directions
WELCOME TO OUR HOLIDAY ISSUE OF PILOT DIRECTIONS
PAGE 2
Introducing Daniel Gill
Draft Legislation Reveals Shades of Grey for Not-For-Profits
Protecting Our Clients Against the Cost of ATO Audits and Investigations
PAGE 3
Client Spotlight – Flight Experience
How Will the Changes to the Personal Property Securities Act A!ect Your Business?
PAGE 4
Director Liability for Unpaid Super on Hold
Welcome to the Team!
Pilot’s Cadet Program
Promotions and Designations
Congratulations
Pilot in the Community
As the year comes to a close we have to look back
and say – what a year it has been! Queensland
had a disastrous start to the year however as
2011 draws to a close we are seeing signs of
recovery in our local economy. Within our Pilot
client base we have observed an increase in
demand for Queensland-based goods and
services however some flood-affected
businesses are still in recovery mode.
With the local economy not free
from the impacts of the GFC and
the floods we see that 2012 may
continue to be quite challenging.
In this issue we have several
exciting announcements to
make. For those who may not
have seen our notices in the
Courier Mail and Financial Review,
I am very proud to announce
the recent appointment of
Daniel Gill as Partner in the
firm’s Corporate Advisory and
Assurance Division. Daniel brings
to the partnership extensive
experience in his field of
expertise as well as an effective
insight into the operations of our
client’s businesses. Please take
a moment to learn more about
Daniel on the following page.
Welcome to the Christmas edition of Pilot
Directions, our newsletter that provides news,
industry alerts and staff updates.
We are also very proud to introduce our new
Business Performance Indicator (BPI). The value-
add strategic business planning tool reviews the
financial and non-financial areas of our clients’
businesses. We have already started work with
some of our clients on implementing BPI with
positive results.
Lastly, after 10 years in our current premises,
Pilot will be relocating to Waterfront
Place, 1 Eagle St Brisbane in April 2012.
Due to our growth in the past few
years we no longer have sufficient
space in our current location. By
moving to Waterfront Place we
will be able to continue to keep
all our staff on one level thus
helping to maintain our strong
team culture and operational
efficiencies.
On behalf of the team at Pilot,
we wish you a merry Christmas
and a safe and prosperous new
year.
We look forward to working
with you again in 2012!
BRIAN MCDONALD
MANAGING PARTNER
At Pilot we are always looking for new ways
to increase cash flow and develop growth
strategies for our clients businesses.
As a part of our e!orts we are introducing the
Business Performance Indictor (BPI). This service
reviews the health of a business by analysing and
testing the financial and non –financial areas of the
business. BPI can be implemented to:
Enhance your business performance
Improve your cash flow
Set KPIs and monitor trends
Ensure that your business is complying with bank
loan covenants
Assist with bank finance approval
Develop budgets for your business
Plan future directions through goal seeking analysis
Benchmark your business with like businesses
Assist with identifying potential sale or purchase
opportunities
Evaluate new markets
Based on our findings the Business Advisory team will
work closely with you to develop the right strategies
to guide your business towards success.
Should you wish to know more about the
Business Performance Indicator, please contact
Allan Godbee or your Pilot representative on
(07) 3023 1300.
goods and
fected
mode.
Daniel on
PILOTPARTNERS.COM.AU 1
Our New Year’s Resolution –
Grow Your Business!
Daniel Gill was appointed as a Partner in the Corporate Advisory and Assurance
Division in July 2011. We outline below an interview with Daniel which gives you a
little insight into Pilot’s newest Partner.
How do you help clients?
I deliver high quality audit services by working with clients to make sure they successfully
identify, monitor and mitigate risk. I always try to offer clients advice that is practical and
commercial and also ensures that the risks and compliance issues are properly addressed.
What is your focus?
My focus is on delivering audit and assurance services. In addition, as an expert in financial
reporting I advise on complex transactions, which ensure optimal solutions for achieving
compliance with accounting standards and law.
What do you enjoy most about being an Accountant?
I enjoy the great variety of people and organisations. I love meeting, working with and helping
people with their business challenges.
What do you think makes Pilot different from other accounting firms?
The people. It follows on from my answer above. At Pilot we genuinely seek to help clients
maximise their business and personal goals. We offer clients direct access to the Partners.
Pilot’s Daniel Gill recently landed single-handedly and safely a Boeing 737 at
Hong Kong’s old Kai Tak airport at night and in a thunderstorm ...
This took place in the flight simulator at Flight Experience in Newstead. Flight
Experience is an owner-managed franchisee business run by Captain Todd Mickleson.
The business offers a wide range of flight simulator and training experiences for both
pilots and the general public. They also cater for all types of corporate training and
functions.
In the current economic climate, any business with a retail offering faces many
challenges. Pilot is consulting to Todd by providing guidance on his strategic plan for
his business and advice on his tax affairs and financing needs so that he can better
address his challenges and maximise his opportunities.
