The Federal Government has recently announced the introduction of new legislation, targeted at incentivising employers to come forward and attend to unpaid superannuation obligations.
The Government has introduced a 12-month amnesty period, allowing employers to come forward and attend to any historical superannuation guarantee (SG) entitlements outstanding, without the usual penalties and charges. This one-off scheme is designed to encourage employers to attend to their SG requirements in a timely manner. To access the amnesty, outstanding SG entitlements must be paid by employers in full, including all accrued nominal interest.
The Minister for Revenue and Financial Services Kelly O’Dwyer says the new amnesty legislation will complement the sweeping SG integrity package which is currently before parliament. "We are introducing this one-off amnesty to allow employers to wipe the slate clean and pay their workers what they're owed. All Australians workers should be paid the entitlements they are owed."
Employers who do not take advantage of this one-off amnesty period will be doubly affected. These employers are forfeiting the opportunity to attend to SG entitlements in arrears without penalty. Additionally, they will also face further fees and charges when caught – generally, the minimum penalty is 50% on top of existing outstanding SG entitlements owed, says Mrs O’Dwyer. Those who do not exercise the amnesty opportunity will continue to be pursued by the ATO’s enforcement team for outstanding obligations throughout the amnesty period.
The Australian Taxation Office (ATO) estimate that approximately $2.85 billion in SG payments went unpaid in 2014-2015. "While this represents a 95 per cent compliance rate, any level of non-compliance is unacceptable, which is why the Turnbull Government is giving the ATO the tools it needs to enforce compliance going forward," Mrs O’Dwyer said. “The amnesty will make it easier to secure outstanding employee entitlements, by setting aside the penalties for late payment that are normally paid to the Government”.
The amnesty will run for 12 months and begun on 24 May 2018.
Mali De Castro - Business Development Manager SR Group
Next step: award compensation to the investors she defrauded!
A WA businesswoman under investigation for masterminding a suspected $180 million "Ponzi" scheme, in which Malaysian and Singaporean investors were courted to invest in Pilbara property, has been permanently banned from providing financial services.
Australia's corporate watchdog, the Australian Securities and Investments Commission (ASIC), has found Veronica Macpherson engaged in "misleading" and "deceptive" conduct while promoting the Newman Estate Project in Western Australia's Pilbara to overseas investors.
In a letter to Malcolm Turnbull last week Bill Shorten has suggested an extension of the inquiry, an apology and compensation scheme were the “least the government can do” in the future. SR Group sees this as a step forward in advocating for reform in the financial sector.
Read more https://goo.gl/b5MnoM
The Federal Court has clarified the scope of the releases that may be agreed by a lead applicant in a class action. It has stated very clearly that under the legislation governing class actions, the release can only relate to the claim the class action. The lead application has no power to grant a release in relation to things beyond the claim in the class action.
The issue arose in Dillon v RBS Group (Australia) Pty Limited (No 2)  FCA 395. Mrs Dillon sued RBS Group in relation to losses sustained by her and others in relation to exotic financial products known as ‘instalment warrants’. The case settled and as is typical in cases of this kind, RBS Group required each group member to sign a lengthy document containing, among other things, a release of RBS from any further liability by all group members in relation to issues raised in the proceedings.
The necessity of requiring group members to sign such a document prompted Lee J to consider the “important points of principle” about the scope of the proposed releases. It is an important point because defendants often ask for a release of all liability, whether or not connected with the issues in the case. A release of all liability would preclude group members from pursuing other claims they might have against a particular defendant. Lee J held that a release that went beyond the claim in the class action could not be maintained.
This decision has significant consequences. In the Great Southern litigation, a release was contained in the Deed of Settlement that clearly went beyond the scope of the class action. Bendigo and Adelaide Bank, in the course of its recovery action, has relied on that release to assert that borrowers have no defences to the bank’s demands for payment.
Lee J’s decision makes it plain that this is not correct and that the scope of any release must be construed in line with the content of the claim in the class action.
Investing money is always a trade-off between risk and return. Just like most things in life; the greater the risk, the greater the reward. Not all risk is the same, however, and we should aim to eliminate risk wherever possible, especially with our money.
