PUBLIC ACCOUNTANT ACCOUNTANT PUBLIC August / September 2016 $9.95 AUGUST / SEPTEMBER 2016 VOL 32 NO4 Public accountantTHE OFFICIAL JOURNAL OF THE INSTITUTE OF PUBLIC ACCOUNTANTS inside INNOVATION: WHAT SHOULD Making GOVERNMENT'S GLOBALlocal ROLE BE? Borders are not the boundaries they once were for small businesses, and many Australian practices are reaping the rewards of going global | FUTURE-PROOFING YOUR PRACTICE | DIGITAL MARKETING | NEW TECHNICAL MUST-KNOWS | cover.indd 1 7/21/2016 12:50:48 PM August / September 2016 Contents PUBLIC ACCOUNTANT ACCOUNTANT PUBLIC August / September 2016 $9.95 Business Loans for Your Clients. Quick. Smart. AUGUST / SEPTEMBER 2016 VOL 32 NO4 Public Public accountantTHE OFFICIAL JOURNAL OF THE INSTITUTE OF PUBLIC ACCOUNTANTS inside INNOVATION: WHAT SHOULD Making GOVERNMENT'S accountantTHE OFFICIAL JOURNAL OF THE INSTITUTE OF PUBLIC ACCOUNTANTS ROLE BE? GLOBALlocal Borders are not the boundaries they once were for small businesses, and many Australian practices are reaping the rewards of going global | FUTURE-PROOFING YOUR PRACTICE | DIGITAL MARKETING | NEW TECHNICAL MUST-KNOWS | I spoke to our accountant and she introduced cover.indd 1 7/21/2016 12:50:48 PM me to Moula… they assisted me and within 24 hours we had a cash injection. It’s good As regulatory barriers to know that when we get a good business to overseas trade fall, particularly trade with Asia, opportunity, we can get support. SMEs are eyeing new and cost-effective ways to boost Stephen - Scotty’s Wholesale Meats their service offerings. In this issue, we look at the opportunities and the risks for accountants of importing and exporting. We also take a look at what 26 the government’s innovation Making drive means at the grassroots level, and explore the progress global made to date. In addition, we profile IPA local member Luke Dawson, who Borders are no is riding the wave of modern longer boundaries technology to future-proof for small his firm and expertise. Hundreds of leading accountants and bookkeepers businesses, and many Australian practices are are already partnering with Moula. reaping the rewards of going global by Michelle La Partner with us Features = Business clients can apply online in 10 minutes and Turning passion into livelihood Improving your get approved in under 24 hours 20 Director of wHeregroup Todd Hunter found 42 online presence = a way to turn his passion for property into a Social media is changing the Transparent pricing: no hidden fees, no establishment successful, sustainable business – but his road game and accountants must Read Public Accountant fees and no penalty for early repayment to success was less than conventional embrace the digital space to magazine online and Moula is Xero’s Preferred by Michelle La engage existing clients and win add your ideas: new business pubacct.org.au = Join our partner program to refer clients for a loan Financial Services Partner Igniting the ‘ideas boom’ by Michael Masterman for Small Business Lending. Public Accountant magazine you can trust is now available to read online 34 Innovation is central to a prosperous, modern on the Public Accountant digital economy. But what role – if any – should hub, which contains articles government play in fostering a more agile and from the print magazine and much more. entrepreneurial business environment? by Aleks Vickovich Visit pubacct.org.au WANT TO KNOW MORE ABOUT MOULA’S PARTNER PROGRAM? and join the conversation. Phone: 1300 88 52 36 Email: [email protected] Web: www.moula.com.au/partner pubacct.org.au August / September 2016 1 Advert Template.indd 1 7/19/2016 4:38:49 PM P001_Contents.indd 1 7/22/2016 5:02:57 PM Contents 2017 VIC & TAS CONGRESS Thursday 2 - Saturday 4 March RACV Resort, Goldfi elds Public Accountant is published bi-monthly by Momentum Media for the Institute of Public Accountants. Vol. 32 No. 4 ISSN 1839-4264 48 Editorial board IPA Wayne Debernardi Securing Vicki Stylianou your future Publisher Alex Whitlock The bulk of Australian accounting fi rms don’t have Managing editor an adequate, or even any Katarina Taurian succession plan for their Journalists business. This has a direct Miranda Brownlee impact on the value of a Michelle La practice and the livelihood of Mitchell Turner its owner, so what’s the best Aleks Vickovich approach for SMEs? Adam Zuchetti by Adam Zuchetti Production editors Francis Wilkins Gabriella Cordeiro Designers Dan Berrell “The consequences... of failing to plan for business Allisha Middleton-Sim succession events can be signifi cant and, in some instances, Jack Townsend Production manager can cripple business activity and signifi cantly reduce the Lucy Allman wealth that has been accumulated by the business owner Editorial enquiries Katarina Taurian through years of hard work” (02) 9922 3300 [email protected] Advertising enquiries Ready to launch Public Accountant | Technical Jordan Coleman (02) 9922 3300 For Luke Dawson, digital disruption [email protected] 54 and a shake-up of the compliance 66 68 70 Trusts and the new small Structuring non-commutable Fintech and cyber security 65 business tax rollover reversionary pensions Businesses can’t afford to neglect In the last issue, we outlined the Implementing non-commutable online security, and the cyber security important new small business pensions requires careful thinking Subscriptions industry is mushrooming tax rollover that commenced on to avoid serious consequences and world present accountants with some 1 July 2016. Now, it’s time to focus on ensure all the legal and practical Get up to speed how it may be applied to trusts issues have been considered (03) 8665 3115 of the biggest opportunities yet – if with all the they’re willing to embrace change 72 latest in tax, Clear and present danger An alarmingly small proportion of SMEs use external professionals Technical in making key decisions and superannuation, by Michelle La Our technical section accountants must become more relevant to their SME clients keeps you abreast of the MOMENTUM latest news and updates insolvency MEDIA affecting the industry and more 74 Momentum Media Understanding management buy-outs Succession planning is one of Level 13, 132 Arthur Street, the biggest bugbears for small businesses, and accountants need to be able to help out North Sydney, NSW, 2060 Visit the Goldfi elds and leave a little wealthier! pubacct.org.au August / September 2016 65 ©Momentum Media, 2016. All rights P065_Technical_Cover)_FW.indd 65 7/21/2016 11:53:55 AM reserved. Unearth the riches of the Victorian Goldfi elds at the 2017 VIC & TAS Congress. Regulars Opinion Publication Conditions The opinions expressed in Public This event is sure to be the highlight of the 2017 Victoria and Tasmania CPE calendars. 4 President’s report 58 360 Degrees Accountant are those of the authors, not the Institute, unless 60 otherwise stated. The IPA accepts 6 From the CEO Opinion: Vicki Stylianou no responsibility for the accuracy 8 Upfront A recent trip to the US reaf rmed a long-held of information in articles and Space is limited, secure your attendance with a $150 deposit, IPA view: for the Australian economy to grow advertisements in Public Accountant. The IPA delegation’s visit Article submissions to Public and prosper, it is vital that more SMEs and Accountant by IPA members and others visit publicaccountants.org.au/victascongress2017 to China in June was a are welcome. Articles are accepted for resounding success small businesses become exporters publication only on the condition that 62 the authors give the IPA an irrevocable 76 Register of members Opinion: Tony Greco non-exclusive licence to publish the Is the current level of oversight of the article and authorise the Institute 79 Business directory to give permission for reproduction ATO appropriate or excessive? This is the of the article in whole or in part by other persons and organisations for issue the Treasurer has asked the House of educational and training purposes, as Representatives Tax Committee to investigate well as on the IPA websites. 2 August / September 2016 pubacct.org.au P001_Contents.indd 2 7/25/2016 4:02:42 PM Advert Template.indd 1 7/19/2016 4:36:47 PM President’s report Taking SME research to the next level fter three successful years such as the International Federation of Accountants, the Talk to us about Australian Accounting Standards Board and the Financial in operation, the IPA- Reporting Council. It will address issues and develop policy Deakin SME Research papers to inform these bodies along with the Confederation Partnership has been of Asian and Pacifi c Accountants, the Accounting insurance Aextended for a further fi ve years to Professional & Ethical Standards Board and the ACCC. The centre will provide technical support to the IPA on create a dedicated research centre. how to improve Australia’s taxation and superannuation IPA Insure provides competitive, quality insurance products for IPA members and their clients: system from a macro perspective and in relation to small The IPA-Deakin SME Research Centre will be located in business taxation. • Professional Indemnity Insurance the Faculty of Business and Law at Deakin University. The Importantly, the centre will update the Australian Small • Tax Audit Insurance centre’s role is to issue briefi ngs, policy papers and research Business White Paper, a critical output of the centre that with an SME focus. Areas covered include taxation issues, will provide the central policy platform for the IPA. It will • General Insurance superannuation, competition policy, governance and include an extended chapter on innovation and will form corporations law, innovation, trade policy, fi nancial services part of the IPA’s response to enquiries stemming from the • Personal Accident & Sickness Insurance and small business regulation. development and implementation of the government’s A major achievement in 2015 was the issue of the Small National Innovation and Science Agenda.