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What are the Top 5 Accounting Firms for Professional Accounting Services in Australia?

Posted on September 13, 2021September 13, 2021 by admin

The accounting sector of Australia has boosted over the last few years. The local accounting services industry is comprised of accounting, auditing, bookkeeping, advisory, and tax services. Of the accounting firms in Australia, the Big Four hold a significant share of the market.

Overview of the Top Accounting Firms in Australia:

Australia has three professional accounting bodies that determine the accounting rules and regulations that apply to Australian accounting businesses. The Institute of Public Accountants (IPA), CPA Australia, and the Institute of Chartered Accountants of Australia are the three organizations (ICAA).

The Big Four Accounting Firms in Australia are comprised of the major part of the accounting market. The services provided by the accounting firm in Australia are generally related to the following domains:

Audit and Assurance-

To get to the bottom of accounting irregularities, the firm conducts rigorous and impartial audits. It offers a practical answer to the problem, assisting clients in achieving compliance.

Tax-

The tax service assists startups in establishing business tax structures and regulating employment tax difficulties. It also assists clients with a variety of other tax-related issues, such as managing GST and indirect taxes, as well as other tax breaks.

Financial Advisory-

With the support of their qualified personnel, accounting firms in Australia assist their clients in offering corporate finance, restructuring consulting, and forensic advising services. During mergers and acquisitions, clients are offered a variety of services, such as evaluating the capital structure by valuing the target firms and assisting with loan financing.

Consulting:

An accounting consultant advises businesses on financial decisions and their accounting systems. Common duties performed by an accounting consultant include

improving accounting practices,
preparing year-end financial statements,
analyzing financial data,
advising the finance department on regulatory compliance issues.

An accounting consultant helps business leaders stay abreast of changes in tax laws and financial reporting requirements, which ensures compliance with federal laws.

5 Top Accounting Firms in Australia

Let us discuss the top accounting firms in Australia:

PwC Australia

PwC is one of the prominent figures of account in Australia, serving Adelaide, Brisbane, Canberra, Gold Coast, Melbourne, Perth, Newcastle, and Greater Western Sydney.
PwC is one of Australia’s largest accounting firms, with roughly 500 partners and 5,800 employees.
PwC Australia made about $1.92 billion in revenue in 2016.
It focuses on the fact that in today’s fast-paced society, staying relevant is key and means challenging them to be a step ahead of the competition.

KPMG Australia

KPMG Australia recorded $1.37 billion in revenue in FY 2016 under the leadership of Duncan McLennan, national managing partner.
KPMG Australia emphasizes the importance of audit quality and the idea that it’s not just about arriving at the correct conclusion, but also about how that conclusion is arrived at.
The processes and integrity behind the official audit report are the focus of KPMG Australia.
The accounting firm’s main emphasis is on the quality of the audit and also focusing on the fact that how the right opinion is reached and not just reaching the right opinion.

Ernst & Young Australia

This organization focuses on offering high-end audit services to all of its clients in an objective and ethical manner.
As per Ernst & Young Australia’s transparency report, the firm had reported revenue of $1.48 billion in the Fiscal year 2016, whereas its previous year’s revenue was $1.28 billion.
EY’s reputation as one of Australia’s leading accounting companies is built on offering impartial and ethical professional audit services to every client.

Deloitte Australia

The major goal of this accounting firm is to make a meaningful impact and leave a lasting impression.
The company invests in innovation, technology, and qualified workers, as well as growth through acquisitions and alliances.
The competitive advantage of the firm is to be progressive with their approach.

Universal Taxation Services:

Universal Taxation is a wildcard entry in this list for its quick succession over a short span of time
They have been able to acquire the trust of big name entities in various industries of Australia.
They are located in Gosnels, Perth.
It has specialized personnel for Audit, Corporate Finance, Risk Advisor, Business Restructuring, Business Services, and Tax, to name a few.
This accounting firm is known to provide comprehensive business and corporate advisory services for its clients.

