision making,” said IPA chief executive officer, Andrew Conway.

Labor policies mentioned so far:

1.  A restoration of the company tax rate to the full 30% coupled with a possible lower rate for smaller corporate entities with turnover less than $2M;
2. Higher personal tax rates at the top end and lower personal tax rates at the lower end;
3. An increase in the Medicare levy to 2.5% coupled with a more generous Medicare levy arrangement for lower paid workers than currently available;
4. A prohibition on negatively gearing investment properties other than newly built investment properties;
5. A halving of the capital gains tax (CGT) discount to 25% for individuals;
6. A minimum tax of 30% on all distributions from discretionary trusts;
7. A denial of any refund in respect of excess imputation credits;
8. A new deduction (the Australian Investment Guarantee) which will enable a 20% deduction in respect of the purchase of any new eligible asset worth more than $20,000;
9. Capping of deductions for managing tax affairs to a maximum of $3,000; and
10. Whistle-blower rewards for tax evasion.

In contrast the Coalition current tax policies (prior to May Budget) are:

1. A reduced corporate tax rate for all companies eventually with a target rate of 25%;
2. A likely reduction in personal tax rates particularly for income levels up to $100,000 – the exact details are unknown but should become clearer after the May 8 budget;
3. Apart from the already announced increase to the Medicare levy to 2.5% no further change in current arrangements;
4. No change to current arrangements regarding negative gearing of investment property;
5. No change to the CGT discount which currently sits at 50% for individuals;
6. No change to the current arrangements regarding trust distributions from discretionary trusts;
7. No change to the current arrangements regarding imputation in particular, full refund of excess imputation credits; and
8. No changes in relation to depreciation - the $20,000 immediate asset write-off available to 30 June 2018 is not currently being extended by the Coalition. That may change in the May 8 budget.

“Our key concern is that none of the political parties are talking about holistic tax reform where the total tax mix is taken into consideration.  Without bold and all-encompassing reform we will still be drowning with a raft of inefficient taxes which stifle growth,” said Mr Conway. 

www.publicaccountants.org.au

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THE Queensland resources sector has helped the state achieve the strongest annual growth in trend employment in Australia based on jobs data released today.

Queensland Resources Council Chief Executive Ian Macfarlane said the Australian Bureau of Statistics has reported Queensland’s annual job growth was 4.3 percent ahead of all other States and Territories, outpacing nearest rivals the Australian Capital Territory (3.9%) and New South Wales (3.6%).

“Queenslanders are the winners with this strong growth in jobs, and I am proud the resources sector is contributing so much of this growth,” he said.

“Last financial year, direct full-time equivalent jobs in the resources sector grew by 12.7 percent to 38,150.

“Across the state, the resources sector supports one in every eight jobs.

“We are seeing more growth with online jobs site SEEK identifying a year-on-year growth of 10.3 percent of advertised vacancies in the mining and energy sectors.

“The signals for future growth are strong.”

Mr Macfarlane said while Queensland’s unemployment rate remained at 6 percent, the resources sector was determined to work with its industry and government partners to drive up opportunities and drive down unemployment.

The Queensland Resources Council is the peak representative body for Queensland's resource industry. The Queensland resources industry provides one in every $6 dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 business across the State all from 0.1 percent of Queensland's land mass.

www.qrc.org.au

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EFFORTS by Australia’s world-class defence industry to export internationally will receive a boost, with the Minister for Defence Industry, Christopher Pyne, visiting Malaysia from April 16-17, 2018.

Mr Pyne will visit the Team Defence Australia stand at the Defence Services Asia (DSA) 2018 exhibition in Kuala Lumpur. The stand at DSA 2018 showcases the wide range of products and services Australian defence companies are seeking to export.

“Our Team Defence Australia delegation consists of 27 companies, including small and medium enterprises, a record number for Australian participation at DSA, attesting to the competitiveness and innovative capabilities of Australian defence industry,” Minister Pyne said.

“Events such as DSA are a great way for Australian companies to showcase their capabilities, leading to new export opportunities.”

Mr Pyne said that the Australian Government had dramatically increased the support available for Australian companies to identify and seize new export opportunities.

“The soon to be launched Australian Defence Export Office, an initiative of the Defence Export Strategy, will deliver a suite of new initiatives to help Australian companies become export ready, expand their businesses and achieve export success,” Mr Pyne said.

