Nicholas Gleeson

ATO monitoring crypto tax reporting June 6, 2024 Todd Wills - SMSF MAGAZINE The ATO is conducting a data-matching project to ensure SMSFs and investors accurately report cryptocurrency sales in their annual returns. SMSF trustees should accurately document the sale of digital assets in their fund’s annual return as the ATO is using data from cryptocurrency providers to ensure they are complying with their reporting requirements. “The ATO has mentioned they are going to acquire data from crypto-designated service providers for the 2023/24 financial year right up until the 2026 financial year and they are going to match it against their own systems to identify clients who fail to report a disposal of crypto-assets in the income tax return,” Institute of Financial Professionals Australia head of superannuation and financial services Natasha Panagis said during a webinar held by the body today. “If clients are using any entity to invest in crypto, the ATO is on the lookout and is going to be data-matching between those crypto data platforms and their own platforms to make sure that tax is recouped if people are selling their crypto-assets. “Be aware for clients of yours that might have an SMSF [and have invested in cryptocurrencies] that change is going to happen.” Panagis noted the ATO took this course of action because no framework exists to regulate the asset class and SMSFs continue to report substantial losses from investing in cryptocurrencies. “These losses are attributed to a whole range of factors, including scams, theft, collapsed crypto trading platforms, lost passwords and scammers impersonating the ATO,” she said. “There’s quite a lot of sophisticated scams going on at the moment and the ATO has noted that many crypto-assets are not classified as financial products. “The platforms that are used for buying and selling crypto are often unregulated, which can leave investors unprotected in the event of platform failures or security breaches that could occur and could result in the loss of digital assets.” According to the latest ATO quarterly statistics, SMSFs now hold $1.044 billion in cryptocurrencies, falling from a peak of $1.613 billion in the June quarter 2021.

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I recently had a discussion with Oliver Gray from mining.com.au on the challenges facing Australia's IPO market so far in 2024, following the launch of HLB Mann Judd’s IPO Watch Australia Mid-Year Report. High interest rates, inflation, and low commodity prices have led to subdued activity in the first half of the year. Click the link below to access Oliver’s full article. https://lnkd.in/gsYc52zx

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📢 Attention Australian Taxation Office (ATO) In a bid to collect around $50 billion in outstanding tax money, including post-COVID debts, the ATO will soon be facing a new tax. This unique measure stems from a Department of Finance edict, penalizing agencies that use outsourcers with a levy on work sent outside the Australian Public Service. Finance and Public Service Minister Katy Gallagher revealed this "additional external labour levy" earlier this month as part of savings measures in the upcoming budget. Expected to generate $375 million over four years from 2024-25, this levy highlights the government's commitment to financial integrity and revenue collection efficiency. #ATO #TaxCollection #Finance #GovernmentPolicy #Australia #Debt #Collection

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Understanding the ATO’s Final Determination TD 2024/7: The ATO has confirmed that financial advice fees for tax-related guidance are now deductible if provided by a Qualified Tax Relevant Provider (QTRP) under section 25-5. This includes both initial (upfront) and ongoing financial advice fees, but only if the advice is related to tax matters. Other types of upfront fees, such as those for investment planning, are still considered capital expenses and therefore not deductible. Scenario: If the tax-related advice is clearly separated in the fee structure, then the tax portion of the fee for the initial advice is deductible. The non-tax-related portions (like estate planning or investment) remain non-deductible. For example, if a $10,000 advice fee is broken down into $6,000 for investment advice and $4,000 for tax advice by a QTRP, the client can claim the $4,000 as a deduction. Thank you SMSF Adviser Sarah Abood

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Creating opportunity through uncertainty How can Australian critical mineral projects gain an edge in the emerging global market? To coincide with the Diggers & Dealers 2024 Mining Forum, we have released our latest Mining & Metals thought leadership report: Creating opportunity through uncertainty: How can Australian critical mineral projects gain an edge in the emerging global market?