Pilot is once again proving itself to be the preferred advisor to owner-managed
businesses and showing them that the sky is the limit!
The 2011 Federal budget proposed reforms
pertaining to the not-for-profit (“NFP”) sector.
The reforms aim to ensure the tax concessions
provided to NFPs are only applied to activities that
directly further a NFP’s altruistic purposes. Despite
draft legislation regarding these changes being
released the definitions of NFPs commercial and
altruistic purposes are still not clearly defined.
EXISTING NFP TAXATION CONCESSIONS
The Government currently supports the NFP
sector by providing various taxation concessions
which include:
Income tax and capital gains exemptions;
Fringe benefit tax exemptions and rebate;
Goods and services tax concessions; and
Deductible gift recipient status.
The Personal Property Securities Act 2009
(PPSA) is set to make radical changes to the
registration of legal interests in personal property.
Failure to register or understand the changes
could place the assets of your business at risk.
The PPSA which was to take effect on 31 October,
2011 has how been postponed to at least 31
January, 2012.
Currently, there are more than 70 Commonwealth,
State and Territory Acts and more than 40
registers that rule on security interest in personal
property. This new reform will achieve greater
consistency and transparency and thus, reduce
legal disputes.
We are witnessing an alarming trend with an
increasing number of clients being contacted
by the Australian Tax Office (ATO) or other
government agencies and subjected to random
audits, reviews or investigations.
At the end of June 2011, the ATO confirmed they
have planned a 25 per cent increase in audits of
the 2.8 million organisations with sales under $2
million.
There are dozens of scenarios that may trigger an
ATO audit and just because you are certain that
you are doing the right thing in your business or
Self Managed Super Fund, you may not be immune
to ATO scrutiny.
To protect our clients from these potential costs,
we offer the opportunity for you to participate
in our Audit Shield Service. This service provides
a low cost, set fee solution that means any
ATO audit related work we need to do for you is
covered (up to a prescribed limit).
If you would like further information in regards
to Audit Shield Service, please contact Jason
Bayliss from our Business Advisory Division on
(07) 3023 1300 or
The NFP reforms do not seek to remove these
taxation concessions. However, the proposed
changes will limit the activities conducted
by NFPs to which the tax concessions can be
applied.
This means NFP entities will pay income tax
on profits from their unrelated commercial
activities that are not directly linked to their
altruistic purpose.
WHAT SHOULD WE EXPECT?
We have observed a substantial increase in
audits of NFPs by the ATO in recent years. In
these audits the ATO have been cracking down
on commercial activities that are not linked to
the NFP’s core purposes.
With the draft legislation still not clearly defining
the parameters as to where the commercial
activity stops and the altruistic activities begin
we recommend that NFPs continue to exercise
caution in this area.
For more information contact Murray Howlett
from our Tax Consulting Division
on (07) 3023 1300 or
DRAFT LEGISLATION REVEALS SHADES OF GREY FOR NOT-FOR-PROFITS
HOW WILL THE CHANGES TO THE PERSONAL PROPERTY SECURITIES ACT AFFECT YOUR BUSINESS?
There will now be a single national PPSA Register
that will be accessible online. It will enable users to
create a registration, search for existing security
interests, make amendments to a registration and
create and maintain account details.
The term “personal property” is a very broad
term and applies to all property, other than land,
fixtures and water rights. Personal property
covers tangibles such as goods, livestock, crops,
equipment and motor vehicles and intangibles like
trademarks, IP and other contractual rights.
If the PPSA applies to you, the changes will
fundamentally affect the way your business will
operate. Should you supply goods by sale, lease,
hire or bailment or provide finance on conditional
sale contracts, you run the risk of suffering
substantial losses if your interests are not
recorded on the PPSA Register.
Under the new PPSA, your security interest must
be noted on the Register, otherwise title alone will
not determine that you can reclaim or repossess
your goods in the event of a default by a customer
or client. Without registration, there is the risk
your claim over goods will be exceeded by another
party, such as a bank or liquidator, whose interest
would take priority.
The Register also enables you to check ownership
and charges over goods before making a purchase.
As more assets are able to be registered, there is
also likely to be more opportunities of obtaining
finance.
A further advantage of your interest being on
the PPSA Register is that you will be entitled to a
“super priority” – also known as a Purchase Money
Security Interest (PMSI) – over other creditors and
other registered or unregistered parties. You will
have a right to trace your interest in the proceeds
of sale of your goods. Importantly, you will be able
to defeat claims by liquidators and receivers of the
customer who would otherwise be able to sell your
goods and leave you as an unsecured creditor.
If the new laws are applicable to your business
and you wish to secure your interest in property,
you must ensure you have a documented security
agreement in place with your customers. We
recommend that your customer or debtor agree
to the new trading terms in writing, which can be
achieved by them signing the amended trading
terms.
