Company News

To encourage employers to create new jobs for young job seekers aged 16 to 35 years, the Government has legislated the JobMaker Hiring Credit scheme. Under the scheme, eligible employers will be provided with a weekly incentive payment of $200 (for employees aged 16-29 years old) or $100 (for employees aged 30 to 35 years old) for each eligible employee for up to 12 months.

The Corporations Amendment (Corporate Insolvency Reforms) Bill 2020 were passed by Federal Parliament on Thursday 10 December 2020. The reforms included in the bill are intended to take effect on 1 January 2021 to assist with the economic impacts of COVID 19 and to replace the temporary Covid relief measures with respect to statutory demands and insolvent trading.

The reforms contemplate two new models / concepts:

Small Business restructuring;
Simplified liquidation.

Changes to the State Revenue Legislation ( NSW) may mean your discretionary trust requires an amendment before 31 December 2020.

Hall Chadwick confirmed as top 20 accounting firms in Australia.  Hall Chadwick firmly holds its place as a leading top 20 accounting firm in AFR’s TOp 100 Accounting Frims 2020.  The rankings were published yesterday with Professionals Service Editor Edmund Tadros writing “The COVID-19 pandemic has resulted in accountants becoming a lifeline for clients struggling with keeping their business afloat.”

Blair Pleash presented on the upcoming changes to the debtor-in-possession restructuring, and simple liquidation laws. These law changes are to be implemented from 1 January 2021.

The temporary COVID-19 safe harbour defence for Directors from civil insolvent trading liability expires on 31st December.  Ditto the temporary changes to the compliance period for statutory demand and bankruptcy notices. But what does that mean exactly?  Must the Directors of an insolvent business place the company into external administration before 31/12  in order to benefit from these protections?

A recent decision of the NSW Supreme Court in Sneakerboy v Georges Properties Pty Ltd (No.5) [2020] NSWSC 1141 has provided some clarity to the application of the regulations of the Mandatory Code of Conduct for retail and commercial tenancies.

Navigating the post Covid-19 environment has presented particular challenges for landlords and their tenants.  In this edition of In Focus we explore some interesting developments with respect to Administrators personal liability for rental payments.

On 6 October 2020, the Treasurer, Mr Josh Frydenberg, presented the COVID-19 delayed 2020-21 Federal Budget. The Budget was directed at promoting spending, at a personal, business and government level to create jobs.  There were many positive business measures, particularly for COVID-19 affected businesses, including the carry back of tax losses incurred to FY22 to be applied to profitable tax years from FY19, and the ability of any business with turnovers of up to $5bn to claim an immediate tax deduction for all depreciable assets acquired to 30 June 2022.

Individuals will have the second stage of the already legislated tax cuts brought forward to 1 July 2020, resulting in the 19% tax bracket being lifted from $37,000 to $45,000 and the 32.5% tax bracket lifted from $90,000 to $120,000.  The low and middle income tax offset will also increase from $445 to $700.  Low-and middle-income earners will also receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset.

Businesses will also get cash grants of up to $200 per week for the employment of persons up to the age of 35 if the person was previously on Jobseeker, Youth Allowance or the Parenting Payment for at least one of the previous three months.  Up to half of the wages for apprentices will also be subsidised (capped at $7,000 per quarter) until 30 September 2021.

Inside our Federal Budget 2020-21 Report:
1. 2020-21 Federal Budget Highlights
2. Personal Tax Rates
3. Business Tax Incentives including:
–  Company Loss Carry Back
–  Instant Asset Write Off Changes
–  Wages Subsidies

The Full Federal Court of Australia in WorkPac Pty Ltd v Rossato [2020] FCAFC 84 (Rossato) has reconfirmed that a person paid and designated by their employer as a “casual employee” can still be considered a permanent part-time or full-time employee, despite a contract of employment stating otherwise.

The Australian Government has unveiled details of the six-month extension, dubbed JobKeeper 2.0 or JobKeeper Extension from 28 September 2020 to 28 March 2021

Advisory boards have become increasingly prevalent over the last decade or so as business operators seek expertise that is not currently within their current board room or as organisations deal with growth and seek to remain competitive in an increasingly demanding business environment.

