Businesses must comply with the key requirements of the legislation in the financial services industry. Some of this legislation include the following: 

A New Tax System (Goods and Services Tax) Act 1999 

1. this act sets out the rules for the goods and services tax (GST), which includes the following:
   1. when and how the GST arises, and who is liable to pay it;
   2. when and how input tax credits arise, and who is entitled to them;
   3. how to work out payments and refunds of GST; and
   4. when and how the payments and refunds are to be made.
      Source: A New Tax System (Goods and Services Tax) Act 1999
2. All businesses in Australia with a turnover higher than the minimum threshold ($150,000 per annum, excluding GST) are required by legislation to register for GST, while registration is optional for businesses with a turnover below the minimum threshold.
3. Items that are exempted from GST include the following:

   

*Certain types of food are not GST-free as specified in Chapter 3 Subdivision 38-A of the Act.

Read more about these exemptions from this link:

Chapter 3 – The exemptions

legislation.gov.au/Details/C2016C00695

The requirements when reporting GST using a computerised system include the following:

1. GST must be encoded in the system using the correct tax code, i.e., GST for goods and services tax.
2. The amount of tax needs to be calculated.
3. System outputs must include the appropriate information, e.g., Invoices must include whether the items are subject to GST and the total amount of GST.

Under the rules of the PAYG withholding system, businesses have a legal obligation to collect tax from payments made to employees and some businesses to meet their end-of-year tax liabilities.

Businesses are required to register for PAYG before they can withhold an amount from the payment. This also requires businesses to employ legal workers who belong to one of the following groups:

1. Australian citizens,
2. Permanent residents, or
3. Non-citizens with Australian working visas

Source: Australian Taxation Office

The requirements when reporting withholding tax using a computerised system include the following:

1. the withholding tax rate must be updatable in line with legislation changes;
2. the appropriate information must be printed on the payslips; and
3. the system must be able to produce payment summaries and the associated tax reporting for lodgement, as required.

This legislation was introduced to ensure that employees receive superannuation support from their employers, such that the employers will set a minimum amount of superannuation fund for their employees.

Failure to pay the minimum amount of superannuation will require employees to pay a Superannuation Guarantee Charge to the Australian Tax Office (ATO).

Read more about the superannuation guarantee minimum from this link:

Superannuation Rate

avsuper.com.au/members/super-guarantee/

and

Superannuation Guarantee

workplaceinfo.com.au/payroll/superannuation/superannuation-guarantee

Superannuation guarantee contributions are paid through a system called SuperStream where:

• employers must make all their contributions in a single transaction to a Super Clearing House, even if they're going to multiple super funds
• contributions and rollovers can be processed faster, more efficiently and with fewer errors
• people can be more reliably linked to their super, reducing lost accounts and unclaimed monies.

Systems must be changeable for PAYG and GST. In Xero, this is done under Activity Statement.

Under this legislation, the following are the Australian Privacy Principles that must be adhered to when accessing, using, and storing personal information and data in a computerised accounting system.

1. APP 1: Open and transparent management of personal information
2. APP 2: Anonymity and pseudonymity;
3. APP 3: Collection of solicited personal information
4. APP 4: Dealing with unsolicited personal information
5. APP 5: Notification of the collection of personal information
6. APP 6: Use or disclosure of personal information
7. APP 7: Direct marketing
8. APP 8: Cross-border disclosure of personal information
9. APP 9: Adoption, use or disclosure of government related identifiers
10. APP 10: Quality of personal information
11. APP 11: Security of personal information
12. APP 12: Access to personal information
13. APP 13: Correction of personal information

Privacy and confidentiality.

Key features of the privacy and confidentiality will reflect the requirements under the Privacy Act 1988 and the privacy principles such as:

1. How personal information can be used. 
2. Process for using and disclosing information from clients  
3. Specifying the types of information needed to perform the specific tasks 
4. Maintaining record keeping to meet privacy requirements such as:
   • What information is required 
   • Who is responsible for collecting the information 
   • What procedure will be used to collect the information 
   • Where it is kept 
   • How long it is kept for 
   • How you dispose of records.

All businesses must be guided by policies and procedures so that operations run smoothly. These policies and procedures must be aligned with legislation, the philosophy, and the values of the business and industry standards.

Australian Accounting Standards

These are standards set by the Australian Accounting Standards Board (AASB) to be enforced in businesses as part of their preparation, presentation, audit, review, and compilation of financial statements. These standards can be accessed using the following link: aasb.gov.au/pronouncements/current-standards.aspx

Corporate governance

It refers to the system of rules, practices, and processes which govern and controls the business organisation. The interests of stakeholders, such as shareholders, customers, suppliers, government, and community, are taken into account to ensure that the organisation performs according to the goals set by the business. Corporate governance is necessary to manage the financial well-being of the business.

Computerised System Policies and Procedures.

Computerised accounting systems, however sophisticated, are still vulnerable to hacks, attacks, and database lost. Business organisations must set in place policies and procedures referring to security measures to be applied when using these accounting systems. The following features must be considered when writing policies and procedures for computerised accounting systems: 

1. Security setting
   The computerised accounting system should be password protected so that only authorised personnel have access to the system and the information stored in the system. The security setting should be in direct relationship to staff responsibility in the business. Additional security measures should be installed on computer systems to minimise risks from computer viruses and hackers.
2. Authentication
   The accounting system in your organisation must require login IDs and passwords from users to confirm permission to access the computer. Passwords must be kept personal and private, and should not be shared across users. Some organisations allow limited access to users to avoid damage or unauthorised access to confidential information in the system.
3. Virus protection
   Computer systems must use anti-virus software and firewalls to minimise or prevent the risk of viruses, malware, and other threats from entering the system. Such threats could increase the possibility of the system’s files and database being hacked or experiencing a system loss.
4. Backup
   A backup of the computer file needs to be done regularly. This involves the process of taking a copy of the file and storing it on an alternative site so that, in the event of the computer system being compromised, the data can be restored. This minimises the chance of losing critical information.

The following are key features of organisational procedures when setting up a computerised accounting system.

Storing data securely.

1. Shred unwanted printed material which may contain personal or financial information  
2. Ensure additional back up is stored away from the workplace  
3. Store all printed material in a locked and secure location.

Log on and authorisation levels.

1. Restrict access and levels of authority depending on role and responsibilities  
2. Change passwords for login regularly  
3. Ensure passwords are not stored in an accessible location 
4. Set alerts for unauthorised access to the system.

Workplace Health and Safety (WHS).

1. Ensure workstations are ergonomically set up  
2. Maintain regular breaks when working at a computer (e.g. 10 minutes every hour)  
3. Keep all cords off floors to avoid trip hazards 
4. Regularly test and tag electrical equipment 
5. Ensure correct office lighting. 

If the computer system of your business organisation encounters any operational problems, seek appropriate technical help from the following: