The ATO has indicated that even if your business satisfies the statutory Personal Services Income (PSI) rules and operates as a Personal Services Business (PSB), your overall tax position may still be classified as either a ‘higher’ or ‘lower’ risk arrangement. This means that compliance obligations extend beyond simply meeting the PSI criteria, as how your arrangements are structured could affect your risk of being audited. 

The guidance addresses the application of the general anti-avoidance provisions of Part IVA to the alienation of personal services income.  

High-risk arrangements and the PCG 

The ATO has flagged that taxpayers whose arrangements are deemed ‘high risk’ under the guidelines outlined in the ATO’s Practical Compliance Guide (PCG 2025/5) need to take proactive steps to move to ‘low risk’ arrangements.  

This transition should occur before 30 June 2027. Failure to do so may result in the ATO allocating compliance resources to investigate these arrangements under Part IVA of the Income Tax Assessment Act, which addresses schemes intended to avoid tax. 

Reviewing your Personal Services Business 

Every business that generates income from providing personal services should carefully review its arrangements. The aim is to ensure compliance with the ATO’s expectations and to reduce exposure to potential audits or compliance action. Taxpayers are encouraged to assess their current structures and take steps to shift towards ‘low risk’ arrangements well before the 2027 deadline. 

Industries impacted 

The guidance is relevant to all industries where trading through companies or trusts is common. It particularly affects professionals who derive income from their personal services, including doctors, architects, accountants, lawyers, engineers, IT consultants, and tradespeople such as electricians and plumbers. Essentially, any business structure used to allocate income from personal work could be subject to scrutiny under PCG 2025/5. 

How SW can help 

SW can assist by reviewing your existing arrangements and providing guidance on how the ATO may view them in light of PCG 2025/5. Our expertise can help you identify areas of risk and implement changes to strengthen your compliance position, giving you confidence that your business is prepared for any potential ATO scrutiny.

The post ATO and income splitting – this time its personal appeared first on SW Accountants & Advisors.

Our experts will provide you with topical content of relevance as well as an update on what’s new in financial reporting, including information about the following topics:

• Accounting standard changes and EDs
• International Financial Reporting Interpretations Committee update
• Key focus areas for 30 June reporting
• ASIC update
• Sustainability standards
• Other regulatory changes

Please note that we will host two session this year, the details for both sessions are below.

Session 1 – Financial Reporting update for 30 June 2025

Session 2 – Financial Reporting update for 31 December 2025

Expert speakers

Tom Mullarkey
Partner
SW

René Muller 
Partner
SW

Brent Sheers
Partner
SW

Jimmy Cao
Associate Director
SW

The post Financial Reporting webinar series appeared first on SW Accountants & Advisors.

Known for his practical and client-centric approach, Matthew has led major audit and advisory engagements for some of Australia’s largest private groups, a global online retailer, and multinational manufacturing businesses with operations across Australia, New Zealand, the USA and the UK. He has also worked extensively with professional services firms including engineering, architectural and consulting practices.

Matthew’s technical expertise covers external audit, accounting advisory, governance and risk frameworks, and industry-specific benchmarking. He is regularly appointed as Lead Engagement Partner for complex, high-value clients where his commercial expertise and attention to detail are highly valued.

His ability to build trusted, enduring relationships is underpinned by a consistent focus on delivering clear, proactive advice that supports his clients’ strategic objectives. He has also acted as audit partner for several successful initial public offerings, providing strategic guidance and technical leadership throughout the listing process.

Matthew is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

The post Matthew Hingeley, Partner appeared first on SW Accountants & Advisors.

Matthew brings over two decades of experience from both Big Four and mid-tier accounting firms, with a strong record advising clients across a wide range of industries including Automotive, Energy & resources, Manufacturing, NFP, Consumer products and Agribusiness. He has served as Lead Audit Partner on some of Australia’s largest family-owned groups, ASX listed companies, multinational businesses and not-for-profits. His notable work also includes being the lead audit partner on one of 2024s largest IPO’s, as well as the $1.3 billion IPO of a global provider of water control solutions for plumbing, heating, and industrial systems.

Commenting on the appointment, Mr Duane Rogers, CEO of SW Accountants & Advisors, said: “We are delighted to welcome Matthew to SW. His extensive experience and leadership qualities will undoubtedly strengthen our firm and enhance our ability to deliver exceptional service to our clients. Matthew’s appointment reflects our ongoing commitment to attracting outstanding talent to support our growing practice.”

Originally beginning his career in Perth, Matthew went on to gain further experience in Melbourne before returning to Perth with his family eight years ago. This dual-market experience has given him a deep understanding of the dynamics within both regions, which are instrumental in supporting SW’s national growth strategy.

Known for his ability to build high-performing teams and his collaborative leadership style, Matthew’s approach strongly aligns with SW’s values and people-first culture. His arrival represents another step in the firm’s ongoing investment in its people and its future, as it continues to grow its presence and capability in Western Australia and beyond.

Matthew expressed his enthusiasm about joining SW, stating: “The significant growth opportunity for SW in the Perth market was a major drawcard. I was attracted to a firm that combines a genuine people-focused culture with clear leadership opportunities and a strong strategic vision. SW offers the chance to contribute meaningfully to its future direction while continuing to grow professionally in a dynamic, expanding environment.”

Matthew’s arrival marks another step in SW’s continued investment in its people and its future, as the firm builds on its reputation for delivering trusted advice to clients across Australia.

For further information, please contact:

Amanda Lee, Chief Marketing Officer, SW Accountants & Advisors

E | alee@sw-au.com

P | +61 3 8635 1853

The post Media release | SW welcomes Matthew Hingeley as our new Perth Partner appeared first on SW Accountants & Advisors.

Amy adeptly manages and serves clients across a diverse range of industries, including energy, wholesale/distribution and manufacturing. Having migrated from China to Australia in 2007, over the past decade, she has established herself as a trusted advisor, particularly in managing the firm’s Mandarin-speaking client base and cross-border engagements with China, Taiwan, and Hong Kong.

Amy’s deep understanding of international business and cultural diversity strengthens SW’s global capabilities. Leveraging her deep connections with various SW offices in mainland China, Hong Kong and UK.

Amy takes pride in her ability to forge strong relationships and be a trusted advisor. She develops strong working relationships with clients. Amy is also fluent in English and Mandarin.

Amy is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

The post Amy Zhang, Partner appeared first on SW Accountants & Advisors.

Beyond external audits, Brent has a proven track record of assisting clients with audit readiness and financial reporting requirements. He has also played key roles in several major transactions, including:

• HK$1.396 billion global offering for a listed mining group
• $155 million glass manufacturing acquisition
• $44.5 million property and strata management acquisition
• $40 million property and egg farming acquisition
• $30 million acquisition of a wellness product manufacturer and e-commerce platform
• $50 million petroleum freight acquisition

Brent also serves on the Board of Directors and as Chair of the Finance Committee for a Melbourne-based community services organisation. This governance role provides him with valuable insight into the expectations of Directors and the broader governance environment.

He successfully onboard, manages and services a portfolio of clients across both the listed and not-for-profit sectors. Over time, Brent has built strong, trusted relationships with clients across industries including education, agribusiness, retail, manufacturing, not-for-profit, and automotive. He is proud to be recognised as a trusted advisor by clients who are respected leaders in their respective fields.

Brent is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

The post Brent Sheers, Partner appeared first on SW Accountants & Advisors.

Having trained and qualified in London, Kamal has gained significant exposure to servicing a broad range of clients and industries in different jurisdictions.

Kamal is a Registered Company Auditor and is experienced in providing audit and assurance services to publicly listed entities, international groups and not-for profits in a variety of industries. With a diverse portfolio of clients, Kamal is passionate about providing audit, assurance and advisory solutions that deliver forward thinking commercial, innovative and value add outcomes to help his clients unlock their potential and achieve their ambitions. Kamal advocates the use of smart technologies in the assurance service delivery so as to achieve a higher quality of output and allowing the team to focus on the objectives of an engagement.

His clients are from a diverse cross-section of industries and therefore his significant industry experience includes mining, technology, financial services, manufacturing, retail, hospitality and entertainment & media sectors.

Kamal’s experience includes:

• External audit and assurance services
• International Accounting Standards, Corporations Act and ASX Listing Rules interpretation and advice
• Accounting for complex transactions
• Financial reporting and financial statement preparation
• Corporate governance
• Risk advisory, systems and technical reviews
• Real estate & solicitor’s trust audits
• Internal audit & SOX
• CFO and outsourcing solutions

Kamal is a Partner of SW Audit and a Director of SW Accountants & Advisors Pty Ltd.

The post Kamal Thakkar, Partner appeared first on SW Accountants & Advisors.

The OMB Guidance for Financial Assistance (Uniform Guidance) issued to all Federal agencies for use across all United States Federal Grants is the first major revision since its establishment in 2013.

The OMB originally established the requirements for federal grants management in 2013 consolidating and superseding requirements from several guidance documents related to the Federal financial assistance management and implementation of the Single Audit Act.

The four objectives for the current revisions, effective 1 October 2024 are:

1. incorporating statutory requirements and administrative priorities to ensure consistency with statutory authorities
2. reducing agency and recipient burden that included increasing several monetary thresholds that have not been updated for a number of years
3. clarifying sections that recipients or agencies have interpreted in difference ways
4. rewriting applicable sections in plain language, improving flow and addressing inconsistent use of terms.

What is the impact?

