We are delighted to present our first Client Newsletter this December. This is an effort to Connect The Dots and find shape and meaning to key updates from ATO, Accounting Business and others month on month. Through this Newsletter, we strive to make it easy for you to read, connect and relate to the developments in Australian Accounting and Financial Planning.
| Our outlook 2021 |
The year 2020 was about resilience and survival.
Economic revival will be slow, cyclical & local. Governments, in general, will continue to “bridge the gap” and central banks will keep interest rates low to support growth.
Australia’s economy grew 3.3% in the September quarter. Recovery from the recession will be “uneven and drawn out”.
Increasing demand for financial advice
Against a backdrop of economic uncertainty and volatile markets, a record number of non-advised Australians (2.6 million) realise they need professional financial advice in next two years
A recent research showed that proactive communication from planners during current times has contributed to significantly higher client satisfaction.
Australians recognise their super investments a matter for advice but welcome a broader range of topics.
feasibility to replace inefficient processes.
Organizations across the globe are realizing the benefits of incorporating Artificial Intelligence (AI) and Machine Learning (ML) within RPA framework where robots can mimic human behavior and handle complex use cases.
The key areas of interest include investments outside super, tax strategies and budgeting assistance.
As the global economy steps gingerly into 2021, we see a world that is digital and sustainable, leading with green tech, fintech and health tech.
The pandemic has only accentuated this long-term trend already underway. Businesses must prepare for this digital future with emerging 5G technologies.
Robotic process automation
The use of RPA is one of the ways businesses have adapted, RPA (Robotic Process Automation) is evolving at a tremendous pace owing to its potential to adapt quickly to changing circumstances.
RPA enhances processes rather than replacing them thereby increasing the feasibility to replace inefficient processes.
Organizations across the globe are realizing the benefits of incorporating Artificial Intelligence (AI) and Machine Learning (ML) within RPA framework where robots can mimic human behavior and handle complex use cases.
| Are you being Hacked? |
Recently, a survey was done of nearly 2,000 small businesses and 62 percent of them had been hit by some level of cybersecurity breach
ATO has recognised this issue and has provided an Online safety checklist.
- Use multi-factor authentication where possible
- Run the latest software updates to ensure operating systems security is current
- Secure your private wi-fi network with passwords (not the default password) and do not make financial transactions when using public wi-fi networks.
- Exercise caution when clicking on links and providing personal identifying information
- Only access online government services via an independent search – not via emails or SMS
- If in doubt, call the ATO on an independently sourced number to verify an interaction
- Educate your staff on cyber safety and scams.
ATO online security self-assessment questionnaire provides you with measures and information to assist you to improve your online security.
| COVID relief and ATO updates |
Covid 19 Consumer Travel support Program
The Australian Government announced a Covid 19 Consumer Travel support Program on 1st December 2020. Under the $128 million scheme, eligible travel agents and tour arranging service businesses will be able to apply for a one-off taxable payment.
- Operating a business as either a travel agent or tour arrangement service provider prior to the announcement of the closure of international borders by the Prime Minister on 19 March 2020
- Had an annual turnover starting from $50,000 up to a maximum of $20 million for the 2019 Calendar year
- Be in receipt of the extension of the JobKeeper payment
The Travel Agents COVID-19 Payment will be processed and administered by Services Australia through Business Hub.
Wage subsidies on offer
The below are several Wage subsidies offered by the government in addition to the proposed Job Maker scheme:
| Nature of Subsidy | Age Range (In Years) |
Amount (up to) |
| Restart | 50+ | $10,000 |
| Youth Bonus | 15-24 | $6,500/ $10,000 |
| Youth | 25-29 | $6,500 |
| Parents | N/A | $6,500 |
| Long Term Unemployed | N/A | $6,500 |
Conditions to avail the above subsidies:
- Average Working Hours of 20/week over a 26-week period and should be an ongoing employment complying with the ‘National Employment Standards’.
- The employment can be full-time, part-time or casual.
- Apprentices and trainees are also eligible.
- All Wages subsidy agreements are to be approved in Department’s IT System within 84 days of employment date.
Extension to Job Keeper Supplement
- The temporary COVID-19 supplement has been extended up to 31st March 2021.
- The payment rate has been reduced from $250 to $150 per fortnight from 1st January 2021.
Increased turnover threshold for SME loan
- The turnover threshold for availing support under SME loan guarantee scheme has been increased from $50M to $120M.
- This came into effect from 14th November 2020.
BAS Agents authorized to provide extended services
The ‘Tax Agent Services (Specified BAS Services No. 2) Instrument 2020’ has been registered to enable BAS agents to provide the below services which were previously restricted only to Tax Agent:
- Service relating to payroll function or payments to contractors.
- Service under the Superannuation Guarantee Charge Act 1992.
- Service relating to Payments and ABN Verification.
- Service relating to TFN declarations.
- Service under Section 9 of the ABN act.
Late lodgment of SMSF Annual Returns
- The ATO has reminded the trustee of SMSFs that the annual return due date for some funds has passed by 2nd November 2020 (since 31st October 2020 was a Saturday).
- In case the trustees are unable to lodge in time, they must contact the ATO to request for a deferral.
- The status of the SMSF will be changed as ‘Regulation details removed’ in Super Fund Lookup when the return is due for more than 2 weeks without requesting for a deferral.
Impacts of having the status as ‘Regulation details removed’:
- APRA Funds will not roll over any member benefits to the SMSF.
- Employers cannot make any SG
| What’s new? |
We offer Business Services Audit Support Service
We are in the process of releasing our Business Services Audit Support to all clients in Jan 2021. This will enable our clients to increase overall efficiency in Audit & Assurance delivery process. This service has well defined process and execution techniques for audit of
- Financial Statements
- Non-Profit Organisations
- AFSL Audits
- Cross-border audit checks
- Special Audits
Carisma Solutions nominated as global finalist for “SME of the Year” award – IABCA in Australia
We are delighted that Carisma Solutions is nominated as a global finalist for “SME of the year” award by the India Australia Business and Community Awards (IABCA) 2020. We look forward to 2021 IABCA Gala event, where the winners will be announced and the success stories of essential driving forces behind the India-Australia relationship will be shared.
