News

Cybercrime is a real threat to Australian organisations.

Founded in 2015, Eftsure is an app that is designed to help companies and NFPs avoid payment error, fraud, cybercrime and financial loss.

Banks don’t match payee names to account numbers, and this can lead to errors, fraud or payments going to the incorrect accounts.

Eftsure takes away risk by allowing suppliers to:

• Log on to a secure portal to input their details
• Eftsure will then verify all required supplier details by matching the payee names to account numbers
• Each time a vendor submits or re-submits their bank details Eftsure automatically verifies that information against its network of suppliers to detect fraud.

Here is what the Eftsure dashboard looks like:

Our favourite thing about Eftsure

Eftsure reduces risks with new suppliers and enables organisations to monitor the supplier’s compliance in real time.

To find out how Next Dimension Accounting can assist your business with any accounting needs, contact us today.

The global pandemic has magnified weaknesses in the accounts function of many businesses.

For example, widespread staff shortages triggered by the pandemic have become a significant issue globally. Microsoft has estimated that more than 40 per cent of the global workforce are considering leaving their employer this year.

A range of problems affecting accounting personnel could have significant ripple effects if left unaddressed. The following are pandemic-related issues that have an impact on staffing:

• The permanent loss of staff members due to long-term illness, care responsibilities, and in some cases, death has been a shocking consequence of the pandemic in many countries.
• Sudden spates of non-negotiable sick days as employees recover from Covid-19, or must isolate due to close contacts, have taken their toll, even where vaccinations and tests reduce the worst outcomes.
• An ongoing shortage of accounts professionals due to ‘the great resignation’ effect of the pandemic has created staff shortfalls and instability.

Whether permanent or temporary, such issues could result in critical service disruptions if accounts personnel aren’t on the ground to collect money, pay regular bills or ensure contract deadlines are met. However, a way to address the potential service gap is to engage outsourced accountants.

Read more in our white paper Onshore and outsourced Key trends for 2022.

Dext is a platform that extracts written information from receipts, invoices and other financial documents to present visible data in an electronic and easy-to-manage format.

You can capture and upload bills and receipts using:

• A mobile phone camera
• Email
• Documents on a computer
• Automatically source from online platforms

Dext is also published to Xero, transforming Accounts Payable to a 100% electronic environment.

How it works

Dext uses OCR (optical character recognition) and templating technology to extract written information from financial documents.

The platform accepts receipts, bills, invoices and other documents in many file formats including JPG, PNG, GIF, PDF, DOC, and HTML.

Dext Prepare extracts the:

• Original document image
• Type of document; whether it’s a receipt, sales invoice, credit note, etc.
• Document Date
• Supplier
• Currency
• Total
• Tax Amount
• Invoice Number
• Payment Method (for Business Plus and Business Premium plans)

Our favourite thing about Dext

Dext offers seamless integration with Xero. It empowers our team to publish any financial documents to Xero efficiently with minimal if any manual intervention.

To find out how Next Dimension Accounting can assist your business with any accounting needs, contact us today.

A key trend in Australian accounting services during 2022 is for clients to outsource but keep it onshore.
 
Our new white paper, Onshore and Outsourced – Key Trends for 2022, explores the latest developments in outsourcing to Australian accounting companies. The findings are especially relevant in the new business environment where staff shortages and key person dependency risks pose a significant threat to businesses and not for profits.
 
After decades in the accounting sector, Next Dimension’s Founder and Director Brendan Lucas says, “While the impacts of the pandemic continue, Australian outsourced accounting services are well placed to operate effectively. Outsourcing your accounts department can provide the combination of external help and local knowledge that Australia’s businesses and NFPs need.”

Read the full article here:

ApprovalMax is an app that extends online accounting platforms like Xero with approval-driven financial controls for accounts payable and accounts receivable.

How it works

ApprovalMax integrates seamlessly with Xero to control workflow functions.

Through ApprovalMax users can:

• Raise purchase orders and create bills via the web interface or on the go using the mobile or web app.
• Remotely review and authorise purchase orders or bills.
• Automate reports to satisfy compliance requirements.

Favourite thing about ApprovalMax

ApprovalMax is one of the essential tools required to create a clutter-free paperless end-to-end process. We have assisted many clients in replacing their “approved stamp” with a multi-tiered approval workflow that has empowered their managers to own their expenditure decisions while tracking their budget in real-time.

