The ATO has published the first R&DTI Transparency Report covering the 2021–22 income year. The R&DTI program aims to strengthen innovation by providing tax offsets for eligible R&D activities. To promote greater transparency and voluntary compliance, a legal requirement for publication of R&D data came into effect in July 2021, following reforms to the policy and administration of the R&DTI program.

The report outlines the benefits received by R&D entities and seeks to raise public awareness on which companies benefit from the R&D Tax Incentive. It also aims to encourage voluntary compliance with the program’s requirement.

The R&DTI is one of Australia’s key programs to drive innovation, offering a tax offset to catalyse companies to engage in R&D activities they may not undertake due to the financial risks involved. This can allow companies to invest more in innovation, boosting their competitive edge while contributing to Australia’s economic growth.

Under the new legislation, the ATO is required to publish R&D data 2 years after the end of the financial year that the data relates to. The newly released transparency report offers key insights into the companies and industries leveraging the incentive to help invest in R&D activities:

• 11,545 companies claimed R&D expenditure in the 2021–22 income year, amounting to $11.2 billion in total claims.
• Small businesses represent a significant share of participants, comprising 48% of claimants.
• The industry with the highest number of claimants across all business populations is the professional, scientific, and technical services industry, accounting for 43% of claims.
• Public and multinational businesses claimed the highest expenditure, contributing $4.9 billion to the total

How SW can help

11,545 companies are included in the report, with around 850 companies excluded due to having a substituted accounting period (SAP) beginning before 1 July 2021.

If your company participated in the R&DTI program during the 2021–22 income year, your R&D claims are part of a publicly available report. The report details the names, ABNs, and total R&D expenditure.

The ATO added a notice to the R&DTI schedule informing future applicants that their data will be included in the R&DTI transparency reporting.

Please reach out to SW R&D Tax & Government Incentives team for guidance and further discussion on how this report impacts you and your business.

Contributor

Thomas Demel

The post First annual R&D Tax Incentive Transparency Report released: Key insights appeared first on SW Accountants & Advisors.

During these sessions, our newest Tax Partners, Kirsty McDonnell and Vanessa Priest, will be discussing all things tax- including updates to legislations, tax rulings, tax cases and other tax news!

Past sessions

Tax Chat | Webinar 2

Tax Chat | Webinar 3

Tax Chat | Webinar 4

Tax Chat | Webinar 5

Expert speakers

Kirsty McDonnell
Director
SW

Vanessa Priest
Director
SW

The post Tax Chat webinar series appeared first on SW Accountants & Advisors.

From 1 February 2023, employees of non-small business employers (employers with 15 or more employees on 1 February 2023) were able to access 10 days of paid family and domestic violence leave per annum.  

 What is changing?  

Employees employed by small business employers (employers with less than 15 employees) will be able to access 10 days paid leave per annum from 1 August 2023.  It will be a minimum leave entitlement such as annual, sick and carer’s leave. 

The leave entitlement will be available to part-time and casual employees. It is not pro-rated for part-time or casual employees. 

It is an entitlement upfront and will not accumulate from year to year if it is not used. 

What is the leave used for? 

The leave can be taken to deal with the impacts of family and domestic violence where it is not practical to do so outside of their working hours.  

This might include: 

• Making arrangements for their own or a family member’s safety including relocation 
• Attending court or accessing police services 
• Attending counselling, or appointments with medical, financial, or legal professionals.

The leave can be taken as single or multiple days, or as part days by agreement with the employer.  

Can an employer ask the employee to provide evidence? 

An employer can request for evidence to show the employee needs to attend to something and it is not practical to attend to it outside their work hours.  

Types of evidence an employee may provide include: 

• A Statutory Declaration 
• Family violence support service documents 
• Documents issued by a police service, or 
• Documents issued by a court.

Employers must take reasonable steps to keep information about notice or evidence for family and domestic violence leave confidential. 

How much is to paid to an employee? 

For full-time or part-time employees leave must be paid at the employee’s full rate of pay for the hours they would have worked had they not taken leave. 

Casual employees must be paid at their full rate of pay for the hours they were rostered to work in the period they took leave. 

