CTS Archives - SW Accountants & Advisors https://www.sw-au.com/tag/cts/ Mon, 16 Mar 2026 22:16:49 +0000 en-AU hourly 1 https://www.sw-au.com/wp-content/uploads/2021/11/favicon.png CTS Archives - SW Accountants & Advisors https://www.sw-au.com/tag/cts/ 32 32 Pillar Two ‘Side-by-Side’ arrangement released by OECD   https://www.sw-au.com/insights/article/pillar-two-side-by-side-arrangement-released-by-oecd/ Thu, 08 Jan 2026 00:59:22 +0000 https://www.sw-au.com/?p=8667 On January 5, 2026, the OECD announced a new ‘Side-by-Side’ (SbS) agreement, crafted to address concerns raised by the United States about the global minimum tax rules. The deal introduces administrative guidance and extends safe harbour mechanisms, aiming to simplify compliance for multinational enterprises (MNEs).   While the United States (US) is the first to qualify, other countries may also […]

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]]> On January 5, 2026, the OECD announced a new ‘Side-by-Side’ (SbS) agreement, crafted to address concerns raised by the United States about the global minimum tax rules. The deal introduces administrative guidance and extends safe harbour mechanisms, aiming to simplify compliance for multinational enterprises (MNEs).  

While the United States (US) is the first to qualify, other countries may also be included if they meet the criteria. It is crucial for affected MNEs to understand these changes, as Australia and other jurisdictions are expected to update their rules to align with the new framework. 

To recap, a SbS solution to exempt US-parented multinational groups from the Global Anti-Base Erosion (GloBE) Model Rules (i.e. Income Inclusion Rule (IIR) and Undertaxed Profits Rule (UTPR)) was first proposed between the United States and other G7 nations in July 2025 as part of an agreement for the US to drop the implementation of the Section 899 ‘Revenge Tax’ (see SW’s previous coverage).  

After months of intense negotiations, the OECD announced that the 147 members within the Inclusive Framework have now agreed to a package in the form of an administrative guidance to the GloBE Model Rules. The OECD document sets out a number of new safe harbours for the purpose of materially simplifying the compliance burden of the GloBE Model Rules and applying the SbS system. The existing transitional Country-by-Country Reporting (CbCR) Safe Harbour has also been extended for a year. The proposed measures are summarised in the table below:

New safe harbours 
introduced 		Relevant dates Summary  
Simplified Effective Tax Rate (ETR) Safe Harbour Income years commencing 1 January 2027 (or 1 January 2026 in limited circumstances) • A ‘permanent’ simplified ETR can apply for a tested jurisdiction, provided there were no top-up tax (TUT) for that jurisdiction in the preceding two years.

• Simplified ETR is calculated by dividing ‘simplified taxes’ by ‘simplified income’. Where the rate is at least 15%, the TUT is nil.  

• Notwithstanding the term ‘simplified’, there are still a series of adjustments required – mandatory (e.g. excluded dividends / equity gains, etc), industry specific (e.g. financial services), and optional adjustments.

• Amounts are based on financial accounting data to prepare a group’s consolidated financial statements and not CbC report.  

• MNE groups will need to assess and upgrade their current software and systems to ensure they can accurately calculate and report using the new permanent simplified ETR.  
Extension to the Transitional CbCR Safe Harbour Additional one-year extension (from three years) to include years beginning on or before 31 December 2027 • MNE groups will benefit from an extra year of relief, as the 17% ETR threshold for the CbCR safe harbour will now extend to a fourth year, making compliance easier and reducing tax uncertainty for affected businesses. 
SbS Safe Harbour Income years commencing 1 January 2026 • No TUT is payable under the IIR or UTPR if the ultimate parent entity is located in a jurisdiction with a ‘Qualified SbS Regime’ under the central record. At present, only the US is recorded as satisfying the regime. 

• Broadly, a qualified regime refers to a jurisdiction that has: 
– a nominal corporate tax rate of at least 20% 
– qualified domestic minimum top up taxes (QDMTT) or corporate alternative minimum tax of 15% aligned with minimum taxation objectives  
– has an eligible worldwide tax system applicable on offshore (active and passive) income of foreign branches and controlled foreign companies  
– mechanisms to address base erosions and profit shifting 
– no material risk of an ETR below 15% on domestic and foreign profits. 

• The QDMTT of a jurisdiction will continue to apply and take precedence

• Member jurisdiction can request for its existing tax regimes to be assessed against the eligibility criteria.  

• US-based groups must continue to follow the existing rules for income years that begin before 1 January 2026. 
Ultimate Parent Entity (UPE) Safe Harbour Income years commencing 1 January 2026  • MNE groups can elect for this safe harbour (which replaces the transitional UTPR safe harbour) such that there is no TUT under UTPR in the UPE jurisdiction, provided that jurisdiction as a ‘Qualified UPE Regime’ (similar to the criteria for SbS safe harbour).  

