Grant Thornton Australia

The May Federal Budget saw the Government reaffirm its commitment to a ‘Future Made in Australia' by allocating $22.7b to boost investment and rejuvenate Australia's domestic manufacturing capabilities, thereby strengthening Australia's position in the global economy. However, what are the practical implications for the manufacturing sector and when will we see the investment have impact on the sector in Australia?

In the lead-up to an election year, the Labor Government faces the task of easing cost-of-living pressures for Australians who are feeling the financial strain. While we've already witnessed significant announcements, such as HECs reforms, payments for trainee teachers, nurses, and social workers during university placements, and the allocation of $167.8m for Tranche 2 Anti-Money Laundering regulations, there's more to address. So, what else did the Federal Government allocate spending to this year and how will it assist Australian businesses?

In 2023 Australia began implementing Tranche 2 of its AML and CTF reforms – part of the government's plan to align Australia's AML regime with international standards. The reforms have far-reaching implications for Lawyers, Accountants, and Real Estate Professionals, who will be required to take a more active role in deterring money laundering and terrorist financing. So, what's the status of the reforms, and is Australia potentially falling behind its global counterparts? 

Victoria's property market is dynamic. With the recent announcement for changes in stamp duty on commercial and industrial properties, it will make the current landscape more complex. So, what's been the reaction to the proposal, and how should potential buyers or owners of commercial and industrial properties navigate this proposed change?

‘Option ready' refers to a firm being able to choose which strategic option they want to pursue – whether it be continuing to enjoy equity returns, fund expansion of their business, bring new equity participants in or consider a merger opportunity. Beyond these characteristics, cultural alignment and a shifting employee landscape are also critical to success. So how can a firm consider these factors to ensure sustainable and competitive growth into the future?

Innovation is a key driver of productivity for businesses. To help them achieve their objectives, the government offers various programs such as the R&D Tax Incentive and government grants. These programs encourage businesses to develop new or improved products and services, lower environmental impacts, attract potential investment and keep Australian competitive on a global scale. The level of innovation support in Australia can be influenced by political cycles, however one of the main challenges is business awareness around eligibility for these key programs that support innovation and ESG initiatives. So, how can we change this disconnect and further showcase the importance of innovation incentives when it comes to ESG initiatives, given ESG is revolutionising the way businesses operate?

COVID-19 fast-tracked flexible work practices that are now the norm, enabling employees to achieve a work-life balance. These policies – initially adopted as a necessity in the face of the global pandemic – can now be seen as part of an ESG strategy for employers. While remote work poses some challenges in terms of social connectivity, it is clear that it's now the future of work. Flexible working mainly relates to the ‘social' aspect of ESG, but what about the environmental and governance aspects that can be integrated into employment solutions?

The Modern Slavery Index 2023 estimated that in 2021 there were 41,000 people living in a form of slavery throughout Australia. It also found that imported products such as electronics, garments, solar panels, textiles and fish were most at-risk of involving modern slavery. While Australia is one of the least vulnerable countries when it comes to modern slavery in business supply chains, there are still business practices putting the vulnerable at risk of exploitation. So, what does modern slavery mean in the context of supply chains, and how can companies ensure they're not passively taking part in such exploitation?

The business world is becoming more complex with increased focus on governance, risk and reporting; a steady flow of change to taxation and superannuation; and uncertainty due to economic movement – so how does an internal finance function steer through these times? With rapid change comes challenges, which is why it's critical businesses are nimble and can adapt quickly. So how can internal finance functions navigate the business landscape to ensure they're on top of all finance requirements? 

With a growing demand for organisations to provide transparency on their commitment to sustainability and disclosure of the non-financial impacts of their business activities, it's more important than ever to be informed about the latest ESG requirements. While we often hear about the environmental component of ESG, the term is also used to describe a business' social and governance frameworks. So, what does this all mean, and who is responsible for making sure reporting requirements are met in this evolving landscape?

Businesses often encounter growth opportunities that exceed their immediate capital resources and this is where attracting external funding can be pivotal. Whether it's funding a specific project or seeking longer term strategic investment, there are options available to help businesses capitalise on future growth. So, with the current economic and commercial uncertainty for some businesses, what are the considerations that businesses should make if they are looking to attract external funding?