Previously, once an employee nominates an employer, they cannot nominate another even if the employee ceases employment with that employer. An exception to this is now provided for employees who joins a new employer by 1 July 2020, to re-nominate a new employer. To do this, the employee must have ceased employment (or business participant) with the old entity before 1 July 2020, and commenced employment with the new employer by 1 July 2020.

The mechanism of special purpose liquidation was once pretty much unheard of but it has been increasingly been in vogue since perhaps its most well known example the “One Tel Case”. A special purpose liquidator is a liquidator to carry out a specific function in the liquidation in circumstances where it is “just and beneficial” to do so.

We’ve created a quick reference guide for you containing the 2020-21 tax rates. Covering both individual and company tax rates, tax offsets, superannuation, depreciation and fringe benefits tax. This easy to print desktop guide is available to download and print.

Due to the current environment, the Government announced on 7 August 2020 that the proposed tightened eligibility rules will be relaxed. The lower payments remain from 28 September 2020.

Following on from our recent IN Focus with respect to shadow directors, this edition focuses on the distinction between directors and professional advisers.

On 21 July 2020, the Government announced that JobKeeper Payment would be extended until 28 March 2021 to provide further support for COVID-19 affected businesses and households, with tightened eligibility rules and lowered payment rates, from 28 September 2020.

On 10 July 2020, the Victorian Government announced a further $534 million Business Support Package for businesses impacted by the Coronavirus lockdown.  This is a summary of the $534 million Business Support Package for clients operating in Victoria. If you are a business operating in Victoria, you should review these measures and contact your local Hall Chadwick advisor if you require assistance with applying for support.

The issue of shadow or de facto directors highlights the importance of transparency and accountability for decision making in the company.  Boards must be aware of the potential risks and those involved in management must be careful not to unwittingly be labelled as a shadow or de facto director.

The State Revenue Legislation Further Amendment Act 2020 (NSW) assented on 24 June 2020, clarifies that a trustee of a discretionary trust is a foreign person if the terms of the trust do not prevent a foreign person being beneficiary. To avoid the imposition of land tax surcharge each year, all discretionary trusts holding residential land in NSW should have amended their trust deeds to exclude foreign beneficiaries already.

Adds, moves and changes around the country: Hall Chadwick starts the new financial year with key changes. Read more for an update on our key people across the association.

Figures released by the Australian Securities and Investments Commission reflect significant reductions in a number of categories of insolvency appointments in April and May this year, to the equivalent period last year.

The intellectual property and trademark of FOMO Festival Pty Ltd (in Liquidation), formerly trading as FOMO Festival, are being offered for sale.

There will always be a sample of creditors who may be dissatisfied, for whatever reason with the directors choice of external administrator.  Accordingly it is timely to revisit the guidelines surrounding the exercise (or non-exercise) of the chairman’s casting vote in external administration meetings.

Another tool in the regulatory arsenal to combat phoenix activity has passed parliament and is awaiting royal assent. The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 (Cth) amends the Corporations Act to require all company directors including foreign and alternate directors to hold a unique identification number “(DIN)” issued and administered by ASIC.  A DIN is a unique numerical identifier attributed to each director in perpetuity

With the end of financial year (EOFY) fast approaching, now is a good time to think about opportunities and risks that should be addressed before 30th June 2020.  To help you with this, we have included some of the key issues that clients should be thinking about pre year-end.  If you would like to discuss any of these, or other things that are on your radar, don’t hesitate to contact your Hall Chadwick team.

What you need to think about for the 30 June 2020 financial reporting period…. Presented by Carmen Ridley, Associate, GAAP Consulting (www.gaap.com.au) and a current member of the Australian Accounting Standards Board.

Webinar Recording: Watch Here

The June 2020 issue of Tax Time Monthly covers ATO COVID-19 Support, Jobkeeper Update, Cash Flow Boost – plus much more

Hall Chadwick Partners, John Vouris and Kathleen Vouris, were today appointed Joint and Several Administrators of Bridge Business College Pty Ltd (Bridge).  Bridge operated for nearly 30 years in the Sydney CBD offering a wide range of Courses to 1500 Students.