The employee’s full pay rate is their base rate plus any loadings, allowances, overtime and penalty rates, bonuses, incentive payments or other separately identifiable amounts. 

Is superannuation payable ? 

Paid family and domestic violence leave is considered Ordinary Time Earnings (OTE), therefore superannuation is payable.  

How are these payments to be shown on the payslip? 

The pay slip must not categorise the amount as family and domestic violence leave payments. 

The earnings must be shown as ordinary hours of work, or another kind of payment for performing work such as an allowance, bonus or overtime payment.  It is best practice to show these amounts on the pay slip in a way that makes it appear the employee has not taken leave. 

Employers must also keep a record of the accrued leave balance and leave taken by employee outside of the payroll system. Payslips must not show family and domestic leave days being taken or the accrued leave balance. 

What if an employers fail to comply with the family and domestic violence provisions? 

Non-compliance with paid family and domestic violence leave provisions will give rise to breaches of the civil remedy provisions under Part 4-1 of the Fair Work Act, exposing employers and individuals such as managers, to prosecution and significant monetary penalties. 

What does this mean for small business employers? 

Employers must ensure they comply with the new laws and provide these benefits to relevant employees. 

Employers should:

• Provide education and training to managers on the content of the new laws and how to deal with applications for the leave 
• Communicate the relevant changes to staff 
• Review and update payroll systems, policies and procedures to ensure compliance 
• Consider reviewing and changing employment contracts to include new leave entitlements 
• Restrict record keeping and communication to in person and in writing (in an employee’s physical file) at the workplace. This is for the safety of the victim, as domestic violence offenders will often have access to the victim’s email, work logins and physical mail 
• Implement record-keeping arrangements to track leave taken and leave accrued 
• Begin planning and budgeting for payments.

How can SW help   

• SW has an experienced outsourcing team to assist with your payroll function. We assist employers in understanding and becoming familiar with the new requirements to make this change as easy as possible, while also ensuring employers are meeting compliance requirements  
• Review and assist with updating the payroll systems to ensure compliance 
• Review processing of leave payments and disclosure on payslips 
• Assist with implementing and record-keeping arrangements to track leave taken and leave accrued outside of the payroll system.

The post Family and Domestic Violence Leave extends to employees working for small businesses appeared first on SW Accountants & Advisors.

The report was conducted in partnership with Small Business Australia, a respected advocacy group for SMEs, to identify the key issues that are causing Australian small businesses continue to struggle in the post Covid era.

Ahead of the 2023 Federal Budget on 9 May, the SW & SBA Business Sentiment survey is open once again. We are asking sole traders and owners and managers of SMEs to share their experience and add their voice to help us understand the issues on the ground. If you would like to take the survey, click here.

Upcoming event for Small Business

Opportunities for growth, investment and trade are critical to everyone’s success, so SW Accountants & Advisors has once again partnered with Small Business Australia (SBA) to get to the heart of what business is looking for from the Budget, come Tuesday 9 May 2023. Take the survey to tell us what you need from the budget and sign up for our Budget Breakfast webinar as ANZ, SBA and SW experts unfold the Budget for you.

The post Greg Will talks to media about current issues for Australian businesses appeared first on SW Accountants & Advisors.

With inflation issues globally, we are seeing continued pressure on interest rates and cost of living, staffing shortages, supply chain issues and rising business costs. This Budget will need to deliver for Australian businesses, and particularly small to medium-sized enterprises (SMEs). Watch SW Director, Greg Will, talking to Ticker News about this topic below.

Opportunities for growth, investment and trade are critical to everyone’s success, so SW Accountants & Advisors has once again partnered with Small Business Australia (SBA) to get to the heart of what business is looking for from the Budget, come Tuesday 9 May 2023.

Take the survey!

Take this short 2-3min survey from SW and SBA and tell us what you need from the budget in order to Look forward and Open Doors. You’ll help us build a robust and current view of Australian small business.

Each survey respondent will RECEIVE $100 DISCOUNT on any of the business services offered by Small Business Australia. Vouchers will be provided after the close of the survey on 8 May 2023.