While the TV series Succession has captured audiences for its dramatic storyline, themes explored through the show reflect what families can face when it comes to growing and maintaining wealth through the generations. So how can Family Offices be successful in growing wealth from generation to generation? The upcoming new financial year is an ideal time to assess wealth strategy and consider aspects such as structure, strategic goals and appointing an Enduring Power of Attorney for future success.

In October 2022, the Labor Government delivered its interim Budget. Since then, we've seen interest rates and cost of living increase, with many Australian businesses and individuals feeling the pinch. In the lead up to the May Budget, we've seen changes to superannuation, and speculation of changes to Capital Gains Tax, as well as an increased focus on multinational tax transparency. So how did the Federal Government allocate budgetary spending this year, and is it enough to alleviate pressure on business and bypass a recession? 

The goal of the research and development sector is to encourage new ways of thinking, boost the Australian economy and scale business internationally. While the Government has allocated spending through incentives such as EDMG, NRF, and the R&D tax incentive, should there be stronger focus and support this Federal Budget to bolster a more sustainable economy through investment in future capabilities?

We've made it to the other side of COVID-19, but what does this mean for businesses feeling significant headwind on the horizon post-pandemic? In the lead up to the release of our M&A DealTracker Report, our latest episode in the Navigating the New Normal podcast series will give you a taste for where we're headed in the world of insolvencies and distressed M&A.

Proposed changes to land tax in Queensland were met with a great deal of resistance across the state, and nation. Heading south, New South Wales took its first steps to move away from stamp duty to a broad-based property tax. The big change yet to be seen in Victoria is the commencement of the windfalls gains tax. With one deferral already, and the past revealing that taxes can be scrapped after being legislated, will it proceed as planned? In this podcast, Kristina Popova, State Taxes Partner discusses some of the significant stamp duty and state tax changes we've seen this year across the country and what we may see in the New Year.

Given the rise of cyberattacks of late, cyber security should be the number one issue for Australian businesses – cyber security and data protection has truly never been more important. But do Boards and Company Directors really understand the importance of being cyber aware, and the controls they should have in place to combat risks in their business? In this episode Matthew Green, Partner and Controls Assurance Specialist and Chris Watson, Partner and previously a Detective in the Computer Crime Unit City of London Police discuss why Boards and Directors should be interested in cyber security now more than ever, whether these criminals are ever prosecuted, and new technologies that companies should have on their radar to mitigate cyber-related crimes in the future.

This year we saw tightening cost of living pressures, rising inflation and high interest rates, alongside a possible global recession – all in the first six months since Labor gained office. A new Government sets the tone for its leadership through its first Budget. So, with the significant interest on debt and the NDIS to fund – among other things – how did Labor fare?  In this special Federal Budget edition of Navigating the New Normal, hear from Journalist Hugh Riminton, Chief Economist Besa Deda, and Grant Thornton Partner, Paul Gooley at our virtual seminar, as they discuss the Budget spending and how the allocations will impact Australian businesses.

In this podcast, Thomas Isbell, partner and global mobility and international employment tax specialist and Matt Darby, partner and National Head of Retail and Consumer Products industry at Grant Thornton discuss the outcomes of the Jobs and Skills Summit, including the skilled migration scheme, sentiments in the retail sector, and the future of work in Australia.  

In our podcast, Peter Hills, remuneration taxes partner at Grant Thornton and Laurie Wood, Managing Director at HRAscent discuss what they are seeing play out in Australia when it comes to Employee Share Schemes. From non-cash remuneration, to how businesses can use employee share schemes to manage overall costs, employee share schemes can be a competitive advantage.

The New South Wales State Government has been busy with tax reform this year – from the raft of state taxation amendments commencing in May, to the first steps to abolish stamp duty introduced as part of their state budget last week. So what does this all mean for homeowners, taxpayers, advisers – and the state?

In this podcast, Partners in our Private Business Tax & Advisory team Kirsten Taylor-Martin and Simon Gow discuss the key reasons – and minimum requirements – for setting up a Family Office, the importance of a shared family vision, pitfalls or traps that come with family wealth, Family Office devices like family banks, financial education and philanthropic programs, and famous historical families that would have benefitted from a well-managed Family Office.

In this podcast, Tax Partners Michael Catterall and Lorena Sosa discuss aspects Australian businesses should consider when exploring new international markets, including operations and logistics, strategy planning, customs and duties, and tax complexities.