• No jurisdiction is currently recorded though the US is expected to qualify. 

• For completeness, the transitional UTPR safe harbour only applies to the UPE jurisdiction if that jurisdiction has a nominal corporate tax rate of at least 20% and for income years beginning on or before 31 December 2025.  
Substance-based tax incentives Safe Harbour Income years commencing 1 January 2026 
  		• Safe harbour intends to allow MNE groups to continue benefit from certain ‘qualified tax incentives’ (QTI) that are substantially connected to the economic substance for that jurisdiction.  

• The QTI is added to the adjusted covered taxes but capped at either the greater of 5.5% of eligible payroll costs or depreciation expense in respect of eligible tangible assets, or 1% of carrying value of eligible tangible assets.  

Observations and what this means for Australia 

In order for the Australian equivalent rules to maintain their qualified status (in other words administering in a manner consistent with the GloBE Model rules), an amendment to the domestic rules to mirror the OECD changes is expected shortly. Practically, the extension of the transitional CbCR safe harbour for an additional one year would allow multinational groups to improve on their systems in extracting information to meet the Pillar Two compliance obligations.  

To avoid roll-back of legislations by jurisdictions that have already implemented the Pillar Two rules, the changes introduced under this SbS arrangement will only apply to income years commencing 1 January 2026. Whilst Australia and other jurisdictions may also seek to demonstrate that it qualifies for the SbS and UPE safe harbours, the registration process may be lengthy, and any further exceptions of jurisdictions (other than US) remain to be seen.

Furthermore, the commencement date of these new changes also mean compliance costs will still be significant, given MNE groups (including US-parented groups) are still required to meet their lodgement obligations in jurisdictions that have already implemented the GloBE Model equivalent rules for income years commencing 1 January 2024 and 2025.  

How SW can help 

We can assist in undertaking country-by-country analysis of the obligations and consideration of the application of exemptions and safe harbour rules.   

We can also support the implementation of SW’s CTS Pillar Two software to facilitate the lodgement of the GloBE Information Return and other lodgement obligations.  

In addition, we can help MNE groups assess the impact of the SbS arrangement and anticipated Australian legislative changes, identify data and systems gaps, evaluate safe harbour eligibility, and develop practical compliance strategies to manage ongoing Pillar Two obligations and costs.

Contributor

Antony Cheung

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]]> Preparing for Pillar Two | CTS Pillar Two https://www.sw-au.com/insights/article/cts-pillar-two/ Fri, 05 Sep 2025 05:19:44 +0000 https://www.sw-au.com/?p=8404 If you’re part of a multinational enterprise group operating in Australia, new Global and Domestic Minimum Tax (Pillar Two) lodgement requirements are on the horizon. From 30 June 2026, Australian subsidiaries, consolidated groups, and joint ventures will need to determine whether they fall within scope, and when exemptions apply. At SW, we’re already helping clients […]

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]]> If you’re part of a multinational enterprise group operating in Australia, new Global and Domestic Minimum Tax (Pillar Two) lodgement requirements are on the horizon.

From 30 June 2026, Australian subsidiaries, consolidated groups, and joint ventures will need to determine whether they fall within scope, and when exemptions apply.

At SW, we’re already helping clients map their entities, minimise compliance costs, and prepare for lodgement with our CTS Pillar Two software.

Why CTS Pillar Two?

CTS Pillar Two is your comprehensive solution for navigating the complex landscape of OECD Pillar Two calculations. As international tax regulations continue to evolve, it’s crucial for businesses to stay ahead of the curve and ensure compliance with the latest standards set by the OECD.

CTS Pillar Two is designed to be user-friendly, highly flexible, and intuitive. It seamlessly integrates with any internal workpapers, ensuring a smooth and efficient workflow. 

Key features

General
  • Intuitive calculation methodology: Our user-friendly software simplifies the complex calculations required for Pillar Two compliance
  • Excel integration: Easily import your Excel calculations for seamless linking
Workflow
  • Team formation and workflow: Assemble project team members, plan workflows, identify information sources and automation approaches and monitor the status of tasks.
  • Member attributes recording: Record attributes of MNE Group members to streamline inputs into the GloBE Information Return (GIR).
  • Transitional Country-by-Country Safe Harbour (TCSH): Utilise work papers for TCSH calculations and understand your exposure to Pillar Two taxes.
Analysis and reporting
  • Automated Status Generation: Automatically generate the status of Pillar Two implementation across jurisdictions where your MNE Group operates.
  • Comprehensive Reporting: Generate detailed reports that provide insights into your organisation’s top-up tax exposures, enabling informed decision-making and strategic planning.
  • Interactive Dashboard: Access a dashboard with drill-down options and visual depictions.
GloBE calculations
  • Automation features: 
  • Rollover 
  • Map your trial balance to CTS Pillar Two 
  • Automated calculations with protected formula cells 
  • Scalability: Perform GloBE calculations for large MNE groups. 
  • Enhanced Integrity: Support the integrity of calculations with additional functionalities such as checklists, validations and guidance on relevant adjustments. 
Lodgement
  • Form Completion and Submission: Complete and lodge required forms, including GIR and Combined Global and Minimum Domestic Tax Return 
  • Data Conversion: Convert data based on the ATO requirements. 

