CHANGING TIMES pkf.com.au - A QUARTERLY PUBLICATION OUTLINING RELEVANT BUSINESS ISSUES FOR YOU
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A U T M U N A QUARTERLY PUBLICATION OUTLINING RELEVANT BUSINESS ISSUES FOR YOU CHANGING TIMES pkf.com.au
Welcome “As we make this transition, I am proud of what has been
achieved and where we stand today as an organisation.”
IN THE AUTUMN 22 ISSUE
GOODBYE FROM STEVE...
Message From The Chair
2
Goodbye From Steve…
HELLO FROM BOB... 3
Message From The MD Succession in any organisation is a key part of the journey of being in
business. Just over 12 years ago I had the privilege of taking over from
BUSINESS ADVISORY
Terry Lawler in the role of Managing Director of what was then Lawler
4
To Change. To Innovate. Partners, that is today PKF Sydney and Newcastle. The last 12 years has
been one of opportunity, challenges, good times and some tough times but
TAXATION 5 above all the most rewarding of my career.
Cryptocurrencies And Tax As shared with my Partners last year, and after having taken on the role of Chair of PKF
Australia, the time is right for the next phase of the journey and for someone else
to take on the role of Managing Director of PKF Sydney and Newcastle. It gives me
INTERNATIONAL WOMEN’S DAY 6 great pleasure to announce Bob Bell as our next Managing Director, taking effect
#breakthebias 1 March 2022.
Bob is a great person of strong values. He is highly respected and widely experienced in
AUDIT 7 all aspects of what PKF Sydney and Newcastle offer, which stands him in good stead to
Personal And Professional Growth lead us into our next phase of business.
Through The Unknown Bob, having led our Business Advisory offering in Sydney for the past 16 years, has had
a great foundation to take on this role and will be the first Managing Director based in
Sydney since the firm was founded back in 1977.
PKF INTEGRITY 8
The Rising Threat To one and all – team, partners, clients, contacts, friends and those I have simply had the
Of Opportunistic Fraud pleasure of meeting – I sincerely thank you for the support, encouragement, challenges
and friendship that this role has afforded me. Success is not about any one individual, it
is about team and the people you surround yourself with, and I couldn’t have asked for
PKF WEALTH 10 any better, so thank you.
Who Wants To Be A Millionaire?
Above all to my family – Kaz, Jack, Charlie and Claudia who are my world – your
support, sacrifices and commitment will never be forgotten for which my love is eternal.
MEDIA RELEASE 11 As we make this transition, I am proud of what has been achieved and where we stand
PKF Brings ERP Efficiency To today as an organisation. Equally I am excited about the future, the role of National Chair
Businesses Across Australia and continuing to provide Business Advisory Services within PKF Sydney and Newcastle.
Finally, I ask you all to welcome Bob into the role with the same support and
PKF DIGITAL 12 encouragement that I have been given. Bob will be a fantastic leader to take PKF Sydney
and Newcastle forward into the future, and who I know will
take us on to bigger and better paths. Over to you Bob…..
IT 13
How Do You Backup The Cloud?
SUPERANNUATION 14
Important Changes In The
Super Sphere Steve Meyn
Chair of PKF Australia
BUSINESS RECOVERY & 15
INSOLVENCY
Unmanageable Tax Debts…
What Next?
TAKE FIVE WITH... 16
Bob Bell – PKF Newcastle &
Sydney’s New Managing Director
TAX DIARY 16
“While I am keen to create my own identity as Managing Director,
my focus will be on listening – to my partners, our team, our clients,
our referrers –the people that make us what we are, our greatest
supporters but also our harshest – and most constructive – critics.”
Hello From Bob…
It is indeed an honour to assume the mantle of PKF While I am keen to create my own identity as Managing
Director, my focus will be on listening – to my partners, our
Sydney and Newcastle’s Managing Director. I am
team, our clients, our referrers –the people that make us what
acutely aware of the history of our business, started we are, our greatest supporters but also our harshest – and
by Terry Lawler in 1977, growing to become Lawler most constructive – critics.
Partners, then PKF. I have worked in the accounting profession for over 40 years,
It’s a daunting task to follow on from Steve, who has overseen and I’ve been in partner roles since 1987 in firms with as few
a decade of transformation in name, structure, size, technology as four people to the almost 400 that make up the PKF Sydney
and, most importantly, thought. We have invested in the people and Newcastle group today. I am excited for the new challenge
and technology that enables us to operate comfortably in that awaits me, and for the opportunity to build on the solid
the mid-tier of accounting firms, without losing the personal foundations laid by my predecessors.
approach and relationships that have always been fundamental
to the way we operate.
Over the past few months, I have worked closely with Steve to
ensure a smooth transition, a process that has given me an even
Bob Bell
greater appreciation of what he has achieved in his tenure, along
with the depth of knowledge and talent within our firm. Managing Director
pkf.com.au I
3
“Whilst I previously focused on technology-based change,
change can come in many ways and we should embrace it.
We could replace the word change with innovate.”
BUSINESS ADVISORY SERVICES Partner Chad Russell
To Change. To Innovate.
In February 2017, I wrote a short article about and scalability to ultimately improve profits. Astute investors
change. Specifically, technological change and the often have a broader view of the market and are constantly
looking for ways to improve whilst keeping pace with modern
rate to which it may take over the business landscape
technology to benefit both their customers and employees.
as we know it. The question I posed in the article was Small and medium size business owners will need to adopt
effectively will you be relevant in 10 years, or will you technological change faster to remain relevant or alternatively,
be replaced by a robot or an iPhone app? prepare their business for sale while the opportunities are
available.
We are now five years along that journey and I must say that
while there has been great technological advancement in many Whilst I previously focused on technology-based change,
businesses I work with, the rate of change hasn’t been nearly change can come in many ways and we should embrace it.
as fast as I had imagined back in 2017. So, where does that We could replace the word change with innovate. We’ve often
leave us? heard phrases such as “innovate or die’’. Extreme sure, but the
point is valid. It is vital for small and medium businesses to be
Currently, the market is shifting. We are seeing a trend open to and adopt change to stay relevant and competitive.
towards capital investment in small and medium businesses If you aren’t moving forward and seeking new and improved
coming from private equity, sophisticated investors and large ways to service your market, then someone else will. It might
corporations. These investors are coming into this space have even happened already.
looking at opportunities to increase efficiencies, productivity
“Even if you are an industry
leader, challenge the status
quo at every opportunity
to stay ahead of the pack.”
Change can often be uncomfortable and something that Are you open to being challenged?
people who love their comfort zone will resist, but does that
Challenged from your team, your customers or your advisory
mean we should stand still? I say we run towards it. Even if
board? What forums do you have to invite ideas or feedback?
you are an industry leader, challenge the status quo at every
Who’s asking the questions that make you think? Allow
opportunity to stay ahead of the pack. I often hear business
yourself time and space to be creative and visualise a plan.
owners say “that’s the way we’ve always done it”.
Let’s not make this harder than it needs to be.
It is important to move away from this fixed mindset and
work towards being open to ideas. Finding new ways of
engaging with employees so they remain invested in the I’ll ask a new question five years on, with the same
pkf.com.au I
business’ future and talking to customers about what their theme - What are you doing today to ensure that your
real needs are, will create new business opportunities. business will be relevant in 10 years time? Contact
PKF today.
4
“Cryptocurrency popularity continues to rise which means it will
remain a focus area for the ATO.”
Michael Johnston Manager TAXATION
Cryptocurrencies And Tax
Would you believe me if I told How should I be treating profits Personal use asset
you that over 600,000 taxpayers from cryptocurrencies?
Cryptocurrency is a personal use asset
have invested in cryptocurrency It is important to consider if you if it is kept or used mainly to purchase
recently? The recent rise in the are a cryptocurrency investor or a items for personal use or consumption.
cryptocurrency trader. Cryptocurrency is not a personal
value of cryptocurrencies has put use asset if it is kept or used mainly
a fast track on many investors Investors purchase cryptocurrency
as an investment, in a profit-making
with the intention of holding it for long
plans, jumping in when it is red term gain. Investors will be assessed
scheme or in the course of carrying on
hot. a business. In addition, the longer the
on capital account and will be able to
cryptocurrency is held the less likely
With Bitcoin having risen by over access the 50% CGT discount if the
it is that it will be a personal use asset.
4,000% and Ethereum by over investment is owned for more than 12
It is worked out at the time of disposal
25,000%. We can see where they are months. Any losses will be treated as a
if it is a personal use asset.
coming from. capital loss. Capital losses can only be
applied against capital gains. Capital gains made from personal use
This has led to the Australian Tax Office assets that are less than $10,000 are
(ATO) becoming concerned regarding Traders purchase and sell
disregarded. All capital losses that are
the taxation of cryptocurrency gains. cryptocurrency regularly over the short
made from personal use assets are
To address this concern the ATO term to make profits, and are assessed
disregarded.
launched a data-matching program, on revenue account with their profits
now collecting data on cryptocurrency being treated as business income.
Cryptocurrency popularity
transactions from the 2015 financial
continues to rise which means
year, up to and including the 2023 What if I exchange a
it will remain a focus area for
financial year, hence why it is important cryptocurrency for another
the ATO. It is important to
to understand the tax implications of cryptocurrency?
keep detailed records and to
investing in cryptocurrency.
