PDF Version - Institute of Certified Bookkeepers
THE INSTITUTE OF CERTIFIED BOOKKEEPERS
P: 1300 85 61 81 F: 1300 85 73 93 e: admin@icb.org.au
w: www.icb.org.au
October 2013
News, views and things you need to know
Click here for the
Web version
Welcome to the ICB's October 2013 Members Newsletter. You can read the newsletter online by clicking here .
Contents (for Members)
Important News .
2
Retaining clients' property until the debt is paid
4
Invoicing your clients - do you create a bad reaction?
5
Do you have to check the ABN and GST status of every supplier?
8
9
Marketing to existing and potential clients
10
Who cares if it is desktop or cloud?
Best Practice Bookkeeping .
12
Not-for-Profit Organisations - an Introduction
15
Converting Accrual to Cash Accounting
19
20
Comparing Tax Codes in Software
22
Payroll Tax update - new thresholds for 2013 - 2014
23
Terminations Resource update - new ETP caps for 2014
23
Long Term Commercial Accommodation correction
The BAS Agent World .
24
When is it acceptable to claim input tax credits from a credit card statement?
24
26
TPB releases booklet of compliance outcomes
27
You must maintain your PI Insurance or else
27
Tax Practitioner Board says 95% agents behave
Page 1
Continued Professional Education
28
29 ICB's 2014 National Conference - Bookings now open for Full ICB Members
29 This month from the ICB CPE webpage
ICB Network Meetings
31
Join your fellow members at the ICB Christmas party
32
Question for you to discuss this month??
33
Other Things Happening in the world
34
What price can I put on my clients
35
36
What's happening around us - Population wise
From the ICB
37
ICB part year statistics and financials
39 Client Newsletter - eBrief - October 2013
39 What's new this month
Products and Solutions
40
HR advice for you and your clients
From the ATO
41
Lodgement program concessions or not
41
Activity statements take 2.5 hours
42
GST tax invoice ruling published
.
Important News for you
.
Retaining clients' property until the debt is paid .
It is usually permissible for bookkeepers or BAS agents to hold certain documents e.g. accounting records and software data files until the contract the client has with you is finalised including fees being paid.
A lien is a right to retain possession of property until certain conditions – usually payment for work done
– are met.
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To exercise a valid lien over client property, you must satisfy the following criteria: a. You must be claiming the lien in your own right, and not merely as an agent of a third person, e.g., on behalf of a client of yours. The lien asserted by you (the bookkeeper/BAS agent) must be in relation to a debt or demand due from a client of yours to yourself;
.
b.
You must have possession of the client’s property. This means is must be physically located with you or under your control e.g. you may have a password or some other way of restricting access to the property;
.
c. The property must have been acquired with the consent of the client.
.
d. The outstanding debt or demand must be connected to the property over which the lien is being claimed. The debt or demand will usually be for outstanding professional fees or charges. For example, the property may be documents such as business activity statements which you have prepared for lodgement with the Australian Taxation Office (ATO) and the outstanding fees relate to the preparation and lodgement of those statements.
A lien is created when the property passes into your possession. It does not need to be included in a letter of engagement and can be exercised without a formal agreement in writing. However, your standard letter of engagement should, amongst other things, include a paragraph that expressly gives you a right to hold property until accounts are paid. Such a paragraph may have the effect of extending the rights which exist without a letter of engagement.
In the absence of a written agreement, the lien claim may only be claimed over property upon which you have expended labour and made more valuable. For example, the courts have said that a lien would attach over a general ledger, balance sheet and draft income tax return prepared by an accountant (Re Gleebs Pty Ltd (in liquidation) [1933] VLR 293, 39 ALR 300).
By this example, if you worked on a data file, it would be made more valuable because of your labour, so you could exercise a right of lien over this data file.
However, a lien would not extend to invoices or a sales journal where those documents are provided to you only for checking and do not embody the result of your labour. Again, this position would be extended if there was a written agreement extending the lien to cover specified material.
Documents coming into existence in the course of work undertaken by you for the client will usually belong to you, and can be the subject of a lien, until the amounts due have been paid. In relation to the software data file, provided that you have added value to the file by working on it, it will be the subject of the lien.
Scenario
You are engaged by a client who has several months of work to catch up on. You take all the source documents and create a new data file to work on at your premises. You bill the client and provide reports of the work being done regularly. The client has paid previous bills up until your last bill at 31st July. You have continued work on the file as agreed.
Events transpire that change the relationship and it is agreed to finish the engagement. You send your final bill dated 30th September. The client refuses to pay until you hand over the data file, which to date has not been provided to the client because it was agreed not to begin installation and training the client in the software until the ‘catch-up’ work had been done.
What can you do?
The source documents are the legal property of the business owner and must be returned immediately on request from the owner. The data file as it existed at the 31st July (the last invoice you were paid for), should also be provided immediately to the client. However, you can exercise a right of lien over the data file that you have worked on after 31st July, and provide your latest backup of the file as at 30th September, when the client has paid for this work.
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If the matter went to court, the court would look at the letter of engagement to assist in determining who has ownership of documents in certain circumstances and whether a lien may be claimed.
This article has been prepared by James Woods Managing Director of eCollect.
James is a practising lawyer with experience in debt recovery litigation. Acknowledgment is given to www.ato.gov.au
for assistance in its preparation. This article is of a general nature and is provided for information purposes only. It should not be relied on as legal advice. If you have a specific situation that requires legal advice, please consult James via email at james.woods@eclegal.com.au
.
See the ICB references for more information:
Who owns the datafile?
Ownership of data files
James M. Woods B.A. LL.B.
Managing Director - eCollect
Founder, Shareholder and Managing Director
Qualified Practising Lawyer
Has run a variety of service businesses since his late teens
Started what was to become the eCollect business as an adjunct to his 35 person legal practice and has overseen its growth to the present
Has personal responsibility for the purchase of debt and relations with the sellers and our investment partners
Monitors the collection process which is overseen by a manager experienced in the collection of purchased debt
Resolves any external conflicts including difficult debtors
What are your thoughts and what would you do? Let us know here
Invoicing your clients - do you create a bad reaction?
.
Service businesses do it
Professional people do it
Manufacturers do it
Goods sellers do it
When producing the invoice for the client, putting so much detail, or no detail at all.
Using terminology that no one understands or they aren't used to.
.
But I consider the worst invoices are the ones that go on and on, adding charges for every little incidental additional charge. Sometimes it may be just one additional charge, eg: "Postage"
If I have engaged a professional to provide services and yes they may have incurred an outgoing such as postage, but, they are charging me a commercial hourly rate (that is still significant), I don't enjoy being charged an additional $0.60 for the stamp, or $3 per page for photocopying etc, etc. (I really had a problem where a firm I may have worked for once, charged the client postage for sending out the invoice).
If you want to annoy your clients, then this is one of the ways to do it.
Page 4
So how do we get away from it?
Your hourly rate should cover such disbursements. When engaging with the client, set the expectations for what you are charging but also explain what it includes. Think how much you could cut your admin time if you stopped worrying about some of the incidentals you currently might bill for.
Additional Charges that you knew had to be incurred
If you sell goods or provide a service and there is a definite additional fee involved, please make it obvious and upfront, if not included in the original sale price.
To have purchased something at the big bold advertised price, only to find that there is a fine print about additional freight costs, or handling fees is another way to have annoyed customers.
How long ago was that?
Another annoying invoice is the one that turns up a long time after the event. A month is a very long time in some business cycles. The event, the product or the advice may feel like it was a long long time ago.
In a consulting role, it may be that the time accumulates and then we issue a large invoice after an extended period of time. So large that it becomes a significant event for the client - not a good reaction, dated so that the event or purchase is forgotten, also not a good reaction.
Consider billing more frequently if not at the time of each service provision. Probably not daily as that could get annoying. For some businesses I have seen cases where their daily provision of goods generated daily invoices such that the customer moved to a different supplier who would issue a reconciled invoice, matched
(to delivery dockets) but only once a week.
Recommendation
Ensure the client is expecting to be charged fairly and regularly. Ensure the client understands the payment terms and the terms are fair to the clients own administration, as well as your cashflow needs.
Issue the invoice in a form that will contain no surprises.
I am also tempted to say issue invoices that reflect a fair value for the work performed and the work and the value is obvious to the client.
This article provided by Matthew Addison, Executive Director, The Institute of Certified Bookkeepers
What are your thoughts?
Do you have to check the ABN and GST status of every supplier?
.
Closing the Business to Business GST gap
GST charged and GST claimed back - The Ideal world
A practical issue is looming as the ATO audit team reduce GST Input Tax Credits that businesses have legitimately claimed based on documents that are Tax Invoices (they comply with all the apparent requirements of being a Tax Invoice and include an amount of GST).
The business, your business, has claimed back the GST.
The supplier is found to be less than honest; charging GST when either not registered or incorrect ABN etc.
Page 5
Why should you suffer? More to the point: How can we prevent this issue without creating a huge compliance burden for business?
How can we prevent this GST gap?
TOMORROW is not too far away!
The governments SBR initiative provides a gateway to lodge documents but also promotes information exchange from Government departments. This information from the respective departments information is provided, sometimes through web services, to software suppliers to assist business be more effective in their natural business process.
The ABR provides ABN lookup services through the ABR website (including ABN lookup tools). These tools can be used to enter an ABN and retrieve the ABN registration status and the entities respective GST registration status. Therefore enabling verification of the suppliers validity to charge you GST in the first place.
What does this mean?
We are looking for the SBR gateway to facilitate the most effective and automated web service to allow software to instantly and regularly submit an ABN and retrieve verification that the Business is allowed to treat the supplier as legitimately registered for an ABN and is also registered for GST.