ApprovalMax and Next Dimension

ApprovalMax is part of the solution we recommend to any new client who comes on board for the full accounting service. It enables us to do our job properly and reduces the time client teams spend when approving bills for payment. It also improves transparency and provides a full audit trail attached to every bill in Xero,

To find out how Next Dimension Accounting can use expertise and technology to help with the efficiency of your accounts, contact us today.

Technology is revolutionising the accounting industry and that means good things for clients who engage innovative businesses. At Next Dimension Accounting, technological solutions empower us to streamline outcomes and processes for our clients.

These key developments in accounting technology were highlighted in a recent article:

Meetings, screen sharing and dashboards

The COVID-19 pandemic has increased the adoption of video conferencing for both one-to-one and group meetings. Video conferencing coupled with screen sharing capabilities and cloud accounting software with smart dashboards provides high level insights that allow for greater analysis and planning.

Cloud-based accounting software and apps

New and exciting software solutions are being launched each day. The power of apps that link in with cloud-based applications like Xero allows for integrations that empower smart work solutions. Our team stays on top of the latest apps and we regularly brainstorm ways to use those apps to support our clients, expand their knowledge and success.

Automation and AI

One of the main benefits of technological solutions is the efficiencies achieved through automating processes. We are just scratching the surface when it comes to AI and machine learning and its ability to assist with predictive analytics and forecasting.

Data Security

Data Security will continue to be increasingly important to our company and our clients. Having the right user permissions, approvals processes, validation rules and security settings is key to ensuring that the risk of business disruption is minimised and that staff are aware of priorities and protocols. The Next Dimension team takes data security seriously and we take all active steps to ensure that client data is secure.

There are cost and efficiency rewards in store for businesses that keep up with the technology revolution. Clients of Next Dimension can be assured that our team has done the work for you assessing what is on the market, trying out new products and testing programs and apps. If you would like to chat with us about the best technology for your business or NFP get in touch today.

Considering the ongoing impact of the COVID-19 pandemic, the NSW Government has announced several new measures that are designed to support business and not-for-profit organisations, they include:

Financial support

Support for eligible businesses that:

Had an aggregated annual turnover of between $75,000 and $50 million (inclusive) for the year ended 30 June 2021; and experienced a decline in turnover of 40 per cent or more due to Public Health Orders or the impacts of the Omicron COVID-19 strain during the month of January 2022, compared to January 2021 or January 2020; and experienced a decline in turnover of 40 per cent or more due to the impacts of the Omicron COVID-19 strain from 1-14 February 2022, compared to the same fortnight in February in the comparison year used for the above criterion; and maintained their employee headcount from the date of the announcement of the scheme.

Eligible businesses will receive 20 per cent of weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week and a maximum payment of $5,000 per week. Non-employing businesses will receive $500 per week (paid as a lump sum of $2,000).

Support will be available from mid-February.

Small Business Fees, Charges and RAT Rebate

The rebate has been increased from $2,000 to $3,000. In addition, eligible employing small businesses will be able to use the rebate to cover half the cost of Rapid Antigen Tests (RATs).

The funds can be used not only to offset the cost of RATs, but also other Government fees and charges such as food authority licences, liquor licences, tradesperson licences, event fees, outdoor seating fees, council rates and road user tolls for business use.

Already registered businesses will receive an automatic top-up of $1,000 and newly registering businesses will receive a rebate of $3,000.

Commercial Landlord Hardship Grant

The protections under the Retail and Other Commercial Leases (COVID-19) Regulation 2021 (the Regulation) for small retail and commercial tenants will be extended for an additional two months, until 13 March 2022.

Grants of up to $3,000 per month (GST inclusive), per property, are available for eligible landlords who have provided rental relief waivers to affected tenants. Rent relief waived must comprise at least half of any rental reduction provided.

The program is expanded in 2022 to landlords who claimed the 2021 land tax relief.

The Regulation prohibits certain actions by landlords (such as lock-out or eviction) unless they have first renegotiated rent with eligible tenants and attempted mediation.

If you need guidance or require support analysing whether you qualify for the new support measures please get in touch.

In 2022, the new challenge for Australian businesses and NFPs as they battle Covid-19 repercussions and try to rebuild is simply having sufficient personnel to function well.

There are many benefits of outsourced accounting in ordinary times, where an organisation hires a qualified external accounts team to carry out tasks and manage the accounts and finance functions. With the current staff shortages across Australia, there are even more advantages to having an outsourced accounts team on board.