It is a taxable event if you dispose of understand the tax outcomes of
one cryptocurrency to acquire another all cryptocurrency transactions.
What is cryptocurrency? cryptocurrency. The capital proceeds Please contact PKF if you
would be the market value in Australian require further assistance or
Cryptocurrency is a digital asset in
dollars of the cryptocurrency you additional information.
which encryption techniques are used
to regulate the generation of additional acquire at the time of transaction.
units and verify transactions on a If the cryptocurrency you received
blockchain. Cryptocurrency generally can’t be valued, the capital proceeds
operates independently of a central are worked out using the market
bank, central authority or government. value in Australian dollars of the
cryptocurrency you disposed
of at the time of the transaction.
pkf.com.au I
5
#breakthebias
International Women’s Day 2022
With International Women’s Day just around the corner, we strive to #breakthebias by actively recognising
and eliminating gender bias, discrimination and stereotypes.
Consistently striving for equality in all forms is something that we are committed to at PKF. We come together to celebrate
and recognise the achievements of women all over the world, and the boundaries and hurdles that they have overcome
to get where they are today.
#breakthebias PKF’s International Women’s Day Webinar
This year, we will be holding PKF’s very first International Women’s Day webinar, featuring some of Australia’s most influential
women. We are pleased to announce our three panellists for the webinar, CEO at Murawin – Carol Vale, Paralympian and
Tokyo silver-medalist – Lauren Parker, and CEO at the Governance Institute – Megan Motto.
Our speakers
LAUREN PARKER – PARALYMPIAN MEGAN MOTTO – CEO AT THE CAROL VALE – CEO AT MURAWIN
AND WORLD CHAMPION GOVERNANCE INSTITUTE
Carol is a Dungutti woman and has
After a freak training accident in 2017 Megan Motto is Chief Executive Officer dedicated her career to breaking
left her paralysed from the waist down, of Governance Institute of Australia, a cycles of disadvantage and amplifying
Lauren Parker, has shown the world national membership association and initiatives that contribute to improved
how determined she really is to be the leading authority on governance. Megan futures for Indigenous Australians.
best. Her switch from professional, drives the direction of the Institute Carol founded and continues to
able-bodied triathlon to para-triathlon that advocates for more than 43,000 run Murawin Pty Ltd, a national,
is nothing short of remarkable and has governance and risk management Indigenous consultancy, driven by
led her to a silver medal in the recent professionals from the listed, unlisted strong family and Indigenous cultural
Paralympics and the title of World and not-for profit sectors. Prior to her values. She works across a wide range
Champion. Governance Institute role, Megan was of social and public policy areas that
CEO of Consult Australia. Megan is directly affect Indigenous Australians
Lauren has aimed to #breakthebias
also currently a Director of Standards and communities.
associated with females in the industry,
Australia and a National Director for the
becoming one of the worlds most
Committee for Economic Development
renowned para-triathletes at the recent
of Australia (CEDA).
Paralympics, and inspiring those
around the world to fight through the REGISTER
challenges that may face them and to
always have a ‘never give up’ attitude.
TO ATTEND
pkf.com.au I
6
“The foundations of success in our roles as advisors for clients, and mentors
with colleagues, is fundamentally built on trust, and our awareness of this is
critical in ensuring we deliver to a high standard in both domains.”
Bronson Elsley Senior AUDIT
Personal And Professional Growth
Through The Unknown
In what has been a challenging
period, the importance of
meaningful relationships,
social interaction and sense of
community has become a major
talking point. With many of us now
returning to a relative sense of
normality, the resounding feeling is
to put the worst of the pandemic
impacts behind us and move on
with our lives.
However, we must ask the questions:
• What can we learn from our
experience over the last 18-24
months?
• How has this influenced us on a
personal level and more broadly,
organisational level? acceptance of this builds trust, loyalty, in ensuring we demonstrated this
and a stronger sense of community and competence. As we move forward into
• How can this help shape a positive camaraderie within our professional our respective post-lockdown settings,
and sustained impact in the circles. it is pertinent that as organisations, we
workplace? recognise what we can learn from this.
