The start of the year is always a good time to pause, reflect and sharpen the focus on our goals.

Beyond this moment of New Year wishes, we are firm in our resolve to stay connected, stay abreast of changes and stay ahead in technology.

2021 will be a year of significant change and innovation in Accounting and Financial Advisory business. We are committed to enabling our clients to manage change and grow the business all through the year.

In this first issue of 2021, we bring to you a snapshot of developments which impact the Australian Accounting and Financial Planning Industry.
 
Blockchain Technology and the Accounting Profession

In this era of Automation and big data, Blockchain technology will soon evolve to touch upon Accounting practices. The top 5 prominent industries that will be disrupted by blockchain technology in the near future are Banking, Cyber Security, Supply Chain Management, Healthcare, Government. The Digital Transformation Agency actively supports organisations in finding new and innovative ways to deliver government services and blockchain may be part of its future solutions.
 
Digital Tax Workflow System

Under traditional manual tax systems, Accounting firms utilized due date tracking databases that identified when a return was due, but not what information was missing, or the preparation, review or extension status, which was often recorded manually on a physical routing sheet.

Digital tax workflow system enables

  • Tracking of due dates status and monitoring the volume of returns at each status.
  • Tracks any preparer or tax production notes and integrates with email to improve communications
  • These notes get attached to specific source documents that support easy access to all tax return information.
  • Firms with a functioning document management system typically use an integrated workflow tools to integrate and bookmarking source files to Manage Digital tax returns.
  • Firms without a document management system can explore a range of workflow tools. For Eg;-Xero practice Manager, SurePrep and XCM Solutions.

 
An Important aspect of transitioning the firm’s tax process to a digital environment is managing electronic files that are no longer physically viewable in assorted stacks around the office.

Business updates


ATO to continue the key business support into 2021.

Job Keeper Update

  • The deadline for the December business monthly declaration has been extended up to 28th January 2021.
  • Eligible employers need to complete a new decline in turnover test and the payment rates change for eligible employees.
  • To show that their actual GST turnover has declined eligible employers need to submit their decline in turnover form between 4 January 2021 to 28 March 2021.

 

Registrations open for Job Maker Hiring Credit

  • Employers can now register for Job Maker Hiring Credit using ATO online services or the Business Portal or through a tax registered Tax/BAS agent.
  • An employer cannot receive any Job Keeper/other Wage subsidy payments under any other program along with Job Maker Hiring Credit.
  • This credit applies to new positions created between 7th October 2020 to 6th October 2021.
  • Additional conditions include increase in the employee head count from 30th September 2020 as well as increase in payroll for the Job Maker period compared to the three months to 6 October 2020.
  • Claims can be made every 3 months for up to 12 months.
  • The 1st claim can be made from 1st February 2021.

 
Highlights of Victorian Budget 2020-21

New Jobs Tax Credit
  • Businesses with annual group wages of less than $10 million to receive a non-refundable credit of 10 cents for every dollar of wages paid in 2021-21 and 2021-22 over and above the previous year’s wages.
  • Special rules apply for new businesses.
Increased Payroll Tax Threshold
  • The threshold for paying payroll tax annually increased from $40,000 to $100,000.
Waiver/Concessions of Land Tax/Transfer Duty
  • 50% waiver of the land transfer duty for new residential properties and 25% for the existing residential properties.
  • Purchase cost capped at $1 million.
  • Applies for contracts entered between 25th November 2020 to 30th June 2021.
  • 50% concession on the commercial and industrial land transfer duty for eligible properties for contracts entered from 1st January 2021.
  • 50% land tax discount for eligible new developments until 2040.

 

Other updates

 
Extension to the Home Builders Program

  • This program has been extended for all new contracts signed between 1st January 2021 to 31st March 2021.
  • The eligible owner-occupier purchasers will receive a $15,000 tax free amount, and
  • The property price caps for new builds in NSW and Victoria will be increased from $850,000 to $950,000 and the cap for the other states and territories will remain at $750,000.

 

Social update

 
Art of Accounting 
The one resolution you must make! Start the year with a bang and a roar. Pick something new you can do for each of your clients and then do it. Make that your resolution and make 2021 exciting for you and your clients Read more here
 
5 ways to reinforce value with clients  
Accounting firms have been operating in an increasingly competitive market for some time now, leading firms to search for new ways to attract business and offer more value to their current clients
Read more here
 
Remote workplace trends for 2021  
The traditional workplace might not be gone forever, but there is little doubt that it has been radically transformed by the coronavirus pandemic in 2020. So, what can business leaders expect to face in 2021? Read more here
 

LIAI – Listen, Improve, Automate, Innovate

 

In last month’s company meeting, Jonah Stephen created and unveiled our mission for 2021 as LIAI (Listen, Improve, Automate, Innovate).
This will be our guide and mantra in the way we will work and manage our business and clients in 2021. Here is the official logo for LIAI.

 
We would like to hear more about your experience working with our team. We know your time is valuable and we appreciate your attention. Send us your questions, comments, concerns to csupport@carisma-solutions.com.au We look forward to hearing from you.