In this podcast, partners Jacky Millership and Sandie Boswell unpack what we've seen so far from the Modern Manufacturing Strategy and innovation support more broadly. With countries around the world aggressively investing in innovation, we need a bold and entrepreneurial approach to compete – so what can we expect from the 2022 Federal Budget – and what do we want?

In our podcast, Kirsten Taylor-Martin, Private Advisory Partner at Grant Thornton, and Olivia Hitchens, Principal at Hitchens Advisory, discuss what businesses should be doing now to prepare themselves for the months ahead. From pre-Christmas spending sprees, to the legal and financial considerations and expectations leaders must navigate, they discuss tips for businesses as we make our way through this new post-lockdown world.

In our podcast, Tax Partners Vince Tropiano and Brett Curtis discuss what the global minimum corporate tax rate agreement means for Australian businesses, how businesses can prepare themselves, and what to consider if you're setting up operations offshore.

Cryptocurrency and blockchain – the technology underpinning cryptocurrency – have the potential to go far beyond how we're using it now – and the impact on businesses will be felt for years to come. From applications for online gaming, company shares, smart wallets and connected car services – the possibilities are endless. But we're not quite there yet. While some businesses are already accepting crypto as payment, there is still a lot of work for the ATO, ASIC and the RBA to do behind the scenes to ensure crypto is regulated and safe.In this podcast, Ian Renwood, partner and National Head of Technology & Media, and Jace Gawne-Buckland, partner in Private Business Tax & Advisory, talk all things cryptocurrency – including banking the unbanked, machines trading services and just when we might see crypto as a standard payments option.

In our podcast, Innovation and Incentives partner Sandie Boswell, discusses what makes an innovative business successful (hint – lots of passion and strategy!), blind spots to look out for, and exciting future trends in innovation.

In this special episode for NAIDOC Week, our CEO, Greg Keith, is joined by Isaiah Dawe, CEO of ID Know Yourself. Isaiah is a Butchulla and Gawara saltwater man and we were privileged to hear his story; from his childhood going through 17 foster care 'placements' in his first 18 years, his reconnection with family and community, and the work he does now to welcome young Indigenous people living in out-of-home care with welcome arms.

In this podcast, we speak to Tom Isbell, partner and Remunerations Tax specialist at Grant Thornton, about skilled migration and global talent management. His best piece of advice for Australian businesses? Rip up your global mobility plan and write yourself a global talent management one instead.

Australia has the second largest reserve volumes of lithium, yet we don't manufacture batteries in Australia – we send it all offshore. We have 19% of the world's cobalt resources (also used in batteries), and 18% of global vanadium resources, but we do no production here. The opportunity exists to diversify outside of traditional resources and take our resources sector up several notches. In our podcast, Brent Steedman, National Head of Energy and Resources, says the positive sentiment is there – but the future of the mining sector is dependent on access to labour and developing the next frontier – critical and Rare Earth minerals.

There's a lot happening under the surface when it comes to payroll – we have complicated Awards, a growing RegTech sector automating payroll, and the Federal Government's $800m Digital Business Plan, providing small to medium sized enterprises, and industry bodies pushing for more simplification.In our podcast, Alex Bell, partner and National Head of Forensics at Grant Thornton, unpacks the complexities behind payroll and awards, the unexpected ramifications of getting it wrong, and what companies can do to protect themselves.

A favourite instrument for start-ups and companies about to list – Employee Share Schemes are used far more widely than most people think. It's a way to remunerate your employees outside of the usual cash salary – and in an environment where competition for talent is hot, it can be a clever way to attract, engage and keep your people. From the outside looking in, they are complex to set up but get the mix right and it can be a tax effective way to incentivise your teams and propel your business forward.

In this podcast, we're joined by Phil Coorey, Political Editor at the Australian Financial Review, and Vince Tropiano, Corporate Tax Partner in our Sydney office to talk about last week's Federal Budget.

In our latest podcast, Tony Pititto, National Head of Agribusiness, Food & Beverage at Grant Thornton and Madina Aziz, Audit Partner discuss the opportunities for the sector through the Modern Manufacturing Initiative and what we need next from Government to help Australia target non-traditional export markets. This is much broader than simply processed food – we're talking better quality products, reducing waste, and innovative ways of bringing products to new markets and customers.

