John Maroney

The Australian Tax Office’s announcement yesterday allowing an automatic deferral of SMSF lodgments to 30 June is further evidence of its flexible approach to issues during the COVID-19 (coronavirus) crisis and must be applauded, says SMSF Association CEO John Maroney.

“In these very difficult times, we have been able to work constructively with the ATO to find solutions for SMSFs affected by both the Government’s decision to lockdown the economy and the extreme market volatility.

“Discussions, which have included the ATO Commissioner Chris Jordan who attended a recent Association board meeting, and SMSF Assistant Commissioner Dana Fleming, have been extremely fruitful, allowing us to work through numerous issues since the COVID-19 public health crisis erupted in March, with today’s announcement simply highlighting this.

“What’s been extremely pleasing is the positive approach of the ATO on these issues. There is a realisation that these difficult times require pragmatic solutions that might not be in strict accordance with the legislation.

Lodgment and payment deferrals will be automatically applied to SMSF 2018-19 annual returns with the 15 May lodgment date pushed back to 30 June 2020.

The ATO has also provided guidance relating to LRBAs and rent and interposed entity relief that were concerning many Association members.

“These initiatives are indicative of how the ATO has responded in a constructive way to the economic and market consequences of this tragic pandemic, and we will continue to work with the regulator to ensure the SMSF sector emerges from this crisis in the best possible shape,” Maroney says.

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Commissioner of Taxation Chris Jordan acknowledged that many people are being heavily affected by the challenging economic conditions created by the outbreak of COVID-19 and that the ATO is standing by ready to help where it can.

The ATO’s Coronavirus page provides easy-to-understand and detailed information about what people need to know or do in order to get access to the tax or superannuation measures as announced by the Government as part of its economic response to COVID-19.

Measures include:

• giving individuals early access to their superannuation
• providing cash flow assistance for employers
• increasing the instant asset write-off, making more businesses eligible
• backing business investment by accelerating depreciation deductions.

Commissioner of Taxation Chris Jordan said “each of the measures have different timings, eligibility, and processes. Some will be applied automatically and others will require an application, so I recommend heading to ato.gov.au/coronavirus to understand what is possible”.

Mr Jordan also reminded the community of other options available to assist businesses impacted by COVID-19 in addition to the new measures announced by the Government.

“In these difficult and uncertain times, the ATO is doing everything it can to reduce stress from tax and super related obligations,” Mr Jordan said.

Options available to assist businesses impacted by COVID-19 include:

• Deferring by up to six months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.
• Allowing businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.
• Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the March 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
• Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities
• Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.
• Businesses wanting to utilise any of these options can contact us over the coming weeks. It is not necessary for businesses to contact us immediately.
• Employers will still need to meet their ongoing super guarantee obligations for their employees.

Outside of business, the ATO will also work with individuals experiencing financial hardship, and their tax agents, and will apply appropriate tax relief measures for serious and exceptional circumstances, such as where people cannot pay for food or accommodation.

“If you’re impacted by COVID-19, and require immediate assistance contact us to request support on our Emergency Support Infoline 1800 806 218. If you do not require immediate assistance you can contact us when you’re ready, to discuss your situation”, Mr Jordan said.

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The firm today announced the immediate appointment of Chris Jordan, AO as Executive Chairman and Andrew Gale as Executive Director.

Chase is a boutique corporate advisory and M&A business focused on the financial services and accountancy practices sector. It typically acts on behalf of vendors or entities looking to sell, change ownership structure or merge. Financial service entities include financial planning practices, licensees, fund managers and superannuation funds.

The firm seeks to capture and service growing demand created by significant consolidation activity within the financial services and accountancy practices sectors.

“The directors of Chase Corporate Advisory (CCA) have extensive experience in strategy, equity capital markets, syndication and M&A, complemented by deep experience and an extensive network of strong & relevant relationships in the Financial Services sector,” said Chase founder, Mr Jeff Singh.

“We are delighted to welcome Chris and Andrew to the firm. Their appointments will significantly expand the clientele served by Chase.”

Andrew Gale has also acquired a significant equity stake in Chase Corporate Advisory. Jeff Singh said “This is a strong indication of Andrew’s commitment to the business.”

Chase Corporate Advisory was founded by Managing Director, Jeff Singh, in early 2011 following a 23 year investment banking career with Barclays Capital, GE Capital and Macquarie Bank Ltd. Chase has already completed eight transactions covering circa $2.5 billion in FUA nationally and has further mandates with circa $6 billion in FUA already engaged.

A number of distinctive elements signify Chase’s services – a tight industry focus; acting on behalf of vendors; strong personal networks of contacts with both acquirer and vendor entities;  the high personal engagement of senior principals; and a very high success rate in achieving outcomes.

Andrew Gale said “Over the next five years in particular, there will be a major change in ownership of both accounting and financial planning practices. For example, over 34% of financial planners are aged over 50, and 14% of all planners are expected to retire or seek a managed exit in the next five years. In many cases, there will also be increasing integration between accounting and planning practices.

“In addition, there is expected to be continued strong consolidation of AFSL licensees, driven largely by regulatory reform, and also strong consolidation in both the funds management sector and superannuation funds sector, driven by industry dynamics. The aim of Chase is to serve vendor or merger clients in each of these areas.”

Chase Corporate Advisory also appointed Richard English as a Director, effective as from July 1. Richard was admitted as barrister in the UK in 1995 and previously had senior roles in the Private Wealth division of Macquarie Bank.

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