This should happen without the user needing to request the verification and with a record being retained in the accounting software that the verification was done. The software should do the test at the time the supplier is being established, at the input of the purchase invoice and / or at the time of payment. I would also suggest that a test is performed prior to the submission of the BAS. The test should be behind the scenes and only reported to the user in the case of an issue.
Where to from here?
SBR please enable this service
Software companies please embrace this facility Government; until such a service is available, business should NOT be required to be verifying each and every tax invoice and government should state to small business they are not required to perform a manual check of the validity of a supplier.
Do you have to check every Tax Invoice?
This is an issue that visits the support team regularly. Many bookkeepers and BAS agents assume that we must check every supplier’s ABN and GST status and that we must sight every source document.
There is no law requiring a bookkeeper or BAS agent to check ABNs and GST status of suppliers. From the
ATO: “…the ATO does not expect that agents check every invoice and validate every GST claim. It does, however, expect that a reasonable amount of checks, balances and care are taken by agents to ensure the statement is correct.
We are specifically looking for agents to be aware of clients and / or claims that may seem unusual and to be extra diligent in substantiating these claims”.
There is, however, a requirement to check that a supplier invoice meets the criteria of being a valid tax invoice, and also that the business holds a valid tax invoice for all purchases over $75 (GST exclusive).
Practical considerations:
If you have suppliers that you know have a mixed supply business, for example, a service station, food business, or insurance, then you know you have to check the GST component of these purchases
1.
If you have a supplier that is for some reason “questionable” then ask for documentation. For example, your client is paying “Bob” for “services”. You would want to see a valid tax invoice from this supplier validating the business owner’s claim that it is a business expense.
2. Check the paperwork of contractors with a voluntary withholding agreement in place.
3. Finance agreements for capital purchases are not a substitute for a valid tax invoice.
4. Tax invoices —if you sight one then you need to check it is a valid tax invoice and query it if it does not meet the criteria.
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5. If the entity purchasing the supply receives a tax invoice stating the price is “GST inclusive” the purchaser can assume that the whole supply is taxable and claim the GST.
6. Remember to be very clear about the terms of your engagement and what you are expected to do for your client in your engagement letter.
It is the business owner’s legal responsibility to hold business records, including valid tax invoices. This doesn’t mean you have to see every one of them—unless you are specifically engaged by the client to check all documentation.
This issue has raised its head again this month as cases are coming to light that the ATO audit teams are disallowing Input Tax Credits after you have claimed them on a BAS.
ICB do NOT believe it is feasible, appropriate or correct that you have to check, however we understand the view that says the law technically requires such verification.
Details that are currently submitted to the ATO for clarification:
1. Closing the GST gap in business to business transactions
2. Legal research - Do you have to check each and every tax invoice?
Checking Tax Invoices and Suppliers
ICB Resource Kit
Information from ICB based on Government requirements and our explanation.
Useful for:
Bookkeepers, BAS agents and business owners needing to understand the requirements around checking the ABN and GST status of suppliers.
Context Introduction
The issue of whether every ABN and every supplier has to be checked continues to be relevant.
ICB has approached the ATO for further clarification about this issue in light of recent reports that ATO audit teams are disallowing Input Tax Credits after you have claimed them on a BAS because of incorrect source documents.
The last communication from the ATO on this issue said: “…the ATO does not expect that agents check every invoice and validate every GST claim. It does, however, expect that a reasonable amount of checks, balances and care are taken by agents to ensure the statement is correct. We are specifically looking for agents to be aware of clients and / or claims that may seem unusual and to be extra diligent in substantiating these claims”.
It is the business o wner’s legal responsibility to hold business records, including valid tax invoices.
ICB Policy and Process Kit
Closing the Business to Business GST gap
Legal Research check the supplier or not
ICB Resource - Bookkeeping Tools
Business Records Required - PDF | Word
Reasonable care to ensure taxation laws are applied correctly
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ICB Resource - Business Information
Letter of Engagement
Related ICB Resources:
Do you have to check the ABN and GST status?
A BAS Agents approach to clients - What should your obligations be?
What if my supplier is Questionable?
BAS Agents - Take reasonable care
External Resources:
ATO – www.ato.gov.au/Business/Record-keeping/
ATO
– www.ato.gov.au/Business/GST/In-detail/Managing-GST-in-your-business/Taxinvoices/Valid-tax-invoices-and-GST-credits/
Use of IT by small business
.
As we are pushed to embrace the cloud and other internet delivery of programs it is worth noting the ABS research into the business use of IT.
.
Business Use of Information Technology, selected indicators(a), 2009-10 to 2011-12
Estimated number of businesses(b)
Businesses with:
'000
2009-10
776
2010-11
764
2011-12
776 internet access web presence
%
%
90.1
40.0
91.2
43.1
91.9
44.6
Businesses with internet access broadband as main type of connection
Businesses which:
% 97.1
99.1
99.2
placed orders via the internet received orders via the internet
Internet income(c)
%
%
46.5
24.8
50.8
28.0
55.3
27.8
$b 142.8
188.7
237.1
.
(a) Proportions are of all businesses.
(b) Business counts are provided for contextual information only, and the total may not sum to the total of the components due to rounding. Refer to Explanatory Notes 20 and 21 .
(c) Refer to Explanatory Notes 16 and 17 .
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Source
Summary of IT Use and Innovation in Australian Business, 2011-12 http://www.abs.gov.au/ausstats/abs@.nsf/mf/8166.0?OpenDocument
ICB Comment:
Business IS using the internet and using technology and increasingly in better ways to conduct their business. This further enforces our need as Bookkeepers
(Business System Integration Managers) to utilise the best and most appropriate applications to assist our businesses to be efficient and embrace the internet in ways that work for them.
Marketing to existing and potential clients
.
Keeping in touch
(A marketing concept)
There is much written about keeping in touch with your potential clients and it makes sense. If your name stays in front of their mind at least occasionally then they may seek to establish that business relationship.
The strategy decisions: how much is just enough?
a. Make a strategic educated decision as to how many times you will contact a potential client. If you stay in touch: are you becoming annoying? is it the type of contact that adds value or information to the client such that they value receiving the contact? Are you giving away too much so that they dont need to engage with you as you are giving it to them anyway?
Two part questions: How many times per year? How many times in total do I follow up a lead b. What should I send? Is it giveaways? Is it something for the desk or wall that has your branding and contact details on it? Is it information: newsletters, topic alert, general product positioning? If it is costing you then make sure it is not just another piece of marketing and another envelope/email that needs to be got rid of.
.
c. Should the contact you make be followed up? Some communication pieces, targeted marketing, information really requires a call to action not just from the receiver but sometimes also the sender. Is there something you should do to follow through on the information provided and generate a response from the potential client? (Hopefully a fairly obvious concept is that any communication from you attempts to generate a "call to action" from the receiver)
Does this concept change for existing clients?
For bookkeepers, more than ever before, staying in touch is a vital step in maintaining your existing client base. With so much activity in the accounting software space and changes to process and technology, just about everyone is finding a reason to put a "new and better" solution to your clients.
Your clients should be hearing about new developments, better processes from you before anyone else.
Bookkeepers are closer to the Business Systems that are being used.
Hence our term that bookkeepers really are "Business System Integration Managers". We are the ones tying the various bits of a business together to ensure the reporting and the compliance and the profit happens.
Therefore ensure that you do let your client know that you do KNOW what is changing and bring to them opportunities to change before others do.
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For those working remotely from their clients premises; ensure you are in contact with your client.
Communicate to them about what is being done for them and the results of that work.
Keeping in touch with clients; potential clients and your existing clients, is essential.
Some of the rules about staying in touch
repetitive marketing works ad hoc is NOT as good as regular communication think about the timing of your communication: don ’t expect a response or real consideration of a new concept in the clients busiest times newsletters work information with integrity works
ICB provide members with a monthly eNewsletter for you to forward to your clients, Bookkeeping eBRIEF, you can view all copies here , you can also subscribe to receive these directly to your inbox on a monthly basis here .
Who cares if it is desktop or cloud?
.
Australian software wars and marketing speak appears to be dominated by comments like "It is a Truth,
Universally Acknowledged, that Desktop Accounting is Becoming Extinct" - See more here
Who cares whether the software is called desktop or cloud or zumbalumba. The thing the business cares about is that they have an Integrated Business System that works efficiently and effectively to run their business.
We do have rapid and beneficial improvements in our software and internet functionality such that we should be using
bankfeeds
anytime anywhere
multi device access for the appropriate parts of bookkeeping and the appropriate parts of business systems. At the end of the day someone is sitting at a computer screen working with the Business System.
Does it matter whether it is desktop or cloud? Yes and No .
Today we (read "we" as computerised and progressive small business in Australia) want more than a restricted system limited to one user on one computer that we have to manage and maintain. We want to be able to access some business systems anywhere, anytime and typically any device. This is efficiency being brought to us by the use of better technology.
I am just wondering whether it makes any difference when I am sitting in front of the computer and entering data whether the app is installed on the computer or whether it is provided by a supplier and through my browser.
Certainly, the speed comparisons should be performed and all the facets of reliability, security, upgrades, fault fixing and backups should be considered.
But isn't the most important factor: whether the software actually helps the business complete the business processes efficiently. Does the software have the features that the business needs to run.
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I am wondering whether or not the debate should be about cloud vs desktop (as they all seem to say they are going to cloud in some form some time)?
Shouldn't the debate be about: Does this software have the business process I need??
As to bookkeeping , (if I follow the argument for a minute) how can the shifting of a program from one computer (say desktop) to another (say cloud) make any difference to the bookkeeping?
It doesn't...... hang on...... keep reading...... BUT!
the shift in overall technology and the use of that technology to automate / simplify bookkeeping processes does have / should have a radical effect on bookkeeping.
"It is a Truth, Universally Acknowledged, that data entry processing is becoming automated" (my version).
