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SMSF audit cycle: more than one way to skin a rabbit say accountants

THE ASSERTION that moving self-managed superannuation funds’ (SMSF) annual audits to a three-year cycle will reduce compliance costs for trustees may be flawed; or it could be a cost deferral at best, according to the Institute of Public Accountants (IPA).

“The Government’s proposal to change the annual audit requirement to a three-yearly cycle for SMSFs with a history of good record-keeping and compliance may be very well intended but could well be misdirected,” said IPA chief executive officer, Andrew Conway.

“There are other ways to reduce the red tape involved in managing SMSFs.

“A well-functioning SMSF sector is a by-product of good regulation. The SMSF auditor plays a vital role in providing the regulator with assurances that SMSF trustees are playing by the rules.

“According to the latest ATO statistics, the percentage of the SMSF population with auditor contravention reports (ACRs) is approximately two percent of all SMSFs each year.

“Having one audit every three years that covers the three year period may seem more efficient but may not translate to cost savings.  The question needs to be asked if the potential cost savings, if any, are worth the risk of SMSF trustees becoming non-compliant.

“Does the Government want to put at risk the current record of good compliance?

“Not working with trustees in the unsupervised (unaudited) years may result in an increase in contraventions if this measure proceeds. Not addressing contraventions on a timely basis can result in the costs growing exponentially; as well as presenting a systemic risk.

“The annual audit cost may be begrudgingly paid by trustees but most trustees would see this as a form of insurance as the penalties imposed by the ATO for contraventions can be significant.

“Without the annual and timely audit oversight, we are concerned that the low rate of contraventions may start to reverse, for the sake of a potential small reduction in costs over time. A loss of integrity in the SMSF sector is simply not worth the risk.

“We urge the Government and regulators to look at alternative ways to reduce the compliance burden and cost associated with SMSFs,” said Mr Conway.

 

publicaccountants.org.au

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Queensland Government partners with industry to tackle waste

LIGHTING Council Australia relaunched Exitcycle, an industry-led battery recycling initiative, at Parliament House in Brisbane today.

The product stewardship arrangement was first trialed in 2015 and aimed to improve the recycling rates of emergency and exit lights. The program is supported by the Queensland Government, which recently confirmed an extension to the original program.

“With some 30 million emergency and exit lights across the country, it is critical that industry works with government and the community to improve environmental outcomes”, said Lighting Council Australia national environment manager, Roman Gowor.

“The majority of the green-emergency lights we see across all buildings are powered by a combination of older battery technologies, which often use cadmium, nickel metal hydride or sealed lead acid. In the coming years, newer generation batteries will use more sustainable components, however multiple sectors — government, industry and end users—must work together to find the best way of increasing recycling rates.

“We are very pleased with the leadership that the Queensland Government has shown on this issue.”

Today’s event included representatives from signatories to the Exitcycle scheme, recyclers, government officials and the lighting industry.

“The Exitcycle approach is successful because it is very well suited at addressing the specific waste issue," Mr Gowor said.

“Unlike a great proportion of batteries used across the economy, emergency and exit lights are not typically used in households and, by law, can only be serviced by electrical contractors.  The Exitcycle program is more targeted than other programs and focuses on electricians and facility and building managers.”

www.lightingcouncil.com.au

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New ARA poll: Australians want e-cigarettes legalised

AN OVERWHELMING 61 percent of Australians support the Federal Government regulating to make e-cigarettes, personal vaporisers and other less harmful alternatives to smoking available alongside cigarettes at retail so smokers have access to these products, according to a new poll conducted on behalf of the Australian Retailers Association (ARA) by Crosby Textor Group.

The poll found two-thirds of smokers support the legalisation of e-cigarettes and personal vaporisers and over two-thirds of all voters agree that the Australian Government should regulate, and make available, less harmful alternatives to cigarettes ‘as a way to completely phase out cigarette smoking in this country’.

Russell Zimmerman, executive director of the ARA, said regulating access to less harmful alternatives is a no-brainer for Australians, and the Government should get on with the job of making them available.

