There are many government regulations that have a considerable impact on the operations and running of MMGHB Chartered Accountant. They are made by both the Local, State and Federal Governments.
Since the business is involved mainly with accounting and business services, they have to keep up to date with many Government regulations as they change frequently, says Jones. This is so they can serve their clients with the most reliable information when producing tax returns and assistance with business services, but also for their own accounting.
According to Jones, the Federal Government affects this business by administering:
• GST changes – businesses with turnover greater than $50000 annually have to register for this tax, which relates to many of Jones’s clients (see appendix (vi)).
• Changes in laws relating to the way in which businesses must be run
• Changes in laws relating to tax returns – this changes Jones’s operations
• Changes in company / financial law
• Changes relating to when tax returns must be lodged, depending on entity type and income levels of the client/s.
• Changes to PAYE (Pay As You Earn), company, prescribed payments and fringe benefits taxes
• Changes relating to ownership of business and legal structure, as well as registration of business, as this relates to many of Jones’s client’s taxation situations
• Trade Practices Act (ACCC) – changes must be monitored, as aspects such as Jones’s prices she charges to her clients must be within these guidelines.
The State Government administers payroll and superannuation tax, both of which MMGHB Chartered Accountant have to comply with when producing tax returns, but also for their own accounting.
• Superannuation requires many of Jones’s clients to pay a percentage of an employee’s salary or wage into a super fund for retirement. This affects the way in which tax returns and other financial documents are calculated by the business.
• Payroll tax also affects the way in which tax returns are calculated by the business, as it is a tax that is levied on all employers who pay salaries, bonuses and wages, which is paid annually.
The local government (council, which is the French Wine Shire Council) also administers regulations relating to zoning, and where businesses can operate. Jones says that when she decided to move her business into the Belvedere Apartments, she had to apply to the local council, as they have regulations relating to where and how many businesses can be located in the Marylands area.