As mentioned by many in many places, and I also believe strongly, that the developments being brought to us by software suppliers in using technology to automate otherwise mechanical processes is great. Keep developing bank feeds/rules/automation/auto synch (and one day also the auto verification to the bank balance PROPERLY), keep developing document storage linked to the transactions, but MOST importantly keep developing better automated electronic business process.
As to the bookkeeper: bookkeeping is NOT just the data entry, nor is it the tick and flick of bank reconciliations, it is "Business System Integration Management" including verification, checking, set up, understanding and reporting.
Mechanical processes and data entry still need to be checked. Someone needs to understand what the system should be doing and whether it has done that process correctly this month.
Desktop vs Cloud?
I am concerned in Australia that we DO NOT HAVE good enough internet reliability and therefore we still experience business going into melt down when one part of the system between; our keyboard and screen and the computer running the program disconnect.
Is it our computer? Is it our connection to our modem? Is it our modems connection to the ISP? Is it the ISP?
Is it the Internet? Is it the provider of the program and any part of their infrastructure?
For some business having an interruption to the internet and therefore an interruption to their cloud based applications will NOT be detrimental so when considering an application this will not be a factor.
For some businesses the ability to work "offline" is useful, if not essential.
Refer to ICB's The cloud affects bookkeepers and also Xero's Cloud vs Desktop, cost to SME's
Page 11
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Best Practice Bookkeeping
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Not-for-Profit Organisations - an Introduction
.
About Not-For-Profit Organisations
A registered Not-For-Profit (NFP) organisation has a different legal structure than does a commercial “for profit” organisation. Different laws govern a NFP entity. NFP entities are generally considered to be acting for the public benefit rather than personal profit. Common types of NFP organisations are charities, community groups, religious groups, sports clubs and welfare agencies. NFP entities are required to have rules that include a statement of purpose and to hold an Annual General Meeting.
According to the Australian Bureau of Statistics, (last stats available are for 2007), there were 41,000 NFP entities. These entities contributed approximately $36 billion to gross domestic product and employed about
890,000 people around Australia. There were also over 2 million volunteers. According to the Productivity
Commission of 2010, there are now over 600,000 NFP entities in Australia.
It is a diverse sector covering operations and services to do with culture, education, research, hospitals, health organisations, social services, public housing, environment, international aid, philanthropy, religion, professional associations, community co-operatives and more.
Income is generally derived from grants, donations, fundraising and membership fees. Income may also be supplemented by trading activities.
A NFP organisation may still make a profit from money received by that entity, but the difference is what is done with those profits. A NFP organisation that makes a profit must use that money to further the purposes, activities and functioning of the organisation. The profit is not distributed to members, individuals (owners) or shareholders. A NFP entity needs to have a constitution or a statement of rules and purpose.
It is worthwhile engaging a tax agent or accountant who has some experience with NFP entities as there are separate tax laws that apply, for example, certain concessions and exemptions are available.
Until recently, registered charities were governed by the ATO. This has now been transferred to the
Australian Charities and Not-for-profits Commission (ACNC), which is the new independent national regulator. All registered charities should have been sent a letter from the ACNC to confirm details held about the charity. The ATO will continue to decide eligibility for relevant tax concessions and exemptions.
Not all Not-For-Profit organisations are considered charities —if not, there is no need to be registered with the ACNC.
For more general information on NFPs:
ICB quick reference resource - Not-for-profit Entities
ICB resource on Charity Registration with the ACNC
ICB resource on Religious Institutions Registration www.acnc.gov.au/ACNC/Home/ACNC/Default.aspx?hkey=3e39ac62-4f04-44fe-b569-143ca445c6bf www.acnc.gov.au/ACNC/About_ACNC/ACNC_leg/ACNC/Legal/ACNC_leg.aspx www.ato.gov.au/non-profit/ www.ato.gov.au/non-profit/Induction-package-for-nfp-administrators www.ato.gov.au/content/downloads/NPO33609n7966.pdf www.ato.gov.au/content/downloads/NPO00305034n7966add.pdf www.notforprofit.gov.au/ australia.gov.au/topics/business-and-industry/non-profit-organisations www.ato.gov.au/content/downloads/BUS24289n7327_5_12.pdf (Fundraising)
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Financial Management
It is good practise for a NFP to make some profit each year so that a working capital of several months’ expenses is retained for unexpected occurrences, to develop activities, meet objectives and to keep the organisation sustainable.
Because the NFP’s records are available to the public, the records need to be detailed and accurate so that members of the public, stakeholders and management boards can assess the performance of the entity.
The size of the organisation would generally govern the frequency of reporting, but this would be decided by the board of directors or management committee. Smaller organisations such as that governing an annual community event may only need to report annually. Larger organisations may be required to report monthly.
The accountant for the organisation would advise on whether tax concessions are available. If so, the organisation must be registered with the ACNC.
The threshold for GST registration is $150,000 annual turnover. The financial year is 1st January to 31st
December.
For more on Financial Management: www.nfpcompliance.vic.gov.au/managing-your-finances/financial-reporting-and-auditing www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/financial_management_of_not-for-profits.pdf www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/grants-in-australia.pdf www.consumer.vic.gov.au/clubs-and-not-for-profits
See Consumer Affairs or Fair Trading relevant to your state for more detail
Bookkeeping for Not-For-Profits
The Chart of Accounts may be different to a regular business. This would generally involve a lot more accounts and breakdown of income and expenses because of reporting needs and obligations. The organisation may need a detailed breakdown according to cost centres, jobs, grants and segments. The various sources of income must be reported
—this can include trading, services relating to the purpose of the entity, fundraising, grants received, membership fees and so on. Because many NFPs rely on grants and funding, the expenditure of that money must be accurately recorded in the financial reports.
NFP entities often rely on budgets to track, manage and forecast finances. Budgets can be created using
Excel spread sheets or specialised software such as Calxa. (Calxa is recommended by ICB, see our
Products and Solutions page). Budgets may need to be approved by a board of directors. Typically, regular reporting would be compared to the approved budget to gauge the financial performance of the organisation.
Record keeping obligations are the same as for any business, but you may be required to file documents differently, for example, according to a grant or a job. Records should be kept for 7 years.
Financial records include the usual invoices, receipts, banking records, contracts, grants received, verifications of certain payments, statements, employee salary records, salary sacrifice records.
Operational records include documents such as a register of members, details of services provided, details of activities conducted, unearned income reports and board minutes. These records allow the ACNC to assess whether the organisation continues to function as a NFP entity and is complying with its obligations.
The particular requirements for your organisation will be instructed to you by the Auditor.
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For more on Bookkeeping for NFP’s: www.asic.gov.au/asic/asic.nsf/byheadline/What+books+and+records+should+my+company+keep%3F?ope
nDocument
Audit
Entities subject to the Corporations Act 2001 are required to conduct an annual audit. Audit requirements differ according to the level of turnover.
The audit is conducted by an external independent registered auditor in order to provide a true and accurate presentation of the financial position and performance.
ASIC Form 388 Copy of Financial Statements and Reports should be completed and lodged with the required documents:
Statement of financial position
Statement of comprehensive income
Statement of cashflow
Statement of changes in equity
Consolidated financial statements
Notes to financial statements
Directors’ declaration
Directors’ report
Auditor’s report and independence declaration
The Form 388 and associated documents generally needs to be lodged within 4 months of the end of financial year; most NFPs operate on a financial year ending 31st December, therefore the ASIC statement is due 30th April.
For more on Audits: www.nfpcompliance.vic.gov.au/managing-your-finances/financial-reporting-and-auditing
Salary Packaging and Salary Sacrifice
It is very common for NFPs to have salary sacrifice arrangements in place for employees. Because this sector often has lower salaries than the commercial equivalent, organisations are able to offer benefits in the form of paying for things like mortgages, credit card bills or a vehicle to form the total remuneration package of higher value.
The employee pays tax on the reduced income, after the sacrifice payment has been deducted from the gross amount.
The employer in this situation may have Fringe Benefits Tax obligations. Some benefits are exempt from
FBT, for example, tools of trade, protective clothing or computer software. These benefits are not included in calculations for working out the grossed up value of benefits provided. The thresholds for benefits provided to the employee are different for the NFP sector.
Generally, NFPs are generally classified into two categories for salary packaging. Rebatable Employers are those which qualify for an FBT rebate. This means the employer can provide each employee benefits up to $30,000 grossed up value. The tax is calculated on this value and then a 48% rebate is claimed. Exempt
Employers are certain types of NFPs that are exempt from paying FBT up to certain limits, for example, a
Public Benevolent Institution can provide the employee with $30,000 worth of benefits (grossed up value), free of FBT implications. FBT would only apply if the employee received benefits over this threshold.
For more on Salary Sacrifice, FBT and Capping of Concessional FBT Treatment: www.icb.org.au/Resources/Fringe%20Benefits%20Tax%20FBT www.ato.gov.au/businesses/general/fringe-benefits-tax www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/76140.htm&page=13&H13 www.ato.gov.au/nonprofit/content.aspx?doc=/content/24632.htm
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Governance
Governance arrangements will differ according to the size and nature of the NFP organisation. Governance generally implies transparency of operations and finances, and meeting member expectations. The governing body may be a board of directors and/or a council. The management committee would generally be separate to the governing body, as the management team would report to the governing body and work together to achieve the purpose of the NFP.
From 1 July 2013, the government intends to introduce new governance standards and external conduct standards that will apply to all registered charities. This has not been passed as law as yet.
For more on Governance:
/www.governance.com.au/ www.companydirectors.com.au/Director-Resource-Centre/Not-for-profit/Characterisitcs-of-good-NFPgovernance
HELP FOR NFP
Dedicated ATO info line for NFP: 1300 130 248
Calxa - www.calxa.com.au/products/not-for-profit
ICB quick reference resource - Not-for-profit Entities
Converting Accrual to Cash Accounting
.