Key impacts being felt across Australia and how an outsourced accounts team can help

Staff shortages

Since the easing of restrictions that resulted in escalating Covid-19 case numbers across most of Australia, staff shortages have been exceptionally high. Small to medium businesses and NFPs have struggled to operate normally due to absent staff who are either ailing or close contacts of Covid-19 cases. Organisations that could typically draw on a pool of casual workers are confronting the same underlying issue – there are fewer people across the board who are available for work.

Outsourced accounts teams are designed to maximise the potential of NFPs and businesses regardless of internal pressures. Having a reliable, remote team of professionals ready to support critical areas of businesses operation makes sense in an unstable and fast-changing environment. Taking the pressure off other areas of the business also empowers employees to focus on key operational roles.

Broken links in supply chains

A widespread problem connected to staff shortages is that many supply chains are starting to break. Unavoidably absent staff contribute to businesses of all kinds losing the capacity to function normally. In accounts, the broken link might be a few staff members who aren’t there to update the books in time – or just one key person who isn’t there to authorise payments.

Outsourced accounts teams utilise technology that will keep businesses running smoothly. Cloud accounting allows approved personnel 24-hour remote access to relevant data and figures. The ability to track cashflow is particularly relevant in times of uncertainty.

The great resignation

Hopefully, Australia will avoid the experience of countries hard-hit by Covid-19 fatalities during the pre-vaccination period, having to react to a shocking loss of personnel. However, the phenomenon dubbed ‘the great resignation’ where workers leave jobs at historic rates seems to have been experienced here. The number of workers leaving the workforce permanently or temporarily or ‘job hopping’ has increased, and this change has signalled a new vulnerability for the Australian economy. 

Outsourcing is the solution to staff departures. For example, the outsourced accounts team is a collective rather than one person doing bookkeeping/accounting, so you can avoid key person dependency. The outsourced team members use current technology and have prepared the processes and training to ensure that someone who knows the ropes steps in where required. The team solution provides multiple touchpoints that provide surety.

Futureproofing becomes even harder

Ongoing skilled labour shortages are likely to continue. External fixes for the situation may not appear soon, as there are still barriers to skilled workers arriving from overseas.

It will also take time and resources to train up the younger generation of Australian workers.

Outsourced accounting teams help organisations sidestep the ongoing skilled labour shortages. They make the most of automated tasks, reducing account-keeping labour and costs.

Next Dimension’s outsourced accounts team is also on top of training. The team members are up to date with current software and financial/accounting regulations. They are equipped with prepared training modules and the skills to train your team members with the software and processes they need to know.

In addition, your outsourced accounts team also has the capacity to make the contribution of a CFO with knowledge of the regulatory environment. For example, the team can advise on the latest government funding for businesses hit by the pandemic and help with the paperwork. We can explore the best ways to use increased government funding to make your business or NFP stronger in the future.

The hope is for the Covid-19 understaffing crisis to flatten soon. In the meantime, a strong and agile outsourced accounts team will put you in a better position to cope with the slings, arrows and changing conditions of the future.

Next Dimension Accounting provides outsourced accounting services to make businesses and not-for-profits more resilient. Contact us to learn how our team can help.

The recently released directors’ report, the Not-for-Profit Governance and Performance Study (November 2021), bears positive signs for Australia’s NFP sector and the quality of governance. However, respondents also highlighted budget, cash reserve and risk assessment issues.

The Australian Institute of Company Directors (AICD) reported a high level of engagement for this 12^th edition of their regular member survey, with 1,978 responses. Focus groups of NFP non-executive directors across Australia also explored issues related to the survey. The report revealed several findings:

Directors relations with management and staff

On the positive side for NFP managers, 93 percent of Board Directors surveyed agreed that they were “confident their executive leadership is making good decisions”.

This was despite the strains that the pandemic had placed on connections between board and staff. A respondent from one organisation commented, “Board members haven’t been able to visit our on-the-ground staff at our sites for 12 months. It’s made a disconnect between the board and the operational part of the organisation. Nothing replaces going to the site and having a cup of tea with one of the staff members.”

Managing budgets in a crisis – cash reserves

Directors also dealt with budget issues arising from the pandemic impacts on fundraising or operations and diminished revenue streams in FY21. “Almost three-quarters (74%) of the organisations were above or close to budget.”

One respondent commented “Post-COVID-19, budgets have blown out.”

Many organisations responded to the crisis by accessing their cash reserves. A key finding of the report was that 35 per cent of responding NFP organisations “used their financial reserves to fund operations during the last financial year”.