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The Australian Taxation Office (ATO) is issuing a large number of Director Penalty Notices (DPNs) to company directors to recover unpaid tax and superannuation debts, which have grown significantly. This move aims to address a total of $33 billion in unpaid liabilities. A DPN makes company directors personally responsible for unpaid taxes and superannuation. There are two types of DPNs: 1. Lockdown DPN: Issued when a company fails to file its tax and superannuation returns on time. Directors must pay the debt within 21 days or face personal liability. 2. Non-Lockdown DPN: Issued when returns are filed but the debts remain unpaid. Directors have 21 days to pay the debt, place the company into administration or liquidation, or appoint a small business restructuring practitioner to avoid personal liability. The ATO's aggressive issuance of DPNs can lead to personal bankruptcy for directors who can't meet these financial obligations. #Australia #Director #Company #Notices #penalty #Bankruptcy #Insolvency

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Are Special Purpose Financial Statements Still Acceptable for For-Profit Entities? The financial reporting landscape in Australia has seen significant changes over the last few years, particularly in the acceptability of special purpose financial statements (SPFS) for for-profit entities. Historically, many for-profit entities prepared SPFS to meet specific needs without adopting the full suite recognition, measurement and disclosure requirements of accounting standards. We continue to receive lots of questions about whether for-profit entities can continue to prepare special purpose financial statements. The AASB introduced new requirements for assessing whether a for-profit, private sector entity needs to prepare general purpose financial statements through amendments released in AASB 2020-2 Amendments to Australian Accounting Standards – Removal of Special Purpose Financial Statements for Certain For Profit Private Sector Entities. In summary, from 30 June 2022,  a for-profit private sector entity must prepare general purpose financial if one of the following criteria is met – the entity complies with: ·        A legislative requirement to prepare financial statements in accordance with Australian Accounting Standards or accounting standards – this would include, for example Companies required to financial statements under the Corporations Act, e.g. all large proprietary companies, small foreign owned companies, public companies greater than $250k revenue OR ·        A constituting or other document that requires the preparation of financial statements in accordance with Australian Accounting Standards. This might include documents such as constitution, trust deed, joint venture agreement, bank loan agreement. If this requirement exists and o  the agreement was created / amended prior to 1 July 2021 then an entity can continue preparing special purpose financial statements with some extra disclosures o  the document was created or amended after 1 July 2021 then then general purpose financial statements must be prepared. While SPFS might still be permissible in specific cases, entities should evaluate whether their current financial statements are appropriate given the change in accounting standards. https://lnkd.in/dnvZwhvh

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Hi All - here's a good article on mining asset values and potential impairments by Carl Di Lorenzo at RSM Australia!

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Michael Scantlebury thank you for putting some facts behind a powerful statement that both Canada and Australia should remember. Here at the International Mining and Resources Conference (IMARC) in Sydney this week there was lots of discussion around "people don't understand that if there wasn't more mining they couldn't have many things they have come to rely on such as phones, cars etc.". But that discussion should also include "without the resources sector, we wouldn't have tax revenues to do the other things we like to do for each other in a civilized society". Of course many industries benefit and economy and societies, not just the resource industry. But no industry seems to attract such consolidated knee jerk reaction opposition like this one. I would also throw out there that I can't think of an industry more receptive to change, consultation and improvement than the resources sector, particularly after the discussions this week at IMARC.

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Ahead of the introduction of mandatory climate reporting from January 1, 2025, EY has clarified that Australian subsidiaries of international groups must report under the Australian regime.    According to FS Sustainability, “Alexandra Banks, partner at EY, climate change and sustainability services, has been receiving an influx of questions related to the application of proposed climate-related disclosures in Australia as part of her work with the EY Sustainability Disclosure Hub.   “Questions have centred on whether inbound Australian subsidiaries of international groups should report locally, where the parent or group is already making climate-related disclosures under one of those regulatory regimes. Foreign regulatory regimes that serve the same purpose include the European Union's Corporate Sustainability Reporting Directive (CSRD), and the United States Securities and Exchange Commission (US SEC).”   “Reporting obligations under the Corporations Act apply to individual entities, meaning that inbound Australian subsidiaries of an international group cannot meet obligations by lodging a parent entity's consolidated sustainability report.”   As ASIC chair Joe Longo told the Deakin Law School International Sustainability Reporting Forum last month: “More than 6,000 entities will be required to report under new climate-related disclosure requirements in the next few years. They need to start preparing for the future, now.”   The Pathzero network enables collaborative data sharing to simplify mandatory climate reporting – get in touch to join more than 250 fund managers and institutional clients like Aware, HESTA, and IFM Investors.   Click through the link to read more from FS Sustainability. https://lnkd.in/dYqzCKmQ

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Last week I jumped into a webinar held by CPA Australia to discuss the FY24-25 Federal Budget. Its a lackluster budget, with 68% of respondents on a CPA pole who believe the cost of living support was not substantial enough. As the Commercial Finance Manager of a smaller business, the support is also incredibly underwhelming. What was everyone's key takeaways from this budget? Both personally and professionally?