CASH Reporting
Cash reporting is available to businesses with a turnover of less than $2 million and in some other situations such as being a government school or a charitable institution, regardless of turnover.
This system requires you to account for the GST on your sales and purchases in the tax period that payment is made and received .
ACCRUAL Reporting
If the business turnover is greater than $2 million, you must use accrual reporting. You may choose to use accrual reporting even if your turnover is less than $2 million.
This system requires you to account for the GST on your sales and purchases in the tax period that the transaction takes place —regardless of the tax period that payment is made and received.
How do you change the method of reporting?
It is not very common for a business to want to change from ACCRUAL to CASH and specific permission must be granted by the ATO before you convert.
There are two ways of requesting a change to reporting method.
1. The authorised client representative (owner or you as the BAS agent), can contact the Australian
Taxation Office either by phone on 13 28 66 or in writing to PO Box 3424 Albury NSW 2640
2. Request the Tax Agent to make the change on your client’s behalf via their portal.
When Changing from ACCRUAL to the CASH method:
The change can only take effect from the first day of the tax period.
When making the transition from Accrual to Cash you need to ensure that you don’t double claim/pay
GST reported in previous BAS periods . Any sales or purchases that you have entered previously in
ACCRUAL periods would have been claimed whether they had been paid or not.
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You will therefore need to be aware of outstanding debtors and creditors at the end of the last completed BAS period and note those that have now been paid in this and future BAS periods.
To avoid the possibility of double reporting you will need to manually prepare your BAS statements until all of the outstanding Debtors and Creditors have either been paid or received in full or written off.
Bookkeeping Procedure to Convert Cash to Accrual:
NOTE:
If there are any areas that you are not sure about when making the conversion, get advice from the tax agent to verify your calculations.
Conversion Example
Reports used:
1. GST Detail September 2013 – Current Quarter CASH
2. GST Summary September 2013
– Current Quarter CASH
3. Receivables Detail – June 2013 Quarter
4. Payables Detail – June 2013 Quarter
5. NOTE: You need to now determine if the amounts already claimed are fully inclusive of GST, or if there are some FRE, N-T or other taxes as part of the figure. Firstly determine what portion is GST inclusive.
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GST Summary for
September 2013 CASH
FRE – GST Free
GST – Goods and
Services Tax
N-T – Not Reportable
Sale Value
$300.00
$15,156.64
$1,106.80
Totals
.
Receivables Detail @ 30 June 2013
.
$16,563.44
Purchase Value
$993.75
$31,239.40
$10,936.84
$43,169.99
Tax
Collected
$1,377.88
$1,377.88
Tax Paid
$2,839.94
$2,839.94
Customer
A-Z Stationery Supplies
James Cameron
Chris Davis
Chris Davis
Island Way Motel
Leisure Landscape Nursery
My Town Reality
The Motor Company
Total:
.
Payables Detail @ June 2013
.
Supplier
Ton y’s Landscaping
Curbys Super Stands
Curbys Super Stands
Complete Landscaping
Mountain Sprint
Total:
Amount Outstanding
$1,736.23
$2,067.60
$240.00
$577.97
$3,351.83
$699.00
$262.10
$825.51
$9,760.24
Amount Outstanding
$531.51
$825.00
$335.20
$8,526.33
$20,131.41
$30,349.45
Determining the CASH GST
Compare the September 2013 GST Detail Cash Report with the June 2013 Receivables Reconciliation Detail and Payables Details reports.
Identify any sales or purchases that were outstanding as at the 30 June 2013 that are showing payments against them on the GST Detail report.
Highlight these amounts and then total up the highlighted figures in the relevant column. eg: Sales, GST
Collected, purchases and GST PAID.
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Receivables Paid September Quarter
(Showing in GST Detail Report)
Customer
Amount
Outstanding
Sale Value
GST
Collected
Island Way Motel
James Cameron
Chris Davis
$3,351.83
$3,047.12
$2,067.60
$1,879.64
$240.00
$218.18
$304.71
$187.96
$21.82
Totals $5,144.94
$514.49
Payables Paid September Quarter Showing in GST Detail Report
Customer
Amount
Outstanding
Sale Value GST Paid
Curbys Super
Stands
$825.00
$750.00
$75.00
Complete
Landscaping
Mountain Sprint
Totals
$8,526.33
$7,751.21
$10,000.00
$9,090.91
$775.12
$909.09
$17,592.12
$1,759.21
Delete these figures from the total of the appropriate column on the GST Detail CASH
New BAS Report less the June Quarter Accrual Figures paid in Sept 2013
GST Summary for
September 2013
CASH
FRE
– GST Free
GST – Goods and
Services Tax
N-T – Not Reportable
Totals
Deduct totals from previous tables
New totals for reporting on BAS
Sale Value
$300.00
$15,156.64
$1,106.80
-$5,144.94
$11,418.50
Purchase
Value
$993.75
$3,1239.40
$10,936.84
-$17,592.12
$25,577.87
Tax
Collected
$1,377.88
-$514.49
$863.39
Tax Paid
$2,839.94
-$1,759.21
$1,080.73
$16,563.44
$43,169.99
$1,377.88
$2,839.94
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Child Support Payments
.
How to process Child Support payments for Employees/Contractors
Child Support payments may be made various ways, commonly through payroll. If an employer is asked to make payments to the Child Support Agency (via the Department of Human Services) on behalf of an employee, then the employer is legally obliged to deduct payments from the employee’s wages. This may also apply to subcontractors.
Process for Employer:
DHS has two types of payments according to the status of the employee:
1. Section 72A Notice is based on a given cents per $ rate, and there is no protected earnings amount.
This is typically used for casual, contract or seasonal workers. The amount is deducted from the
GROSS wage and then the wage is taxed.
.
2. Payment Schedule which is a specific amount to be paid per pay period as notified by DHS. This amount does not change unless notified by DHS. The payment is deducted from the NET wage. Used for permanent or regular casual employees whose income tends to vary little or not at all. The employer must take care of the protected earnings amount, currently set at $333.53 per week. Generally with this method the amount instructed by DHS will preserve the protected earnings amount, however if the worker’s earnings varies for any reason it is up to the employer to preserve this amount.
Bookkeeping Process
Section 72A Payroll Setup
1. Set up a new wage category in the Deductions section, called Child Support Payments. Set up a liability account for the CSA payments. a. Setup the deduction as a percentage rate and exempt the category from PAYG Withholding. b. Link the category to the relevant employee c. Select “show on pay slip” d. Exclude from Superannuation Guarantee calculation.
2. Set up a liability account for the CSA payments
3. Link the expense account (deduction category wages expense) to the liability account.
4. Process the payroll.
5. Either set up an automatic payment from the business bank account to Child Support Agency or process with other electronic payments.
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Payment Schedule Payroll Setup
1. Set up a new wage category in the Deductions section, called Child Support Payments. Set up a liability account for the CSA payments. a. Setup the category as a fixed dollar amount per pay period as notified by DHS. b. Link the category to the relevant employee c.
Select “show on pay slip” d. Exclude from Superannuation Guarantee calculation.
2. Set up a liability account for the CSA payments
3. Link the expense account (deduction category wages expense) to the liability account.
4. If you need to set up Protected Earnings: Process the payroll. a. Set up a Wages Category called CSA Protected Earnings b. Create the category as a fixed amount set at the current Protected Earnings amount of $333.53 c. In the standard pay details, adjust the wage amount to reflect the total less the protected
Earnings amount d. Link the category to the relevant employee e. Check that entitlements and superannuation are accruing correctly. As you have not altered the amount of hours worked at the Base Hourly category the entitlements should not be affected.
5. Process the payroll
6. Either set up an automatic payment from the business bank account to Child Support Agency or process with other electronic payments.
Payment Summary
Child Support deduction is to be detailed on the payment summary in the deduction fields .
Within the payment summary setup, link the child support deduction wage category to one of the Deductions fields, listing Child Support Agency in the
Description field, so it will appear separately on the Payment Summary.
DHS - The Employers Guide to Child Support
Comparing Tax Codes in Software
.
ICB continue to argue that the GST system could be administered by having only 2 GST codes
GST and NOT
However, our reporting obligations impose greater administration on bookkeeping.
Below we provide a snapshot view of the common codes used in the 5 major software providers. (The different codes provide an insight into how each of the providers approach GST/BAS reporting).
Not all the codes below are required.