One of the questions for directors was “Does our reserves policy need to be re-visited?

A respondent commented, “You’ve probably discovered parts of your balance sheet you’ve never looked at more closely than ever before. You get very focused on it. All of my organisations have revisited and redone our cash reserve policies, because of this focus now on recognising and being much clearer on how much reserve we need to carry.”

Risk planning

With many NFPs confronting stark realities, the appropriateness of past risk planning and its fitness for the next crisis is a key focus, with one respondent reporting  “Risk has become more prominent in our board meetings than any other issue in the last few years.”

Responses were mixed, as 34% regarded their organisation’s risk frameworks as working only moderately well, and 18% slightly well. Moreover, 7% responded that it did not work well at all. 

Another respondent commented, “Nobody on the board put ‘pandemic’ on our risk register. That one hit us – blindsided. Nobody thought we’d have a pandemic and have to shut everything down. It’s opened our eyes to the possibilities and how creative we have to be in risk planning.”

In terms of being more strategic about risk, one respondent commented “For our board, the most important issue we’re dealing with strategically is diversification of our funding.”

Responses and actions

The AICD report confirmed that responding to the new environment and realigning the organisation will be priorities for directors.

“Responding to changes in the operating environment”, “protecting lives and wellbeing of clients”, and “diversifying income sources” were the top three priorities for directors in the next 12 months.

The top five actions responding directors intend to take were:

• regular review to track progress against goals or targets of the organisation
• improve board composition
• develop a new strategic plan
• improve the use of digital technology, and
• review and update risk management plan.

Other actions included “closer monitoring of financial reporting” and “improve emergency/crisis response plans”.  

Future outlook

The AICD report notes that, “Many directors will be focused on their organisation’s strategy over the coming months.”

Encouragingly, the report found that almost half (49%) of the respondents believe the post-COVID-19 environment will increase opportunities available to their organisation. The second-largest response (32%) is that little or no impact is expected to organisations post-COVID-19.

Support for NFPs

The 2021 report is available from the website of the Australian Institute of Company Directors.

If your NFP is dealing with some of the issues raised, such as budget blow-outs, cash-reserve management and risk assessment planning, Next Dimension can help.

We have the experience and insight required to support NFPs as we transition out of pandemic conditions.

Get in touch today.

The ACNC’s charity register experienced a surge in numbers of people accessing it this year, and more accessible search features for public users have just been added.

Commissioner Dr Gary Johns, the head of the Australian Charities and Not-for-profits Commission (ACNC), reported that the new search features improving the Charity Register have just gone live.

The new features offer the following benefits:

• People can now search for charities that offer various kinds of programs, for example, housing services, animal rescue, disability support and more.
• People can also seek out charities and NPFs that operate in a particular suburb, town or region.

Dr Johns highlighted that the register is designed to allow donors and supporters “to easily find organisations doing the type of work they are interested in supporting, and to allow charities to showcase their incredible work”.

The popularity of the register has confirmed the public need for clear, detailed information.

Some 4.2 million register searches were conducted in the last financial year. The markedly increased usage is up from 3.2 million in FY20 and a million in FY19.

The register is the largest and most comprehensive charity database in Australia and an important regulatory tool. It is free to search and allows the public to confirm if an organisation is registered as a charity.

Charities provide their program details when completing their Annual Information Statement and categorise their programs using a standard classification system. This makes the charity more accessible and easier to find on the register. The improved transparency is also aimed at increasing public trust and confidence in charities.

Dr Johns says, “The Register is a valuable source of information about charities for people working in the sector and for Australians who support it.”

Visit the ACNC website to search for a charity by program if you are interested in supporting charities of a particular cause.

‘Bank rules’ save you from manually creating a new transaction each time you get a recurring or similar type of bank statement line. You tell Xero how these statement lines should be coded and Xero will suggest the right type of transaction and complete some details for you. This saves you time, helps to reduce human error and ensures consistent coding, which leads to more efficient reporting.

Only set up bank rules to reconcile statement lines for which you won’t create a bill, invoice or other type of transaction. If a bank statement line relates to an existing transaction, use find and match to reconcile.

Xero help article https://central.xero.com/s/article/About-bank-rules#Typesofbankrules
Of you want to know more, contact our team.

Xero is Next Dimension’s accounting software of choice.

