DE. Accountants Pty Ltd

𝐇𝐀𝐏𝐏𝐘 𝐄𝐀𝐒𝐓𝐄𝐑

Merry Christmas from DE Accountants Pty Ltd.

May this festive season bring you peace, joy, and quality time with those who matter most. We wish you a safe and relaxing Christmas.

𝗗𝗲𝗮𝗿 𝘃𝗮𝗹𝘂𝗲𝗱 𝗰𝗹𝗶𝗲𝗻𝘁𝘀,

𝗗𝘂𝗲 𝘁𝗼 𝗮 𝗽𝗼𝘄𝗲𝗿 𝗼𝘂𝘁𝗮𝗴𝗲 in our street today, our team is 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗵𝗼𝗺𝗲.
We remain fully operational and are available via 𝗲𝗺𝗮𝗶𝗹, with 𝗹𝗶𝗺𝗶𝘁𝗲𝗱 𝗽𝗵𝗼𝗻𝗲 𝗮𝗰𝗰𝗲𝘀𝘀.

For the smoothest communication, 𝗲𝗺𝗮𝗶𝗹 𝗶𝘀 𝗽𝗿𝗲𝗳𝗲𝗿𝗿𝗲𝗱.

𝗧𝗵𝗮𝗻𝗸 𝘆𝗼𝘂 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴.

📢 𝐈𝐬 𝐈𝐭 𝐓𝐢𝐦𝐞 𝐭𝐨 𝐑𝐞𝐭𝐡𝐢𝐧𝐤 𝐆𝐒𝐓? 𝐀 𝐁𝐨𝐥𝐝 𝐒𝐭𝐞𝐩 𝐟𝐨𝐫 𝐀𝐮𝐬𝐭𝐫𝐚𝐥𝐢𝐚’𝐬 𝐓𝐚𝐱 𝐒𝐲𝐬𝐭𝐞𝐦 💰

Allegra Spender, MP for Wentworth, has sparked an important conversation about the future of Australia’s tax system. Speaking at a CPA Australia event, she highlighted that any serious tax reform must include a review of GST (Goods and Services Tax) — even if it’s politically challenging or difficult during a cost-of-living crisis.

💡 𝐖𝐡𝐲 𝐋𝐨𝐨𝐤 𝐚𝐭 𝐆𝐒𝐓?

Australia’s GST rate is one of the lowest in the OECD, meaning we’re underutilising a tax that other countries rely on.
Increasing GST, or broadening its scope, could reduce income taxes significantly, making it easier for Australians to keep more of what they earn.
GST is a consumption-based tax, meaning it taxes what people spend rather than their income. This approach is harder to avoid and applies to everyone, including visitors and businesses.

👥 𝐖𝐡𝐚𝐭 𝐀𝐛𝐨𝐮𝐭 𝐕𝐮𝐥𝐧𝐞𝐫𝐚𝐛𝐥𝐞 𝐀𝐮𝐬𝐭𝐫𝐚𝐥𝐢𝐚𝐧𝐬?

Spender stressed that any change to GST must include a carefully designed compensation package to protect those who are most affected. For example, welfare payments could be increased to offset the impact on low-income households, who spend a larger share of their income on essentials.

🛠 𝐁𝐚𝐥𝐚𝐧𝐜𝐢𝐧𝐠 𝐒𝐭𝐚𝐭𝐞 𝐚𝐧𝐝 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐍𝐞𝐞𝐝𝐬

Reforming GST wouldn’t just involve the federal government — states play a big role, too. Spender suggested that GST reform could help address state tax challenges like payroll and land taxes. However, fair distribution of GST revenue and its predictability for state budgets would need to be part of the conversation.

⏳ 𝐖𝐡𝐲 𝐍𝐨𝐰?

While inflation needs to stabilise before reforms are introduced, Spender sees an upcoming opportunity: the Productivity Commission’s review of GST and equalisation in 2026. This could open the door to meaningful changes that strengthen Australia’s economy and create a fairer tax system.

🏗 𝐓𝐡𝐞 𝐁𝐢𝐠𝐠𝐞𝐫 𝐏𝐢𝐜𝐭𝐮𝐫𝐞

GST reform is part of Spender’s broader vision for tax changes, outlined in her Tax Green Paper. She believes a major reform package, including GST, could deliver the scale of change needed to ensure Australia’s long-term prosperity.

🔗 𝐑𝐞𝐚𝐝 𝐭𝐡𝐞 𝐟𝐮𝐥𝐥 𝐚𝐫𝐭𝐢𝐜𝐥𝐞 𝐡𝐞𝐫𝐞: https://www.accountingtimes.com.au/tax/gst-a-critical-lever-in-tax-reform-approach-allegra-spender?utm_source=Accounting%20Times&utm_campaign=06_12_2024&utm_medium=email&utm_content=Daily&utm_emailID=*|MMERGEEM|*

GST a critical lever in tax reform approach: Allegra Spender A review of GST must form part of any major tax reform approach by the government despite the potential political fallout, the member for Wentworth has said.

🚨 𝐊𝐞𝐲 𝐓𝐚𝐱 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐀𝐓𝐎'𝐬 𝐓𝐨𝐩 𝟓𝟎𝟎 𝐆𝐫𝐨𝐮𝐩𝐬 𝐑𝐞𝐩𝐨𝐫𝐭🚨

The ATO's latest findings shed light on tax governance and compliance gaps among Australia’s Top 500 privately owned and wealthy groups. Here's what you need to know:

🔍 𝙆𝙚𝙮 𝙁𝙞𝙣𝙙𝙞𝙣𝙜𝙨

Errors Persist: 84% of voluntary disclosures involved avoidable, non-complex errors, such as omitted income (dividends, trust income) and overclaimed deductions due to outdated financial records.
Economic Impact: Small errors can have a significant tax impact, given the size of these groups.
Governance Gaps: 90% of groups audited had little to no documented tax governance, raising doubts about their compliance systems.