When investing your money, you want to worry about the success of your investment; will the company’s new project be successful? Will it be profitable enough to pay the dividends I am looking for?
What you don’t want to be worrying about is the safety of the investment itself, whether you’ve been scammed and whether the assets you bought genuinely exist.
Our investment tips will assist you in navigating the investment landscape for 2018.
The big 4 banks have all come out this week and made submissions to the upcoming Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Australia’s top 4 financial institutions each lodged submissions this week, summarising instances of misconduct and delinquency over the past decade. With the public hearings approaching on 12 February 2018, this is the first step, though a substantial one, towards fostering and maintaining transparency from our major banks.
Our Managing Director Susie Bennell was instrumental in bringing this to the government's attention. Life changing news for people that have been wronged by banks and other financial institutions.
See full story https://goo.gl/ZZzHnc
Story by James Massola Sydney Morning Herald
As 2017 starts to wind down, we begin to cast our eye forward towards the year to come. Here at the SR Group, we work closely with many small business owners and company directors, and we have decided to compile a list of tips to help your business thrive in 2018.
Success takes organisation and strategy, and your business is no different! As we look forward to 2018, consider what key events and milestones are occurring and when. Adjust your revenues and cash flows as appropriate to accurately reflect your perception of your business’ popularity. Making careful, considered forecasts will allow you to make better and more accurate business decisions for the future. Spend a few days running through all the likely (and unlikely!) scenarios that might occur to your business and make calculations accordingly. That way will there be no surprises and you will be prepared for any outcome.
Make it Easier for Customers to Pay
This one is simple. The easier it is for customers to pay, the more often they will pay! Times are certainly changing, and so is the way people pay for things these days. If your business is still not accessible to ‘tap and go’ or charges fees on EFTPOS, it’s probably time to get with the times. A recent survey by payment giants VISA has classed Australia as a ‘Digital Leader’ in adopting electronic payments, with 92% of face-to-face transactions being contactless payments. Make it easier for your business to make money – by making it easier for your customers to pay you!
Employee entitlements are an important thing to stay on top of in the new year – especially if your business is in financial difficulty. An audit by the Australian Taxation Office (ATO) revealed that employers had short-changed staff by an average of $2.81 billion per annum, a truly terrifying figure for the employees of Australia. To tackle this, the Australia Government has introduced the Small Business Superannuation Clearing House, a free service to reduce compliance costs and red tape for small businesses. Additionally, should your business undergo an insolvency event, you as a director can be personally liable for unpaid employee entitlements while in financial difficulty.
Small Business Superannuation Clearing House – Read More
Never get Complacent
This is an important point always, but even more so as we begin to enter 2018! The ever-present threat of competition means that as business owners, we must always be looking for ways to lower costs and improve our product. Our competition will be constantly trying to better our product, and we are no different. Similarly, the presence of competition means that you must stay vigilant in looking for the cheapest prices to lower your costs in running a business.
Use Support Services and Systems
It important for you to focus on what makes your business great, and leave the stuff you’re not as good at to someone else. There are companies around which provide a vast range of services to help with a number of different situations. Some types of support services include;
- Advisory Services: Need help making a business decision or reconsidering your strategy? There are business advisers around who will help you make the right decisions for your business.
- Hiring Services: Don’t waste your time sifting through thousands of resumes when you could pay a company to give you the top 10 applicants of the lot.
- Financial Difficulty Services: Companies, such as the SR Group, exist to help companies and directors through periods of financial difficulty. A company, or person, in financial difficulty, has a lot of decisions to make in a very short period of time, which can have different and long-term consequences. Just because things aren’t going well at the moment, don’t let this period of hardship affect the rest of your life. Talk to the right people, get the right advice, make the right decision, and you and your business will be back on your feet in no time.
There are many tools and services available to businesses and their directors to help them through a variety of situations. Find out more through our advisory service.
THIS couple has lost their successful small business after its tax payments were taken by an accountant the ATO was warned about three years ago.