Tax Filing in Australia: 10 Things You Should Know Before Filing for Your Tax Returns

Posted on September 13, 2021September 13, 2021 by admin

Tax might be difficult and one of the most complex necessities grasp – unless you’re an accountant. The reason that makes these taxes so onerous is that it varies depending on your income and employment. Not only that, but the guidelines provided to assist you during tax season is not always sufficient. So, what are the essentials of tax filing in Australia?

All You Need to Know About Tax Filing in Australia

Individuals’ taxable income is subject to income tax, which is paid on all sorts of income. This comprises your employment pay, business profits, and investment returns, such as the interest you earn on your bank account.

Taxpayers who have multiple employment and various taxable income sources must declare all of their earnings.

Here are the 10 things you need to know before tax filing in Australia:

General Information:

The Financial year in Australia runs from July 1^st – June 30^th.
Your employer deducts tax from each pay and send it to ATO (Australian Tax Office)
The timeline for tax season every year is July 1^st to October 31^st. Every person with a taxable income has to lodge a tax return with the ATO during this time period.
You are entitled to tax filing in Australia through a taxation agency like Universal Business Group.

Tax File Number (TFN):

If you have recently moved to Australia and wish to begin working, you are entitled to apply and register yourself for a Tax File Number (TFN).
The Tax File Number is your identification with The ATO and other government agencies
You are supposed to possess this number for the rest of your life so it is imperative you keep it private and secure.

Tax File Declaration Form:

Tax File Declaration Form is your guideline for the tax payment. You are supposed to receive this Form from your employer at the time of your hiring.
Fill this form with the right details for compliance with the right amount of payable tax. Make sure you tick the box to claim the tax free threshold.
The tax-free threshold is the amount of income you can earn each financial year that is not taxed. As of 2021 that threshold is $18,200 per year.

Taxable Income:

According to the Australian Tax System, an individual is allowed to earn up to $18,200 in any financial year in order to be granted exemption from tax filing.
The tax-free threshold in equal to $350 a week, $700 a fortnight, or $1,517 a month.
However, if you earn above the threshold, you’ll need to pay tax. Here’s a breakdown for taxable income:

Taxable Income	Tax Rate
$0 – $18,200	Nil
$18,200 – $45,000	19%
$45,001 – $120,000	32.5%
$120,001 – $180,000	37%
$180,001 and over	45%

Medicare Levy:

Australian residents get access to healthcare through Medicare which is partly funded by the proceeds of the Medicare Levy.
All taxpayers pay a Medicare Levy each year in addition to their tax, which is 2% of their taxable income.
In addition to the Medicare Levy, taxpayers need to pay a Medicare levy surcharge in case of not possessing private hospital insurance with an earning of above $90,000 as a single person or $180,000 as a family.
The MLS is between 1% and 1.5% of the taxable income.

Declaring an Income:

Taxpayers need to keep a record of income statement. It is the record of all the income that ATO received from your employer during the financial year.
Furthermore, it is important that all the records of sources of income you receive each year are declared and supplied. These include:
interest on savings
Income from any activity in the gig economy.
Income from freelance
Received rent from a private room.
Any other form of income that you received.

Procedure to Lodge a Tax Return:

If you’re going to lodge your return yourself, you can do so online by using “myTax.”
For this process, you’ll need a myGov account linked to the ATO to lodge directly with the taxation office.
This procedure could be risky as even a simple mistake could make your safe returns crumble. That is why people make use of tax experts like Universal Business Group.

Tax Refund:

When you overpay your taxes, ATO is obligated to return it to you in the form of Tax Refund.
Most people get a tax refund once they’ve lodged a tax return. The average tax refund in Australia is around $2,500.
The ATO pays your refund directly into your nominated bank account. It is important for you to ensure your bank account details are entered correctly.
It usually takes around 10 – 14 days to receive your tax refund, though it can be faster.

Tax Payable:

When your employer does not withhold enough tax throughout the year, you may owe tax to the ATO
If you receive additional income not taxed prior to when you receive it, this also shows as money owed.
If you’re unable to pay it straight away, a tax agent can negotiate an affordable payment plan directly with the ATO on your behalf.