The Xero app is an extension of that software, allowing people to access real time information on their phones or tablets, anywhere and anytime. Through the free Xero app, you can:

• Pay bills
• View bank connections
• Accept payments
• Reconcile bank statements
• Manage contacts.

How does it work?

Xero makes accounting simple. With the app, you can log in anytime, anywhere on your phone, tablet, or computer, to view your cash flow in real time.

Next Dimension Accounting set up dashboards for businesses and not-for-profits using Xero. By downloading the free Xero app, these businesses and not-for-profits can view the accounting activity that Next Dimension Accounting manages. On the Xero home dashboard, there are overviews of:

• Bank Accounts – Shows your bank balances in real-time and you can do your reconciling from within the app.
• Sales and Purchases – See who owes you money, raise invoices to customers from your phone, and see who you owe money to.
• Profit this Month – Your key financial metrics right at your fingertips.
• Total cash in and out – Users can hover over the bar chart to view the monthly differences between cash in (blue) and cash out (grey) from the last six months.
• Contacts – You can also access customer and supplier contact details when out and about.

This presents a clear overview of the organisation’s financial situation to keep your finger on the pulse of your organisation.

Our favourite things about the Xero mobile app:

“There is no extensive setup required, you can just log in anywhere anytime and important information is at your fingertips.” – Brendan Lucas

Latest Xero news:

Xero has launched their own App Store which includes more than 1000 tools for small businesses offered by Xero and their partners. These tools include apps, add-ons, and integrations that are created and owned by Xero.

The free Xero app has been downloaded by more than 2 million users, transforming the way they do business and manage their accounting activities.

We have become Gold Partners with Xero and our staff have more than a decade of experience in using their software. Xero are one our favourite app providers when it comes to assistance for businesses and not-for-profits.

To find out how Next Dimension Accounting can assist your business with any accounting needs, contact us today.

False billing scams are on the rise. The scammers target you or your business by sending a bogus invoice, letter, web domain or magazine subscription renewal notice, or by charging for a fake register or trade directory entry.

Protect your business through vigilance with payments, identifying scams and reporting them.

Some tips to help businesses and NFPs include:

• Limit the number of people in your business who are authorised to make orders and pay invoices. Cloud accounting software can help by providing for real time oversight of payments so you can react swiftly to potential false billings.

• Ensure all staff members are familiar with the warning signs of false billing, such as callers who claim the government requires you to be on their register.

• Keep a central record of your actual subscriptions and trade listings, with correct renewal dates and details so you can confirm if requests are legitimate.

• If a dubious billing dispute arises and the caller tries to threaten you, cease contact.

• Verbally verify account numbers for new suppliers or for changes of suppliers. Don’t rely on email confirmation (it can be intercepted). Or consider a vendor management system that can automate the process.

It you notice false billing activity, take action:

• Confirm details that seem odd with your regular suppliers, such as banking detail variations.

• To stop a bogus transaction or close an account, if the scammer has your account details, contact your financial institution immediately.

• Report fraud and theft to the police.

• Report a scam to the ACCC using their report a scam page.

• Report identity theft to Services Australia.

• Report Cybercrime to ReportCyber.

• Report financial and investment scams to ASIC and tax-related scams to the ATO.

• Let your industry association and other contacts know about the scam.

Learn more about identifying false billing here.

Compulsory identification numbers are set to capture the operations of Australian company directors, clarify director connections, and disrupt phoenix activity.

The Director Identification Number (DIN) scheme has commenced, and deadlines are approaching for directors to acquire their unique number.

The DIN is a unique 15-digit identifier used to verify the identity of a company director or alternate director. The DIN is permanently assigned to the director for a lifetime and is administered by the Australian Business Registry Services (ABRS), overseen by the ATO.

Details on managing the DIN scheme, current requirements and applications are available from the ABRS.  The scheme applies to a company, or to a registered Australian body or registered foreign company that is a body corporate.

Key dates

Since 1 November 2021 any newly appointed company director must submit their DIN application within 28 days. When the transition phase ends on 5 April 2022 it will be compulsory for a director to have a DIN application before an appointment can happen.

Existing Australian-resident directors (pre-1 November 2021) will have more time to apply, but should prepare before their application deadline on 30 November 2022.

Background

DINs are part of the Modernising Business Registers (MBR) program.

The single DIN will increase director accountability and traceability. DINs will help regulators detect, deter, and disrupt illegal actions such as phoenix activity where a company is liquidated, wound up or abandoned to avoid paying debts and new company is then started, continuing the same business activities without the debt.