CTS Pillar Two empowers you to navigate the complexities of OECD Pillar Two calculations with confidence and efficiency.

Want to find out more?

To arrange a demo and learn more about CTS Pillar Two, get in touch with our CTS team. A team member will be in touch within the next business day. 

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]]> 过渡时期澳大利亚的支柱二义务 https://www.sw-au.com/language/mandarin/%e8%bf%87%e6%b8%a1%e6%97%b6%e6%9c%9f%e6%be%b3%e5%a4%a7%e5%88%a9%e4%ba%9a%e7%9a%84%e6%94%af%e6%9f%b1%e4%ba%8c%e4%b9%89%e5%8a%a1/ https://www.sw-au.com/language/mandarin/%e8%bf%87%e6%b8%a1%e6%97%b6%e6%9c%9f%e6%be%b3%e5%a4%a7%e5%88%a9%e4%ba%9a%e7%9a%84%e6%94%af%e6%9f%b1%e4%ba%8c%e4%b9%89%e5%8a%a1/#respond Tue, 26 Aug 2025 05:58:27 +0000 https://www.sw-au.com/?p=8365 澳大利亚税务局（ATO）发布了新指南，帮助大型跨国公司履行支柱二税务规则规定的义务。虽然这些公司要处理的文件多了，还有可能面临处罚，但 ATO 会对过渡时期切实开展合规工作的企业宽大处理。    总览 实务合规指南草案 PCG 2025/D3 概述了 ATO 在过渡时期（2026 年 12 月 31 日或之前开始、2028 年 6 月 30 日或之前结束的财政年度）对申报义务和处罚的过渡性合规办法。 澳大利亚实施了 15% 的全球与国内最低税率（支柱二规则），这与支柱二项下的经合组织全球反税基侵蚀（GloBE）规则保持一致。其对象是受测年度之前的四个财政年度内至少有两个财政年度合并收入≥7.5 亿澳元的大型跨国企业（MNE）集团。支柱二规则自 2024 年 1 月 1 日起适用于澳大利亚。 值得注意的是，自 2025 年 1 月 1 日起，未征低税利润规则可能会使澳大利亚的跨国企业集团成员承担其他集团成员的相关补税。这与前者是否对后者拥有任何所有者权益无关。因此，审计人员可能要求对全球集团 2025 财年的情况开展支柱二分析。 澳大利亚的主要申报义务有哪些？ 适用的跨国企业集团必须提交以下材料： AIUTR、DMTR 和 FNF 被并入全球与国内统一最低报税表（CGDMTR）。GIR 仍是一项独立的义务。第一年的申报截止日期为财政年度结束后 18 个月，此后为 15 个月。对于以 2024 年 12 月 […]

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]]> 澳大利亚税务局（ATO）发布了新指南，帮助大型跨国公司履行支柱二税务规则规定的义务。虽然这些公司要处理的文件多了，还有可能面临处罚，但 ATO 会对过渡时期切实开展合规工作的企业宽大处理。   

总览

实务合规指南草案 PCG 2025/D3 概述了 ATO 在过渡时期（2026 年 12 月 31 日或之前开始、2028 年 6 月 30 日或之前结束的财政年度）对申报义务和处罚的过渡性合规办法。

澳大利亚实施了 15% 的全球与国内最低税率（支柱二规则），这与支柱二项下的经合组织全球反税基侵蚀（GloBE）规则保持一致。其对象是受测年度之前的四个财政年度内至少有两个财政年度合并收入≥7.5 亿澳元的大型跨国企业（MNE）集团。支柱二规则自 2024 年 1 月 1 日起适用于澳大利亚。

值得注意的是，自 2025 年 1 月 1 日起，未征低税利润规则可能会使澳大利亚的跨国企业集团成员承担其他集团成员的相关补税。这与前者是否对后者拥有任何所有者权益无关。因此，审计人员可能要求对全球集团 2025 财年的情况开展支柱二分析。