At the organisational level, the need
With an immediate common talking for clear, considerate, and tailored Whether it be ensuring robustness
point, our “professional relationships” communication has also been of communication channels and IT
moved into unfamiliar and previously highlighted during this period. Clients security, being more receptive to staff
unchartered territory. Formal attire have sought consultation on an array who challenge the status quo in search
was exchanged for casual comfort, of issues such as gaining access to of new efficiencies or continuing to
new challenges from being ‘on mute’, government stimulus, while junior staff schedule regular check-ins with clients
to having poor Wi-Fi at home were have looked to their senior colleagues to and colleagues to allow them to voice
contended with, and being interrupted ensure they continue to develop whilst their concerns; the lockdown period has
by younger or furrier family members working remotely/in isolation. shown that these interactions build trust,
became common practice. As we start encourage effective change and allow
to emerge from recent lockdowns, it The foundations of success in our roles
those involved with our organisations to
remains important that at a personal as advisors for clients, and mentors
feel understood, supported and valued.
level, we take time to reflect upon these with colleagues is fundamentally
experiences; they serve as a reminder built on trust, and our awareness of
this is critical in ensuring we deliver PKF is dedicated to producing
that despite our professional obligations,
to a high standard in both domains. thought leadership articles,
we remain commonly grounded in life’s
It is our consistent demonstration of beneficial for all businesses.
various challenges both inside and
competence that promotes confidence Visit our website for further
outside the workplace.
and in turn, builds this trust into our insights.
Whether it be recognising that clients professional relationships. Over the last
pkf.com.au I
or colleagues have their own conflicting 18-24 months, offering alternative ways
deadlines, family commitments, or are to hold meetings, housing client data/
navigating personal challenges that information securely, remaining alert
we are not aware of; continuing to for changes to relevant legislation and
demonstrate our understanding and stimulus for clients became paramount
7
“It is a wise thing to remember that a high percentage of fraudulent
and corrupt activities that impact businesses are committed
by trusted insiders.”
PKF INTEGRITY Principal Wayne Gilbert
The Rising Threat Of Opportunistic
Fraud
I was looking through media It is a wise thing to remember that a high How Can You Take a Proactive
articles as I do regularly, and percentage of fraudulent and corrupt Approach Against Fraud?
activities that impact businesses are
a story caught my eye. It was committed by trusted insiders. Here are some things that you can do
about a convenience store selling to ensure that you keep protecting the
assets and revenue of your business
Rapid Antigen Tests at an Why Does Opportunistic Fraud during this unprecedented time:
exorbitant mark up. Supply Occur?
1 Ensure that there is an adequate
and demand were discussed, As businesses strive to stay afloat, segregation of duties between
as was the thought that this is it is inevitable that jobs will be cut to functions in the business;
assist in this regard. This will mean that
the type of behaviour we want 2 If the ability to maintain normal
levels of control are eliminated from
to avoid. Since we are all in this key processes, such as procurement segregation between functions is
together, this type of behaviour is and payroll. We will see people with impaired by staff reductions etc,
limited experience taking on new roles look to implement a workaround
the antithesis of what we should
and key controls. Segregation of duties that allows for some overarching
be seeing. will be weakened to some extent, or in supervision of these activities;
some cases eliminated, in an effort to 3 Follow up any identified anomalies
Enough about Rapid Antigen keep things moving with reduced staff
as soon as possible, and ensure
Tests. numbers.
that someone in the business is
This led me to think about businesses In terms of opportunity, fraud is more accountable for doing so;
and the impact that the opportunistic likely in businesses where there is: 4 Gain a better understanding of any
fraudster might have during this
• A weak internal control system; gaps in your control framework and
unprecedented period, as we navigate
look to plug those gaps;
the challenge of operating a business in • Poor security over business assets;
a COVID-19 environment and beyond. 5 Ensure that you take steps to
The Fraud Triangle details that those • Limited likelihood of detection; properly secure assets (including
motivated to commit fraud within • The lack of clear and effective property) in your business;
an organisation will succeed when reporting methods; and 6 Ensure that your employees are
opportunities present. The relaxation
• Unclear policies in relation to the aware of their obligations and the
of the control environment – which
behaviour expected of employees. policies and procedures that relate
can help keep things moving within a
to their behaviours;
business, presents such an opportunity It is therefore imperative that business
for internal fraud. owners, managers and employees 7 Ensure that your employees are
understand the role they play in the aware of their obligations, policies
Trust in Your Organisation prevention of fraud and corruption and procedures in relation to the
within the business. The prevention of use of company assets (cars, other
As businesses we all need to operate vehicles, credit cards and other
fraudulent or corrupt activity is generally
with a high degree of trust in our supplies);
more cost-effective than an investigation
people. That trust however, cannot
following the detection of fraudulent or
be unconditional and needs to be 8 Create a framework in which
corrupt activity. Such activity commonly employees feel comfortable in
balanced with an appropriate level of
impacts your business financially and raising suspicions concerning
control in relation to key activities of the
perhaps even affects your marketplace unethical behaviour — including
business. As I tell many clients when I
reputation. Let’s face it, at times like having effective whistleblowing
am conducting training or attendees at
these we can ill afford to drive customers systems and processes which
pkf.com.au I
a seminar—trust is an emotion—not
away because of negative media, nor allow employees to report
a control. After more than 30 years’
can we afford to lose our hard-earned anonymously; and
experience in dealing with people who
trust and position to the fraudulent
act dishonestly inside a business, I also 9 Take prompt action in relation
opportunist’s behaviour.
caution that employees are only as to identified fraudulent
honest as their circumstances allow. or corrupt activity.