DINs will prevent directors using false identities and enable regulators and law enforcement to trace a director’s connections across multiple companies.

Applying for your DIN

To be on the right side of the law, Australian existing and prospective company directors must provide standard identity documents when they apply for their permanent director identification number.

The required documents will depend on resident status and whether the application is via online, phone or paper. Some examples include:

Supporting documents such as a tax file number (TFN) and residential address as held by the ATO.

Identity documents – one primary, plus one or two secondary. See the following list for document examples but note that requirements vary per application method (phone applications require one secondary document but paper applications require two).

• Primary identity documents

(birth certificate; passport; Citizenship certificate or register extract; Immicard; or Visa)

• Secondary identity documents

(Medicare card; Australian driver’s licence or learner’s permit)

Responses to application questions (online, phone or paper)

Online applications are quick but require the creation of your myGovID as the first step.

DIN FAQs

I was made a company director decades ago – what happens to me?

Existing directors must apply for their unique DIN but will have more time. Prepare your relevant identification and myGovID account before the application deadline on 30 November 2022.

I’m a charity director – do the new rules include me?

You only need to apply for a DIN if you are the director of a charity or NFP that is a registered company – limited by guarantee under the Corporations Act 2001. The DIN will not be applicable to directors of incorporated associations under the State and Territory Associations Incorporation Act – unless those entities are a registered body with an ARBN.

I’m a director of a company governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)

The deadline for applications differs here. Directors appointed before 1 November 2022 need to apply by 30 November 2023. Appointments on or after 1 November 2022 need a DIN application before appointment.

As a registered Australian sole trader do I need a DIN?

No. If you are running a business as a sole trader or partnership you do not require a DIN (unless one of the participants in those structures is also a corporation).

I’m a foreign resident director, will it get complicated?

Existing foreign directors of Australian registered body corporates (pre 1 November2021) also have a 30 November 2022 deadline. They must apply on paper and the application needs relevant identification documents for foreign directors including certified copies and any necessary translation documents.

Compliance

Civil and criminal penalties can apply to non-compliance, and infringement notices will be issued where any person:

• knowingly applies for multiple DINs; or
• misrepresents a DIN to a commonwealth body, company or registered body.

The ABRS issues notifications if a person’s DIN is to be cancelled.

It is likely that in the future ASIC will require DINs to be filed, so companies should keep them on hand.

Advisors should take all reasonable steps to ensure clients comply with the legislation.

Deadline summary

Don’t delay your application.

Australian Resident Director appointed	Deadline for DIN application
Before 1 November 2021	By 30 November 2022
1 November 2021 to 4 April 2022 (inclusive)	Within 28 days of appointment
From 5 April 2022 onwards	Prior to appointment

Disclaimer: This post is intended for general information only and is not intended to constitute legal advice. You should obtain appropriate professional advice for your circumstances.

The COVID-19 pandemic has significantly impacted all levels of society over the past 18 months. While the NSW Government implemented multiple response measures to assist people and businesses throughout the pandemic, the recently released COVID-19 Economic Recovery Strategy sets the scene for future growth and opportunity.

This update outlines key strategy components that may offer opportunities for businesses and not for profit organisations.

The economic recovery strategy has three key objectives:

Securing a strong rebound

The Government’s first objective is to secure a strong rebound through targeted stimulus and support measures to encourage economic activity, build confidence, and support job restoration and creation:  

• $250 million to support jobs and skills, including help for job seekers to retrain or upskill.  
• $500 million to restore consumer and business confidence by expanding the Dine & Discover voucher program and introducing a Stay & Rediscover accommodation voucher.
• $212.2 million to boost vital sectors of our economy, including additional funding for the performing arts sector, an Alfresco Restart Package, and support to bring our cities back to life.
• $75 million to boost communities across the state, including support for tourism, events, sport, and recreation.
• $200 million to boost regional NSW, including support for events, facilities and local infrastructure, and housing.
• $5 billion for the creation of WestInvest – a fund targeted at improving infrastructure and livability across Western Sydney.

Targeted and timely support

The second objective is to ensure the sectors and communities who have suffered hardest in the recent outbreak have timely and targeted support to get back on their feet and grow stronger.

• $130 million for a mental health recovery package to provide immediate access to help for anyone whose mental health has been impacted by the COVID-19 pandemic.
• $495 million in education support to address learning gaps for children in need and to help schools adapt to future possible learning disruptions.
• $739.3 million in household and social support, including housing support for vulnerable Aboriginal communities, expansion of solar rebates, support measures for domestic and family violence victims, and vouchers to parents who have facilitated home learning for their children.
• Support for business sectors still under pressure, including Event Saver to support event organisers and expansion of the small business rebate for fees and charges to include road tolls.