The company operated the FOMO music festival nationwide and in New Zealand. It would appear that one of the reasons for the company’s failure was linked to COVID-19, however there may have been more factors of failure and that will form part of the Liquidator’s investigations. Kathleen Vouris of Hall Chadwick was appointed Liquidator of FOMO Festival Pty Ltd (“the company”) on 15 May 2020.

The NSW Government has introduced measures to provide relief to commercial and residential landowners, who provide a reduction in rent to a tenant who is experiencing financial distress as a result of COVID-19. The 2020 land tax COVID-19 relief is intended to reduce a landowner’s land tax payable for 2020, by up to 25%, for a taxable parcel of land where rent relief has been given to the tenant who occupies that land.

Expressions of interest are being sought by the Administrators for the purchase and/or recapitalisation of Sky and Space Global Limited (ASX Code : SAS) and its subsidiaries:

Given the uncertainties associated with the economic implications of the coronavirus outbreak, the mechanism of a “holding” deed of company arrangement “(DOCA)” may be an appropriate vehicle for certain companies which are insolvent or likely to become insolvent and have entered voluntary administration.

Hall Chadwick Partners Richard Albarran, John Vouris and Richard Lawrence were appointed today as Joint and Several Liquidators of Cool Breeze Clothing Pty Ltd trading as Dimmeys to undertake an orderly wind down of the company’s affairs. The liquidators are seeking expressions of interest for Cool Breeze Clothing Pty Ltd trading as Dimmeys from potential buyers or investors

The NSW government has progressively announced measures to assist with the impact of Coronavirus, with the latest being announced on Easter Monday, 13th April 2020. In the following link, is a listing for clients operating in NSW to assist with making an assessment of what is available and what needs to be done. Some measures are legislated and some are only announced.

If action is taken early, an informal workout may be able to be effected, without the stigma of a formal appointment, which could reduce the value of the assets of a company or lead to the loss of confidence of investors and/or customers. Furthermore, generally a formal appointment will involve additional costs, adverse publicity and result in an independent practitioner controlling the company’s business, property and affairs.

On Tuesday 7 April 2020 the National Cabinet released a mandatory code of conduct containing “good faith leasing principles”, which will apply to all commercial tenancies.  The leasing principles established include a “proportionate reduction” in the rent payable, in the form of waivers and deferrals, in line with the reduction in turnover.

Hall Chadwick and its antecedent firms have been providing expert opinions for 30 years.  Whilst there has not been anything like COVID-19 and its impact on business during the last 30 years, this does mean that we have practitioners who have first-hand experience with sudden contractions in economic activity as was experienced with the 1981-83 recession, the post-Asian financial crisis in 1999 and the GFC in 2008. In broad terms, we have experience in assessing loss and damage in all manner of guises across a broad range of industries.

The Coronavirus Economic Reform Package Omnibus Act 2020 (Cth) took effect on 25 March 2020.  It makes temporary amendments to Australian Insolvency and Corporations Law that are intended to provide a safety net to otherwise profitable and viable businesses which face financial distress as a result of the economic impact of Coronavirus and health measures to prevent its spread.

At Hall Chadwick we recognise that many companies and individuals are facing challenges that were inconceivable a month ago.  Like many areas the reconstruction area can seem full of jargon, which can appear overwhelming particularly for those of you who have not had exposure to it before.

The Superannuation Guarantee amnesty provides for a one off amnesty to encourage employers to self correct historical superannuation guarantee non-compliance during the period from 1 July 1992 to 24 May 2018.

The Government has announced a $130 billion JobKeeper payment to help keep more Australians in jobs and support businesses affected by the significant economic impact caused by the Coronavirus.

Government announces biggest Coronavirus package yet: JobKeeper Payment. See Client Alert for more details including eligibility etc…

The COVID-19 Legislation Amendment (Emergency Measures ) Act 2020 NSW “(COVID Act)” became effective as at 25 March 2020. The measures introduced by the COVID Act will generally operate on a temporary basis.