Organisations should review the revised Uniform Guidance changes and determine if there are any impacts on their current federal awards. Changes that may impact organisations include the following:

• increased the Single Audit threshold from $750,000 to $1,000,000 (section 200.501)
• increased the threshold for determining Type A programs to $1m if the total annual expenditures of all federal programs for a non-federal entity are $34m or less. This was previously $25 million or less (section 200.518)
• raised the de minimis rate non-federal entities can use for indirect costs from 10% to 15%. Recipients and subrecipients that do not have a current federal negotiated indirect cost rate may elect to charge a de minimis rate of up to 15% of modified total direct costs when this change goes into effect
• revised the threshold value for equipment from $5,000 to $10,000
• inclusion of a requirement that recipient and sub-recipient internal controls include cybersecurity and other measures to safeguard information
• changes to procurement standards.

SW are education specialists

Our approach to Uniform Guidance audits offers best practice expertise in a practical and commercial manner that is delivered using senior personnel with significant educational sector experience.

We have worked with 35 of the 41 major Australian universities and have extensive experience in assisting education providers with an appropriate audit of US Government sourced funds as required by the OMB Guidance for Federal Financial Assistance.

Our experts can assist with:

• quality expertise and industry insight in compliance with OMB’s Guidance for Federal Financial Assistance reporting requirements
• assessment of internal controls to ensure that research grants are managed in compliance with legislative/regulatory requirements
• direct link to Guidance for Federal Financial Assistance experts in the US, and
• tailored and collaborative audit methodology.

Contributors

Matthew Paull

Alyssa Weickhardt

The post Uniform Guidance | Final updates effective 1 October 2024 appeared first on SW Accountants & Advisors.

Introduction

Following the passage of the legislation by the Australian Parliament, the AASB approved two inaugural sustainability reporting standards modelled after international guidelines and incorporate local legislation.

Climate first approach

Unlike the International Sustainability Standards Board standards, Australian sustainability standards have adopted a climate-first approach by making AASB S2 Climate-related Disclosures mandatory. Companies with reporting obligations must disclose key climate-related areas, including:

• governance and strategies
• risks and opportunities
• metrics and targets concerning emissions, covering direct emissions (Scope 1), energy consumption (Scope 2), and value chain emissions (Scope 3).

Additionally, AASB S2 incorporates changes mandated by legislation, including enhanced scenario analysis. Entities must disclose scenario analysis using at least both of the following scenarios:

• low warming scenario: global average temperature increase is limited to no more than 1.5 degrees
• high warming scenario: global average temperature increase exceeds 2.5 degrees.

Voluntary sustainability disclosure for other topics

AASB S1 General Requirements for Disclosure of Sustainability-related Financial Information covers various sustainability topics including biodiversity and human capital and remains a voluntary standard. This approach contrasts from the ISSB standards which phase  in additional issues from the second year after climate disclosures.

To assist companies in adopting the ISSB-based sustainability standards voluntarily, the IFRS Foundation has published guidance for preparers.

Audit requirements

With the publication of the accounting standards, we are one step closer to implementation. The first group of companies must start reporting for the financial year ending 31 December 2025. However, one key missing piece is the auditing standards, as the company’s financial auditor will audit the sustainability report. The Auditing Assurance Standards Board (AUASB) is currently consulting with stakeholders to determine the assurance rollout for climate-related disclosures. By 2030, all sustainability reports will be subject to audit.

Based on the most recent exposure draft, the proposed audit requirements will be phased in. In the first year of reporting, different content will be subject to varying assurance requirements:

• limited assurance over Scope 1 and 2 emissions for the first year, moving to reasonable assurance thereafter
• other areas of disclosure will gradually be subject to review or audit from the second year onwards.

How SW can help

To make sure you are prepared, SW can conduct a gap analysis and create a road map to guide you on your sustainability journey.

Our audit and advisory experts are well-versed in sustainability accounting standards and will guide your business through any Australian reporting developments.  

Keep an eye out for our alerts on the finalisation of the sustainability reporting assurance standard. 

Contributors

Jimmy Cao

The post From legislation to action: Australia’s sustainability reporting standards finalised appeared first on SW Accountants & Advisors.

Every month, our experts will provide insights and actionable knowledge that will empower your organisation to navigate the evolving landscape of sustainability reporting.

Some key topics include:

• Australian Sustainability Standards requirements
• Sustainability reporting materiality assessment
• Financial modelling
• Climate scenario analysis
• Identification or material climate risks and opportunities

Webinar details

Session 1 – Getting started on your sustainability reporting journey

Session 2 – Climate reporting materiality assessment

Session 3 – Identification of climate risks and opportunities

Session 4 – Compiling your carbon inventory

Session 5 – Climate scenario analysis

Session 6 – Governance and policies

Session 7 – Risk management

Session 8 – Systems and processes

Session 9 – Climate-related metrics and targets

Session 10 – Disclosure requirements of AASB S2

Expert speakers

Tom Mullarkey
Partner
SW

Matthew Paull
Associate Director
SW

René Muller 
Partner
SW

Jimmy Cao
Associate Director
SW

John Dorazio
Director
SW

The post Sustainability Reporting webinar series 2025 appeared first on SW Accountants & Advisors.