Use of a Taxation Agency:

Using a tax agent for tax filing in Australia could be beneficial since the system is complex and you’re prone to making a mistake.
A tax agent always keeps you in check with the deductions and attainable tax credits that has a substantial impact on the tax return.
A tax agent helps in compliance and declaring all assets justly and wisely.
A tax agent makes sure you don’t overpay your taxes or get in trouble with the ATO, which can often be the case without expert supervision.

Income Tax Developments for July 2021

Posted on September 6, 2021September 6, 2021 by admin

In this piece of article, we are going to discuss how income tax developments have impacted businesses across Australia in the last two months.

Let us look at some key factors in the recent updates by the Australian Taxation Office in July 2021.

Income Tax Developments by ATO in July 2021 and forth

CGT improvement threshold for 2021-22

The capital gains tax (CGT) improvement threshold for the 2021–22 year is $156,784 (up from $155,849 for the previous year).

Draft of Excluded Transactions

The draft of excluded transactions and entities from Third-Party Reports on Shares and Units determination along with its explanatory statement was released by the ATO on May 3^rd, 2021.

The determination comprehends that certain transactions will be exempted from being reported to the Commissioner and other entities from having to prepare and lodge reports under the third party reporting regime.

The determination has been brought forth as a replacement to an earlier determination registered in 2018, which gave fewer exemptions of transactions and lodgings.

These reduced reporting requirements should be noted by taxpayers who will be covered by the new entity exemptions or are likely to engage in excluded transactions.

This draft determination is also beneficial for entities with a reporting obligation to the Tax administration office under Division 392 of Scheme 1, which deals with employee share schemes.

Practice Statement PS LA 2020/1

Allowing an entity additional time to register for an ABN or notify the Commissioner of assessable income or supplies is at the Commissioner’s discretion.

The ATO has amended its Practice Statement, which outlines when the Commissioner will use his discretion to grant a business additional time to hold an ABN or report business income in order to meet the cash flow boost or JobKeeper payment eligibility conditions.

The updates generally concern the relevant factors for assessing whether or not the Commissioner’s exercise of his discretion is appropriate.

Draft Law Companion Ruling LCR 2021 2021/D1 Temporary full expensing

This draft Ruling deals with temporary full expensing that is the immediate write-off of costs of depreciating assets as introduced by the JobMaker tax plan legislation.

Temporary full expensing, the assets that are eligible, consolidate group rulings of operations as well as full expensing rules, the interaction of the newly introduced temporary full expensing with previously introduced instant asset write-off and backing business investment, and the operation of temporary full expensing for small business entities is covered by this draft determination by the ATO.

Taxpayers who want to take advantage of the temporary full expensing measures should ponder whether their relevant companies are qualified and whether their assets are fully expensive.

Practice Statement PS LA 2001/13 Franking credits and part payment of liabilities notified on activity statements

With effect from June 17, 2021, this practice statement on the impact of partial payment of activity statement liabilities on an entity’s claim to franking credits has been removed

Taxation Ruling TR 2021/2 “Car parking benefits”

The Commissioner’s position on when the provision of vehicle parking is a car parking benefit for the purposes of the Fringe Benefits Tax Assessment Act 1986 is set forth in this Taxation Ruling.

The Ruling overturns the earlier position that automobile parking facilities having the main purpose other than offering all-day parking were not commercial parking stations for benefits granted on or after April 1, 2022

The decision does not define “principal place of employment,” but it does say that it will be revised in the future to give more information on the subject.

Taxpayers should consider all about the instructions in this judgment and how it could affect their liability for fringe benefits tax on vehicle parking facilities they supply or that are close.

Draft Taxation Ruling TR 2021/D3 Income tax: research and development tax offsets – the at risk rule

The ATO has issued provisional guidance on the “at-risk rule” for expenditure on R&D.

The at-risk rule prevents or decreases a notional deduction for the R&D tax credit if the R&D firm or one of its associates had received a tax credit at the time the expenditure was made (or could reasonably be expected to receive) regardless of the outcomes of the activities on which the entity incurs the expense, attention is given as a direct or indirect result of the expenditure.