澳大利亚的主要申报义务有哪些？

适用的跨国企业集团必须提交以下材料：

  1. GloBE 信息申报表（GIR）– 经合组织计算税务负债的标准化表格。
  2. 海外通知表（FNF）– 通知 ATO 海外申报 GIR 的情况。
  3. 澳大利亚 IIR/UTPR 纳税申报表（AIUTR）– 根据收入包含规则（IIR）和未充分纳税利润规则（UTPR）评估补税。
  4. 澳大利亚国内最低报税表（DMTR）— 对澳大利亚低征税利润进行补税评估。

AIUTR、DMTR 和 FNF 被并入全球与国内统一最低报税表（CGDMTR）。GIR 仍是一项独立的义务。第一年的申报截止日期为财政年度结束后 18 个月，此后为 15 个月。对于以 2024 年 12 月 31 日为财政年度末的跨国企业集团，申报截止日期为 2026 年 6 月 30 日。

重点注意：跨国企业集团的澳大利亚成员必须在澳大利亚履行申报义务，即使集团母公司所在国没有实施支柱二规则。澳大利亚各实体可指定由一家澳大利亚集团实体（称为“指定本地实体”，简称DLE）代表澳大利亚实体提交报税表。

截至本文件发布之日，澳大利亚尚未签署支柱二项下的《关于全球反税基侵蚀信息交换的多边主管机构协议》（MCAA）。在此之前，必须在澳大利亚向 ATO 提交 GIR，即使该 GIR 已在海外提交。

对纳税人的处罚是否会“软着陆”？

在过渡期内，如果跨国企业集团证明自己采取了合理措施遵守有关规定，ATO 将采用“软着陆”办法（即减免罚款）。

以下对这些合理的措施举例说明：

  • 相关实施计划和内部政策有记录可循，
  • 系统升级和差距分析，
  • 积极主动地配合 ATO 和外部顾问，以及
  • 及时纠正错误。

此外，在过渡时期，个别无心之失应该不会被处罚。然而，若以事不关己的态度待之，或未按常理谨慎处理，则可能会受到处罚。目前对大型全球实体实施的行政处罚适用于这些情况。

信永中和如何协助？

我们可以通过以下方式协助贵公司实施支柱二项目：

  • 就支柱二对贵集团的影响提供咨询意见，
  • 专门制定符合贵集团要求的支柱二实施计划，
  • 确定并分类集团内的实体，
  • 就收费机制的适用提供咨询意见，
  • 协助开展过渡性的国别报告安全港计算，以及
  • 采用信永中和的 CTS 支柱二软件进行规划、支柱二计算并提交 GIR 和国内报税表。

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]]> https://www.sw-au.com/language/mandarin/%e8%bf%87%e6%b8%a1%e6%97%b6%e6%9c%9f%e6%be%b3%e5%a4%a7%e5%88%a9%e4%ba%9a%e7%9a%84%e6%94%af%e6%9f%b1%e4%ba%8c%e4%b9%89%e5%8a%a1/feed/ 0 Pillar Two obligations in Australia during the transition period https://www.sw-au.com/insights/article/pillar-two-obligations-in-australia-during-the-transition-period/ https://www.sw-au.com/insights/article/pillar-two-obligations-in-australia-during-the-transition-period/#respond Thu, 21 Aug 2025 22:37:35 +0000 https://www.sw-au.com/?p=8358 The ATO released new guidance helping large multinational companies navigate their obligations under Pillar Two tax rules. While these companies face additional paperwork and potential penalties, the ATO is taking a lenient approach during the transition period for businesses making genuine compliance efforts. Overview Draft Practical Compliance Guideline PCG 2025/D3 outlines the ATO’s transitional compliance […]

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]]> The ATO released new guidance helping large multinational companies navigate their obligations under Pillar Two tax rules. While these companies face additional paperwork and potential penalties, the ATO is taking a lenient approach during the transition period for businesses making genuine compliance efforts.

Overview

Draft Practical Compliance Guideline PCG 2025/D3 outlines the ATO’s transitional compliance approach for lodgement obligations and penalties during the transition period (fiscal years starting on or before 31 Dec 2026 and ending on or before 30 June 2028).

Australia has introduced a 15% Global and Domestic Minimum Tax (Pillar Two Rules) aligned with the OECD’s Global Anti-Base Erosion (GloBE) Rules under Pillar Two. This targets large multinational enterprise (MNE) groups with consolidated revenues ≥ EUR750 million (AU$1.2 billion or US$820 million) in at least two of the four fiscal years preceding the tested year. The Pillar Two rules apply in Australia from 1 January 2024.

It is noteworthy that effective from 1 January 2025, the Undertaxed Profits Rule may subject an Australian MNE group member to top-up tax related to another group member. This is regardless of whether the former has any ownership interests in the latter. Consequently, auditors might require a Pillar Two analysis for the global group for the 2025 fiscal year.

What are the key lodgement obligations in Australia?