📈 𝙄𝙢𝙥𝙧𝙤𝙫𝙚𝙢𝙚𝙣𝙩𝙨 𝙞𝙣 𝙂𝙤𝙫𝙚𝙧𝙣𝙖𝙣𝙘𝙚

One-third of groups now have some documented tax governance, marking a 20% increase from last year.
However, many groups lack safeguards to mitigate reliance on key individuals, raising risks for future compliance.

📋 𝙍𝙚𝙘𝙤𝙢𝙢𝙚𝙣𝙙𝙖𝙩𝙞𝙤𝙣𝙨 𝙛𝙤𝙧 𝘽𝙪𝙨𝙞𝙣𝙚𝙨𝙨𝙚𝙨

Strengthen Governance: Document tax policies and regularly review them to build confidence and reduce risks.
Streamline Processes: Implement end-to-end processes for recognising and managing tax risks.
Verify Data: Ensure accounting data matches closed accounts, and verify GST compliance, such as supplier GST registration.
Engagement Letters: Use clear engagement letters and scope of works with tax agents to clarify responsibilities.
Stay on Schedule: Maintain lodgment and payment calendars to avoid penalties.

🔗 𝙒𝙝𝙮 𝙄𝙩 𝙈𝙖𝙩𝙩𝙚𝙧𝙨

With $552.5M raised in income tax liabilities this year, these findings reinforce the importance of robust tax governance for Australia's largest private groups. Let’s ensure compliance and avoid simple errors that could have been caught with better processes.

📖 𝙍𝙚𝙖𝙙 𝙩𝙝𝙚 𝙛𝙪𝙡𝙡 𝙖𝙧𝙩𝙞𝙘𝙡𝙚 𝙝𝙚𝙧𝙚

https://www.accountingtimes.com.au/tax/top-500-groups-still-making-simple-errors-says-ato?utm_source=Accounting%20Times&utm_campaign=06_12_2024&utm_medium=email&utm_content=Daily&utm_emailID=*|MMERGEEM|*

📞 Attention Clients 📞

Unfortunately we are having some issues with our phone providers and our phones are currently down.
Please email our office if you need us and we will get in contact.

Apologies for the inconvenience. We hope to have the phones up and running soon.

DE Team

📢Big News in Corporate Tax!📢

The High Court has ruled against SingTel in their appeal over $894 million in disputed tax deductions related to their Optus acquisition. The court upheld the ATO’s assessment, landing SingTel with a $268 million tax bill plus interest and penalties. SingTel’s argument on transfer pricing principles was rejected, marking the end of their legal options on this matter.

Read more about this impactful decision: https://www.accountingtimes.com.au/tax/singtel-dealt-final-blow-in-894m-ato-appeal?utm_source=Accounting%20Times&utm_campaign=30_10_2024&utm_medium=email&utm_content=Daily&utm_emailID=*|MMERGEEM|*

Business Insolvencies Surge by 43% in Australia!

ASIC’s latest stats reveal a sharp 43% rise in corporate insolvencies for the September quarter compared to last year. The construction, food services, and accommodation sectors are feeling the brunt of economic pressures like inflation, high interest rates, and rising costs of living.

With almost 10,000 businesses facing insolvency in the 2023-24 financial year, the numbers are approaching pre-pandemic levels. A tough reminder for businesses to stay on top of financial management and cash flow strategies in these challenging times.

Insolvencies jump 43 per cent in September quarter: ASIC The latest ASIC statistics have shown that insolvencies are still on the rise with accommodation and food services seeing one of the highest increases from the same period last year.

𝘾𝙤𝙪𝙧𝙩 𝘾𝙖𝙡𝙡𝙨 𝘽𝙧𝙤𝙩𝙝𝙚𝙧𝙨’ 𝘽𝙡𝙪𝙛𝙛.

In a recent Federal Court ruling, two brothers, George and Danny Youssef, lost their $16 million tax appeal. They claimed that unexplained bank deposits were from gambling winnings, not taxable income. However, the court found their evidence unreliable, as their records lacked clarity on gambling losses and deposits. The court ruled that these funds, which the ATO deemed undeclared income, should be taxed. This decision upholds a $15.7 million tax bill, including penalties and interest.

Read more here: https://www.accountingtimes.com.au/tax/court-calls-brothers-bluff-in-16m-tax-appeal?utm_source=Accounting%20Times&utm_campaign=11_10_2024&utm_medium=email&utm_content=Daily&utm_emailID=*|MMERGEEM|*

𝐔𝐛𝐞𝐫 𝐰𝐨𝐧 𝐚 𝐩𝐚𝐲𝐫𝐨𝐥𝐥 𝐭𝐚𝐱 𝐜𝐚𝐬𝐞 𝐚𝐠𝐚𝐢𝐧𝐬𝐭 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐍𝐒𝐖, successfully challenging six payroll tax assessments totalling $81.5 million in the NSW Supreme Court. The court found that Uber's contracts with drivers did not constitute "relevant contracts" under payroll tax law. The case highlighted complexities in applying the Payroll Tax Act to Uber’s business model, which did not exist when the law was introduced. As a result, all six tax assessments issued by Revenue NSW were revoked.

You can read the full article https://www.accountingtimes.com.au/tax/uber-wins-payroll-tax-case-against-revenue-nsw.