The value of both monetary and non-monetary benefits is included in the amount of consideration when deciding whether the “at-risk rule” is satisfied. The Commissioner stated that Div 355 is subject to a broad interpretation of the term “consideration.”

ATO stated in Draft Taxation Determination 2020/D1 that research and development activities subsidized by JobKeeper payments do not satisfy the “at-risk” rule.

Taxpayers are more likely to be subject to the “at-risk rule” now that “consideration” has a broader interpretation that includes both monetary and non-monetary benefits.

When entering into arrangements where R&D expenditure is incurred and direct or indirect consideration is obtained as a result of the spending, taxpayers wanting to rely on the R&D tax offset should be aware of this draught judgment and any further developments.

Draft Taxation Ruling 2021/D4 Income tax: royalties – character of receipts in respect of software

This Draft Taxation Ruling has replaced the Taxation Ruling TR 93/12, which has been withdrawn.

The Australian Taxation Office (ATO) has released interim guidance on when royalties are earned from software licensing and distribution.

According to draught TR 2021/D4, an amount is a royalty if it is paid or credited as payment or credit for service.

When this judgment takes effect, taxpayers who license or distribute computer software should examine whether the receipts from their transactions would be considered royalties.

Payments for the right to sub-license software will be deemed royalties even if the payment is for the right to give licenses for the basic use of the software, according to software distributors who sub-license software.

Draft Practical Compliance Guideline PCG 2021/D4 Intangibles Arrangements

The Commissioner has issued preliminary guidelines on the ATO’s compliance approach to international agreements relating to intangible asset development, enhancement, maintenance, protection, and exploitation (DEMPE). Comments on the preliminary guidance will be accepted until July 16, 2021.

The ATO’s involvement in examining the aforementioned types of arrangements, particularly any that do not fairly depict the nature and scope of Australian activities related to the DEMPE of intellectual assets, is emphasized in the recommendation. The ATO believes that these structures could be set up to avoid paying taxes.

The guideline also discusses the potential for transfer pricing provisions, withholding tax provisions, capital gains tax, capital allowances, the general anti-avoidance rule, and the diverted profits tax to be applied.

Taxpayers who have entered into international agreements related to DEMPE functions involving intangible assets may consider doing a PCG risk assessment.

ReadMore: Covid-19 Support Package for Businesses; Details and How to Apply?

Covid-19 Support Package for Businesses; Details and How to Apply?

Posted on September 6, 2021September 6, 2021 by admin

The government of Western Australia has come up with a support package for businesses to aid in the loss of business revenue as a result of the recent circuit-breaker four-day lockdown and interim restrictions.

If you’re a small business, single trader, or not-for-profit organization in Perth, Peel and regional Western Australia, you could be eligible for a one-time grant of $3,000 if you’ve been impacted by the latest COVID-19 restrictions.

The COVID-19 business grant for 2021 will help small businesses who have seen a drop in demand or had to close owing to public health orders. It will provide small businesses in the industry sector with cash flow.

Eligible applicants across WA can use the grant for business costs incurred at the start of the lockdown period of 12:01 am Tuesday 29 June 2021. Such losses may include:

salaries and wages
utilities and rent
financial, legal or other advice
marketing and communications
perishable goods
Other business costs.

How Can We Help?

Here’s how we can help pave a convenient way for you to attain the covid-19 grant for your business.

A qualified accountant, registered tax agent or registered BAS agent may apply for the grant on behalf of your business.

Your dedicated accountant will be registered with the Australian business authority and will help orchestrate the procedure for the issuance of the support package.

Applications will close after 11:59 pm on 31^st August 2021.