Applicable MNE Groups must lodge the following:

  1. GloBE Information Return (GIR) – OECD- standardised form for calculating tax liability.
  2. Foreign Notification Form (FNF) – Notifies the ATO of foreign GIR lodgement.
  3. Australian IIR/UTPR Tax Return (AIUTR) – Assesses top-up tax under Income Inclusion Rule and Undertaxed Profits Rule.
  4. Australian Domestic Minimum Tax Return (DMTR) – Assesses top-up tax on low-taxed Australian profits.

The AIUTR, DMTR, and FNF are consolidated into the Combined Global and Domestic Minimum Tax Return (CGDMTR). The GIR remains a standalone obligation. The returns are due 18 months after the fiscal year end for the first year and 15 months thereafter. For an MNE group with a fiscal year ending on 31 December 2024, the returns are due on 30 June 2026.

Importantly, the Australian members of an MNE Group must fulfil lodgement obligations in Australia, even if the Parent of the Group is in a country without Pillar Two rules implemented. The Australian entities may nominate one Australian Group Entity, known as the Designated Local Entity (DLE), to lodge the returns on behalf of the Australian entities.

As of the date of this document, Australia has not signed the Multilateral Competent Authority Agreement (MCAA) on the Exchange of GloBE Information (GIR MCAA) under Pillar Two. Until that happens, the GIR must be lodged in Australia with the ATO even if one has been lodged overseas.

Is there a “soft landing” in terms of penalties for taxpayers?

During the transition period, the ATO will adopt a “soft-landing” approach (i.e. penalties remitted) if the MNE group has demonstrated that reasonable measures were taken to comply.

Examples of reasonable measures include:

  • documented implementation plans and internal policies
  • system upgrades and gap analyses
  • proactive engagement with the ATO and external advisors and
  • timely correction of errors

Furthermore, no penalties should be imposed for isolated or good-faith errors during the transition period. However, gross indifference or failure to take reasonable care may be subject to penalties. Current administration penalties imposed upon Significant Global Entities apply in these circumstances.

How can SW assist?

We can assist with your Pillar Two project implementation by:

  • implementing SW’s CTS Pillar Two Software for planning, Pillar Two calculations, and lodging GIR and domestic returns
  • advising how Pillar Two will affect your group
  • designing a Pillar Two implementation plan tailored to your group’s requirements
  • identifying and classifying the entities within the group
  • advising on the application of charging mechanisms
  • assisting with Transitional CbCR safe harbour calculations
Contributors

Antony Cheung

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]]> https://www.sw-au.com/insights/article/pillar-two-obligations-in-australia-during-the-transition-period/feed/ 0 Simplify employee share schemes reporting with the CTS ESS Toolkit https://www.sw-au.com/insights/article/simplify-employee-share-schemes-reporting-with-the-cts-ess-toolkit/ https://www.sw-au.com/insights/article/simplify-employee-share-schemes-reporting-with-the-cts-ess-toolkit/#respond Thu, 08 May 2025 04:16:28 +0000 https://www.sw-au.com/?p=8101 The Australian Taxation Office (ATO) has upcoming reporting obligations for entities offering employee share schemes (ESS). Find out how the Complete Tax Solutions Employee Share Scheme (CTS ESS Toolkit), our ATO-approved software, can help you meet these requirements efficiently and accurately. Upcoming ATO reporting obligations The ATO requires employers who issue shares or share options […]

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]]> The Australian Taxation Office (ATO) has upcoming reporting obligations for entities offering employee share schemes (ESS). Find out how the Complete Tax Solutions Employee Share Scheme (CTS ESS Toolkit), our ATO-approved software, can help you meet these requirements efficiently and accurately.

Upcoming ATO reporting obligations

The ATO requires employers who issue shares or share options to employees to complete their reporting obligations. The deadlines to comply with the reporting requirements are:

  • ESS statements are due to be issued to employees by 14 July 2025,
  • ATO reports are due for lodgement with ATO by 14 August 2025. 

What do the ATO reporting obligations mean for you?

Our innovative solution | CTS ESS Toolkit

Our CTS ESS Toolkit, an ATO-approved and compliant software, enables employers to simplify their online annual employee share scheme reporting obligations.

We are one of only a handful of providers to have passed ATO testing and have ATO approval for our specialised software. Using the CTS ESS Toolkit, SW has been successfully working with businesses to meet their ESS lodgement requirements.

The table below outlines the types of companies that are most likely to benefit from using the CTS ESS Toolkit.

Significant global entities (SGE)

SGEs are entities that have an annual global turnover of A$1 billion or more. SGEs are subject to increased Failure to Lodge (FTL) penalties for late lodgement of every ATO document or approved form. The SGE penalties are currently $165,000 for each 28 days in which an approved form is lodged after the due date up to a maximum of $825,000. The lodgement of ESS reporting falls within this definition.