Budget Breakfast Webinar – 10 May | 9.30am AEDT

Join us as we share the details of the 2023 Federal Budget that incudes an interactive Q&A session.

Our host, Matt Birrell will be joined by esteemed guests ANZ Senior Economist, Madeline Dunk, and Bill Lang, Executive Director of Small Business Australia, as well as SW Director, Greg Will speaking on the impacts on SME business, together with SW industry experts.

Online registration details

Date         Wednesday, 10 May 2023

Time         9.30am – 11am (AEDT) 

Greg Will interview @ Ticker News | How Australian small businesses performed post-COVID

Federal Budget webinar experts

Madeline Dunk
ANZ
Senior Economist

Bill Lang
Small Business Australia
Director

Gregory Will
SW
Director, Business and Private Advisory

Matt Birrell
SW
Director, Tax

Follow us on LinkedIn to receive the latest updates on Federal Budget and other important industry news.

The post Federal Budget 2023/24 Business Survey & Webinar appeared first on SW Accountants & Advisors.

A ‘Small Business Sentiment’ survey conducted by SW Accountants & Advisors in partnership with Small Business Australia has revealed insights into the struggles and hardships faced by SMEs in Australia, with 30% of the 400+ businesses that responded indicating they would find it difficult to meet their financial commitments through 2023.

“This survey provides a clear picture of the challenges faced by SMEs in Australia, and the urgent need for government support. As we head into the May 2023 Budget, it’s clear that SMEs need help as they juggle increasing business costs, cash flow, managing employees, hybrid work policies and work-life balance,” said small business specialist Director of SW Accountants, Greg Will.

Top 5 issues for SMEs

Mr Will, who has over 20-years’ experience in helping SME’s manage and grow their businesses, said that in addition to the ongoing financial struggles that the survey also uncovered the top 5 issues faced by small to medium business owners:

1. SMEs need help with employees, including attraction, retention, incentivisation and wage pressures
2. Managing cash flow is critical, including budgeting, forecasting, and access to capital – debt or equity
3. Businesses face a cost of doing business increase, including all costs like wages for staff, running costs, rents, etc., without being able to pass on higher prices on sales, leading to margin pressure
4. SME owners need more time in the day to do everything, which is leading to work-life balance issues, mental health problems, and frustration
5. White-collar SME businesses are struggling with work-from-home or work-from-the-office policies, leading to hybrid work policies as the fifth priority for 2023.

Other significant findings from the Small Business Sentiment survey included the impact of the change to minimum wage, the ability to meet financial commitments, supply chain disruptions, and business reliance on migrant labour.

Sector insights

The report broke down into specific sectors showing that half (50%) of the businesses in Accommodation and Food Services, Education and Training, and Manufacturing are impacted by the change to minimum wage increases, leading to increased financial pressure. Additionally, a whopping three-quarters (76%) of Manufacturing respondents believed their businesses are weaker now than before the COVID pandemic due to supply chain and skilled labour shortages.

The survey also highlighted that despite a slight easing of supply chain issues as we head into 2023, 43% of those in Construction will struggle to meet their financial commitments, which will continue to have significant impacts on housing, whilst staff shortages continue to remain a significant issue for the manufacturing and construction sector.

Bill Lang, Executive Director of Small Business Australia says: “The Small Business Sentiment survey has highlighted the struggles faced by many SMEs in Australia and the urgent need for sensible and stable government policies to support this sector in 2023. SW and SBA will continue to advocate for the needs of SMEs and provide expert guidance and support to ensure their survival and growth in 2023.”

This survey is the first of its kind, with SW and SBA planning to conduct another deep dive across all sectors to compare results from last year ahead of the budget in May 2023. The findings of the survey will provide a foundation for SMEs to advocate for their interests and highlight their struggles with the federal government and policy makers.

Upcoming event for Small Business

Opportunities for growth, investment and trade are critical to everyone’s success, so SW Accountants & Advisors has once again partnered with Small Business Australia (SBA) to get to the heart of what business is looking for from the Budget, come Tuesday 9 May 2023. Take the survey to tell us what you need from the budget and sign up for our Budget Breakfast webinar as ANZ, SBA and SW experts unfold the Budget for you.