Eligibility Criteria:

As per the statement released by the government of Western Australia, to be eligible for the grant, you must:

have a valid and an active ABN (i.e. Australian Business Number)

demonstrate your business was operating in WA on 29th June 2021

Have an annual turnover of $75,000 or more

Be registered for GST

Have an Australia-wide payroll of less than $4 million for the fiscal year ended 30 June 2020

Have suffered a financial loss as a direct result of the lockdown period, such as the loss of perishable goods or incurred costs associated with canceled bookings, OR

Experienced at least a 30 percent reduction (compared to prior week) in turnover due to restricted trading conditions and;

Businesses must be able to provide evidence of this financial loss or reduction in turnover if requested and retain these records for 12 months from the date the grant was approved. Applications will be subject to audit.

for non-employing businesses, have your primary income source come from this business. If you have more than one non-employing business, you can only claim payments for one business.

you will need to make separate applications for each eligible business, however, you can use the same SmartyGrants login for all applications.

Eligibility for Granted Amounts:

The grant is $3,000 for the decline of 30%. There is no specific direction as to how you may use the money.

Additional Info:

The applicant must retain evidence of the revenue loss for 12 months as the government may ask to see that evidence anytime during that period. If you cannot provide the evidence to prove the revenue loss (or costs incurred) the government may seek the return of the grant funding.

For the grant amounts, these businesses must demonstrate the relevant decline in turnover over in the week prior to the lockdown practiced on 29^th June.

Businesses Activities Eligible for the Grant:

To be eligible for this grant, your business must be located in one of the following industry sectors and have a primary commercial activity in Perth, Peel, or Rottnest:

Hospitality
Cafes and restaurants
Catering services
Clubs (hospitality)
Pubs, taverns and bars
Retail
Bakeries
Florists
Hairdressing and beauty services
Specialised food retailing
Tourism
Accommodation
Scenic and sightseeing transport
Sport and Recreation
Amusement parks and centers
Health and fitness centers and gyms
Outdoor recreational activities
Sport and physical recreation
Creative and Performing Arts
Creative artists, musicians, writers and performers
Performing arts operations
Performing arts venues
Other
Cinemas
Food wholesalers
Goods and equipment rental
Other services (pet boarding and grooming, marriage celebrants, tattoo and piercing)

Regional Western Australia (outside Perth, Peel, and Rottnest)

If your business is located in regional Western Australia (outside Perth, Peel and Rottnest) your business must be located in one of the following industry sectors to be eligible for this grant:

Hospitality
Cafes and restaurants
Catering services
Clubs (hospitality)
Pubs, taverns and bars

Retail
Specialized food retailing
Tourism

Accommodation
Scenic and sightseeing transport

Sport and Recreation
Amusement parks and centers
Outdoor recreational activities
Creative and Performing Arts

Creative artists, musicians, writers and performers
Performing arts operations
Performing arts venues

Requirements for the Grant:

Your proof of identity
your valid ABN/ACN number
your business banking details for payment
Australian income tax return
Qualified accountant, registered tax agent or registered BAS agent details.

Proof of Financial Loss

According to the official statement by the government of WA, if you are asked to give proof of financial loss, you must sign a statutory statement attesting to the loss and provide any supporting information you believe is necessary, such as:

Turnover comparison data for the week prior to the lockdown period

Emails or texts to or from clients or suppliers detailing canceled orders or appointments

Receipts for refunds provided

Invoices or delivery dockets

Appointment/scheduling platform, demonstrating canceled appointments or bookings

Screenshots of canceled events.

Key Steps for Application:

Register on our online grants portal SmartyGrants for a new account and to make an application for this program. If you applied for round one of the Lockdown Assistance Grants please use the same email address and password when submitting an application for round two.

Commence your application. Applications can be saved and returned later, but can’t be accessed or edited once submitted.

Once you have started your application you will receive an automated email that will include your unique application number.

Once you have submitted your application, you will receive a second automated email acknowledging receipt. Without this acknowledgment, your application has not been successfully submitted.

Applications must be received by 11:59 pm on Tuesday 31 August 2021. Late or incomplete applications will not be considered.

Applications will be reviewed as quickly as possible and you will be notified of the result.

Payments for successful applications will be made to your nominated business bank account.

Additional information:

Only one grant application can be submitted for a single ABN.

Only one application is permitted where there are multiple businesses under a single ABN.

To be eligible for this grant program your GST registration must have been active as at the start of the lockdown period.