On 18 March 2020 the Northern Territory Government delivered their economic response to the COVID-19 outbreak. The Territory administration will deliver a $65 million Jobs Rescue & Recovery Plan to protect employers and their workers from the deep economic impacts of the coronavirus. This is the second economic package the Territory Government has announced, following a $2 million Tourism Resilience Plan to protect tourism businesses and jobs.

On 22 March 2020, the Federal Government announced its second stimulus package to protect the Australian economy from the economic impact of the Coronavirus. The second set of economic responses, combined with previous actions, total $189 billion.

Support will be made available for businesses experiencing financial difficulty as a result of the Coronavirus. The ATO have announced that they are implementing a series of relief options.

The March 2020 issue of Tax Time Monthly covers SG Amnesty, Coronavirus stimulus package and FBT tips

On 17 March 2020, the NSW Government announced a $2.3 billion stimulus package to bolster NSW business, jobs and health as a result of the effects of the coronavirus. NSW Health will get a significant funding boost, whilst some employers will obtain payroll tax relief. The remaining benefits will be targeted to employment and cutting costs for small business.

The Federal Government recently announced a $17.6 billion stimulus package to counteract the economic impact of Covid-19 (Coronavirus).

The Australian Parliament has passed new legislation allowing concessions to those employers who have underpaid Superannuation Guarantee (SG). If you have outstanding superannuation obligations you have from 26 May 2020 to 7 September 2020 to self-report SG non-compliance and apply to the ATO for amnesty.

In today’s edition of In Focus we want to deal briefly with the Treasury Laws Amendment Company Illegal Phoenixing Bill which has recently passed both houses of parliament and received royal assent on 18 February 2020

The Australian Government’s online services are moving to new access systems from 1 April 2020. If your business is currently accessing the ATO’s online services using AUSkey you will need to ensure that you have applied for the new myGovID and set up your Relationship Authorisation Manager (RAM) prior to 31st March 2020.

This transparency report has been prepared in accordance with the provisions of section 332 of the Corporations Act 2001. All information in this report is of a general nature only. No professional advice or services are being provided by Hall Chadwick from the provision of this document. While we have taken care to ensure the accuracy of all information supplied, no responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

The 2019-20 Tax Rates and Tables are essential reading for everyone in need of concise but thorough tax information.

Whether you are a business owner, tax practitioner, individual or student, this guide is a valuable tax resource for the community.

In this edition of the Corporate Advisor, we explain 11 financial-reporting, regulatory and corporate-governance topics of crucial importance to CFOs and directors.

We’re focusing mainly on regulatory issues that affect the preparation of 30 June reports – Including the application of new accounting standards and the new conceptual framework

When the wolf is at the door you need expert advice

Blair Pleash presented to AJ & Co “Keeping the Wolf from the Door” which focused on the recent developments in insolvency industry.

Here is a snapshot of some of the topics covered at the seminar:

• Draft legislation on Safe Harbour
• Draft legislation lpso facto clause
• Phoenixism – What to do?

With the end of financial year fast approaching, now is a good time to think about opportunities and risks that should be addressed before 30th June 2019. To help you with this, we have included some of the key issues that clients should be thinking about pre-year end. If you would like to discuss any of these, or other things that are on your radar, don’t hesitate to contact your Hall Chadwick team.

On 2 April 2019, the Treasurer, Mr Josh Frydenberg, presented the 2019-20 Federal Budget. The Budget reaffirmed the delivery of tax cuts to lower and middle income earners and promised significant spending on infrastructure, all with an expected Budget surplus in FY2020 of $7.1bn.On 2 April 2019, the Treasurer, Mr Josh Frydenberg, presented the 2019-20 Federal Budget. The Budget reaffirmed the delivery of tax cuts to lower and middle income earners and promised significant spending on infrastructure, all with an expected Budget surplus in FY2020 of $7.1bn.