“More and more Australians are buying personal vaporisers with nicotine online from overseas, simply because they can’t buy them locally and this is affecting local retailers who are subject to an effective ban,” Mr Zimmerman said.

“The government needs to act so that responsible local retailers can compete on a level playing field and sell less harmful products for Australians trying to change their habits. Failure to regulate only increases the risks and there are currently no Commonwealth laws prohibiting advertising to children, or Australian standards for ingredients or vaporiser design to keep people safe.”

The ARA’s new poll has identified that 61 percent of voters place importance on the strain of smoking-related diseases on the health system, and 93 percent of voters are also interested in the state of the public health system.

“Allowing retailers the opportunity to sell these less harmful alternatives is a win-win, as it provides monetary benefits for local retailers and public health benefits for the wider community,” Mr Zimmerman said.

Countries all around the world including Canada, UK, New Zealand, Europe and the US, have legalised and regulated these products, which are not only beneficial for current smokers, but allow retailers to fairly compete in the market.

“It is clear that smokers are not prepared to wait around for the Government to act and improve their health, as hundreds of thousands of Australians are already using these products,” Mr Zimmerman said.

“Australians have been purchasing e-liquids containing nicotine through online marketplaces for years, and unfortunately consumers cannot guarantee the quality of the purchase and are unaware of the risks.”

 

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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National Congress calls on governments to increase Newstart immediately

NATIONAL CONGRESS of First Peoples has urged government to immediately raise the single rate of Newstart -  which has not increased in real terms in 24 years - while "the cost of living and essentials has risen dramatically".

A National Congress spokesperson said this disproportionately impacts Aboriginal and Torres Strait Islander peoples, as approximately 20 percent of First Peoples receive Newstart. 

“The shockingly low rate of Newstart makes it near impossible for many Aboriginal and Torres Strait Islander peoples to break the cycle of poverty or find a job," National Congress co-chair Jackie Huggins said.

"National Congress calls on governments to raise Newstart immediately to enable these peoples to make meaningful change in their lives."

Ms Huggins said a single person on Newstart Allowance receives $39 per day, and most are left with only $17 per day after paying for housing.

"This shockingly low figure means that over 800,000 people on Newstart struggle to afford essentials such as shelter and food," Ms Huggins said.

"The government’s decision not to raise Newstart while giving $13 billion of personal income tax cuts has been controversial. It would cost the budget approximately this figure to increase Newstart by $75 per week, as called for by the Australian Council of Social Services’ (ACOSS) ‘Raise the Rate’ campaign. 

"Recent polling reveals that more than two-thirds of Australians support an increase to Newstart, with 92 percent of people agreeing that no-one should go without basic essentials like food, healthcare and electricity."

A number of prominent business, non-government and political figures have called for its raise, including the Business Council of Australia, Deloitte Access Economics and former Prime Minister John Howard, who established the work-for-the-dole scheme. 

"I was in favour of freezing that when it happened, but I think the freeze has probably gone on too long,” Mr Howard stated at the PricewaterhouseCoopers post-budget breakfast.

"Congress urges governments to immediately increase Newstart to break the cycle of poverty and its severely damaging impacts on Aboriginal and Torres Strait Islander communities," Ms Huggins said.

https://nationalcongress.com.au

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DTA launches new government template for digital sourcing

THE DIGITAL Transformation Agency is simplifying its contract templates to make it easier for government to source digital products and services.

As part of the Digital Transormation Agency's ICT procurement reforms, it is continuing to review the government's  policies and contracts to make sure they reflect best practice in a rapidly changing technology environment, a spokesperson said.

"This week we released the Digital Sourcing Contract Template," the agency reported. "This is the first in a suite of model contracts to make it easier for government departments to buy digital products and services."

The new contract replaces SourceIT Plus and is simpler and more flexible than the previous template.

"By using the new template, those who are buying ICT and digital products for government don’t have to reinvent the wheel each time," the agency spokesperson said. "Contracts with government for simple and semi-complex procurements will be more consistent for sellers.

"Work is underway to update and simplify the other templates which are designed to be used when purchasing hardware, software and consultancy services."

The new contract template and the additional contract templates can be accessed through the Department of Finance website.

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