Lowe Lippmann Chartered Accountants

And that's a wrap for 2024....Lowe Lippmann enjoyed the day out on the bay as we farewelled the year. We will see you all in 2025!

New standards at 31 December 2024 There are three new accounting standards to be considered for the first time for 31 December 2024 reporters. A summary of each of these standards has been considered below as well as potential impacts on our clients. Revised AASB 101 Presentation of Financial Statements provides additional guidance regarding presentation of liabilities as current or non-current. In particular, the standard includes more clarity around the existence of covenants and waivers / periods of grace in the event of a breach. Additional disclosures are required where covenants are tested after the reporting date. This is likely to have impact for many of our clients and we recommend that bank agreements are reviewed as soon as possible as well as identification of potential covenant breaches. AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback clarifies how a seller-lessee should measure lease liabilities arising from a sale and leaseback transaction. It ensures that the leaseback does not lead to the recognition of gains that aren't aligned with the right-of-use asset retained. Expected to have little impact, generally if our clients enter sale and leaseback arrangements, there is a failed sale as control is not transferred from the selling entity. AASB 2023-1 Amendments to Australian Accounting Standards – Supplier Finance Arrangements (2024-1 for Tier 2) introduces new disclosure requirements to enhance transparency about the nature, timing, and amount of liabilities financed by suppliers in relation to the effects of such arrangements on an entity’s liquidity risk and leverage. Little impact expected, however disclosure amendment only.

What Should Be on the Board/Management Committee Agenda for NFP and Smaller Entities? We are fast approaching the end of the calendar year – the second most common reporting date for entities in Australia. Board and Management committees (Boards) of not-for-profits (NFPs) and small entities will be considering their annual reports and the 2025 outlook and as part of this project, it will be time to ensure the Board attention areas are appropriate. Boards should focus on current and emerging risks to ensure their organisations remain resilient and effective – the normal items of financial management, governance, and strategic planning remain relevant, however other key matters which should be included are: ·        Cybersecurity: Ensure your organisation is protected against increasing cyber threats and has robust data protection measures in place, including knowing what data is collected and retained by the organisation. ·        Climate Risk: Evaluate how environmental changes impact operations, funding, and long-term sustainability and whether there is impact from the mandatory climate-reporting risk regime on your suppliers which may impact you. ·        Diversity & Inclusion: Ensuring your governance and decision-making reflect the community your organisation serves, and the appropriate voice is being heard. ·        Digital Transformation: Discuss emerging technologies for operational efficiency and addressing any digital gaps. Ensure appropriate policies for the use of AI are in place. ·        Staffing and Succession Planning: Regularly review staffing levels, development opportunities, and establish succession plans for key roles, such as the Chair of the Board, CEO or General Manager. ·        Geopolitical situation: Consider any likely impacts from the current world uncertainty and overseas elections including supplier and beneficiary locations, changes in exchange rates and interest rates. https://lnkd.in/gKRRB83p

Christmas Parties & Gifts 2024!   With the well-earned 2024 holiday season on the way, many employers will be planning to reward staff with a celebratory party or event.   However, there are important issues to consider, including the possible FBT and income tax implications of providing 'entertainment' (including Christmas parties) to staff and clients.   To read the full Tax Alert, click here: https://lnkd.in/g6FqJKaQ

Payday superannuation proposed start from 1 July 2026.   * From 1 July 2026, employers will be required to pay their employees’ super guarantee (SG) at the same time as their salary and wages. * This measure is not yet law, and the ATO will engage with industry and stakeholders to get feedback and input on these changes. * Contributions of super - employers will be required to pay their employees’ SG at the same time as their salary and wages, and will be liable for the super guarantee charge (SGC) unless contributions are received by their employees’ superannuation fund within 7 days of payday. * Payday – each time an employer makes an ordinary time earnings (OTE) payment to an employee, there will be a new 7-day “due date” for contributions, with some limited exceptions.

December 2024 This month in our Practice Update, we will consider the following topics: * Can staff celebrations attract FBT? * Reminder of December 2024 Quarter Superannuation Guarantee * ATO's tips for small businesses to 'get it right' * SMSFs cannot be used for Christmas presents! * Taxpayer's claims for various 'home business' expenses rejected * ATO reminder about family trust elections To read the full Practice Update, click here: https://lnkd.in/g4KPD7Uc

Superannuation on Paid Parental Leave from 1 July 2025:   New measures were recently announced where the government will pay 12% superannuation guarantee (SG) equivalent payments on government-funded Paid Parental Leave (PPL) from 1 July 2025. It is expected new parents will receive $3,000 in super over the length of their leave, which will expand to six months from 2026. This measure is not yet law.  

Australian Tax Office – Scam Alert! Please read on for items to be aware of with: https://lnkd.in/gFdbumxC

ATO announces name change to myGovID to avoid confusion caused by scammers!   · This announcement by the Australian Taxation Office (ATO) has been driven by the increased frequency of scammers attempting to confuse users of myGovID and gain access to their personal information. · The Australian government’s digital ID app myGovID has undergone a makeover and is now renamed “myID”. · The change has been delivered as an app update through the App Store or Google Play, and has been applied automatically once the app has been updated by users. · Current users will not need to take any actions and will not need to set up a new myID account. · The ATO reminds users not to click on suspicious links, open attachments or download any files from suspicious emails or SMS; as the ATO will never send an unsolicited SMS that contains a link.