Are you in Building and Construction

From 1 July 2012, small businesses in Australia, who are in the building and construction industry need to report to the ATO each year, the total payments they make to each contractor for building and construction services.

Businesses need to report if they:

•    are in the building and construction industry
•    make payments to contractors for building and construction services
•    have an Australian business number (ABN)     

The first annual report is due 21 July 2013 for payments made in the 2012–13 financial year. In this first year businesses that lodge their business activity statement quarterly, may lodge by 28 July 2013.

The information reported about payments made to contractors will be matched against other information held by the ATO to detect contractors who have not:

•  lodged tax returns, or
•  Included all their income in returns that have been lodged.

FWBC regulates workplace laws in the building & construction industry. FWBC does this through education, advice and compliance activities including audits and investigations.

If you’re working in the building and construction industry, you can talk to FWBC about your minimum wages and conditions. FWBC can investigate complaints about underpayments, sham contracting and any other denial of entitlements.

FWBC also provides information about the National Code of Practice for the Construction Industry. The code establishes minimum standards that businesses have to meet to be eligible to take on certain Australian building and construction projects funded by the Australian Government.

Information for contractors within the building and construction industry:

As a Small Business Advisor I recommend that if you are a contractor and you do not pay other contractors, then you do not need to do anything. From 1 July 2012, Australian Small businesses that are primarily in the building and construction industry that pay you for building and construction services will be required to report these payments to us each year. The information reported will be used for data matching to detect those contractors who may not have included all their income or lodged tax returns.

For more information contact us at: 03 9597 9966

Australian Small Business Investment tips

Every business small or large requires a business plan for achieving success. In small business you need to be a jack of all trades. As an investor you must know the current market trends and opportunities in building construction industry. Any business will have ups and downs. The best case scenario would be to make the most out of their up time and to keep the downs as brief as possible.

Australiansmall businesses are reeling back investment in the face of an uncertain global economic outlook and will struggle to capitalize on the relative strength of our resource economy, according to a new report by accounting and advisory firm. The Business and Population Monitor report indicates that now is the time to crank up investment as benefits from the mining boom present expanded business opportunities to other sectors of the economy.

Investment in Australian small construction industry requires organizing business management consulting. For this purpose many business advisers offer services. It also requires corporate business planning.  Every business needs a vision and a plan. It doesn’t have to be elaborate but you as the business owner needs to be able to drive the business. If you don’t have one then asks Australian business consultants for help.

Market survey consulting is also helpful for understanding market trends and different levels of investment opportunities. Field says it’s imperative that instead of dwelling on what may come, the Australian small business community must focus on the positives - the strong Australian dollar, stable unemployment rate and probability of being the first developed economy to return to surplus in 2013.

Here are tips in making good business plans for small business.

• ·  Check out sample business plans of businesses that turned out to be successful. Samples can help beginning business owners to know what they want have to cover in their own business plans, and can also give ideas on how to make a plan to attract bankers or potential investors.
• ·  Include all the financial information related to the venture, as well as expense projections and other information related to the company’s future.
• ·  To keep with developments in a growing business, good business plans also need to reflect that it is still a work-in-progress.
• ·   Use business plan software or a template so that you can just fill in the necessary information. This type of software can be accessed in most libraries, or these may have books with business plan templates.
• ·  As some new business owners choose to do, hire an expert business consultant to review the business plan before looking for potential investors.

Australian Chartered Accountants

A Chartered Accountant has completed one of the most thorough educational training qualifications on offer their in-depth knowledge and experience sets them apart.
Chartered Accountants have:
·         Highly developed communication and technical skills
·         Dedication to completing work to a high standard
·         Commitment to self improvement and development
·         Ambition to achieve the best for their clients.
The Chartered Accounting qualification equips Chartered Accountants with the perfect blend of learned principles and practical application. On completion, Australian Chartered Accountants are already at an advantage against other accounting qualifications.
As a Chartered Accountant (and as part of the Global Accounting Alliance), Chartered Accountants can work anywhere in the world in whatever industry they choose.
Accountant is one of the most demanded migrations occupations in Australia. But being one is not enough for you to qualify the eligibility criteria set for the entry to Australia.

Basic Facets:

·  The basic entry requirement is a Bachelor or Higher qualification from an accredited Australian Institution (if you are an Australian). In addition, you would be required to submit an Assessment application (if you have a degree from outside Australia)
·  The mandatory requirements may vary from one case-study to another. For instance, some are required to submit the relevant experience in addition to fulfilling other requirements.
·  Completed graduate-study course for Australian Chartered Accountants
·  Your profession should be in accordance with the Australian Skills Classified Occupation (ASCO)
·  Registration’ forms a critical aspect here.
·  Titles include Financial Analyst, Taxation Agent, Chief Accountant, Credit Manager, Divisional Finance Manager, Treasurer (except Government), Financial Analyst, Insolvency Practitioner, External auditor and Finance manager, Chartered accountants, to name a few.
·   You must have the money to pay your exam fee

Tasks Include:

·   An Accountant is required to plan and provide services linked with the financial dealings of the company and individuals associated with it.
·   He advises on the record-keeping requirements and compliances.
·   Provide assistance in the formation of various policies linked with Budget and accounting   aspects.
·   Prepares financial statements, conducts financial investigations (when and where required), and prepares reports
·   Provides assistance in matters linked with financial issues like taxation, mergers, sale and purchase of business, to name a few
·   Takes care of all the expenses and expenditure while maintaining accuracy of the information at the same time
·   Liaises with bankers and brokers
·   Provides assistance in cash-flow, assets and liabilities of the company

For Native Australians:


·   Get the required Bachelor’s or Master’s degree in Accounting from an accredited Australian Institution.
·   Pass a Tertiary course (it may take a few years)
·   Know about the examinations and other prospects from a “Certified Practicing Accountant.”
·   It would be beneficial to join a membership in any organization/s of Australian Accountants. One of them is Institute of Chartered Accountants in Australia for those who want to pursue their career in Australian Chartered Accountancy. These are certain rules that are required to be maintained in order to keep the membership intact.

For Non-Native Australians:


·    Have a Bachelor’s Degree (or the required one)
·    You must be assessed by CPA Australia. After gaining their acceptance, you will get a Letter of Confirmation from CPA Australia. In case of a denial, you are required to complete a CPA Australia-accredited course, clear the same and then reapply.
The whole procedure requires you to be updated with every change in the application process going on in the Immigration world. That is why it is always recommended that one should hire the services of an Immigration and Visa expert for every amendment in the rules.

 We are Australian Chartered Accountants  helping small to medium businesses with a specialty of understanding the space that relates to the Building and construction industry.For more information about our services contact us on 9597 9966 or at 563 North Road Ormond Victoria 3204 Australia.

New reporting requirements for building and construction industry

Australian Business Consultants

 From 1 July 2012, businesses in the building and construction industry will need to report to the ATO each year, the total payments they make to each contractor for building and construction services.

Business operators in the industry are encouraged to check how they keep their records to make sure they have the details that will be required for the new Taxable payments annualreport.

The first annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In the first year businesses that lodge their business activity statements quarterly, may lodge by 28 July 2013.

Do you need to report to the ATO?

From 1 July 2012, you will need to report if all of the following apply:

·         you are a business that is primarily in the building and construction industry

·         you make payments to contractors for building and construction services

·         you have an Australian business number (ABN).

·         You are considered to be a business that is primarily in the building and construction industry if any of the following apply:

New ATO Reporting

·         in the current financial year, 50% or more of your business activity relates to building and construction services

·         in the current financial year, 50% or more of your business income is derived from providing building and construction services

·         in the financial year immediately before the current financial year, 50% or more of your business income was derived from providing building and construction services.

What will you need to report?

For each contractor, you need to report the following details each financial year:

·         ABN, if known

·         name

·         address

·         gross amount you paid for the financial year (this is the total paid including GST)

·         Total GST included in the gross amount you paid.

The details you need to report will generally be contained in the invoices you receive from your contractors.

If you have any questions in regards to the new reporting requirements for your business, or any other ATO related queries, please contact us at 563 North Road Ormond Victoria 3204 Australia. Our experienced team of accountants and tax agents can assist you to minimize your tax and answer any questions you may have. For more information call us on 03 9597 9966 to book an appointment..

Australian Small Businesses Still Face Uncertain Future

While the government is talking up our economy, in relation to global economic conditions, the reality is that the SME market is experiencing some of the most difficult conditions on record.

However, the uncertainty surrounding the looming carbon tax and our political scene has sent business confidence plummeting. The downturn in the retail sector is well documented and manufacturing is shrinking at the fastest pace in two years.

Nearly 3000 businesses ceased trading in the June quarter and some economic analysts are predicting as many as 10,000 small businesses may fold as consumers and businesses stop spending.

Cash flow, or the lack of it, is cited as a major reason for SME failure. As the economy tightens, working capital reserves are being eroded. Even when businesses do proceed, debtors are delaying payment of invoices, sometimes up to 120 days or more.

According to Alan Kaye, Managing Director of Cash Resoures Australia, one of Australia’s leading debtor finance companies, “Maintaining a healthy cash flow has to be the highest priority for small business in these economic times”.

“Adequate levels of working capital are vital to meeting day to day financial commitments and protecting the long term viability of a business”, he said.

One way to ensure a strong cash flow is Invoice Discounting, where you unlock the equity in your debtors to give you the working capital you require to ride out tight economic times.

Grants and Incentives

The Australian government encourages successful business people and investors to apply for residence in Australia, although applicants are generally required to invest at least $500,000 in a business. Business migration schemes provide prospective migrants with a link to professional and commercial advisors. Compare your business prospects in all states and territories, which compete to attract foreign investors and business people with incentives such as cash grants, free advice, loan guarantees and tax rebates. Some state governments publish lists of business opportunities for migrants.

We are Australian Small Business Advisers  helping small to medium businesses with a specialty of understanding the space that relates to the Building and construction industry. For more information about our services contact us on 9597 9966 at 563 North Road Ormond Victoria 3204 Australia

How to prepare for upcoming contractor payment changes

Does your business enjoy the services of building and construction industry contractors? No? Then you’re off the new ATO hook! Feel free to move on, as this article’s not for you…

Yes, you do hire this type of contractor? Did you know you need to report to the ATO any payments you make to them from 1 July, if your business meets certain criteria?

In last year’s Federal Budget, the government announced the introduction of taxable payments reporting for businesses in the building and construction industry.

From 1 July 2012 businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. These payments need to be reported on the Taxable PaymentsAnnual Report.

Businesses need to report from the EOFY onwards if they:

·         are in the building and construction industry

·         make payments to contractors for building and construction services, and

·         have an Australian Business Number (ABN).

Recent research MYOB conducted showed that not only did the majority of business owners not know about the new reporting legislation, but the majority of those who should be in the know – the business owners it applies to – also had no idea.

Ouch… that could get a number of people into some pretty sticky situations when their first Taxable payments annual report is due for lodgement on 21st July 2013, for payments made in this next financial year. In this first year if you lodge your business activity statement quarterly, you may lodge by 28 July 2013.

Use accounting software? You’re in luck if you’re with a reliable provider because they would have updated software to integrate this reporting need. For example, at MYOB we’ve updated our relevant accounting programs so you easily select which payments or suppliers (depending on your software) you need to report on. When you’re ready for reporting, you can select or deselect the relevant transactions.

Then you simply ask the software for a report containing all those transactions, from which your accountant, bookkeeper or similar Australian financial advisor creates the report the ATO needs. Note that once the ATO is ready to accept electronic submissions we will provide an update to support this also.

Whatever method you use to get the required information back to ATO, make sure that you start recording it from 1 July or you could face some serious paperwork when the next EOFY hits. Taking the time to confirm now that you’re good to go with this reporting requirement will save plenty of time down the track so you can concentrate on doing what you really love.

We are Australian Small Business Advisers  helping small to medium businesses with a specialty of understanding the space that relates to the Building and construction industry.For more information about our services contact us on 9597 9966 at 563 North Road Ormond Victoria 3204 Australia

Australian Apprenticeships a Great Option for Small Business

No matter what industry you are in, investing in training through an Australian Apprenticeship can provide your business with real benefits and contribute to your bottom line.

No two businesses are the same, so Australian Apprenticeships have been designed to be flexible, whilst providing nationally recognized quality training developed by industry for industry.
Australian Apprenticeships covers all apprenticeships and traineeships. They combine time at work with training and can be full-time, part-time or school-based.


There is likely to be an Australian Apprenticeship to suit your business needs, as they are available in a variety of qualification levels in more than 500 occupations across Australia, in traditional trades, as well as a diverse range of emerging careers in most sectors of business and industry.

Business Benefits

Australian Apprenticeships provide a range of benefits:

• People trained to your business requirements
• Offered in a range of industries.
• Offered at all certificate levels up to Advanced Diploma.  
• Flexible choice of Registered Training Organizations (RTOs) who can provide off-      the-job training to your apprentice, with negotiations around timing, location and nature of the training to suit your business needs.
• User choice funding from your State or Territory Training Authority.
• A range of financial incentives for eligible employers.
• Can be full-time, part-time or school-based, depending on what suits your business.    Nationally recognized qualifications and competencies.

Australian School-based Apprenticeships

AustralianSchool-based Apprenticeships are generally available to students from Year 10. It allows students to complete their schooling while starting their Australian Apprenticeship. As a business, employing an Australian School-based Apprentice allows you to:

• Identify commitment and competency of possible future employees
• Ensure availability of skills for your business in the future
• Give young people a chance to enter the workforce.

Employing an Australian Apprentice

The business owner makes all the hiring decisions with an Australian Apprenticeship. Group Training Organisations can organise for you to share an Australian Apprentice with another business if you don't have enough work for an ongoing or full-time position. You can also engage an apprentice part-time while he or she is still at school through an Australian School-based Apprenticeship.

There are many ways to employ an Australian Apprentice including through an Australian Workplace Agreement or Certified Agreement

• There are a number of ways to find an Australian Apprentice:
• Contact your local Job Services Australia provider
• Recruit someone you know or who has been recommended to you
• Advertise the position in a local paper or on Australian Job Search
• Contact your local Group Training provider.
• Engage an Australian School-based Apprentice.
• Employers looking specifically for Indigenous employees can advertise a job on the Indigenous Employment Service website.

If you are interested in employing an Australian Apprentice, the National Code of Good Practice for Australian Apprenticeships explains in plain English what is involved in entering into a Training Contract.

What does it cost to employ an Australian Apprentice?

Wages for Australian Apprentices vary according to certain characteristics e.g. years of school completed, years of training, the type of Australian Apprenticeship and the industry or occupation.
An Australian Apprentice is usually paid a training wage or an apprentice wage under an award, reflecting that the employee spends time in training. You will generally treat the Australian Apprentice in the same way as all your other employees in relation to superannuation, workers' compensation and other entitlements or requirements.

You can, for example, vary the mix of training and working time (providing certain conditions are met), employ an Australian Apprentice on a part time basis, and specify other terms and conditions, which are appropriate to the needs of your business.

We are Australian Chartered Accountants  helping small to medium businesses with a specialty of understanding the space that relates to the Building and construction industry. For more information about our services contact us on 9597 9966, at 563 North Road Ormond Victoria 3204 Australia.