Mr Pyne will also meet with Malaysian Minister for Defence (caretaker), Dato’ Seri Hishammuddin bin Tun Hssein, and the Chief of the Defence Force to discuss opportunities to deepen Australia-Malaysian industry engagement. 

“Australia greatly values our longstanding defence relationship with Malaysia, which is underpinned by our shared interest in promoting regional security,” Mr Pyne said.

Mr Pyne will also take the opportunity to meet with a number of his other counterparts visiting for DSA to discuss Australian Defence export opportunities and collaboration.

DSA 2018 runs from April 16-19 2018 at the Malaysia International Trade and Exhibition Centre, Kuala Lumpur. Further information about Defence Services Asia 2018 can be found at http://www.dsaexhibition.com.

Companies attending Defence Services Asia 2018 as part of Team Defence Australia include:

• Aerospace Maritime and Defence Foundation of Australia
• Armor Australia Pty Ltd
• Austal
• Australian Maritime Technologies Pty Ltd
• Australian Target Systems Pty Ltd
• Ballistic & Mechanical Testing Pty Ltd
• Blueye Eyewear Pty Ltd
• Britton Maritime Systems
• Calytrix Technologies
• Codan Radio Communications
• Craig International Ballistics
• Defence Vision
• Depth Logistics
• DroneShield Limited
• Fountx (associated with TAE)
• Hawker Pacific
• Holmwood Highgate
• Intelligent Security Integration Australia Pty Ltd
• JAR Aerospace
• Prism Defence
• RUAG Australia
• Scientific Management Associates
• SOS Marine
• TAE Aerospace
• Thales Australia
• Trakka Systems
• W & E Platt Pty Ltd

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THE CeBIT Australia StartUp Conference and PitchFest 2018 will bring a fresh wave of innovative technology ideas to the showfloor.

The Australian start-up industry is growing with overseas investments totalling over US$555 million last year. New South Wales, the host state of CeBIT Australia, produces 44 percent of the nation’s start-ups, and the recently opened Sydney Startup Hub in Sydney’s CBD has been a landmark $35 million government investment to ensure the start-up ecosystem continues to thrive. 

A collaboration of resources between CeBIT Australia, the NSW Government, the Australian Computer Society and the Business Centre, will see more than 80 start-ups set to feature ingenious, new-wave technologies on the showfloor at CeBIT Australia from May 15-17, 2018.

The NSW Government will showcase the state’s very latest tech talent leading the future of business, from engineers who merge artificial intelligence and machine learning creating biometric technologies, to industrial design for hi-tech devices in medical, agriculture, industry and consumer industries. The NSW Government-backed, Jobs for NSW, will also be showcasing 16 start-ups assisted through its support programs.

Acting Premier, John Barilaro, MP, said start-ups were accelerating innovation and generating jobs for the economy.

“Here in NSW, we’re doing everything we can to create the right environment for people to have the confidence to launch and the support they need to give their start-up the best chance of success," Mr Barilaro said.

“Start-ups are the future of our economy and with the right backing they can develop and deliver new products and services that lead to jobs for the people of NSW and Australia.

“Our state is the nation’s start-up capital and the NSW Government is proud to showcase the latest and best of our NSW start-ups at CeBIT Australia,” said Mr Barilaro.

Harvey Stockbridge, managing director of Hannover Fairs Australia commented on the new start-up exhibition zones on the showfloor.

“CeBIT Australia hosts the largest start-up showcase in Asia-Pacific," Mr Stockbridge said. "This year the CeBIT StartUp hub features a fantastic series of presentations on the FutureTech Stage. IoT, FinTech, AI and Machine Learning, and the start-up industry itself will all be covered by leading industry experts.

"The StartUp Zone will feature three StartUp Co-Working spaces, a new feature for 2018 which allows start-ups the opportunity to meet new potential clients, business partners or investors, network and share ideas, and engage with VCs and angels on the showfloor,” said Mr Stockbridge.

The renowned CeBIT StartUp Conference, on Thursday 17 May will deliver a series of inspirational sessions, where a host of experts will participate in panel discussions and presentations about the growth, challenges and opportunities for start-ups.