For more information go to our website and
review our PPSA FAQs or alternatively, contact
Nigel Markey from our Business Performance
and Recovery Division on (07) 3023 1300 or
32PILOTPARTNERS.COM.AU PILOTPARTNERS.COM.AU
Pilot’s newest Partner Daniel Gill gets ready for takeoffwith Todd Mickleson from Flight Experience
Chartered AccountantsLevel 5, 175 Eagle St. Brisbane 4000 I PO Box 7095 Brisbane 4001 Queensland Australia
P +61 7 3023 1300 I F +61 7 3229 1227 I pilotpartners.com.au
DISC LAIMER: This publication contains general information only and is not intended to constitute financial advice. Any information provided or conclusions made,
whether expressed or implied, do not take into account individual circumstances. It should not be relied upon as a substitute for professional advice.
Pilot is a trade mark of Pilot Nexia Pty Ltd ACN 105 267 061 ABN 58 144 064 946 Liability limited by a scheme approved under Professional Standards Legislation.
Member of Nexia International, a worldwide network of independent accounting and consulting firms.
chartered accountants
Pilot welcomes the following new team members:
BUSINESS ADVISORY
Ramona Amos is a Senior Accountant in the
Business Advisory Division. She has more
than eight years experience. She has previous
commercial and banking experience both in
Australia and overseas. Ramona is a CPA with a
Bachelor of Commerce from the University of
Southern Queensland.
Samuel Hall joined Pilot as Accountant and he
has four years experience. He graduated from
Queensland University of Technology with a
Bachelor of Business majoring in Accounting.
With more than three years of experience, Marissa
Bates relocated from the Sunshine Coast to
Brisbane to work at Pilot Partners. She is currently
The personal liability of company directors is being
significantly increased by new legislation that was
announced in the 2011/2012 Federal budget.
The government is looking to extend the current
Director Penalty Notice regime from unpaid PAYG
to include unpaid superannuation.
On 22nd of November, directors were given a
temporary reprieve from the potential of personal
liability to meet employees’ superannuation
obligations.
Congratulations to Jennifer Veitch for her recent
promotion to Manager in the Forensic Accounting
Division. Thank you for your commitment and hard
work at Pilot.
Also, congratulations to Pilot’s newest Chartered
Accountants! Brendan Bassa, Kylee Sempf and
Cameron Woodcroft completed their studies
earlier in the year. We are very proud of your
outstanding achievement.
Pilot is dedicated to supporting the Brisbane
community. We provide financial support as well as
the expertise of our Partners and staff.
Earlier in the year, Pilot participated in Cupcake
Day for the RSPCA, the biggest bakeoff in the
Southern Hemisphere. Pilot was one of the many
offices around country to bake animal-themed
cupcakes to help support the services of the
RSPCA.
Congratulations to Angela Stavropoulos who
welcomed her second daughter, Nicola Melina.
Nicola joins the Stavropoulos family and her little
sister Sophia. Angela is currently working part-
time for the firm as a Manager in the Business
Advisory Division.
taking six months off her studies and plans to
graduate from the Queensland University of
Technology in 2014.
Jacky Xu has a Master of Accounting from
Australian National University. She has previous
experience at a national accounting firm.
Courtney Bella is an Undergraduate, studying a
Bachelor of Business at the Queensland University
of Technology.
FORENSIC ACCOUNTING
Welcome back Forensic Accounting Partner
Natalie McKay. She has returned to work at Pilot
after her maternity leave. Although she is missing
her little man she is looking forward to a busy year
ahead.
4
Welcome to Matthew Arvier, Eliza Jones and
Steven Wang who have all chosen to launch their
careers at Pilot as a part of our Cadet Program. We
are very excited to have them at the firm. We hope
that they have opportunity to put their knowledge
into practice and grow with Pilot.
Both Matthew and Steven are working part-
time for the Business Advisory Division and
will complete their studies at the University of
Queensland next year. Eliza has joined the Taxation
Services Division and she is in her first year at the
Queensland University of Technology.
“Working at Pilot has helped improve my
motivation towards my studies, as I now have an
insight into the practical application of what I
am learning at uni. The firm is being very flexible
with my time so that I can balance uni and work.
Working at Pilot so far has been a great
experience and it has given me a better idea of
what a career in the accounting industry entails.”
Matt Arvier
A few of Pilot’s crazy critter cupcakes for the RSPCA’s Cupcake Day
Josh Meggs lines up for the goal at the Institute of Chartered Accountants’ annual Six Aside Soccer Tournament
Nicole Melina Stavropoulos
Assistant Treasurer, Bill Shorten said the
measure would be re-introduced in early 2012
following more consultation with stakeholders.
For now, it remains that Director Penalty Notices
relate only to unpaid PAYG – but this is most likely
to change in 2012.
Should you wish to know more about how the
proposed changes may affect you, please
contact Bradley Ryan from our Business
Advisory Division on (07) 3023 1300 or