8
This is not a comprehensive list of
control activity to prevent, detect and
action fraud. It is merely some thoughts
on what can be done to protect your
business at a time when every dollar
counts.
It is a bitter pill to swallow that
fraudulent behaviour increases when
circumstances allow, but it is one
that must be acknowledged. Survival
through these trying times is highly
dependent on internal diligence.
If you need advice on the
identification and management
of opportunistic fraudsters in
your organisation contact the
team at PKF Integrity today.
“The prevention of fraudulent or corrupt activity is generally
more cost-effective than an investigation following the
pkf.com.au I
detection of fraudulent or corrupt activity.”
9
“An optimal strategy when planning for retirement is to eliminate all
remaining personal debt, contribute as much money into super as possible
and commence an allocated pension, drawing down a tax-free income
to fund your retirement living costs. ”
PKF WEALTH Financial Adviser Luke Kelly
Who Wants To Be A Millionaire?
The recent growth in residential
property has provided an
opportunity for those who have
turned 60 years of age and are
thinking about retirement.
An optimal strategy when planning for
retirement is to eliminate all remaining
personal debt, contribute as much
money into super as possible and
commence an allocated pension,
drawing down a tax-free income to fund
your retirement living costs.
But what are your options if the majority
of your wealth is tied up in your now
empty nest family home and your super
is well short of an amount required to
fund the next 30 years of retirement?
The recent changes to the downsizer
contribution eligibility age may provide
you with the answer.
Currently, only those aged 65 and
older can take advantage of the
$300,000 downsizer contribution but concessional contribution of up to • Your home must be owned by you
recent legislation just passed to lower $330,000 each in their super fund. or your spouse for 10 years or more
the eligibility age to 60 years of age, A $330,000 non-concessional prior to the sale and is CGT exempt
effective 1 July 2022. contribution utilises the “bring it under the main residence exemption.
forward” rule.
There are some retirement strategies • Your home is in Australia and is not
now available for a couple in their early They have each contributed $630,000 a caravan, houseboat, or other
60’s, combining available contribution into their super fund, or a combined mobile home.
limits to maximise their retirement $1,260,000 of their available surplus
• You make your downsizer contribution
savings. Let me explain using the below proceeds from the sale of their family
within 90 days of receiving the
example. home. They now may wish to retire,
proceeds of sale, which is usually
commencing a tax-free allocated
at the date of settlement and the
pension to fund their retirement needs.
How to contribute $1,260,000 ATO downsizer contribution form is
into super: It is also worth noting that a downsizer provided to your super fund prior to
contribution also provides an opportunity the contribution being made into your
A couple in their 60’s may wish to
to those who have large superannuation super fund.
sell their unencumbered home for
balances, given you are able to make
$3,000,000 and purchase a new It is important that you speak
the $300,000 contribution into super
home for $1,500,000. If sold in July with a qualified financial adviser
even if you have reached your transfer
2022, the couple can take advantage before deciding to make any
balance cap of $1,700,000.
of the downsizer contribution and contribution into your super
each contribute $300,000 into their fund, given there are additional
complying super funds within 90 days of So how do I know if I am eligible?
rules and thresholds that need
settlement. There are some strict rules to be eligible to be considered. Contact the
pkf.com.au I
Additionally, if they are under the current for the downsizer contribution: PKF Wealth team today.
transfer balance cap (individual super • You must be 65 years old (or 60 from
balance under $1,370,000 is required, 1st July 2022) or older at the time you
including the downsizer contribution), make a downsizer contribution.
they also are able to make a non-
10
10PKF Brings ERP Efficiency To
Businesses Across Australia
With over six years’ experience in process efficiency systems, sees the a competitive edge in utilising the
built-in business intelligence capabilities programs sophisticated Enterprise
the onboarding and optimisation
of NetSuite being utilised to support Resource Planning (ERP) system, this
of Oracle NetSuite for clients, PKF growth of all business management ensuring the easy integration of internal
have joined Oracle NetSuite’s systems and evolve as your businesses and external business resources in
Business Product Outsourcing needs change. enhancing performance capability.
