Grant Thornton Australia

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.

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.

If the government's economic outlook last week tells us anything, it's that we need to be realistic about the Australian economy. In this podcast, Said Jahani, National Managing Partner of Financial Advisory, discusses what happens when the 'sugar hit' of government stimulus and early access to superannuation currently swirling in the economy dissipates, and what he hopes the Australian economy will look like in five years' time.