Coming back stronger

The third objective will build a better future for all of NSW and pursue new economic opportunities.

• Supporting the further development of existing industries, such as the theatre and film sector.
• Building the capabilities to support new opportunities such as an RNA research and manufacturing industry.
• Reducing red tape to make it easier to run a business in NSW while ensuring customers are protected.
• Support for our First Nations communities, including investing in the Aboriginal Community Housing Investment Fund and greater employment pathway opportunities for Aboriginal and Torres Strait Islander students.
• Improving livability with investment in new open spaces and outdoor recreation.
• Boosting workplace participation by identifying barriers to women’s economic participation and reform opportuneness.

If you would like to review the strategy you can download the document here.

We will continue to monitor the finer details of these strategies as they are released over the coming weeks and highlight opportunities as they become available.

From 1 November 2021, if you have new employees start, you may have an extra step to take to comply with choice of fund rules if they don’t choose a super fund. You may now need to request their ‘stapled super fund’ details from the ATO.

A stapled super fund is an existing super account which is linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs.

You may need to request stapled super fund details when:

• your new employee starts on or after 1 November 2021
• you need to make super guarantee payments for that employee, and
• your employee is eligible to choose a super fund but doesn’t.

You don’t need to offer a choice of super fund to some employees, but you may still need to request their stapled super fund details. This includes employees that are either:

• temporary residents
• covered by an enterprise agreement or workplace determination made before 1 January 2021.

You can find out more information here. Please get in touch to discuss if required.

NSW Payroll tax deferral

You have the option of deferring their payroll tax payments until 14 January 2022.

You are still required to lodge the 2020/21 annual reconciliation by the due date which has been extended to 14 January 2022.

In addition, you have the option of deferring your monthly payments for the July to December 2021 return periods until 14 January 2022.

After lodging your 2021 annual reconciliation, you will have the option of paying all outstanding liabilities in full or entering a new Support Payment Arrangement.

If you choose to enter into a 2021 Support Payment Arrangement, you will have the option to include tax payable from the 2020/21 annual reconciliation and any monthly liabilities for the July to December 2021 return periods.

More information on how to establish a 2021 Support Payment Arrangement will be provided in November 2021.

Existing 2020 Stimulus Payment Arrangements

The due dates for any Stimulus Payment Arrangement payments remain unchanged. If you are experiencing difficulty in making a payment, please contact us and we can liaise with Revenue NSW on your behalf.

Tax Debt Instalment Plans

The due dates for any existing Instalment Plans payments remain unchanged. If you are experiencing difficulty in making payments, please contact us and we can liaise with Revenue NSW on your behalf.

We can assist you with actioning payroll tax deferrals and economic stimulus payments – get in touch here.

JobSaver payment will taper as follows:

Current rate (paid fortnightly) — 40% of weekly payroll | Employing: $1,500 to $100,000 per week | Non-employing: $1,000 per week

 After 10 October — 30% of weekly payroll | Employing: $1,125 to $75,000 per week | Non-employing: $750 per week

 At 80% double vaccination — 15% of weekly payroll | Employing: $562.50 to $37,500 per week | Non-employing: $375 per week.

The Micro-business Grant will be reduced by 50% from $1,500 per fortnight to $750 per fortnight once the 80% double vaccination target is reached.

Both programs will end on 30 November 2021. It is expected that fortnightly reconfirmation of eligibility for the remainder of the programs will be required.

We are proud to launch Next Dimension Accounting and welcome you to our new website where you will find information about our team, our services, client stories and helpful and up-to-date news and information that will help your business or NFP succeed.

We look forward to hearing from you soon.

The Australian government changes to charity financial reporting announced during July 2021 represent some mixed messaging for NFPs of different sizes.

In good news for grassroots organisations, smaller charities will have fewer financial reporting obligations under the new reforms agreed to by the Council on Federal Financial Regulations. In turn, this reduction in red tape comes with greater accountability to donors, beneficiaries, and the public, including reporting related party transactions. The larger charities will also have to report key remuneration under the new rules.

The ACNC states that it will “work with the charity sector to develop appropriate guidance and education resources to allow the sector to easily understand and meet these new reporting requirements.”

So, how will your charity or NFP respond to these changing conditions? As always, it depends on how your organisation is classified – small, medium or large. As the classification thresholds for ACNC registered charities will take effect from the 2021-22 financial year, it is worthwhile reconfirming the status of your NFP as a start.

Go back to the thresholds

The tiered system for regulating the Australian NFP sector is based on classifying organisations as small, medium or large. It is essential be sure which tier your NFP belongs to as the new legislation is raising the ‘small, medium and large’ thresholds.

The following new thresholds will take effect from 1 July 2022 (reporting against the 2021–22 financial year):

• Small  entity – less than $500,000 annual revenue.
• Medium entity – $500,000 or greater but less than $3 million annual revenue
• Large entity – $3 million or greater annual revenue.

The government estimates that some 2,500 Australian NFPs will be classified as small and around 2,700 as medium. However, given the recent financial rollercoaster years, which featured large public donation events like the bushfires, but also the disruptive pandemic impacts, many borderline medium organisations will find it hard to predict how they will fit into the new thresholds.

The benefit of professional advice

When projecting future revenue, consider both typical and atypical years. The pandemic’s impacts have been significant and in many cases have negatively affected NFP staffing numbers, assets, participation of volunteers and normal funding sources. Calculating annual revenue for thresholds and budget plans is not a straightforward task, because previous revenue can no longer be assumed.

While the ACNC 2019 report showed charities employing 1.38 million people and sector revenue growing by 6.8 per cent, in contrast, Social Ventures Australia (SVA) and the Centre for Social Impact (CSI) review, produced more than a year on from the dual crises of COVID-19 and the 2020 bushfires, reported that: “More than half of charities faced some form of temporary closure, and more than 80% made some shift towards at least partial online service delivery.

All NFPs

In line with the Review’s recommendations, the Government will also enhance charities reporting obligations to provide greater accountability to donors, beneficiaries, and the public. From 1 July 2023, all charities will be required to report related party transactions in their annual reporting to the ACNC. “This will increase transparency of transactions with related people or organisations that pose a higher risk of conflicts of interest,” says the government press release.

Large NFPs

From 1 July 2022, large charities with two or more key management personnel will be required to report remuneration paid to responsible persons (directors) and senior executives on an aggregated basis in their 2022 Annual Information Statement to the ACNC.

Medium NFPs

Medium charities registered with the Australian Charities and Not‑for‑profits Commission (ACNC) will no longer be required to produce audited financial statements to the ACNC.

Small NFPs

Small charities registered with the Australian Charities and Not‑for‑profits Commission (ACNC) will no longer be required to produce reviewed financial statements.

But even if you are freed up from one layer of reporting obligations, don’t neglect to collect the relevant figures as your organisation will still need them for internal review purposes or possible audits.

Conclusion

Red tape reduction is always welcome but responsible NFPs should stay focused on financial realities.

Public donor and volunteer expectations of NFP management and conduct are only increasing. Many small to medium organisations will go to the wall if conditions don’t improve. NFPs that lose their ACNC charity registration due to financial reporting breaches are not entitled to a range of Commonwealth charity tax concessions.

NFPs still need to focus on the numbers.

All organisations need good controls and reporting in place to raise funds and operate effectively. Any of the latest exemptions outlined above do not change this fundamental requirement. Be transparent, informed and proactive. Talk to your accountant today for more guidance.

At Next Dimension Accounting, we provide outsourced accounting services for NFPs of different sizes. Having expertise in the NFP sector makes it easier for us to streamline NFP client processes and ensure that sound reporting practices meet the requirements of the ACNC.

By Brendan Lucas – as published on www.thirdsector.com.au.

For many NFP organisations, a much-needed technological shift will be made possible by the right professional advice and cloud technology that can optimise access to data and information.

A recent report by the Australian Information Industry Association highlights that, “The COVID-19 crisis has created a window into the future of life and work. It has brought into sharp relief that this future will be underpinned by technology.”

There is no doubt that those who fail to embrace technology across all facets of their not-for-profit or charity will struggle to remain viable and resilient in the future. Investments in IT resources were needed within a short timeframe to manage operational requirements when the pandemic began, and take up of technology will remain essential throughout the ‘planning for recovery’ phase and beyond.

Read the full article here.

Watch Hopscotch Directors Brendan Lucas CA and Matthew Knight CA deliver this informative webinar about the 2020 Federal Budget – held Friday 30th October.

https://youtu.be/9Lnz7GazSJE