MYOB Codes
CAP - Capital Acquisitions
FRE - GST Free
GNR - GST Non-Registered
GST
INP - Input Taxed
Reckon Codes
ADJ - Tax Adjustments
CAF - Capital Acquisitions GST Free
CAG - Capital Acquisitions inc GST
CAI - Capital Acquisitions Input Taxed
CDC - Combined Cellar Door
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N-T - Not Reportable
NEG - Negative GST
Coding related to other areas of the BAS
GW - Consolidated WEG & WET
IMP- Import Duty
LCG - Consolidated LCT & GST
LCT- Luxury Car Tax
WEG - GST on WET
WET - Wine Equalisation Tax
WST - Wholesale Sales Tax
VWH - Voluntary Withholding
CDG - Cellar Door GST
CDS - Cellar Door WET
EXP - GST Free Exports
FRE - GST Free Supplies
GST - 10% GST
INP - Input Taxed Sales
NCF - Non-Capital Acquisitions GST Free
NCG - Non-Capital Acquisitions inc GST
NCI - Non-Capital Acquisitions Input Taxed
Coding related to other areas of the BAS
WC - Combined WET and WGST
WET - Wine Equalisation Tax
WGST - GST on Wine Equalisation Tax
Intuit QuickBooks Codes
GST
GST free
GST free exports
GST on capital
GST on non-capital
GST free capital
GST free non-capital
Input tax
Out of scope of GST Not reportable
SAASU Codes Xero Codes
G1 - Sale inc GST, all sales
G1, G2 - Export sales
G1, G3 - Sale GST free
G1, G4 - Input taxed sales
G7 - Sale adjustments
G10 - Capital expense inc GST
BAS Excluded Not reportable on BAS, GST exempt
GST Free Expenses
GST Free Capital
GST Free Exports
GST Free Income
GST on Capital
G10, G13 FI - Capital expense GST free for input taxed sales
G10, G13 GI - Capital expense inc GST for input taxed sales
GST on Capital Imports
GST on Expenses
GST on Imports
GST on Income
G10, G15 FP - Capital expense GST free for private use
G10, G15 GP - Capital expense inc GST for private
Input Taxed use
G11, G13 FI - Expense GST free for input taxed sales
G11, G13 GI - Expense inc GST for input taxed sales
G11, G15 GI - Expense GST free for private use
G11, G13 FP - Expense inc GST for private use
G10, G14 - Capital expense GST free
G11 - Expense inc GST
G11,G14 - Expense GST free
G18 Expense adjustment
Coding related to other areas of the BAS
1C - WET payable
1D - WET refundable
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State
ACT
NSW
SA
WA
QLD
NT
TAS
VIC
1E - LCT payable
1F - LCT refundable
W1 - Salary/Wage/Other paid
W1,W2 - Withheld tax on salary/wage
W3 - Withheld invest distribution (no TFN)
W4 - Withheld payment (no ABN)
Payroll Tax update - new thresholds for 2013 - 2014
.
What is Payroll Tax?
Each state of Australia has its own unique payroll tax legislation. The various State Acts are broadly similar, in that payroll tax is levied on "wages", but the Acts differ in rates, definitions, thresholds and application. Payroll tax was initially introduced at a Federal Level in 1941. In 1971 payroll tax was transferred to the states.
Payroll tax is a state tax paid by an employer exceeding the relevant state threshold of wages paid.
Payroll tax is not paid until an employer exceeds the threshold in any month.
Geographical grouping is required where a group of companies are inter-related therefore the total of their wages are accumulated for calculation if one company exceeds the threshold.
Reasons for grouping:
Companies are related corporations under the Corporations Act 2001 (parent and subsidiary companies)
Employee/s are used in another business
Two or more businesses are controlled by the same person/s
A head or parent business exercises managerial control over a branch, agency or subsidiary business
Payroll Tax is in the process of being harmonised between the states. There is now one website that links to all the state websites and relevant thresholds. For more detail on the harmonisation protocol: http://www.payrolltax.gov.au/harmonisation/payroll-tax-rates-and-thresholds
PAYROLL TAX THRESHOLDS FROM 1 JULY 2013
Wage Thresholds
Annual Monthly 28 Days 30 Days 31 Days
$1,750,000 $145,833
$750,000 $57,534
$600,000 $50,000
$750,000 $62,500
$1,100,000 $91,666
$1,500,000 $125,000
$1,250,000 $95,890
$550,000 $45,833
$61,644
$102,740
$63,699
$106,164
Rate
6.85%
5.45%
4.95%
5.50%
4.75%
5.5%
6.1%
4.90%
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In QLD the monthly threshold is referred to as a periodic deduction. The deduction depends on the amount of which the annual Australian-wide wages exceed the threshold. For every $4 of wages over the threshold, the deduction reduces by $1. When wages reach 5 times the threshold, the deduction is zero. There are two types of periodic deductions actual periodic deductions and fixed periodic deductions.
In NT the monthly threshold is referred to as a periodic deduction. The deduction depends on the amount of which the annual Australian-wide wages exceed the threshold. For every $4 of wages over the threshold, the
$1 threshold is lost.. There are two types of periodic deductions actual periodic deductions and fixed periodic deductions.
In QLD, the Australian Wide Wages of $416,667 per month or greater, the threshold deduction is zero, therefore tax is payable on the full amount of the taxable wages)
In NT the Australian Wide Wages of $625,000 per month or greater, the threshold deduction is zero, therefore tax is payable on the full amount of the taxable wages)
In NSW and TAS the monthly threshold depends on the number of days in the month
A PDF version of the full ICB Payroll Tax resource is available here .
Terminations Resource update - new ETP caps for 2014
.
From 1st July 2013 the tax treatment of Employment Termination Payments (ETPs) has changed because of new ETP caps and the inclusion of preservation age in the calculations. This document supersedes our previous one, including new examples of terminations involving ETPs and the ETP payment summary codes.
We have also included more detail and examples on the different ETP caps (whole-of-income cap or ETP cap). It is very important that you refer to this updated document if your client is dealing with the termination of an employee.
See the full ICB Termination Payments resource for more detail.
Long Term Commercial Accommodation correction
.
Last month we issued a new resource on GST concessions available for certain long term commercial accommodation. We have added a paragraph on the GST treatment applying to short term accommodation.
We have also corrected the examples at Bookkeeping Processes Scenario 1 to reflect bookkeeping for a stay of over 28 nights.
The updated ICB Long Term Commercial Accommodation is available to download here .
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.
BAS Agent Information
.
When is it acceptable to claim input tax credits from a credit card statement?
.
When paying for goods by corporate credit card, in some cases, the credit card statement may be used as written evidence proving the purchase and can be used instead of a tax invoice to claim the input tax credit.
The statement may be issued on paper or electronically.
Corporate credit cards in this context mean any credit card that is issued in the name of the business entity
(sole trader, company, etc), and is used to purchase goods and services for commercial purposes.
The ATO has issued a ruling ( GSTR 2000/26) that allows businesses to claim input tax credits based on corporate credit card statements from approved card providers.
VISA, AMEX, Diners Club, MasterCard, Australian Card Services, Motorcharge and Fleet Systems are all approved. Other institutions have not been approved by the
ATO and therefore you will need to hold tax invoices to claim GST credits.
The statement can only be used to claim the GST credit where it is known that the supplier is making a wholly taxable supply, and not a mixed supply. For mixed supplies, a tax invoice will need to be held to substantiate the GST amount claimed.
The statement must include the following details:
The business name
The name of the person authorised to use the card
In the case of fuel cards, vehicle identification
The card holder’s ABN
For each purchase: o o o
Date of purchase
Supplier’s name
Supplier’s ABN o o o
Description of acquisition or industry
Amount of GST paid
Total paid
Note that to use the corporate credit card statements in this way requires the business to have a regulated policy on the use of corporate cards for personal expenses and the corresponding necessary adjustment of
GST claimed by the business.
For more information regarding the ATO law surrounding this topic, click here .
Adjustment note changes
.
On 20 August 2013, James O’Halloran, Deputy Commissioner of Taxation, made the following legislative instruments under section 29-20(3) of the GST Act:
A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement
(Decreasing Adjustments Relating to Supplies made by or to a Partnership)
Legislative Instrument 2013 - F2013L01601
Page 24
This instrument waives the requirement for an entity to hold an adjustment note in certain circumstances before attributing a decreasing adjustment to a tax period when the entity holds a document that meets the information requirements prescribed in this instrument.
What does this mean for bookkeepers?
An adjustment note is not required if another document detailing the decreasing adjustment for GST is held
The document meets the information requirements of an adjustment note, (see below), including that the document is issued by a partner (unless it is an RCTI adjustment), and that the ABN of the partnership is included
If it is an RCTI adjustment, including information to identify the partner involved if the supply is over
$1,000
For more detail on the legislation: http://www.comlaw.gov.au/Details/F2013L01601
A New Tax System (Goods and Services Tax) Waiver of Adjustment Note Requirement
(Decreasing Adjustments Relating to Reimbursements of an Employee etc)
Legislative Instrument 2013 - F2013L01600
This instrument waives the requirement for an entity to hold an adjustment note in certain circumstances before attributing a decreasing adjustment (arising from an adjustment event in respect of an acquisition covered by section 111-5 of the GST Act) to a tax period when the entity holds a document that meets the information requirements prescribed in this instrument.
What does this mean for bookkeepers?
An adjustment note is not required if another document detailing the decreasing adjustment for GST is held
The document meets the information requirements of an adjustment note, (see below), including enough information to identify the employee receiving the reimbursement adjustment.
For more detail on the legislation: http://www.comlaw.gov.au/Details/F2013L01600
Both instruments were registered on the Federal Register of Legislative Instruments on 21 August 2013.
GST Adjustment Note information requirements
On 20 August 2013, James O’Halloran, Deputy Commissioner of Taxation, made the following legislative instrument under s 29-75 of the GST Act:
Goods and Services Tax: Adjustment Note Information Requirements Amendment
Determination 2013 - F2013L01602.
This determination amends the A New Tax System (Goods and Services Tax) Adjustment Note Information
Requirements Determination 2012.
The instrument is taken to have commenced on 1 July 2010. The instrument will therefore apply retrospectively.
The Explanatory Statement states that if the amendments to the existing legislative instrument were not applied retrospectively, then it is possible that some taxpayers may be adversely impacted in that they will not be able to apply the provisions to their circumstances. As such, the instrument applies retrospectively to ensure that taxpayers will not be disadvantaged by the amendments to the existing legislative instrument. The effect of the legislative instrument is to the advantage of affected parties.
Page 25
What does this mean for bookkeepers?
The new adjustment note requirements are more flexible than the previous requirements.
An adjustment note is not required where:
the amount of the decreasing adjustment is less than $75 the amount is an increasing adjustment the event is a bad debt the event occurs in the same tax period as the GST is attributable
An adjustment note for a tax invoice or recipient created tax invoice must contain the following information:
The identity of the supplier
The date of issue
The identity and/or the ABN of the recipient if the adjustment note relates to a tax invoice showing the total supply is $1,000 or more
The total effect of the adjustment
The reason for the adjustment —brief explanation
The amount of adjustment to GST payable
Any difference in price of the supply before and after the adjustment
Related information:
Electronic version contains the same information as above
One document may be both a tax invoice and an adjustment note assuming it satisfies the requirements for being a tax invoice
Where one document details several adjustment events each event must be detailed along with a total
For more detail on the legislation: http://law.ato.gov.au/atolaw/view.htm?docid=%22GST%2FGSTR20132%2FNAT%2FATO%2F00001%22
TPB releases booklet of compliance outcomes
.