Media contact

Amanda Lee, SW
Head of Business Development & Marketing

E alee@sw-au.com
P +614 30 322 206

About the survey

About SW

About us – SW Accountants & Advisors (sw-au.com)

As an independent, national firm with a strong presence across Brisbane, Melbourne, Perth, and Sydney, SW offers a wide range of accounting and business advisory services. With 40 Partners and 300 staff, we are committed to delivering exceptional value to our clients. We are proud to be ranked as the 22nd largest firm by revenue in the 2022 AFR Top 100 Accounting Firms and the 10th largest national practice in Australia.

At SW, we believe in building real relationships and connectivity, both locally and globally. As a member of the SW International network , we provide integrated global services to our clients. Our international headquarters are located in Hong Kong, and our member firms offer assurance, business advisory, corporate finance, and tax consulting services. Additionally, we are a member of the Praxity Alliance, which enables us to leverage our combined global footprint and connections in over 110 countries across the USA, Europe, Asia Pacific, and the Middle East.

About Small Business Australia

Over 5 million Australian own or work in small businesses. Small Business Australia’s purpose is to ensure a thriving sector and financial security for these 5 million Australians. Small Business Australia conducts research with small businesses across Australia and provides information, advice and services to small businesses and the major organisations that support them. The Foundation Partners in Small Business Australia’s Buy Local movement include Australia Post, Nab, Telstra, PEXA and SW.

Greg Will
Director, Private Business and Advisory Services

Bill Lang
Executive Director, Small Business Australia

The post 1 in 3 SME’s will struggle to meet their financial commitments in 2023 report appeared first on SW Accountants & Advisors.

In the 2020-21 Federal Budget, the Government announced an increase to the small business entity turnover threshold from $10m to $50m, allowing greater access to certain concessions including the shorter 2-year period of income tax assessment review. Broadly, this limits the Commissioner’s period to amend a return unless fraud or evasion occurred.

The Income Tax Assessment (1936 Act) Amendment (Period of Review) Regulations 2022 (the “Amending Regulations”) will amend the Income Tax Assessment (1936 Act) Regulation 2015 to exclude certain entities with “particularly complex tax affairs or significant international tax dealings” from the shortened 2-year period to a 4 year period.

The regulations were issued in draft form in August 2022 and the final version is largely unchanged, other than “providing more certainty to when the period of review would apply to entities that engaged in certain activities”.

SMEs excluded from shorter review period

Exceptions for certain taxpayers already existed that excluded entities from the 2 year review period, allowing the Commissioner to amend for 4-years after the notice of assessment is issued.

Arm’s length dealings

This exception has now been expanded to remove the requirement that one of the parties was already subject to the 4-year review period. It has also been expanded to apply – not just where the parties are not dealing at arm’s length – but also where:

• the transaction results in an amount of $200,000 or more being included in or allowable as a deduction of any of the parties, or
• the transaction involves CGT events where the sum of the proceeds from the CGT events is $200,00 or more.

Additional SMEs excluded from the 2-year review period

The list of SME exceptions to the 2-year period of review has been expanded to entities:

• where the sum of their foreign sourced assessable income, and that of their affiliates and associated entities is at least $200,000
• that are Australian foreign controlled or non-resident entities
• subject to the Diverted Profits Tax or Multinational Anti-Avoidance Law in the assessment year
• with at least 10 connected or affiliated entities
• that have claimed a Research and Development (R&D) tax offset for an income year or may be entitled to certain related deductions, recoupments, and adjustments
• that have claimed CGT relief under the following roll-over provisions:
  • Division 615 business restructure
  • Division 125 demerger
  • Subdivision 126-B companies in the same wholly owned group
• that have disregarded a capital gain/loss due to the operation of Division 855-10 (relating to foreign residents).

General tax assessment review rules

Subject to certain exceptions, the Commissioner may amend a tax assessment within 2 years of a notice of assessment for:

• an individual
• a company that is a small or medium business entity
• a person (in the capacity of a trustee of a trust estate) for a year of income if the trust is a small or medium business entity.