Police are expected to charge Coffs Harbour’s Stephen Raymond Douglass as soon as this week over his pilfering of at least $500,000 and possibly $1 million from Warren and Sheenah Whitten’s Woolgoolga-based steel fabrication company, Arc Attack Engineering — money they thought he had remitted to the ATO.
In a confession he emailed to the Whittens a month ago, Douglass attempted to elicit sympathy by blaming his actions on a gambling addiction.
However, there was no mention of a gambling addiction in 2014 when another Woolgoolga client, Eadie Cabinet Making, discovered a decade’s worth of GST had not been paid to the tax office.
On that occasion Douglass said the money had been taken by an employee that Craig and Michelle Eadie doubt actually existed.
The Eadies alerted the ATO about Douglass. But it never even contacted them. It is unclear why. Its media unit said it could not comment.
“The system is a joke,” Mr Eadie said. “The ATO didn’t care. There was never any follow-up. The thing that really pisses me off is that I should’ve been able to warn the other local businesses (who were clients of his). Warren would never have been ripped off. But I was put under a gag order.”
In 2015, seemingly by coincidence, the ATO audited Arc Attack. But it did not speak to the Whittens. When News Corp Australia asked why, the ATO said “taxpayers may wish to have another person act on their behalf. The ATO will contact the nominated person to discuss related matters, for example during an audit.” After the audit, the ATO fined the Whittens $60,000.
In June, the ATO began winding up proceedings against Arc Attack in the Federal Court. The company, which employs seven people, went into voluntary administration in August.
Only then was the fact of the missing money identified — by Mrs Whitten.
Arc Attack is now in liquidation. The Whittens face having to remortgage their home if they are to be any chance of buying back the business. They’ve already had to sell their investment properties and shares.
“I think the ATO has something to answer for,” Mr Whitten said.
Liquidator Steve Nicols of Nicols & Brien said were it not for the misappropriation by Douglass “this company would not be in liquidation”.
Mr Nicols said he would sell “the assets to the highest bidder, which could be Warren. (But) they may not get the business back.”
The main creditor is the ATO. It is not yet known what dividend will be paid.
The Whittens said if it is less than 100 cents in the dollar they will pay the difference out of their own pockets.
“I want to walk around with my head up,” Mr Whitten said.
The couple had not wanted to go into administration. But Douglass encouraged them to do so, rather than hire business advisers the SR Group.
Its managing director Susie Bennell said it would have negotiated with the ATO to keep Arc Attack trading and in the Whittens’ hands.
When News Corp Australia approached Douglass for comment he said: “I do not give you permission to write anything. My solicitor says she will sue for all the world if anything is written against me.”
The Daily Telegraph
John Rolfe, News Corp Australia Network
QUEENSLAND builders are planning to launch a class action against the state’s construction industry watchdog over what they claim is heavy-handed oversight that has destroyed businesses.
Small to medium-sized building firms are aiming to meet next week in Brisbane as the first step in lobbing the legal grenade at the Queensland Building and Construction Commission.
The aggrieved parties will be chasing an unspecified damages bill, certain to run in to the millions of dollars.
They also want to see sweeping industry reforms and the reinstatement of licences revoked “unfairly’’.
The looming Federal Court action, believed to the first in the nation against such a state regulator, has been spearheaded by self-styled “professional advocate’’ Susie Bennell.
Bennell, the Sydney-based former manager of champion boxer Kostya Tszyu, told Business Confidential yesterday she had already convened one meeting that drew about 20 interested parties.
“If the QBCC continues along its lines of just wiping out builders, liquidating their companies for a whole gamut of reasons and not addressing reforms, there will no longer be long-term builders,’’ she said.
Despite the barely contained rage over aggressive policing of the sector, Housing Minister Mick De Brenni intends to double down on his support of the commission.
He wants to give regulators even greater powers to take on dodgy builders in a bid to protect subcontractors and homeowners.
De Brenni’s controversial plan to mandate the use of trust accounts to stop builders shafting their subbies has already drawn the fierce criticism of peak industry groups.
Indeed, Master Builders Queensland, making no secret of their displeasure with De Brenni, have even rented billboard space on the M1 to drive home the point.
City Beat with Anthony Marx - COURIER MAIL