Businesses with turnovers up to $50m will get assistance from the increase in the immediate tax write off for assets acquired after Budget night to 30 June 2020 with a value up to $30,000.

But there is a catch. With the Federal election looming, and expected to be called within the week, the Budget announcements last night may be yesterday’s news if the Coalition is not re-elected in May.  The Labor Party have already announced that should they form Government in May, it will hand down its own Budget, and many of the policy announcements made by Mr Frydenberg may never materialise….

Inside our 2019-20 Budget Report:

• 2019-20 Federal Budget Highlights
• Personal Tax Rates
• Tax Integrity & Superannuation
• Indirect Taxes
• Social Security & Other Measures

Inside Tax Time February Edition:

1. Income Tax

• The battle for your vote continues – Government and Labor announcements and notable pending legislation before the election
• ATO updates practice statement on home office running expenses
• Treasury issues consultation paper on Initial Coin Offerings
• LinkedIn Account is not offers to the public at large: Fotunatow and FCT

2. State Taxes

• Courier driver is carrying on an enterprise for GST

Inside this issue, you will find : 12 financial-reporting, regulatory, and corporate-governance topics of crucial importance to CFOs and directors.

Topics Include:

• ASIC focuses for 31 December 2018 reporting
• Don’t forget new AASP 15 and AASB 7 disclosures
• Bigger is better for proprietary companies
• ASIC asks 17 entities to explain treatments
• And many more….

The Hall Chadwick team looks forward to working with you on the challenges ahead.

This is the last issue of the year and we will be on a well-deserved break until February 2019. In this issue, we bring you information on how the Government and Labor plans with win your votes with their proposed tax policies, with changes to deductibility of payments where no withholding tax is paid, proposed changes to NSW stamp duty and more….

In this year’s Transparency Report, we cover the below topics:

• Legal Structure & Ownership
• Network Membership
• Governance
• Internal Quality Control System
• Statement of Effectiveness
• and many more….

In our November issue, our tax team provide you with the latest updates on income tax and changes in state taxes.

The Financial Review published its 2018 Top 100 Accounting Firms list.

The rankings are based on firm revenue. The Top 100 firms generated total revenue of $11.25 billion in the past financial year, almost up 10% from 2017.

We are pleased to welcome you to the Spring Edition of the Hall Chadwick Association’s 2018 Newsletter. We have had extraordinary changes this year so far! In this Spring Edition, we share with you what’s been happening within the Hall Chadwick Association starting with Brent Kijurina writing his first column as Chairman of the HCA, introduction to newly appointed Partners, PKF Lawler joins the Hall Chadwick Association as Hall Chadwick WA, the expansion of a new office in Adelaide, office moves to accelerate business growth and many more.

This month’s Tax Time monthly covers income tax and state taxes.

Topics include STP, Bill: Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia, R&D tax incentive changes, changes to small businesses, the 2018 SA Budget and more.

Blair Pleash and Kathleen Vouris recently delivered a presentation on interpreting financial statements to Piper Alderman.

The topics addressed:

• Financial statements
• Statement of profit or loss and other comprehensive income
• Cash flow statement
• Statement of financial position as at the end of the period
• Measurement and recognition
• Variances/Trends
• Ratio analysis

In our September edition, our tax team provide you with the latest updates on income tax, changes in company tax rate, recent updates from the ATO and superannuation.

The 2018-19 Tax Rates and Tables are essential reading for everyone in need of concise but thorough tax information.

Whether you are a business owner, tax practitioner, individual or student, this guide is a valuable tax resource for the community.

This transparency report has been prepared in accordance with the provisions of section 332 of the Corporations Act 2001. All information in this report is of a general nature only. No professional advice or services are being provided by Hall Chadwick from the provision of this document. While we have taken care to ensure the accuracy of all information supplied, no responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

This transparency report has been prepared in accordance with the provisions of section 332 of the Corporations Act 2001. All information in this report is of a general nature only. No professional advice or services are being provided by Hall Chadwick from the provision of this document. While we have taken care to ensure the accuracy of all information supplied, no responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.