The Tax Practitioners Board’s (TPB) has released the latest Summary of penalties, sanctions and ter minations booklet. This second edition includes a summary of some of the TPB’s most recent compliance outcomes, including Federal Court, Administrative Appeals Tribunal and Board Conduct Committee matters.
This booklet contains summaries of cases where registered tax and BAS agents have not met their obligations under the Tax Agent Services Act 2009, including the Code of Professional Conduct. Also included are case summaries where unregistered agents were penalised for providing tax agent services for a fee or other reward.
The Chair of the TPB, Ian Taylor said “We want to provide support to tax practitioners who are responsible and do the right thing. We find it is only a very small percentage of agents who do not comply with the Code of
Professional Conduct and other legislative requirements. We take non-compliance with the law very seriously and focus our compliance resources where there is the greatest risk of harm to taxpayers and the community as a whole.”
Mr. Taylor added “Many tax practitioners have told us that the first edition of our Summary of penalties, sanctions and terminations booklet was very useful in understanding the TPB’s approach to non-compliance.
We believe this second edition will add to that understanding.”
Click here for the TPB's Summary of penalties, sanctions and terminations booklet
Page 26
You must maintain your PI Insurance or else
.
The law has changed!
Brought in just prior to the calling of the (now forgotten) election means that
1. in order to register as an Agent, you must declare that "you are able to maintain" PII Insurance. This allows you to register and then if/when registered incur the cost of getting the insurance, and then
2. once you have registered you "MUST maintain" which means establish the PII and keep an active, valid policy or face the wrath of the TPB including possible de-registration. for all details refer to the
TPB guidelines
The new obligations have now been updated, full details available here .
There is a minimum required by the board. This is not an exact recommendation, rather guidelines to help you decide what your minimum should be.
This is based on:
1. what is adequate for your situation to "satisfactorily indemnify an agent against any civil liability..."
2. the amount of cover appropriate to your turnover
3. scope of cover that includes civil liability arising from your actions in providing BAS services
4. the number of persons to be covered, ie, all agents, directors, partners, employees and contractors not covered by their own PI insurance separately.
5. other criteria include exclusions, amount of excess payable being within your means, and that the insurer is an approved provider.
More detail available in the links above.
Tax Practitioner Board says 95% agents behave
.
Tax Practitioners Board Consultative Forum
– 22nd October 2013
ICB represents its members at a range of Government consultative forums including the Recognised
Professional Associations forum run by the Tax Practitioners Board. We were represented at the recent 22nd
October meeting by ICB Director, John Birse.
TPB Reports that there are currently approximately 55,000 registered Tax Agents in Australia with the renewal stream continuing.
There is a slight increase in the number of applications on hand with average processing time for new and renewals down to 15 days. (The September average for BAS Agent renewals to be 8 days and new applications 22 days).
Points were raised suggesting that the guidance around Supervision requirements and a few other parts of the process could be improved.
Compliance
Complaints and referrals received in year to 30 June 2013 were 2680. 50% of complaints come from public with a trend towards agents who take over a client 'dobbing' in the previous agent.
Page 27
TPB Compliance Model
Total finalised cases this year: 519 with 112 receiving sanctions and 6 agent registrations terminated.
New publication
–
Summary of Penalties, Sanctions and Terminations Edition 2 has been issued.
Other information
TPB eNews has had great response with 47% opening rate for 44 thousand subscribers.
TPB visited Perth and ran a series of very successful information sessions. TPB will be in Adelaide 6 to 8 of
November with 8 sessions scheduled for Tax/BAS Agents. 580 people are already registered.
The TPB Strategic Plan has been distributed.
TPB about to release an Agent badge incorporating TPB symbol and Agent number for use by Agents.
The new responsible Minister is NSW Senator Arthur Sinodinos.
.
Continued Professional Education
.
Your CPE plan
.
The ICB explanation of Continuing Professional Development is listed here.
The ICB requirement is 15 hours per year of bookkeeping related education or development. The Tax
Practitioners Board requirement is 45 hours over 3 years, with a minimum of 5 hours per year of BAS services related education or development. This is a narrower definition than the CPE for the ICB. For example, you may attend a network meeting for 2 hours. The entire 2 hours may be counted for ICB CPE, but you must decide how much of the 2 hours is relevant to BAS services
—and this will vary from meeting to meeting.
As another example, you may attend an accounting software training session for a day. ICB would recognise this as professional development but the TPB may not if it was not directly related to the provision of BAS services.
The TPB allows for 25% of the time to be technical reading, for example, ICB newsletters or ATO newsletters.
Registered agents must maintain a record and evidence of their CPE activities.
Page 28
Examples of CPE activities include:
seminars, workshops, courses and lectures structured conferences and discussion groups (including those undertaken by telephone or video conference) tertiary courses provided by universities, registered training organisations (RTOs), other registered higher education institutions or other approved course providers (including distance learning) other educational activities, provided by an appropriate organisation research, writing and presentation by the registered agent of technical publications or structured training peer review of research and writing submitted for publication or presentation in structured training computer/internet-assisted courses, audiotape or videotape packages attendance at structured in-house training on tax related subjects by persons or organisations with suitable qualifications and/or practical experience in the subject area covered
Every newsletter we include events published on our CPE page: http://www.icb.org.au/CPE
Your 2014 plan .....could be
1. March 2014 - ICB conference 6 hours
2. Software Company updates or conferences 1 day @ 6 hours or 2 days @ 12 hours
3. ICB Network meetings 6 @ 2 hours
4. ICB Monthly newsletters 12 @ 1 hours
5. ATO Bookkeeper/BAS Agent/GST Webinars 4 @ 1 hour
So……… that easily amounts to 40 hours per year minimum
Other opportunities
1. Software company quarterly sessions or webinars
2. ICB topic based webinars
3. ICB End of year 2 day workshops
This month from the ICB Continued Professional Education webpage
Upcoming events
ICB 2014 National Conference - Bookings now open for ICB full Members ONLY
Launceston
4th March, 2014
Sydney
7th March, 2014
Darwin
12th March, 2014 .
Melbourne
5th March, 2014
Brisbane
10th March, 2014
Canberra
17th March, 2014
Adelaide
6th March, 201 4
Cairns
11th March, 2014
Perth
19th March, 2014
Page 29
ICB Network Meetings
Nationally, Monthly
Salary Packaging
Perth (Online and DVD also available)
6th November, 2013
ICB Monthly Training Webinars
Let's relook at Bank Feeds
15th November, 2013 (12pm AEDST)
Payroll Essentials
Perth
Holmesglen TAFE - BAS Agent Skill Set
Classroom training (Victoria SE suburbs -
Moorabbin)
6th November, 2013
13th November, 2013
2013
FNSBKG405A - 13th December, 2013
Xero Accounting and Payroll
FNSBKG404A - 15th November, 6th December, Perth (Online and DVD also available)
13th November, 2013
Assessment - 29th November, 20th December,
2013
Managing your payroll
Perth
13th November, 2013
Develop and use Complex Spreadsheets
Perth
28th November, 2013
ICB Monthly Training Webinars
Set up and use of Xero payroll
5th December, 2013 (12pm AEDST)
Accounting Skill Sets for Bookkeepers
Moorabbin
November - December, 2013
ICB 2014 National Conference
Nationally
4th March, 2014 - 19th March 2014
MYOB - Perfecting Payroll
Webinar
1st November, 2013 (10am AEDST)
2nd December, 2013 (10am AEDST)
Payroll Administration
5th November, 2013
Perth (Online and DVD also available)
MYOB - An update to the latest and greatest features
Webinar
4th November, 2013 (1pm AEDST)
16th December, 2013 (1pm AEDST)
Page 30
.
ICB Network Meetings
.
Join your fellow members at the ICB Christmas party
.
ICB with the support of MYOB are hosting Christmas parties for our members at a number of locations around the country.
This is a great opportunity to celebrate the year and network with your fellow ICB members.
Cost is just $15.00
To register for your local party click on the location below.
Proudly supported by MYOB
.
Gold Coast
26th November, 2013
5.00 – 7.00 pm
Gold Coast Country Club
Country Club Drive
Helensvale .
Perth
3rd December, 2013
5.00 – 7.00 pm
The Breakwater
58 Southside Drive
Hillarys Boat Harbour
Hillarys .
Sydney
9th December, 2013
5.00 – 7.00 pm
Paddington Arms Hotel
384 Oxford Street
Paddington
Melbourne
27th November, 2013
5.00 – 7.00 pm
Matthew Flinders Hotel
667 Warrigal Road
Chadstone
Darwin
3rd December, 2013
5.00 – 7.00 pm
IL Lido
19 Kitchener Drive
Darwin
Canberra
10th December, 2013
5.00 – 7.00 pm
Benjamin’s
Belconnen Premier Inn
110 Benjamin Way
Belconnen
Adelaide
2nd December, 2013
5.00 – 7.00 pm
Auge
22 Grote Street
Adelaide
Cairns
4th December, 2013
5.00 – 7.00 pm
Salthouse
6/2 Pierpoint Road
Cairns
Brisbane
11th December, 2013
5.00 – 7.00 pm
The London Club
38 Vernon Terrace
Newstead
Page 31
Question for you to discuss this month??
.