The public officer of the company is responsible for the company’s obligations under the income tax law, including the timely lodgement of approved forms with the ATO. If your company is part of an SGE, we recommend implementing systems for timely lodgements of ESS reports with the ATO.

How SW can help

There is limited time to meet ESS reporting requirements. The ATO is particularly emphasising on ensuring corporates comply with timely and accurate reporting obligations.

Now is the time to ensure your business is prepared for reporting season. We offer a fully outsourced service or license our software.

Please contact Sam Morris or Justin Batticciotto to learn how to comply with the ATO reporting requirements and discover how our CTS ESS Toolkit can assist.

Contributor

Justin Batticciotto

The post Simplify employee share schemes reporting with the CTS ESS Toolkit appeared first on SW Accountants & Advisors.

]]> https://www.sw-au.com/insights/article/simplify-employee-share-schemes-reporting-with-the-cts-ess-toolkit/feed/ 0 2023 Employee Share Scheme (ESS) Reporting https://www.sw-au.com/insights/article/2023-employee-share-scheme-ess-reporting/ https://www.sw-au.com/insights/article/2023-employee-share-scheme-ess-reporting/#respond Mon, 22 May 2023 02:23:35 +0000 https://www.sw-au.com/?p=6506 The ATO have upcoming reporting obligations affecting those offering employee share schemes (ESS). Find out how the CTS ESS Toolkit, our ATO-approved software can simplify your reporting obligations. ATO reporting obligations The Australian Taxation Office (ATO) have reporting obligations in place, affecting employers who issue shares or share options to their employees.  The deadlines to comply […]

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]]> The ATO have upcoming reporting obligations affecting those offering employee share schemes (ESS). Find out how the CTS ESS Toolkit, our ATO-approved software can simplify your reporting obligations.

ATO reporting obligations

The Australian Taxation Office (ATO) have reporting obligations in place, affecting employers who issue shares or share options to their employees.  The deadlines to comply with the reporting requirements are:

  • ESS statements are due to be issued to employees by 14 July 2023
  • ATO reports are due for lodgement with ATO by 14 August 2023. 

What do the ATO reporting obligations mean for you?

Please note that for all ESS interests (new and existing) that are subject to deferred taxation with the deferred taxing point on or after 1 July 2022, cessation of employment has been removed as a deferred taxing point.  

Our innovation solution | CTS ESS Toolkit

SW has developed the ‘Complete Tax Solutions Employee Share Scheme’ Toolkit (CTS ESS Toolkit), an ATO-approved and compliant software which enables employers to simplify their online annual employee share scheme reporting obligations.

Using the CTS ESS Toolkit, SW have been successfully working with businesses to meet their ESS lodgement requirements since electronic reporting began. We are one of only a handful of providers to have passed ATO testing and have ATO approval for our specialised software. CTS ESS Toolkit is designed to help you meet the ATO’s ESS reporting requirements.

The table below outlines the types of companies that are most likely to benefit from using the CTS ESS Toolkit.

Introduction of ‘New Division’ into Corporations Act 2001 (Cth)

Please note any offer of ESS interests to employees made under any existing share plans or new plans should consider whether offers will comply with the recently introduced Division 1A of the Corporations Act 2001 (Cth). The ‘New Division’ overhauls the existing ESS regulatory framework for unlisted and listed companies and updates the legislative framework for entities seeking disclosure relief.    

Next steps

Time is limited to make the necessary arrangements to comply with the ESS reporting requirements. The ATO is particularly keen to ensure corporates are compliant and provide timely and accurate reporting.

Now is the time to ensure your business is not left behind and that everything is ready for reporting season. We can provide a fully outsourced service or license our software; whichever you prefer.

If you would like to discuss how to comply with the ATO reporting requirements or learn more about how our ESS Toolkit will help you, please contact either Sam Morris or Justin Batticciotto on the details below.

Contacts

Sam Morris

E smorris@sw-au-com

Justin Batticciotto

E jbatticciotto@sw-au.com

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]]> https://www.sw-au.com/insights/article/2023-employee-share-scheme-ess-reporting/feed/ 0 2022 Employee Share Scheme Reporting https://www.sw-au.com/insights/article/2022-employee-share-scheme-reporting/ https://www.sw-au.com/insights/article/2022-employee-share-scheme-reporting/#respond Mon, 09 May 2022 00:25:17 +0000 https://www.sw-au.com/?p=5151 The Australian Taxation Office (ATO) has reporting obligations in place affecting those who offer employee share schemes. Find out how our ATO-approved software can simplify your reporting obligations. ATO reporting obligations The Australian Taxation Office (ATO) have reporting obligations in place, affecting employers who offer shares or share options to their employees. The deadlines to […]

The post 2022 Employee Share Scheme Reporting appeared first on SW Accountants & Advisors.

