THE proposed increase in registration fees for new auditors of self-managed superannuation funds (SMSF) appears to be excessive according to the Institute of Public Accountants (IPA). 

“A one-off fee increase from $107 to $3,429 is exorbitant.  Even more unfathomable is that an auditor exiting the sector will be hit with a deregistration fee of $899,” said IPA chief executive officer, Andrew Conway.

“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 $10.7M 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 $10.6 million 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.

“Some of the funding for the SMSF auditor registration process was also sourced by ASIC charging auditors to sit the SMSF auditor competency exam.

“Surely, the fee increases 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 the new funding model and the role of ASIC, we have a major concern over the 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.

“SMSF auditors, who are members of one of the three professional accounting bodies, such as the IPA, are already well regulated in our co-regulatory system, which requires them to maintain their professional and ethical standards.

“We are calling on the Government to reconsider the proposed fee increases which will deter new entrants from entering the market,” said Mr Conway.

publicaccountants.org.au

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THE Queensland Resources Council (QRC) today called for the State Government to stand-up for the resources sector and to acknowledge coal’s fiscal value to the state budget and the thousands of coal workers who help deliver the royalties.

QRC Chief Executive Ian Macfarlane said the Mid-Year Financial Economic Review (MYFER) yet again showed resources, especially coal, underpin the budget.

“Coal royalties are expected to reach $414 million above the 2017-18 budget forecast or $3.16 billion forecast over the financial year. Revenues from all resources including coal, gas and metals not only pay the wages of teachers, nurses and police they build the schools, hospitals and police stations,” Mr Macfarlane said.

“The extra coal royalties alone would pay for the North Queensland Stadium ($250 million), four schools such as the new state school at Caloundra South (4 x $34 million) and three police stations in the regions (3 x $8.3 million).

“For the second year in a row resources have delivered an early Christmas present for the government and all Queenslanders. When the resources sector is doing well, the entire Queensland economy benefits.

"The sector continues to be a mainstay of employment and economic growth in Queensland, ensuring that every Queenslander benefits from this great industry."

Last financial year the sector generated $55.1 billion in economic prosperity for the state and achieved this contribution while using only 0.1 per cent of Queensland’s land mass.

www.qrc.org.au

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MINISTER for Defence Industry, Christopher Pyne MP, has announced Naval Group has released expressions of interest and requests for information to help get Australian industry involved in Australia’s Future Submarines.

Mr Pyne said Naval Group was seeking Australian industry ‘know how’ as the $50 billion Future Submarine Program continued to gather momentum.

“The Turnbull Government is committed to a sovereign naval shipbuilding capability and this includes 12 regionally superior submarines for our Navy,” Mr Pyne said.

“These submarines will be built in Australia, by Australians, which will maximise local industry involvement in all phases of the program."

So far around 130 companies have been pre-qualified by Naval Group to be part of the program. 

“Naval Group continues to support the Turnbull Government in this endeavour and is looking to Australian industry to manufacture and supply critical equipment and other common technologies for the submarines," Mr Pyne said.

“Opportunities exist for Australian industry to provide everything from electrical, mechanical, heating and air conditioning equipment, to castings, steel and titanium products.

“This is part of a wider suite of activities aimed at collecting information on industry’s capability to supply products and technologies required to manufacture and sustain the Future Submarines in Australia.

“These are the first major equipment information requests released by Naval Group, with more scheduled for release progressively throughout 2018, and complemented by the continuation of industry briefing days.

“Australian industry involvement in the Future Submarine Program is expected to generate an annual average of around 2,800 jobs over the life of the Program,” Mr Pyne said.

Companies wanting to know more about the program or respond to Naval Group’s request can visit the Future Submarine Industry Capability Network Gateway:

https://gateway.icn.org.au/project/3915/naval-group-future-submarine

The deadline for interested companies is January 5, 2018.

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THE Joint Committee of Public Accounts and Audit has launched a new inquiry into Commonwealth Contracting. The inquiry is based on the Auditor-General’s Information Report—Australian Government Procurement Contract Reporting(Audit Report No. 19, 2017–18).

The Committee’s inquiry will examine matters raised by the Auditor-General’s insights on contract information reported over a five-year period (2012–13 to 2016–17) in AusTender — the Australian Government’s centralised publication of contract notices. Particular areas included:

• the volume and value of Government procurement contracts;
• entities’ procurement contract behaviour as it relates to the timing of procurements during each financial year; and
• reporting on the number and value of contracts undertaken with Small to Medium Enterprises.

The Committee invites submissions to the inquiry addressing the terms of reference. Submissions are requested by 16 February 2018, with public hearings held from February 2018. Complementary Submission Guidance, which highlights the Committee’s five areas of focus, has also been prepared to assist submitters with their respective input to the inquiry.

Committee Chair Senator Dean Smith said Commonwealth contracting was worth $47.4 billion in 2016–17 and was an area of public expenditure that deserved close and constant scrutiny.

“Effective procurement contract behaviour is vital and transparency in contract reporting is critical so that the Government can assure itself and the Australian public that entities are achieving their objectives in an efficient and cost-effective manner,” Senator Smith said.

Interested members of the public may wish to track the committee via the website. 

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