This month's question for you all to debate at your network meeting is:
Your client has a customer who invoices him using his subcontractors’ ABNs on his invoices - not his own. Eg:
His business is a cleaning company that uses contractors. The owner gives the contractors his invoice book with his letterhead, gets them to put their own ABN on the invoice and then sends it on to his customers.
(This cleaning business is not part of a franchise). The business owner insists he is correct in doing this.
How should you and your client handle this situation?
What do you do?
Let us know your thoughts and solutions by posting comments on the Q & A Space.
Let us know your queries you would like addressed here
Last month we asked you:
Your client engages a contractor who has a voluntary agreement for withholding PAYG. Should he be charging the client GST on his invoice?
ICB's Response:
It depends on the business he is contracting to.
If a contractor IS registered for GST, and is contracting to a GST registered business, they can only claim
GST for items bought and used in performing the work under the voluntary agreement. They cannot charge
GST on their labour, but can charge the GST included in the purchase of materials used in the work.
For example, a GST registered contractor working on a project for a GST registered builder, (which is entitled to claim GST credits), does NOT charge GST on his labour, but CAN claim the GST paid in purchasing materials used for his work. However, a GST registered contractor working for a bank (which cannot claim
GST credits), should charge GST on his labour invoices, as well as any GST paid for purchases related to his work.
If a contractor is NOT registered for GST then they cannot include GST on their invoices. PAYG withholding voluntary agreements are designed to help the contractor meet their expected income tax liability. They can be entered into under certain circumstances.
To work out how much to withhold, the payer subtracts any goods and services tax (GST) charged from the gross amount (invoiced amount) payable and multiplies the result by the withholding rate specified in the voluntary agreement.
For more detail, click here .
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Upcoming Network Meetings
.
Join a network meeting this month, not just to share, but to also network and keep informed.
All ICB Network Facilitators volunteer their time to assist ICB in keeping you up to date and informed and without the help of these fantastic people it would not happen.
If you are unable to attend your local meeting due to time restraints or there isn't a meeting in your area, why not join us via webinar on the 2nd week of each month.
Webinars
Online
8th November, 2013 - 12pm
(AEST)
Queensland
Gold Coast (am and pm sessions)
12th November, 2013
South Sunshine Coast
14th November, 2013
Moreton Bay
11th November, 2013
Cairns
22nd November, 2013
New South Wales
Sydney - Balmain
18th November, 2013
Sydney - Brookvale
2nd December, 2013
Sydney - Sutherland
20th November, 2013
Bellingen
25th November, 2013
Newcastle
8th October, 2013
Dubbo
14th November, 2013
ACT
Canberra - Phillip
12th November, 2013
Victoria
Burwood (am session)
6th November, 2013
Docklands
6th December, 2013
Lilydale
13th December, 2013
Online
11th November, 2013 - 5pm
(AEST)
Brisbane North
12th November, 2013
North Sunshine Coast
14th November, 2013
Bundaberg
26th November, 2013
Toowoomba
15th November, 2013
Sydney - Moorebank
4th December, 2013
Sydney - Hornsby
14th November, 2013
Bathurst
19th November, 2013
Blue Mountains
11th November, 2013
Port Macquarie
20th November, 2013
Orange
28th November, 2013
Burwood (pm session)
14th November, 2013
Frankston
14th November, 2013
Macedon Ranges
10th December, 2013
Brisbane South
Logan
Hervey Bay
Townsville
Mordialloc
10th December, 2013
Cranbourne
13th November, 2013
Geelong
19th November, 2013
20th November, 2013
11th November, 2013
8th November, 2013
Sydney - Randwick
TBA
Ballina
Central Coast
Shoalhaven
3rd December, 2013
13th November, 2013
Sydney - Newport
13th December, 2013
13th November, 2013
25th November, 2013
Page 33
Point Cook
12th November, 2013
Sale
14th November, 2013
Western Australia
Cobram
TBA
Yarra Valley
15th November, 2013
Horsham
TBA
Balcatta
12th November, 2013
Joondalup
18th November, 2013
South Australia
Bunbury
TBA
Midland
13th November, 2013
Melville
13th November, 2013
Cockburn Central
TBA
South Adelaide
13th November, 2013
Henley Beach
15th November, 2013
Para Hills
13th November, 2013
Unley
TBA
Tasmania
Mt Barker
15th November, 2013
Hobart
15th November, 2013
Launceston
26th November, 2013
Northern Territory
Darwin
12th November, 2013
These meeting are conducted in a relaxed and informal environment to promote discussion amongst those attending the meetings.
No meeting in your area?
We are always on the lookout for facilitators to run meetings in their local area so if you are interested please contact Rick Van Dyk at rick@icb.org.au
ICB Network Meetings are proudly supported by MYOB
.
Other Things Happening in the World
.
What price can I put on my clients
.
Value of a bookkeeping business
Further to articles recently on valuation of a Bookkeeping business when considering sale or purchase and various valuation techniques, we observed the following article with interest To view the entire article, click on: http://www.theage.com.au/small-business/smallbiz-experts/what-price-can-i-put-on-my-clients-20120923-
26f10.html
Quote "The valuation rule of thumb for your bookkeeping business would be to take your average revenue over the past three to five years and to apply a multiple of between one and three times that average revenue."
Comment: We are aware in the listed public company space of Market capitalisation (what the shares are trading at) resulting in a valuation on the company of 52 times revenue. It defies most accounting logic and valuation logic.
Page 34
Valuation theory would normally go along the lines of rate of return or cashflow generation leading to a value being a multiple of profit, not revenue. The logic being if you are going to spend cash investing in something then you should get a rate of return, a profit, a dividend.
How do you get such a return? Either by the business making a profit and paying dividends to the investors or that the capital value increases.
The comment in the article seems to be based on the "Capital Value" of bookkeeping business will increase, therefore to invest $x today may or may not lead to profit but after a period of time the capital value will increase to $x+Y for some reason.
Why does capital value increase? Economic logic says because it is worth more because it generates more income. This article's valuation logic seems to be suggesting it will be worth more simply because someone will be prepared to pay more.
Summary: We would love to hear of bookkeeping businesses selling for multiples of revenue :)
However........ We also believe the article is incorrect.
Further information regarding selling a business is available at - Selling a Business, Part 1 (June 2013) and
Selling a Business, Part 2 (July 2013)
What are your thoughts
Don't use email for Spam
.
Using e-marketing can be a great way to promote your business and let your customers know about sales and special offers.
However, you should be aware that if you send e-marketing messages to Australians, you must comply with the Spam Act 2003 .
The Act applies to messages that are:
commercial in nature (for example, messages that advertise goods or services) sent by email, short message service (SMS or text messages), multimedia message service (MMS) or instant messaging.
According to the Act, you must comply with three main rules:
the recipients must have consented to receive the message the message must clearly identify your business as the sender the message must include a way for the recipient to unsubscribe from further messages.
The Act protects the privacy and personal information of all Australians and is enforced by the Australian
Communications and Media Authority (ACMA).
You should also be aware that ACMA can give formal warnings to businesses that do not comply.
Visit ACMA’s Ensuring you don’t spam for more information about the Act and how to comply.
Page 35
What's happening around us - Population wise
.
AUSTRALIA: POPULATION AND GROWTH
The preliminary estimated resident population (ERP) of Australia passed the 23 million milestone during the first quarter of 2013, reaching 23,032,700 people by 31 March 2013.
This reflects an increase of 397,400 people since 31 March 2012 and 114,800 people since 31 December
2012.
The annual population growth rate for the year ended 31 March 2013 was 1.8%. This continues the trend of an increasing rate from a low of 1.4% for the year ending March 2011.
Natural Increase
Natural increase for the year ended 31 March 2013 was 159,100 people, an increase of 0.8%, or 1,200 people, when compared with natural increase for the year ended 31 March 2012 (157,900 people).
Births
The preliminary estimate of births for the year ended 31 March 2013 (308,700 births) was 1.2%, or 3,800 births, higher than the figure for the year ended 31 March 2012 (304,900 births).
Deaths
The preliminary estimate of deaths for the year ended 31 March 2013 (149,600 deaths) was 1.7%, or 2,600 deaths, higher than the figure for the year ended 31 March 2012 (147,000 deaths).
Net Overseas Migration
For the year ended 31 March 2013, Australia's preliminary net overseas migration estimate was 238,300 people. This was 10.5% (22,600 people) higher than the net overseas migration estimated for the year ended
31 March 2012 (215,700 people).
NOM arrivals increased by 6.8% (32,100 people) between the years ended 31 March 2012 (470,500 people) and 31 March 2013 (502,600 people).
NOM departures increased by 3.8% (9,600 people) between the years ended 31 March 2012 (254,800 people) and 31 March 2013 (264,300 people).
The preliminary net overseas migration estimate for the March quarter 2013 (73,400 people) was 3.3% (2,400 people) higher than the estimate for the March quarter 2012 (71,000 people).
STATES AND TERRITORIES: POPULATION AND GROWTH
The estimated resident population for each state and territory at 31 March 2013 was as follows:
New South Wales 7,381,100;
Victoria 5,713,000;
Queensland 4,638,100;
South Australia 1,667,500;
Western Australia 2,497,500;
Tasmania 512,900;
Northern Territory 237,800; and
Australian Capital Territory 381,700.
Page 36
All states and territories recorded positive population growth in the year ended 31 March 2013. Western
Australia continued to record the fastest growth rate of all states and territories at 3.4%. Tasmania recorded the slowest growth rate at 0.1%.
Australian Bureau of Statistics, 2013, Australia's Population
.
From the ICB
.
This month...
.
ICB part year statistics and financials
.
