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Automotive Accountants' Network Forum, 20 April 2010
 

Automotive Accountants' Network Forum, 20 April 2010

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First meeting for 2010 of Colledge's Automotive Accountants' Network Forum.

First meeting for 2010 of Colledge's Automotive Accountants' Network Forum.

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    Automotive Accountants' Network Forum, 20 April 2010 Automotive Accountants' Network Forum, 20 April 2010 Presentation Transcript

    • Automotive Accountants’ Network Forum Meeting 1 Tuesday 20 April 2010 Founding member of
    • This presentation has been prepared by Colledge’s for the general information of its clients and forum attendees. While the information herein has been prepared with all reasonable care and derived from sources believed to be accurate, no responsibility or liability is accepted by Colledge’s or any of its affiliations, for any errors or omissions, including liability to any person of negligence or otherwise. Recommendations may not be appropriate in all circumstances and clients must consider their own personal objectives and financial advice before acting on recommendations in this presentation. Colledge’s (ABN 52 439 950 641) For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Why are we here? • Maximise outcomes for Dealership Accountants • Professional & Personal Development • Networking • Keep up-to-date For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • House Rules • Ask questions • Respect for presenters and colleagues • One discussion at time • Phones to “silent” • Have fun! For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Agenda 1. National Consumer Credit Protection Act – Dealership exemption? 2. Improved Dealer Performance 3. FBT update 4. Division 7A 5. Son of Holdback – Latest news For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Whiteboard Items a. Dealings Book (Police Book) Angelo b. Stamp Duty – post disclosure feedback Angelo c. Luxury Car Tax – Accessories sold Angelo – Quoting ABN d. Debtor Control – Any new ideas? Lorraine e. I.T. – How being handled? Lorraine Additional items? For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Quote for the day In a time of drastic change, it is the learners who inherit the future. Eric Hoffer American Social Write & Philosopher (25/7/1902 – 21/5/1983) For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Car Dealership Exemption? For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Where Dealerships (point-of-sale) currently stand • Phase 1 of the Act is complete, having passed Australian Parliament and received Royal Assent. • Within Phase 1, Car Dealerships are exempt (as point-of-sale) from having to:  Register with ASIC; and  Apply for a credit licence; or  Become a representative of a credit licensee. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Where Dealerships (point-of-sale) currently stand • “Phase 2” is now underway. • Government will review various aspects of the regulations. • On The Treasury’s agenda is consideration of the point-of- sale exemption. • Colledge’s was informed by the Consumer Credit Unit in Canberra that the Motor Traders’ Association is on The Treasury’s review board.  Submission due June 2010. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Where Dealerships (point-of-sale) currently stand • Continues to be opposition to dealerships being exempt. • In ASIC’s recent National Credit Roadshow, dealership exemption was discussed within point-of-sale.  Point-of-sale has such a “broad range of degrees of involvement of people”.  Government needs time to look at the various point- of-sale activities and how they should be regulated. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Where Dealerships (point-of-sale) stand But as at today, Dealerships, within point-of-sale, are exempt from the Credit Act. This is ongoing until the Government changes the Act. Source: Consumer Credit Unit, The Treasury, Canberra For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Let’s be prepared: ASIC Requirements For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration & Application requirements Registration between 1 April to 30 June 2010 Applications for Australian Credit Licence (ACL) between 1 July to 31 December 2010 (Refer handout from Conference, 22/2/10) For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Registration For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration • Those wanting to be involved in Credit Activities after 1 July 2010 need to be registered by 30 June 2010. • Registration is free. • Being registered, allows you to continue in Credit Activities. • If you are not registered by ASIC by 30 June 2010, you must cease Credit Activities until registered. These points exclude those that are exempt in the Act. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration Requirements • Adhere to conduct requirements, such as being honest, fair and responsible lenders. • Staff training and competency as an organisation. • Become members of External Dispute Resolution (EDR) body.  Alternative to the courts (less formal) For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration Responsible lending 1. Make “reasonable enquiries” about the customer’s objectives and requirements; 2. Take “reasonable steps” to ascertain the customer’s financial situation; 3. Assess the customer’s ability to repay the loan without “substantial hardship”; and 4. Do not offer or suggest products that are “unsuitable”. Source: ASIC National Credit Roadshow (webinar) For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration Disclosure requirements Lenders will have to tell customers: a) How much the broker receives for securing the loan; b) All costs the consumer will have to pay to the broker, bank and others, and c) How much money will be left over after these payments have been made. That is, all customer fees and charges, and your commission for securing the loan. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration Registration application requirements • Being a member of an ASIC approved EDR body. • Up-to-date company details, e.g. Company Register • Making statements regarding conduct of directors, company secretaries, partners, trustees  ASIC suggests background checks on people, including if: - been insolvent or bankrupt - had serious fraud convictions in past 10 years - been disqualified from managing a corporation - had credit registration or financial service licence cancelled For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Registration • Not every person requires a licence • A licensee can act through its employees, directors and related corporations • One or more third parties can be authorised by a credit provider to act on its behalf = “Credit Representatives”.  The Credit Reps do not need to be individually registered  Licensee must authorise in writing their Credit Rep/s and what credit activities they will be involved in  Credit Reps must join an External Dispute Resolution body For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Application for Licence For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Licence Application • Applications for Australian Credit Licence (ACL) start 1 July 2010 • Those who have not applied for ACL by 31 December 2010 must cease credit activities until they have a licence. • By 30 June 2011, all applications will be processed. • ACL numbers will be required on all marketing information, i.e. letterhead, website, etc. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Licence Application • Licence fees will depend on level of credit activity  Range from $1,000 – $21,000  Non-refundable, including if application rejection • ASIC will ask questions to assess suitability regarding becoming a licensee. • Comply with the conduct obligations in the Act. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Licence Application • Provide details on the directors, secretaries, partners, trustees or senior managers  Need statements from each person that they are “fit and proper” to conduct credit activities under the licence. • From this group, nominate people as “Responsible Manager/s” who have the expertise to be authorised under the licence. • “Responsible Managers” have to provide their educational qualifications and experience to support the application. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act ASIC Licence Application To comply with the conduct obligations in the Act, licensees will have: • and maintain compliance arrangements and systems; • trained and competent Reps, who are supervised; • adequate HR, I.T., and financial resources; • Risk Management systems in place; • appropriate internal and external dispute resolution systems; • Policy & Procedures to receive & assess variations in credit contracts; • arrangements for compensation to customers (should you breach obligations under the Act). For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • National Consumer Credit Protection Act Due to the level of details within the Act, please note that this presentation is a summary of the requirements for ASIC Registration and Application for a Licence. We encourage you to download and familiarise yourself with the documentation on ASIC’s website http://www.asic.gov.au/credit. A great resource within the ASIC website is their Credit Roadshow webinar. We again encourage you to take 60 mins to watch the presentation which was a valuable source for this presentation. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Economic Recovery • Vehicle Market   AutoTeam 975,000 units  March 1M+ units • Cash rates forecast for 2010 has  a further 0.5 – 0.75 • Employment improving • Business sentiment best in 3 years • Housing market booming • Oil above $80bbl • $A strengthening and nearing parity again • Cautious optimism For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance What is driving the Recovery? 1. US economy 2. China at 9%+ growth 3. Economic stimulus around the world For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance What are the risks? 1. Economic stimulus funded through public debt worldwide 2. Private debts – highest in history 3. European economic performance 4. China’s growth For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Key benchmarks Jan 2010 Apr 2009 NPBT % Revenue 2.5% 2.2% Gross % Revenue 15.5% 15% Gross per Employee 11,000 10,000 Parts Service Absorption 57.5% 53% For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Key benchmarks Jan 2010 Apr 2009 New Vehicle Gross $2,800 $2,700 New Vehicle Penetration Rate 32% 36% (Finance Insurance Used Retail Gross $2,600 $2,400 For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Key benchmarks Jan 2010 Apr 2009 Labour Sales per Chargeable Employee $17,000 $13,500 Parts Sales per Employee $75,000 $70,000 Expense as % Gross 70% 70% For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Impact on Dealers – “Creep” Improved trading conditions have lead to some old habits returning. Watch out for: 1. Increased stock holding – days carry 2. Debtors creep 3. Floor plan creep 4. Head count creep 5. Expenses creep For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Lessons learnt during GFC should continue to be applied at dealership 1. Lean stock – being more selective 2. Keeping a tight control of cash 3. Balance Sheet account reconciliations 4. Managing floor plan expense – stock control 5. Staff productivity improvements 6. Control of spending For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance Case Study Recent Internet & Website expense analysis performed by Colledge’s. Dealership A Actual cost for used car sale from internet lead $330/sale • Inclusive of number of leads vs sales & subscriptions fees Costs for website maintenance $990 • Inclusive of hosting, content updates/changes (month) Average website/internet spend for month $10,310 Average website/internet spend for year $123,720 For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Improved Dealer Performance 1. Understand the impact of online advertising on dealership expenses and productivity. 