Blog Layout

Audit Lowe Down – Australia's New Climate Reporting Laws: What Do They Mean for Small and Medium-Sized Entities?

Lowe Lippmann Chartered Accountants

Australia's New Climate Reporting Laws: What Do They Mean for Small and Medium-Sized Entities?


Australia's Senate has just passed a Bill introducing mandatory climate-related reporting for large entities, but what does this mean for small and medium-sized businesses? While you may not be directly required to comply, there is still a significant impact to consider.


One of the key areas affected is Scope 3 emissions reporting, which includes the emissions generated along the supply chain. This means that if your entity is part of the supply chain of a mandatory reporter, they will likely need detailed information for you to accurately report their own emissions.


This is where proactive preparation can benefit you. A first step is to identify which entities in your value chain may be affected and start the conversation with them. You can then consider your carbon footprint: including how much energy does your business consume and your main sources of emissions. By gathering and tracking this data now, you can provide the necessary information to your larger partners, helping them comply with the new requirements.


For example, if you are a small manufacturer supplying products to a large retailer, that retailer will need to report the emissions associated with the production, transportation, and even the disposal of your products. Being able to provide them with accurate emissions data not only strengthens your business relationship but also positions you as a responsible and forward-thinking partner.


Preparing now for these regulatory changes could give you a competitive edge. Climate-related reporting is gaining momentum globally, and staying ahead of the curve will ensure your business is ready to meet any new obligations.



Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

Liability limited by a scheme approved under Professional Standards Legislation


Tax Alert - Will credit card surcharges be banned?

February 19, 2025
Will credit card surcharges be banned? If credit card surcharges are banned in other countries, why not Australia? This alert looks at the surcharge debate and the payment system complexity that has brought us to this point. In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But is the issue as simple as it seems?

Tax Alert - Is there a problem paying your super when you die?

February 17, 2025
Is there a problem paying your super when you die? The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies? The value of superannuation in Australia is now around $4.1 trillion. When you die, your super does not automatically form part of your estate but instead, is paid to your eligible beneficiaries by the fund trustee according to the fund rules, superannuation law, and any death benefit nomination you made. Complaints to the Australian Financial Complaints Authority ( AFCA ) about the handling of death benefits surged sevenfold between 2021 and 2023. The critical issue was delays in payments. While most super death benefits are paid within 3 months, for others it can take well over a year. The super laws do not specify a time period only that super needs to be paid to beneficiaries “as soon as practicable” after the death of the member.

Tax Alert - Why the ATO is targeting babyboomer wealth

February 13, 2025
Why the ATO is targeting babyboomer wealth “Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke The Australian Taxation Office ( ATO ) thinks that wealthy babyboomer Australians, particularly those with successful family-controlled businesses, are planning and structuring to dispose of assets in a way in which the tax outcomes might not be in accord with the ATO’s expectations. If you are within the ATO’s Top 500 (Australia's largest and wealthiest private groups) or Next 5,000 (Australian residents who, together with their associates, control a net wealth of over $50 million) programs, expect the ATO to be paying close attention to how money flows through the entities you control. A critical issue for many business owners is how to effectively (and compliantly) benefit from a successful business. In many cases, the owners have spent years building the business and the business has become not only a substantial asset, but a lucrative source of income either through salary and wages, dividends, or through the sale of shares or assets. Generally, under tax law, you can legitimately structure assets if there is a good reason to do so - like for asset protection, but if you tip across the line and the only viable reason for a structure is to reduce tax, then you risk the ATO taking a very close look at your operations or worse, denying any tax benefits under the general anti-avoidance rules in Part IVA of the tax rules, designed to combat “blatant, artificial or contrived” tax avoidance activities.  “We’re seeing that succession planning behaviour is primarily done by group heads who are approaching retirement. They typically own groups that family members are a part of, and wealth is transferred to the next generation to keep it within the family (via trusts and other means),” ATO Private Wealth Deputy Commissioner Louise Clarke said in a recent update.
More Posts
Share by: