iscover 'Biggest budget in 25 years': specialist shares insights on tax, business impacts
BusinessThe noise surrounding the significant reforms announced in the budget is unlikely to ease any time soon, with both the accounting profession and businesses facing big challenges ahead, tax specialist Robyn Jacobson has said.
On a recent Under the Hood podcast episode, Robyn Jacobson, senior advocate at the National Tax and Accountants’ Association (NTAA), discussed the federal budget, Payday Super, the ATO app updates, and the SBSCH closure.
Jacobson noted the challenges facing the accounting profession, the evolving relationship between policymakers and practitioners, and the importance of having a strong voice for the sector.
Regarding the federal budget, she called it one of the most significant in recent times.
“It’s dominating the airwaves, and we’re a few weeks on from the budget, and the noise is not easing up,” Jacobson said.
“Normally after a budget, after a week or so, people lose interest and move on, but not with this budget … I think this is the biggest budget that I’ve seen in over 25 years.”
While the budget contained some positive measures, they had been overshadowed by more controversial reforms, she said.
One of the positive measures in the budget, she said, was the loss carryback for companies.
“This will be available to the third of the small business sector that operates through a company, but it’s got losses.”
“So, instead of carrying the loss forward, you carry it back against tax you’ve already paid over the past two years.”
The Payday Super reforms apply to all employers universally, Jacobson said.
“Many may say that it’s a huge impost on small businesses and no doubt there are going to be some cash flow challenges,” Jacobson said. “But it is law. Everyone has to comply. There are no carve-outs, there are no exceptions, and we don’t have any legislated transitional rules.”
She also discussed the new ATO app features and why they mattered to taxpayers, and encouraged practitioners to educate clients on how to use the app effectively.
“The ATO app’s been around for some time, but it’s got some new features in it which make it really important ... there should be conversations being had with clients, and I would just add, teach your clients how to use the app.”
As the profession continues to evolve, Jacobson said staying informed, supporting one another, and ensuring practitioners’ voices are heard will be key to building a more practical and sustainable future.
“In terms of issues that you identify as a practitioner, do not think you’re the only one.”
“It’s amazing how often someone might be hesitant to raise an issue because they think, oh, it’s just a little thing, or it’s just me.”
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