2. Do you and your Dealer Principal look at internet and website invoices? 3. Do you have a process for dealing with internet sale leads? For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Internet & Websites Being used effectively? For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Internet and Websites • No longer good enough to have a static website • Your website needs to be interactive and regularly updated  Dealership news  Automotive news  Car/model news  Newsletter / BLOG • Content is king For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Internet and Websites Increase exposure, search engine optimisation and customer leads to your website with free internet sites. Social Media Online Directory Listings • Twitter • Yellow Pages • Facebook • White Pages • LinkedIn • True Local • Blogger.com • Hotfrog • Slideshare • Bigroo For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Internet and Websites Analysing your website Google Analytics is free and will provide you with:  How many people visit your website  New vs returning visitors  The pages people are viewing  How long people are staying on your website  Where people are finding your details (Search engines, other websites, direct link)  Bounce rate – people clicking out immediately For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Internet & Websites What is your Return on Investment? • Beware of over-priced website contractors and set contracts (refer to Case Study in previous topic) • What is your dealership’s internet spend? • Who’s using Google Adwords?  What is ROI? For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Internet & Websites Cost saving measures • Ensure website contract provides a Content Management System (CMS) to add content yourself. • Ensure you are not paying external contractors for email enquiries on your website.  Having a CMS will allow you to do this yourself. • Decrease reliance on external search sites for used car sales. • Analyse your website regularly. Contact Colledge’s if you need assistance or advice. For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax FBT year 31 March 2010 Return due 28 May 2010 For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax Latest Update • Major Change:  Salary Sacrifice Superannuation contributions now a reportable fringe benefit. • No other changes For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax FBT & Motor Vehicle Dealers • Motors Vehicles  Pooled  Non Pooled • Factory benefits For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax • Meal entertainment • Corporate boxes • Recreational expenditure For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax Reportable Employee Superannuation Contributions (RESCs) Have employer contributions been made for the No employee during the year? Yes Do the contributions exceed the amount the No employer is required to contribute under law (e.g. SG Law) or some other obligation? Yes Did the employee have any influence over the No amount of superannuation contributed for them? Yes The employee has RESCs for the year The employee does not have RESCs for the year For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax Salary Sacrifice • FBT exempt otherwise deductible Declaration required to support FBT • 50/50 split declaration • Expense declaration • RESC advice to employees For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Fringe Benefits Tax Rates & Thresholds • Gross up rates  Type 1 (taxable supplies) 2.0647  Type 2 (not “Type 1”) 1.8692 • Tax rate 46.5% • Exemptions / Reductions  Minor Benefits $ 300 (less than)  Long Service Awards $10,000  Safety Awards $ 200  In-house benefits reduction $ 1,000  FBT reporting threshold $ 2,000  FBT benchmark interest rate 5.85% For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • ATO Division 7 For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • 1. Use of Company Assets 2. Taxing Point for Companies For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Son of Holdback Update For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Son of Holdback – Update Current status • Majority of eligible dealers have submitted “Stop the Clock” letters • ATO has recognised “Stop the Clock” letters • ATO has requested for magnitude of claim.  Have not requested any substantiation (amended BAS returns) • ATO will hold claims in abeyance pending a court case to decide the validity of the claims For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Son of Holdback – Update Current status • ATO has begun issuing assessment notices resulting from the amended BAS returns • ATO is rejecting claims  Tax payers have 60 days to object (A procedural issue) • A Working Group has been established to effectively deal with the rejections For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
    • Next Meeting: Tuesday 22 June 2010 (at The Manningham) Agenda to include: Service Dept KPIs For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au