The StartUp Conference will begin with a presentation by Amadeus on ‘The Sweet Spot – why start-ups should target that 21st business problem,’ while the rest of the conference is made up of three panel discussions covering key questions of the start-up community:

• Demystifying VC’s – A frank chat about what actually happens at a venture capital firm;
• Building a Global Business;
• Accelerator / Incubator / Co-working hub “what you need to know” series.

Following the StartUp Conference is CeBIT Australia’s highly successful PitchFest contest showcasing 10 finalists, who will actively pitch their innovations and technologies to a panel of expert judges in front of an audience of fellow start-ups, investors and potential customers.

Previous winners of CeBIT Australia PitchFest have gone on to become multi-million-dollar, multinational companies. Previous winners include the Look Who's Charging merchant database which helps Australians easily identify the merchants that charge to our credit cards, NetHealth which provides comprehensive software solutions for the medical industry, and the revolutionary TouchOne Smartwatch Keyboard.

CeBIT Australia’s StartUp conference and PitchFest are free to attend. CeBIT PitchFest is one of Australia’s premier start-up launch pad platforms. This year’s finalists will be announced in early May.

For more information about the spotlight on start-ups at CeBIT Australia, visit:
www.cebit.com.au/startup-and-pitchfest

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THE GOVERNMENT’s announcement that further consultation into ASIC’s future funding model will take place has been welcomed by the Institute of Public Accountants (IPA). 

“The IPA argued strongly that the originally proposed one-off fee increase from $107 to $3,429 for new auditors of SMSFs was exorbitant,” said IPA chief executive officer, Andrew Conway. 

“While the new proposed fee has been reduced to $1,927 is a step in the right direction, it is still far too high and will only deter new entrants into the SMSF auditor market.

“Keep in mind, the ATO currently already collects $259 from each SMSF to finance the SMSF monitoring role the ATO conducts on behalf of ASIC.

“This levy was a mere $45 in 2008 but now equates to approximately $142.5M (550,000 SMSFs multiplied by $259) to monitor the sector including SMSF auditors.

“In 2011/12, the Government provided ASIC with $10.7million over five years, to develop and maintain an online registration system for auditors of SMSFs.  ASIC also developed a competency exam for auditors, enabling ASIC to deregister non-compliant auditors.

“The Government also gave the ATO $10.6million over five years to police registered auditors, check their compliance with competency standards set by ASIC and where necessary, refer non-compliant auditors to ASIC for appropriate punishment.

“Surely, any fee increase under the proposed fees-for-service funding model must take into account the money already being collected via the ATO supervisory levy.

“While we understand the objectives of a new funding model and the role of ASIC, we have a major concern over any impact these fees will have on competition, especially when there has already been a decline in the number of SMSF auditors in a market which is being dominated by the major players.

“We simply ask, what is the justification of these fee increases?

“We look forward to the next round of consultation to get ASIC funding and resourcing right,” said Mr Conway.

www.publicdaccountants.org.au

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THE Innovation, Industry, Science and Resources Committee has tabled its report for the Inquiry into impacts on local businesses in Australia from global internet-based competition.

Internet commerce currently accounts for only a small proportion of the Australian retail market but is growing rapidly. As a result of this growth, Australian businesses are experiencing increased competition from overseas firms using the internet to directly market to Australian consumers. At the same time many Australian small businesses are exporting their products to consumers across the world for the first time.

The Committee Chair, Barnaby Joyce MP, stated that "the Committee has recommended the creation of a digital grants program for small businesses. Online shopping is only going to continue to grow and disrupt trade in traditional bricks and mortar shops around the country.

"It is vital that we support Australian businesses to invest in the digital technologies, while demonstrating advantages of the virtual marketplace based in regional areas where infrastructure like the NBN is available and overheads such as rent can be much cheaper, that will enable them to take advantage of internet retail opportunities," Mr Joyce said.

The Committee also considered the effects of internet competition on employment.

"As technology changes so do the skills required in the workforce. Because of this, the Committee has also recommended the establishment of a digital retraining fund to support Australian workers to develop their skills in using the technologies that will be crucial to finding and maintaining jobs in the future," Mr Joyce said.

The Committee made further recommendations relating to: Australia’s ability to forecast future workforce skill needs; developing information materials for small businesses; and the regulation of digital retail platforms.

The report is available on the Committee’s website.

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