]]> The Australian Taxation Office (ATO) has reporting obligations in place affecting those who offer employee share schemes. Find out how our ATO-approved software can simplify your reporting obligations.

ATO reporting obligations

The Australian Taxation Office (ATO) have reporting obligations in place, affecting employers who offer shares or share options to their employees. The deadlines to comply with the reporting requirements are:

  • ESS statements are due to be issued to employees by 14 July 2022
  • ATO reports are due for lodgement with ATO by 14 August 2022 (15 August due to weekend)

What do the ATO reporting obligations mean for you?

If you are an employerYou will need toHow can SW help?
Reporting <50 employees and no more than 3 schemes per employee
(with an Australian ABN)		Manually complete electronic ATO form (ATO form does not produce ESS statements)SW can help with the completion of the manual forms or producing ESS statements
Reporting >50 employees OR
Reporting <50 employees
(without an Australian ABN)		-Purchase software
-Develop own in-house software
-Use an agent with ATO-approved software		Our Complete Tax Solution ESS Toolkit can be used to assist clients with their ESS reporting requirements (further information below).
With globally mobile employeesIndicate on each employee’s ESS statement:
-Whether the reported figures are gross or apportioned between Australian–sourced/ other work
-Report assignment dates (optional)		Our Complete Tax Solution ESS Toolkit can be used to assist clients with their ESS reporting requirements (further information below).

Legislation removing the cessation of employment as a taxing point received Royal Assent on 10 February 2022 and will apply to all ESS interests (new and existing) that are subject to deferred taxation, provided the deferred taxing point occurs on or after 1 July 2022. This change will therefore not impact prior year ESS interests or the 2022 lodgements.

Innovation solution

SW has developed compliant software that has been approved by the ATO to enable employers to simplify their online annual employee share scheme reporting obligations.

We have developed the ‘Complete Tax Solutions Employee Share Scheme’ Toolkit (CTS ESS Toolkit) which can help you meet the ATO’s ESS reporting requirements. SW is one of only a handful or providers to have passed ATO testing and we have ATO approval for the software. We have been successfully working with businesses to meet their ESS lodgement requirements since electronic reporting began. 

The table below outlines the types of companies that are most likely to benefit from using the CTS ESS Toolkit.

Company profileConditions
Large, privately owned company
(>50 reportable employees)		Commonly tax and finance is done in-house and support required for one-off compliance and advisory projects such as ESS reporting.
Head-quartered overseas
(either >50 reportable employees or
<50 if no ABN)		With subsidiaries/employees in Australia particularly if:
-Australian employees are in split roles here and overseas
-Where finance and payroll functions are based offshore, and no access to the required software for ESS reporting
ASX listed companyIf you are currently reporting ESS information through the Australian Share Registry, the ESS reporting requirements are unlikely to affect you. However, you may wish to consider the CTS ESS Toolkit as an alternative means of meeting your ESS reporting requirements.

Next steps

Time is limited to make the necessary arrangements to comply with the ESS reporting requirements. The ATO is particularly keen to ensure corporates are compliant and providing timely and accurate reporting.

Now is the time to ensure your business is not left behind and you have everything in place ready for reporting season. We can provide a fully outsourced service or license our software; whichever you prefer.

If you would like to discuss how to comply with the ATO reporting requirements, or learn more about how our ESS Toolkit will help you, please contact either Sam Morris or Justin Batticciotto on the details below.

Contacts

Sam Morris

E smorris@sw-au-com

Justin Batticciotto

E jbatticciotto@sw-au.com

The post 2022 Employee Share Scheme Reporting appeared first on SW Accountants & Advisors.

]]> https://www.sw-au.com/insights/article/2022-employee-share-scheme-reporting/feed/ 0 Federal Budget Webinar 2022/23 https://www.sw-au.com/insights/federal-budget/federal-budget-webinar-2022-23/ https://www.sw-au.com/insights/federal-budget/federal-budget-webinar-2022-23/#respond Mon, 14 Feb 2022 06:02:07 +0000 https://shinewingau.wpengine.com/?p=4385 With the Federal election around the corner, how will the Federal Budget support Australia’s economic recovery and encourage sustainable growth? Covid-19 continues to present significant challenges with labour shortages, supply chain issues and inflationary pressures. Australian businesses want to know how Treasurer Josh Frydenberg will tackle our economic recovery. Join us for the 2022/23 Federal […]

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]]> With the Federal election around the corner, how will the Federal Budget support Australia’s economic recovery and encourage sustainable growth?

Covid-19 continues to present significant challenges with labour shortages, supply chain issues and inflationary pressures. Australian businesses want to know how Treasurer Josh Frydenberg will tackle our economic recovery.