The Government has a 10 year plan to implement the Modern Manufacturing Initiative and develop our manufacturing capability. While this will help reverse the trend of offshoring, it is so much more complex than simply hitting a 2, 5 and 10 year milestone. For instance, if you're looking for investors to support your growth journey beyond the initial funding from the MMI, they'll be looking for a shorter return than the decade mapped out. And of course, we need to make sure we have the trade partnerships and supply chains in place to help the domestic and international markets hum.In our podcast, partners Richard Nutt and Mark Phillips join us to discuss the global market place, non-tariff barriers, and the skills required to fulfil the modern manufacturing vision. The magic terms you will hear over and over again is value add and bespoke. If we produce the raw materials here, it's a no brainer to commercialise and keep the value add here as well. It's complex, but exciting.

We've never been more aware of where our pharmaceuticals and medical products come from, or how long therapeutics take to develop from research to product. Michael Cunningham, National Head of Life Sciences is joined by Dr Dan Grant, Managing Director and CEO of MTPConnect, Australia's industry growth centre for the medical technology and pharmaceutical sector. They explore the opportunities outlined in the Government's Medical Products Roadmap. Supporting the sector needs more than just funding. Competition and hurdles ahead for our burgeoning life sciences sector include the war for talent and access for funding. But what an opportunity ahead of us to not only innovate and grow this critical sector but to improve health outcomes for patients here and overseas. The legacy of COVID will be a stronger life sciences sector.

New South Wales has just undergone a public consultation regarding a swap from stamp duty to land tax over a decades long transition period. If it goes ahead it would be the largest shift in State tax policy since WW2. But is it a good idea and should all the States follow? Stamp duty is one of the most disliked taxes – it's lumpy and comes at a time when property buyers are already under pressure to make their dollar go further. But perhaps it's important to think of each State's target demographic. Baby Boomers may prefer a known one-off stamp duty bill. Millennials could opt-in for a buy-now, pay-later annual land tax.

Google receives nearly 85% of its revenue from user data insights. But you don't need to be the size of Google – or even a tech company – to apply some of their same thinking. In fact, you are swimming in rivers of data and you may not even know it – data about your suppliers, customers, processes and hardware. If you're not tapping into it now, you're at risk of falling behind as your consumers are willing to trade information for a better experience and service.

Anti-money laundering, payroll assurances, risk management – all hot topics in the news at the moment. But being a good corporate citizen is not just the responsibility of the business. From boards looking to ensure compliance to individuals at risk of ‘cuckoo smurfing', compliance and good corporate citizenry impacts all of us. It's about doing the right thing without anyone looking – thinking about your reputation in the market, influencing whether people want to do business with you. If in doubt, ask yourself if grandma would be proud.

M&A took a massive hit in 2020, with the majority of transactions put on hold in the February-March 2020 period in response to COVID. However, the economy rebounded stronger and faster than anticipated with some very clear trends carrying through to 2021. We saw the industrial sector a popular investment, with nearly 35% of deals coming from the sector. Niche manufacturing was particularly popular with foreign buyers. But the sector to watch is technology and technology enabled businesses which are set to dominate the 2021 public and private markets.

Brent Steedman, National Head of Energy and Resources says the Government's modern manufacturing initiative will provide funding and grants to develop and implement new technology - like better data analytics to define reserves or automated vehicles. The future of mining will be smarter to increase production and reduce costs. Pair this with a greater opportunity in a competitive global market and it's clear resources will continue to play a significant role in our future economy.

The Government has delivered a once in a lifetime Federal Budget in response to COVID-19. We saw a significant change in direction from policy makers with a new and renewed focus on sovereign capability and job creation. We invited Phil Coorey, Political Editor at the Australian Financial Review, to share his insights on how the Government has responded throughout COVID. From his privileged position in the heart of Canberra, Phil gives us a sneak peek into the thought processes and policy from Canberra - now and into future. Vince Tropiano, Corporate Tax Partner reflects on what these initiatives really mean for our clients in the mid-sized business space. A key question we ask is what the 'big kahuna' Federal Budget in May 2021 may offer businesses before the next Federal Election - which could be as early as October next year, but certainly by early 2022.