For other entities, the Commissioner may amend an assessment:

• within 4 years after the day on which notice of the assessment is provided to the taxpayer
• at any time if there has been fraud or evasion
• at any time to give effect to a decision on a review or appeal, or
• as a result of an objection made by the taxpayer or pending a review or appeal.

Date of effect

The amendments are now in operation, which means they apply to assessments for an income year if the assessment is made after 9 December 2022 and relates to income years starting on or after 1 July 2021.

How SW can help?

Reach out to your SW contact or the team here if you would like more information about how your tax assessment review period could be impacted.

Contributors

Tanya Bester

The post SMEs excluded from shorter Income Tax Assessment review appeared first on SW Accountants & Advisors.

了解联邦预算案在2022年对您有何意义：

农业综合企业

能源与资源

国际业务

托儿

房地产与基础建设

教育

中小型企业与养老金

The post 联邦预算案对您有何意义？ appeared first on SW Accountants & Advisors.

With the change of government, there was great anticipation on the updated Federal Budget. However, this Budget may not provide enough support for households in managing the cost of living. Many businesses, especially small to medium-sized businesses are still feeling the impact of the COVID-19 pandemic and rising prices and interest rates.

On 25 October 2022, the Treasurer announced the Government’s plan for a more inclusive and sustainable economy. This budget is in line with the Labor’s five-point Economic Plan, aiming to reduce the costs of living, drive productivity growth and expand the capacity of the economy to alleviate supply side pressures, increase real wages and genuine economic investment for Australians. The SW team has navigated the papers to find key measures for industry and sectors.

Did you miss out on our Federal Budget webinar?

Check out Bill Lang, Director at Small Business Australia and our panel of industry experts as they share their insights and key takeaways from the Budget.

What does the Federal Budget mean for you?

Our Fast Facts provide an overview of the budget insights and potential opportunities from our team of experts. Tailored to your industry or business type, SW also reviews if the Federal Budget support measured up to expectations.

Take a look at what the Federal Budget means for you in 2022:

Agribusiness

Energy & Resources

Childcare

Property & Infrastructure

Education

SMEs & Superannuation

The post Federal Budget overview 2022/23 – October appeared first on SW Accountants & Advisors.

A change in government for the first time in nine years, further interest rate increases expected, staffing shortages, supply chain issues and rising business costs – our fourth Federal Budget in two years will need to deliver for Australian businesses, and particularly small to medium-sized enterprises (SMEs).

Opportunities for growth, investment and trade are critical to everyone’s success, so SW Accountants & Advisors has partnered with Small Business Australia (SBA) to get to the heart of what business is looking for from the Budget, come Tuesday 25 October 2022.

As the Federal Budget approaches, we invite you to:

• have your say by taking our short survey – tell us what you need from the Budget and/or pass it on to small businesses in your network
• register for our Federal Budget Webinar – hear insights from ANZ, Small Business Australia and SW industry experts.

Take the survey! Receive a $250 Small Business Australia voucher

Take this short 2-3min survey from SW and SBA and tell us what you need from the budget in order to Look forward and Open doors. You’ll help us build a robust and current view of Australian small business.

PLUS you’ll receive a $250 SBA voucher to put towards business coaching, training opportunities or Business Advantage services. Survey closes Wednesday 19 October at 6pm.   

Budget Breakfast Webinar – 26 Oct | 9.30am AEDT

Join us as we digest the details of the 2022 Federal Budget at an informative webinar with an interactive Q&A session.

Our host, Matt Birrell will be joined by guests ANZ Senior Economist, Catherine Birch, and Bill Lang, Director at Small Business Australia as well as our SW industry experts to breakdown the key details of the FY23 Federal Budget.

Online Registration details

Date         Wednesday 26 October 2022

Time         9.30am – 11am (AEDT) 

Expert speakers

Follow us on social media to receive the latest updates on Federal Budget and other important industry news.

The post Federal Budget FY23 Business Survey & Webinar appeared first on SW Accountants & Advisors.