(BPO) Partner program to deliver “We have been the experts in Oracle As the Hunter regions only hospitality and
genuine business intelligence NetSuite for over six years and the BPO provider, and being amongst the
knowledge gathered over this time has few in Sydney, PKF can onboard clients
to their clients by converting
enabled us to successfully onboard over at a reduced cost and provide specialist,
their data and information into 500 clients onto the system.” - PKF industry related advice and support to
knowledge. Director and Partner, Anthony Sullivan. businesses, effectively increasing their
efficiency whilst saving time and money
Oracle NetSuite is an online service “With a focus in the hospitality sector,
in analysing their business practices
that enables companies to manage the utilisation of Oracle NetSuite sees
for success. PKF is able to benchmark
all key business processes in a single a business now being able to predict
business data against other similar
system. The software provides resource sales on any given day based on a
businesses in the same sector to help
planning in relation to inventory, tracking combination of past data, as well as
the business owner gain a greater
financials, maintaining of customer unique inputs such as expected weather
appreciation of relative performance. More
relationship management systems at a particular venue, scheduled sporting
importantly, they offer real time business
(CRMs) and supply chain management, events or even interest rate changes.
insights that allow leaders to make better
in which all play a key role in efficiency. This allows businesses to better roster
and faster operational decisions.
staff and manage their supply chain
PKF specialise in the integration and
more efficiently.”
enhancement of Oracle NetSuite If you are looking to increase
services into businesses in several By joining the program, PKF can further efficiency, save time and money
sectors, customising their services to dominate the integration of NetSuite and increase your opportunities
each client and their business needs. into the SME market, providing their to grow, contact the PKF Digital
The growing demand for integrated, clients with the opportunity to gain team today.
“(Oracle NetSuite) allows businesses
to better roster staff and manage their
supply chain more efficiently.”
pkf.com.au I
11Is Your Business In Need Of
Something More Than Xero / MYOB?
Making financial Getting better Replacing
operations more control of inventory accounting software
efficient and fulfillment we’ve outgrown
Learn more
& BUSINESS IN
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BUILT-IN FLEXBILITY CUSTOMER EXPERIENCE
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INDUSTRIES
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PURPOSE-BUILT
pkf.com.au“Before signing up to a cloud service, it is key you understand your organisations
requirements around backups and where they do not align with the providers.”
Joshua Gambrill Manager IT
How Do You Backup The Cloud?
As more and more applications
change from sitting on
servers within a building, to
being delivered by the cloud,
organisations are placing an ever
increasing reliance on software
providers. The relationship is
changing from the provider just
supplying software and support
to the business, to becoming
a critical component in holding
intellectual property, customer
data, backups and disaster
recovery on servers they control.
Most cloud-based software providers
do a good job of managing this change,
but there is a limit to how much data
the providers can practically and
cost effectively store for each of their
customers. The question is, does this
limit imposed by the software provider
match what your organisation requires?
There is an important distinction
between backup and disaster recovery,
disaster recovery is the ability to bring
an application back online after a major
incident. For the most part, this is one of
cloud software’s major advantages.
Cloud software providers generally have
their data setup to replicate to multiple Looking at a practical example, requirements around backups and
locations around the country and/or Microsoft in their Office 365 suite have where they do not align with the
world continuously and they are able data centres all over the world and providers. There might not be any
to operate from any of those locations measure their downtime annually in need to keep months and months’
if there is a major incident. It is always minutes, so are very well setup for worth of backups for data which does
worth confirming this with your software disaster recovery but will only maintain not change, but it might be critical to
provider and as part of a due diligence deleted emails (emails which have been maintain financial records which are
process before moving to new cloud deleted from the deleted items folder) for updated every month or transactional
software. Generally, most providers will 30 days. Past that point the emails are data which may need to be audited
be happy to share their disaster recovery gone forever. If your organisation needed in the future. As mentioned, items
documentation with customers. to retrieve an email that an ex-employee like emails can also be critical to an
removed or refer to a completed organisation due to their role in the
Backups are copies of data at a point
job which had been accidentally (or business.
in time generally kept longer term, often
deliberately) deleted, there is no way to
in traditional backups this would have If you would like assistance
restore those emails from Microsoft.
pkf.com.au I
meant daily, weekly, monthly and yearly on understanding what your
backups, however due to the cost and There are a number of third-party organisation needs to backup,
scale of cloud systems, for software providers on the market who seek to for how long, as well as, what
providers to keep that many backups address this longer term backup issue, your cloud software providers
for all customers would be extremely either by bringing the data back to currently have in place and what
expensive. servers on premise, or to an alternate third party options exist for your
cloud provider. Before signing up, it is cloud provider, contact the team
key is understand your organisations at PKF today.
13“In the world of super, change is inevitable. As we strive to become more
efficient and data-driven, small changes in the short term can make for
more streamlined process in the long term.”