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An insightful podcast for business leaders, where leading AI expert Erik Brynjolfsson explains how businesses can effectively utilise AI to foster growth and innovation, the changing role of the CFO, strategies for staying competitive and the skills professionals must develop. Tune in to this CPA Australia INTHEBLACK podcast. #CPA #Australia #AI #CFO #Innovation #BusinessGrowth #FutureOfWork #INTHEBLACK

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The Federal Government’s 2024 Budget has recalibrated the FEG Recovery Program to include unpaid superannuation entitlements. This change promises significant benefits for creditors and practitioners alike. Learn more about the impact and opportunities in our detailed article authored by David Mutton. #Superannuation #FEGRecoveryProgram #2024Budget https://lnkd.in/g6Rcw-9w

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🅱🆄🆂🅸🅽🅴🆂🆂 🅸🅽 🅰🆄🆂🆃🆁🅰🅻🅸🅰? Australia’s economic prospects are stabilising: upcoming tax cuts should boost household spending and improving trade ties with Beijing support a constructive outlook for exports. ꜱᴜᴍᴍᴀʀʏ • From 1 July, income taxes in Australia will be cut from 19% and 32.5% to 16% and 30% respectively, giving a lift to household spending and liquidity. • Beijing cancelled tariffs on imports of Australian wine in March, one of the latest signs of easing trade relations between the two nations. • Services sector inflation may become a key driver of interest rates, forcing higher borrowing costs on businesses. Do you want to have more information? Write or call me. #dnb #dnbeurope #riskmanagement #countryrisk

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Australian Federal Budget │ Updates Affecting CGT for Foreign Residents From 1 July 2025, significant changes will affect foreign residents' CGT on Australian real property, including: - Clarified taxable assets - Introduction of a 365-day principal asset test - Mandatory notification to the ATO for transactions over $20 million Check out the graphic below for an overview. Want the full list? Head over to our blog: https://lnkd.in/geHpydVx #federalbudget #budgetplanning #financialplanning #cgt #foreignresidents

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📊 Attention Australian CPA firms: Are you ready for the 2024-25 SMSF compliance changes? As the superannuation landscape evolves, staying ahead of the curve is crucial for CPA firms managing Self-Managed Superannuation Funds (SMSFs). Here are some key insights to keep your clients compliant and thriving: • New superannuation rates and thresholds: Understand the updated contribution caps and pension limits to avoid penalties. • Accurate reporting is more critical than ever: Ensure all contributions, withdrawals, and investments are properly documented and valued. • Strategic planning is your secret weapon: Help clients align their SMSF strategies with the latest regulations and their financial goals. 💡 Did you know? The carry-forward rule allows individuals to use unused cap amounts from previous years. Are your clients making the most of this opportunity? As a CPA firm, your expertise is invaluable in navigating these complex regulations. How are you preparing for these changes? Share your thoughts in the comments! Want to learn more about staying compliant and maximizing opportunities for your SMSF clients? Let's connect and discuss strategies tailored to your firm's needs. #SMSFCompliance #CPAFirms #SuperannuationInsights #FinancialPlanning #cpaaustralia #smsfaudit #smsfbookkeeping #smsfoutsourcing #smsfadmin

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Consultation on the Ashhurst to Woodville Toll Road With the fragments of information provided about the costs of construction and operation of the new road, it's impossible to make an informed comment in the consultation process. 1. The road, 11.5 k, replacing the Manawatu Gorge road may have cost about $620m. 2. The estimated annual operating cost, including maintenance, is unstated. 3. The traffic volume is said to be 11,000 vehicles per day, with about 1/3 using other routes, so 7,000 per day. 4. The charge per car is proposed to be $4.30 and for trucks $8.60. 5. This suggests revenue of perhaps $10 m or more per annum, which wouldn't even cover the interest cost of $620 million. 6. NZTA needs to set out its formula and explain what it is supposed to pay for. https://lnkd.in/gHK_Exga

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