The Malaysian Accountant - The Malaysian Institute Of Certified ...

GLOBAL INSIGHTNEWSfrom Down UnderA O FERRERS, AUSTRALIAN CORRESPONDENTMMany will know that much of theAustralian continent is in the grip of severedrought, the tropical north being anexception. However, in the last few dayseastern New South Wales has been inundated withexceptional rain worsened by gales, causing severeflooding. This has destroyed crops, drowned livestock,ruined businesses and damaged or destroyed homes.Emergency Services staff from Queensland and Victoria hasjoined their New South Wales colleagues to repair some ofthe worst damage. Some are saying that full recovery maytake years rather than months. There will be mammothinsurance claims. After a respite of a few days, more heavyrain is falling today as I write. Sydney itself has been onthe fringes of the deluge.Our financial year ends on June 30, 2007. After thatwe begin to prepare and file our tax returns. Mr Tax in hismedia release of June 12, 2007 says that he is here to helptaxpayers:“The Tax Office has assured people affectedby the floods that they do not need to worryabout their tax at this time. [Mr Tax] said thisis a very difficult time for residents of thecentral coast and Hunter region, especiallythose who have suffered damage to their homeor business.“We understand that people have otherpriorities to sort out now and it may be sometime before they are able to focus on taxmatters.”A hotline has been set up for taxpayers to call andanother for their tax agents to make arrangements thatsuit individual circumstances.The Tax Office is offering help in a number of ways,including• Fast tracking refunds for those impacted by the flood• Giving extra time to pay debts without interest charges• Helping reconstruct tax records where documents hasbeen destroyed• Offering personal visits from field officers to helpreconcile lost records.DroughtThe federal government has been making droughtfinancial assistance available to farmers and ruralbusinesses in a number of forms. Some of these requiredetailed information, which some people find baffling toassemble. To assist, CPA Australia has put together aninformation kit, which is available not only on the Internetbut also from regional and rural branches of the ANZ Bankfree of charge. The kit is designed to help farmers andbusinesses suffering exceptional circumstances to apply forfinancial support during one of Australia’s worst droughtsin history. The bank is committed to helping theircustomers work out strategies to manage the financialburden caused by the drought.Peter Docherty, Director of Public Practice, says thatthe kit describes the types of relief offered by governmentand clarifies the application process. It specifies theeligibility criteria for each type of relief and directsapplicants to government websites for further information.It also tells those unaware of entitlements what they maybe able to get and how to go about it. Of course, this iswhere accountants can be of inestimable assistance.Mr Docherty has commented: “CPAs are alreadyhelping their clients with the application process fordrought relief which requires financial and budgetinginformation. An accountant can help make sense ofcomplex information and ensure that it is translated intothe format required for the form.“We encourage farmers and small businesses who areaffected to apply for drought relief. The drought has beenand continues to be a problem. Farmers and businessesmust be aware of the help available.”The CPA Australia media release gives two examplesof success in which CPAs were instrumental in making theapplication. One concerned a farm machinerymanufacturing business. It received $83,000 as an interestrate subsidy.In the second a farmer with a cropping and grazingfarm received $100,000 as an interest rate subsidy. Thesefunds will put the farmer in a position of being able to payloan interest commitments if the season does not break orif a break occurs, to pay interest and finance the sowing ofthe next crop. The CPA concerned is working with thefarmer on action plans for recovery after rain or,alternatively, survival if there is no rain. If detailed plansare required, the CPA will look at helping the client access54 | The Malaysian Accountant | June/August 2007 www.micpa.com.my