SUPERANNUATION Partner Daniel Clements
Important Changes In The
Super Sphere
In the world of super, change is • Identify and eliminate director contributions, and large super funds also
involvement in unlawful activity. use SuperStream as their primary way
inevitable. As we strive to become
If you’re a director or a corporate to transact with employers, other large
more efficient and data-driven, trustee of a self-managed super fund funds, and the ATO.
small changes in the short term (SMSF), you can now apply for your
From 1 October 2021, SMSFs are
can make for more streamlined director ID via Australian Business
required to transact in the SuperStream
Registry Services (ABRS) online. You
process in the long term. system for rollovers. This means
will need a myGovID with a standard
individuals will need to use SuperStream
Two recent changes are of upmost or strong identity strength to apply
to process rollovers (other than in-
importance in the super world at the for your director ID online.
specie rollovers) to or from their SMSF.
moment:
When you need to apply for a director
ID depends on when you first became a So what are the benefits of
1 Director
Identification director. If you: utilising this system?
Number (DIN)
• Were a director on or before The benefits of the SuperStream system
In June last year, the government 31 October 2021, you have until are that rollovers can be processed faster,
passed laws introducing the requirement 30 November 2022. more efficiently, and with fewer errors.
for all directors of a company in Australia
• Are appointed as a director between However, as with most new systems,
to have a Director Identification Number
1 November 2021 and 4 April 2022, there are teething issues as
(DIN), including SMSF members who
you need to apply within 28 days of the super industry updates their software
are directors of a corporate trustee.
your appointment. and procedures to handle the new
A Director Identification Number (director
system.
ID) is a unique identifier you will keep • Will be appointed as a director on or
forever. after 5 April 2022, you need to apply You will need the following details
before you’re appointed. for your SMSF to be able to send and
All directors are required by law to
receive rollovers via SuperStream:
verify their identity with the ATO before Once you have obtained your DIN you
receiving a director ID. This is important need to provide the number to your • An electronic service address (ESA).
as it will help to: accountant and SMSF practitioner. • An Australian business number (ABN).
• Prevent the use of false or fraudulent
• To ensure your SMSF details are up
director identities. 2 Rollover processing
to date with the ATO, including your
• Make it easier for external SuperStream is a data and payment SMSF’s bank account.
administrators and regulators to system used for digital transactions
To minimise delays when rolling super
trace directors’ relationships with within the super industry. Many
to or from an SMSF, the ATO advises
companies over time. SMSFs already use SuperStream for
that funds must ensure the SMSF details
provided to the transferring fund match
the details it holds.
From my experience so far, the new
system is great when it works but
there is still work to be done when it
comes to SMSFs interacting with the
various Australian Prudential Regulatory
Authority (APRA) / Retail Funds.
The ATO is working closely with the
pkf.com.au I
superannuation industry to resolve the
current teething issues.
If you require assistance with
the above, get in contact
with the team at PKF today.
14“With all signs indicating that lockdowns and border closures are a thing
of the past, the best time to obtain support from the ATO in relation
to your tax debts is now.”
Domenic Kyriacou Supervisor BUSINESS RECOVERY & INSOLVENCY
Unmanageable Tax Debts…
What Next?
In late 2021 the Australian
Taxation Office (ATO) broke its
silence. The honeymoon period
was over, as we saw their
inaction in support of individuals
and businesses get through the
COVID-19 pandemic coming to
an end.
The ATO had an additional $29 billion
in tax debts to collect since the start
of the pandemic, this not including the
most recent impacts of the omicron The Small Business Restructuring • If you or your business cannot pay
variant. The ATO declared that it was process was introduced to allow on time, contact the ATO to seek
increasing recovery actions for individuals financially distressed, but commercially assistance. The ATO can place you
and businesses in Victoria, NSW, and viable businesses, the opportunity to on a payment plan, provide additional
the ACT, meaning that they are no restructure their debts with the help time to lodge future tax obligations
longer willing to allow businesses to of a Small Business Restructuring or provide remissions of interest and
trade with unpaid tax debts without Practitioner (SBRP). This process penalties.
any consequences. Businesses with allows creditors, including the ATO,
unmanageable tax debts should heed • Do not ignore correspondence you
to vote on a restructuring plan.
this warning and seek urgent expert receive from the ATO in relation
advice before it’s too late. As of 30 September 2021, the ATO has to your debts, including payment
voted in favour of 92% of Small Business demand letters or director penalty
Restructuring proposed to them. Given notice. Instead, contact and seek
Who are the ATO targeting? the ATO debts that have accrued during support from the ATO.
The ATO has informed Australians they the pandemic, it will likely have a big
With all signs indicating that lockdowns
have implemented a ‘tailored approach say in the proposals being put forward
and border closures are a thing of the
to their recovery actions’. This approach to creditors in the future. If you are a
past, the best time to obtain support
will see the ATO targeting individuals and business owner with unmanageable
from the ATO in relation to your tax debts
businesses who had tax debts before debts, this is the prime opportunity to
is now.
