Proposed Division 7A changes

What are the changes? In broad terms, Division 7A is an anti-avoidance provision of the Income Tax Assessment Act 1936 that has the potential to deem loans from private companies to related parties to be unfranked dividends.  On 22 October 2018, Treasury released a consultation paper that proposed radical changes to the way Division 7A … Continue reading “Proposed Division 7A changes”

Transaction completed, or not?

Selected post-transaction Valuation and Accounting considerations A successful transaction takes an immense amount of time, effort and skills. The expertise of several advisers and stakeholders are required to collaborate effectively to ensure an optimal outcome from each perspective. Transactions typically have a long duration and when the ‘ink is finally dry’ on the contracts, transaction … Continue reading “Transaction completed, or not?”

Is your business compliant with customs and excise duties obligations?

The Australian Border Force (ABF) are making trade enforcement one of their key operational priorities with an increase in the penalties payable under the Infringement Notice Scheme (i.e. an “administrative enforcement remedy” that is an alternative to prosecution in Court). Pursuant to the Infringement Notice Scheme, a person or company does not have to be … Continue reading “Is your business compliant with customs and excise duties obligations?”

Labor proposed Super Changes – could the changes affect the way you manage your super?

As you may be aware, the Labor Party have released a number of proposed changes to superannuation should they win the upcoming election. Whilst this is not an exhaustive list, I have detailed some of the changes below in order to give an overview and provide an insight into how these changes may affect SMSFs.  … Continue reading “Labor proposed Super Changes – could the changes affect the way you manage your super?”

Single Touch Payroll – Are you compliant?

Legislation was passed on 12 February 2019 that requires businesses with less than 20 employees to commence Single Touch Payroll (STP”) reporting from 1 July 2019.  Businesses with 20 or more employees were required to commence reporting from 1 July 2018 unless an exemption or deferral was obtained. We have seen a number of small … Continue reading “Single Touch Payroll – Are you compliant?”

Financial statement disclosure of climate-related and other emerging risks

If you are a director or financial statements preparer in an industry impacted by climate-related risks, guidance has been issued which indicates that climate-related risks are a financial statement consideration, not just a matter of corporate social responsibility. The Australian Accounting Standards Board has issued a Practice Statement (AASB Practice Statement 2 – Making Materiality … Continue reading “Financial statement disclosure of climate-related and other emerging risks”

ASIC focus areas for December 2018 Financial Reports

No surprises in the release of ASIC’s focus areas for December 2018 with the number one item being the impact of the new accounting standards. Financial reports for December year-ends and December half-years, are implementing AASB 15 and AASB 9 for the first time.  ASIC Commissioner, John Price said, “We are concerned that some companies … Continue reading “ASIC focus areas for December 2018 Financial Reports”

Aspects of Negative Gearing Australian Real Estate

Negative gearing will again be a political issue during the lead-up to the next Federal election. What is Financial Gearing A combination of debt and equity is commonly used to fund investment in assets, such as rental properties, shares or business assets. A leveraged investment refers to the method of using borrowings plus an investor’s … Continue reading “Aspects of Negative Gearing Australian Real Estate”