Balance Sheet
Cash
GST/Creditors
Contract
On Hand
Profit and Loss
Total Income
Total Direct Costs
YTD 2013
$326,352
$99,655
$226,697
2012
$273,000
-$38,000
$235,000
YTD 2013 2012
$1,175,642 $1,344,695
$472,597 $420,083
Total Operating
Expenses
$639,729 $657,229
Total All Expenses $1,112,326 $1,077,312
Net Profit/Loss $63,316 $267,383
2011
$169,000
-$70,000
-$93,000
$6,000
2011
$1,089,250
$362,571
$548,616
$911,187
$178,062
Page 37
Network Meeting Growth January 2012 to September 2013
Network Meeting Attendance
Network Meeting Locations
Membership Growth 2006 - 2013
Page 38
Client Newsletter - eBrief - October 2013
.
The October 2013 Bookkeeping eBRIEF is now available for you to download.
October 2013 Bookkeeping eBRIEF - PDF
.
October 2013 Bookkeeping eBRIEF - fully customisable version
Back copies are available here
"The best bookkeepers using the best resources".
.
What's new this month
New Resources
September 2013 Members Newsletter Podcast - Link
The BAS Agent, Edition 41 - Link
TAPS eNewsletters for October 2013 - Link
Workforce Education News, Issue 3/2013 - Link
*NEW from the ATO* The Tax Professionals Newsletter, Issue 1 - Link
News Items
TPB annual report highlights key achievements
TPB releases booklet of compliance outcomes
MYOB launch exclusive offer for not-for-profits
Upcoming TPB Consultative Forum - Any questions?
TPB releases new strategic plan
September 2013 Newsletter podcast is now available
TPB Chair seeking your assistance
Changes to Flexible Work Arrangments
Fairwork - Deducting overpayments from wages
Do you have to check the ABN & GST status?
ICB Q & A Space News
During October there has been a bit of activity around ' Switching off paper statements' , the idea of no paper activity statements is certainly proving a winner, we will keep you post with our progress with the ATO regarding this one. Foreign sales income bank charges has also drawn a lot of interest. With the world growing smaller and online transactions becoming more popular and easier this problem will certainly become more prevalant, what are your thoughts??
Feel free to ask your questions regarding any issue you may be having or if you require clarification, we are here to help.
The Latest Updates lists all the topics in order of replies
Page 39
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Products and Solutions
.
HR advice for you and your clients
.
Fast Answers to Your Clients’ HR Questions Are Now At Your Fingertips!
Workforce Guardian
– Australia’s leading HR and employment relations service for employers – is proud to announce new benefits exclusively available to ICB members.
As MD of Workforce Guardian, David Gates has both the pleasure and privilege of travelling around Australia with the ICB team meeting members face-to-face and hearing first-hand about the professional advice and support you provide to so many Australian employers. It’s because of your hard work – and the efforts of the team at the ICB – that Workforce Guardian is so pleased to provide HR support and advice to Australia’s bookkeepers.
Solution 1: Phone support on a pay as you go basis $45 for 15 minutes
Earlier this year we announced a major expansion of our partnership in the form of dedicated, low-cost access for all ICB members to the Workforce Guardian HR Advice Line. This service – usually only available to WG subscribers - is available to all ICB members for just $45 per 15 minutes (+GST). It offers an easy and costeffective way for ICB members to obtain practical, friendly and plainEnglish advice on Australia’s increasingly complex employment laws. Our team of professionals routinely answer questions about:
Rates of pay
Modern Awards
Long Service Leave
Annual Leave
Dismissals
And many, many more employment-related topics.
Since the launch of the Advice Line service for ICB members, we’ve received consistent feedback from you requesting a service that offers written advice within a guaranteed turnaround time.
Solution 2: NEW: Written answers – your one subscription service for all your clients
Workforce Guardian has heard you - and in September we launched our newest product, HR Advice Online:
Powered by Workforce Guardian.
This new subscription-based service allows bookkeepers, accountants and business advisors to quickly and easily obtain written answers to all their clients’ HR-related questions, straight from the team here at
Workforce Guardian. In essence, it’s the perfect answer for you, your bookkeeping practice and all your small business clients!
This month, Workforce Guardian are very pleased indeed to announce a further expansion of our partnership with your Institute. With immediate effect, all ICB members who subscribe to HR Advice Online: Powered by
Workforce Guardian will receive a massive 50% rebate on the annual subscription price of $495 (incl GST).
This means ICB members can subscribe to this best-selling new service for a total price of just $247.50.
Now you can obtain fast, written answers to all your clients’ HR and employment-related questions via your invaluable – yet extremely low cost – HR Advice Online subscription…all thanks to your ICB membership!
To subscribe now and begin using your new service immediately, simply visit http://www.workforceguardian.com.au/hr-services/get-it-now/ and select HR Advice Online from the list of products.
Page 40
When purchasing, please enter ‘ICB’ and your ICB member number in the Partner Code field – your 50% rebate will be processed as soon as your purchase has been completed. HR Advice Online has been built by us especially for you
– subscribe today!
Lastly, don’t forget that Workforce Guardian has prepared 10 extremely useful factsheets about the Fair Work laws exclusively for ICB members. These can be downloaded from your members-only section of the ICB website 24/7.
Have a great month.
David Bates BA(Govt), LL.B(Hons)
Managing Director - Workforce Guardian
.
From the ATO
.
Lodgement program concessions or not
.
ATO Lodgement Program Clarification
In our July newsletter we published information about the upcoming BAS Agent lodgement program that will come into effect from 1 July 2014.
You will be required to lodge 85% or more of your clients’ current year returns by the lodgement program due date, or by the deferred due date if a deferral is granted. Additionally, concessional lodgement dates available under the lodgement program will only apply to returns you lodge electronically.
If you take on a client with many outstanding BAS lodgements overdue, we are assured by the ATO that you won’t be penalised…but we don’t have this in writing as yet. We are seeking more detail and clarification from the ATO on this matter and will keep you updated on developments.
http://www.ato.gov.au/Tax-professionals/Prepare-and-lodge/BAS-agent-lodgment-program-2013-14/
Activity statements take 2.5 hours
.
And you wondered whether the work you did on GST was important!!
For the 2011-12 financial year:
Total net goods and services tax (GST) liabilities (including Customs collections) were $46.8 billion, an increase of 1.7% from 2010-11
Wine Equalisation Tax (WET) liabilities (including Customs collections) were $729 million, a decrease of 1.5% from 2010-11
Luxury Car Tax (LCT) liabilities (including Customs collections) were $441 million, a decrease of 7.9% from 2010-11.
PAYG Withholding was paid by 721k entities totalling $ 141,172,140,813
Average time to complete a BAS in the 2011 year was reported to be 2.5 hours
(Data obtained from the ATO Taxation Statistics )
Page 41
GST tax invoice ruling published
.
Goods and Services Tax Ruling GSTR 2013/1: tax invoices, was published on 27 March 2013 and applies retrospectively from 1 July 2010. The Commissioner has also made ten legislative instruments (LIs) that waive the requirement to hold a tax invoice before attributing an input tax credit in particular circumstances.
GSTR 2013/1 replaces GSTR 2012/D3 and sets out the minimum information requirements for a tax invoice and also explains when a document is in the approved form for a tax invoice.
The following list details certain circumstances in which a recipient may be relieved from the obligation to hold a tax invoice in order to attribute an input tax credit:
Acquisitions under an Agency Relationship
Acquisitions from or Acquisitions by a Beneficiary of a Bare Trust
Acquisitions by Recipients Using Electronic Purchasing Systems
Acquisitions Where Total Consideration Not Known
Offer Documents and Renewal Notices
Acquisitions from or Acquisitions by a Partnership
Acquisitions from Property Managers
Creditable Acquisitions of Taxi Travel
Creditable Acquisition by a Lessee or Sub-Lessee Following a Sale of a Reversion in Commercial
Premises
Acquisition of a Motor Vehicle Under a Full or Split Full Novated Lease Arrangement
A full list of all related LIs can be found at appendix 2 of the ruling .
If businesses complied with the previous requirements for a tax invoice, they will continue to satisfy the new requirements. This means that businesses should not have to change their software or accounting systems to comply with the new ruling and instruments.
ICB Links
.
Apply for ICB Membership here
Renew your ICB Membership here
ICBenefits - Cashback and Savings for ICB Members
BAS Agent updates and information
Other Newsletters o The BAS Agent o o
ATO Small Business Newsletter
Workforce Education News o o
The Association of Payroll Specialists (TAPS)
Calxa
ICB Membership Statistics
.
3,780
2,421 Members maintain Fellow, Member, Associate, Affiliate and Educator membership, ICB also has 1,322
Student Members and 37 Subscriber Members.
Page 42
ICB Supporters and Sponsors
1
Please note that, in between newsletter issues, articles may be published straight to the Latest News section of the website. Please check the headlines which can be found in the top right of the website homepage, to ensure you stay up-to-date.
The Institute of Certified Bookkeepers complies with the Spam Act 2003 and we have a documented Spam
Policy on our website. You can unsubscribe from ICB newsletters and updates here .
ICB's Newsletter contains news articles, links and regular sections that we feel will be of interest. If there is anything that you would like to see, whether a regular feature or a one-off, please let us know. Email your ideas to admin@icb.org.au
The monthly Newsletter for members of the Institute of Certified Bookkeepers.
A selection of those articles listed are accessible by ICB Members ONLY - ICB Members, you will need to be logged onto the ICB website to view all the articles in full.
The newsletter of ICB is designed as information and resources for Bookkeepers with clients and also bookkeepers in employment.
The content of the newsletter maybe relevant in part or in whole to other publications or other purposes.
The ICB withholds all rights of all content that is restricted to member access only and that information included in the member newsletter. Member only information is not to be reproduced without specific consent from ICB.
The ICB permits reproduction of ICB articles and material contained in the non-members newsletter and available publicly on the website on the proviso that acknowledgement of ICB is specifically provided including links to the ICB website and original article. eg "This information has been obtained from the Institute of
Certified Bookkeepers from www.icb.org.au
"
Page 43