COVID-19, have poor compliance history, consider a restructure.
and have unremitted goods and services
and pay as you go (PAYG) withholding The team at PKF highly
So how do I avoid these recovery
tax, or outstanding superannuation recommend that businesses
actions?
payments. It is expected by the end of with escalating tax debts,
2022, that the ATO will broaden their The ATO advised that the key to avoiding specifically goods and service
target zone to include other taxpayers recovery action is to: tax, pay as you go withholding
that are not complying with their and superannuation guarantee
• Lodge tax documents including
obligations. charge, seek expert advice
business activity statements,
on the options available
superannuation guarantee charge
to manage its debts. Our
Small Business Restructuring statements and income tax returns
dedicated business recovery
on time, even if you do not have
The ATO has informed the insolvency and insolvency team can assist
the financial capacity to pay the tax
with utilising the Small Business
pkf.com.au I
industry it is eager to assist businesses
liability.
to navigate the path post- COVID-19 Restructuring Solutions to
by utilising the Small Business negotiate a deal with your
Restructuring process, which came creditors, including the ATO.
into effect on 1 January 2021.
15“Take 5 has shown the team at PKF that there are a lot of things
that we may not know about someone, even if we work with them
everyday! So we took 5 minutes to chat with our new Managing
Director, Bob Bell, to get to know a bit about him.”
Tax Diary
APRIL 2022
TAKE 5 WITH... 21 Due date for lodgment and
payment of March 2022 monthly
Bob Bell
BAS.
28 Due date for lodgment and
payment of March 2022 quarterly
Take 5 has shown the team at PKF BAS for paper lodgments.
that there are a lot of things that
30 Due date for lodgment of TFN
we may not know about someone, report for closely held trusts (if any
even if we work with them. beneficiary quoted their TFN to a
trustee in the March 2022 quarter).
Q What is a little known/interesting He was a Life Member of the RSL and
fact about you? of Kingsgrove RSL where he was
President for many years.
I am the youngest of 5 children in the MAY 2022
order boy, girl, boy, girl, boy. I fathered
5 children that are also in the order boy, Q What was your first ever job?
15 Due date for lodgment of income
girl, boy, girl, boy.’
Cleaning the chairs in Kingsgrove RSL. tax returns for the year ended 30
There were hundreds of them! June 2021 for all entities that did
Q Who is your hero and why? not have an obligation to lodge
My Dad. He was wounded in World War Q What motivates you? earlier and are not eligible for the
5 June concessional lodgment.
2, 19 October 1942, at Templeton’s A. People. My family, my friends, Payment due date for companies
Crossing on the Kokoda Trail and spent my clubmates, my work colleagues, and super funds.
18 months in Concord Repatriation my clients, my network, people I don’t
Hospital when he came home. Apart know but admire, people who provoke 21 Due date for lodgment and
from his wound – he had 300 stitches thought. I feed off positivity! payment of April 2022 monthly
in his arm – he suffered the after effects BAS.
– as most who fought there did – Q What TV shows are you watching 26 Due date for lodgment and
of Malaria, Dengue Fever and Dysentry. right now? payment for the March 2022
This limited his capacity to study and Quarterly BAS for electronic
Ozark, The Great, Succession,
work, but he and Mum managed to lodgments.
Women Who Kill, anything Harlan Coben,
raise a family of 5 children who have
waiting for The Righteous Gemstones
now produced 15 grandchildren and
to come back!
20 great grandchildren.
PKF Sydney & Newcastle Contacts
Andrew Beattie Anthony Sullivan Chris Davis Nicholas Falzon
Business Advisory Hospitality Wealth Creation Innovation, Research and
abeattie@pkf.com.au asullivan@pkf.com.au cdavis@pkf.com.au Development
02 4962 2688 02 8346 6000 02 4928 7000 nfalzon@pkf.com.au
02 8346 6000
Andrew Jones Bob Bell Clayton Hickey
Corporate Finance Business Advisory Audit and Assurance Sarah Scott
ajones@pkf.com.au bbell@pkf.com.au chickey@pkf.com.au Chief Marketing Officer
02 8346 6000 02 8346 6000 02 4962 2688 sscott@pkf.com.au
02 4962 2688
Andrew Porvaznik Brad Tonks Daniel Clements
Tax Business Recovery and Superannuation Wayne Gilbert
aporvaznik@pkf.com.au Insolvency dclements@pkf.com.au Integrity and Risk
02 8346 6000 btonks@pkf.com.au 02 4962 2688 wgilbert@pkf.com.au
02 8346 6000 02 8346 6000
FIND US ON
PKF Sydney, Newcastle and Central Coast are member firms of the PKF International Limited family of
legally individually owned firms and do not accept responsibility or liability for the actions or inactions of
any individual member or correspondent firms.You can also read