Join us for the 2022/23 Federal Budget Webinar where we will bring you expert insights into challenges and potential opportunities, tailored for your industry or business sector.

We will once again welcome back Catherine Birch, ANZ Senior Economist and our panel of experts hosted by Matt Birrell to share their insights and key takeaways from the Budget.

Register via the link below to find out what the budget means for you and your business.

Online registration details

Date

Time

Wednesday, 30 March 2022

9.30am – 11.30am

Expert speakers


Catherine Birch
ANZ
Senior Economist
Matt Birrell
SW
Director, Tax

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]]> https://www.sw-au.com/insights/federal-budget/federal-budget-webinar-2022-23/feed/ 0 CTSplus FBT https://www.sw-au.com/service/technology-solutions/complete-tax-solutions/cts-fringe-benefits-tax/ Wed, 01 Dec 2021 06:36:32 +0000 https://shinewingau.wpengine.com/?post_type=service&p=968 Make FBT simple with CTSplus FBT Designed by SW, CTSplus FBT is a flexible cloud solution that takes the complexity out of completing an FBT return and employee reports. User-friendly Excel workpapers means there will be no new systems to learn. CTSplus FBT is intuitive and will save you hours in processing time. CTSplus FBT […]

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]]> Make FBT simple with CTSplus FBT

Designed by SW, CTSplus FBT is a flexible cloud solution that takes the complexity out of completing an FBT return and employee reports.

User-friendly Excel workpapers means there will be no new systems to learn. CTSplus FBT is intuitive and will save you hours in processing time.

CTSplus FBT is a cost-effective solution that simplifies compliance and reduces administrative workload.

CTSplus FBT features:

  • Online collaboration
  • Secure access with Microsoft Azure
  • Suitable for all business types, including:
    • Concessional employers
    • Government departments
    • Tax-exempt entities
    • Tax agents.
  • Easy to use Excel workpapers – no new systems to learn
  • Calculates all benefits, including:
    • Car parking
    • LAFHA
    • Expense payment
    • Entertainment.
  • Cost centre allocation
  • FBT checklist and validations
  • Import and link Excel workings
  • Upload other supporting files for record-keeping purposes
  • Produces:
    • FBT Return
    • Payment Summary
    • Individual Payment Summaries
    • RFBA Letters.
  • SBR electronic lodgement.

Want to find out more? 

To learn more about how CTSplus FBT can benefit your business, download our flyer below or simply click here to email our CTS team and a team member will be in touch with you within the next business day.

Download

*CTSplus FBT system requirements: Latest version of Microsoft Edge or Chrome and Microsoft Power Apps Premium license (included with Year 1 subscription).

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]]> Simon Tucker, Partner https://www.sw-au.com/people/simon-tucker-partner/ Tue, 23 Nov 2021 22:30:54 +0000 https://shinewingau.wpengine.com/?post_type=people&p=310 Since joining SW, Simon has become a trusted technical specialist, delivering innovative solutions in all areas of income tax law. Simon has an extraordinarily deep and broad technical knowledge and quickly understands, applies and retains complex legislation. Simon joined SW in 2007 following four and a half years working in the Australian Taxation Office (ATO). […]

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]]> Since joining SW, Simon has become a trusted technical specialist, delivering innovative solutions in all areas of income tax law. Simon has an extraordinarily deep and broad technical knowledge and quickly understands, applies and retains complex legislation.

Simon joined SW in 2007 following four and a half years working in the Australian Taxation Office (ATO). During his time at the ATO Simon developed deep expertise in international tax issues, and as a result, became responsible for several high profile audits dealing with foreign structuring. Simon has developed a high degree of familiarity with the ATO’s audit and dispute resolution process and has an insider’s understanding of the ATO’s information gathering powers, having exercised such powers first-hand. This experience has been invaluable to a number of Simon’s clients who have been subject to various degrees of ATO audit and examination.

Simon is the leader of the SW’s Financial Services Industry Group and has accordingly worked extensively with our financial services clients, including ASX listed and unlisted funds, fund managers, financial services platform operators, insurance providers and Insurance brokers.

Notwithstanding Simon’s breadth of tax and commercial knowledge, he has a particular client focus on corporate international tax, and regularly advises clients on issues dealing with the application of controlled foreign company rules, thin capitalisation, and the operation of Australia’s double tax treaty network. Simon’s depth of knowledge in this area is well known in the industry, having been published on several occasions for articles written in relation to Australian international tax.

Simon has worked with numerous listed and unlisted corporate tax clients in the property funds management, manufacturing and mining industries. Consequently Simon has developed significant tax effect accounting expertise, allowing him to assist in the development of the firm’s Complete Tax Solutions (CTS) software and, more importantly, work collaboratively with clients to deliver on their year-end reporting obligations.

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

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