COVID-19 has changed the way we shop – perhaps forever. There is no retailer unaffected. But while many in the industry are experiencing hardships they might never bounce back from, it’s not all doom and gloom. Retailers and consumers alike are changing the way they interact and operate. The tenancy mix has changed. We’ve seen a surge to online, and retailers meeting the demand by investing in their online operations. We’ve seen digital innovations adopted at lightning speed. And we’ve witnessed a more health and value conscious consumer, voting with their feet if their expectations aren’t met. The next time you head down to local shopping centre, it might not look exactly like you remember it. In this podcast, Luke Ritchie, National Head of Retail and Consumer Products at Grant Thornton, highlights how retailers are adapting their services, what the shopping centre of the future looks like and the intersection of the digital and in-person shopping experience.

Last week was “energy week” – with a number of policy announcements from the Federal Government, and yesterday’s launch of the Low Emissions Statement signalling the prioritisation of hydrogen storage, low carbon manufacturing and carbon capture on our transition away from coal and towards a more renewable future. The Government is pouring funding into stockpiling fuel, committing to invest in dispatchable energy, and expanding the remit of the Clean Energy Finance Corporation and the Australian Renewable Energy Agency. Investment is one thing, bringing national consistency to energy policy is another. However, get the structure right and investment in energy will mean investment in clean energy technologies that can support a strong economic recovery. In our podcast, Jannaya James, specialist in Renewable Energy at Grant Thornton, discusses the importance of funding emerging clean technologies, whether gas is the right transitional decision, and the road to hydrogen.

Did you know AASB 16 Leases has a unique impact on the aged care industry? Hayden Fisk, Senior Manager, Audit & Assurance in our Melbourne office reveals how the new leasing Standard interacts with Refundable Accommodation Deposits.

When COVID-19 hit, new listings on the stock market took a dive. And while Australia is technically in a recession, we’re starting to see more companies looking to list on the ASX in the run up to Christmas. It might seem counterintuitive, but changing markets and consumer habits has fast tracked some companies on their path to IPO as much as it has stalled others. We talk to Neil Cooke and Jonathan Mather, Financial Advisory partners specialising in IPOs, about which companies are listing during a global pandemic, how the ASX is pitching itself as a global source of capital, and what the ASX of the future could look like.

The impacts of COVID-19 will continue to be massive on businesses and individuals alike. If what is happening in Melbourne is any indicator, then we can’t wait for COVID to pass – we have to learn to live with it. We ask Dr Ian Norton, Founder and Managing Director of Respond Global to apply his experience as a former World Health Organisation emergency physician to the current COVID pandemic, while our CEO, Greg Keith tackles how businesses – us included – have approached the new normal. So what does COVID Safe really look like? How do you know if you’re responding appropriately? And which of the COVID safe changes are temporary, and what will remain?

AI, big data, machine learning, the Internet of Things – all things that were “coming” in the years leading up to the COVID-19 pandemic and are now staring us in the face. Businesses have access to a backlog of data from their customers that was never put to use before because the impetus wasn’t there. Well it’s here now. So as your business model shifts increasingly online and contactless, how do you access your treasure trove of data?

The government has said the economy needs to ‘grow’ out of the recession. Innovation will be to key to this. Some companies need to constantly innovate to stay relevant, while others are innovating to meet the local demand and expectations that COVID-19 has created. So if the global innovation dollar is fluid and fast moving, how can we encourage and foster local innovation? And how can we attract global innovators to set up in Australia? In this podcast, innovation and incentives specialists Sandra Boswell and Sukvinder Heyer talk about creating an IP strategy and trade secrets framework, the importance of embedding innovation into the culture of the company, and what we need from the Government to support innovation in Australia.

COVID-19 has brought with it a tumultuous yet interesting time for the manufacturing sector. April was largely a disaster, but JobKeeper helped businesses stay afloat. May brought with it supply chain issues, but June and July saw sales off the richter with a renewed sense of optimism in the market place. With the AFR reporting last week that Australia ranks a solid last in manufacturing self-sufficiency according to the OECD – there is clearly opportunity to grow. Mark Phillips, manufacturing expert at Grant Thornton discusses how the manufacturing sector is responding to the ebbs and flows of demand, the supply chain and difficulties with freight and logistics, and the procurement power that the government holds.