According to Geoff Leeper, Second Commissioner of the Australian Taxation Office (ATO), the ATO’s ‘Red Tape Reduction Strategy’ will reduce accountants’ income. Mr Leeper was speaking at last week’s Smithink 2020 ATSA Conference in Melbourne.
“The ATO’s Red Tape Reduction Strategy will reduce the cost for SMEs, from the Small Business Reporting (SBR) strategy, by $500million a year. A lot of that will come from professional fees. This is the ‘digital disruption’ for accountants.”, Mr Leeper said.
Understanding incidents relating to insolvency practitioners, the Personal Property Securities Act (PPSA) and the Personal Property Securities Register (PPSR) will assist accountants in their services to businesses.
There’s been a steady flow of incidents, which relates to ‘insolvency events’, the PPSA and the PPSR, including:
Lack of knowledge of the Personal Property Securities Act (PPSA) and the Personal Property Securities Register (PPSR) could be a ‘time bomb’ for businesses.
Millions of dollars has already been lost by businesses who paid for an asset but haven’t registered that asset on the PPSR. Whilst it’s voluntary to register, if your client is going to register, he/she has to register within a very tight registration time period. This highlights the need for a proper due diligence review to be undertaken now (if not yet done) so the decision can be made promptly on whether the registration of a transaction or asset rental, lease or storage is to be made on the PPSR.
Planning services for ‘disrupted’ industries is certainly a topical subject at present, following the publication of the updated Deloitte report, ‘Digital disruption – short-fuse, big bang?’
Deloitte have identified 17 industries, comprising 65% of the Australian economy, which will face significant ‘disruption’ by 2017.
Introducing a business advisory services strategy to your accountancy business will give you the tools to assist the identified industries.
The industries listed under the categories given by Deloitte were as follows:
“Thank you, I now feel like I’m offering real accounting services.”
Deloitte has predicted significant ‘digital disruption’ to professional services firms (of which accounting services are part), amounting to a 32% drop in business activity.
Deloitte has made some suggestions on how the ‘digital disruption’ can be reduced, including ‘replenishing revenue streams’.
Many business operators run out of time and they ask their accountants who can assist them?
A new organisation has been formed in Sydney in the last couple of months called “Your General Manager” (YGM) which offers a very unique service in supplying a wide range of business expertise to assist owners and managers of small/medium enterprise businesses.
The Australian government has announced changes to the Business Growth Grant program, commenced in July this year.
The revised list of industries eligible for the Business Growth Grant includes:
The Personal Property Securities Act (PPSA) contains potential risks to your clients. Millions of dollars have already been lost by businesses, both small and large, caused by ignorance of the PPSA and not registering on the Personal Property Securities Register (PPSR).
The PPSA is the most far-reaching legislation introduced into Australia in the last 200 years.
Title is no longer king.
The fact that the business paid for an asset does not mean that the business is able to retrieve the asset at any time, unless the business has taken steps to adequately protect their position on the PPSR.
The Australian government’s Business Evaluation Program, which can then lead to a business being eligible for Business Growth Grant, is great news for some businesses operating in the tourism industry.
To be eligible, businesses must derive a significant portion of their revenue from tourists. The types of businesses include: