Five survival tips for university students

Prying yourself away from the beach, off the couch or out of bed early enough to make it to uni after a holiday or study break can be a real challenge. If you’re heading back to uni this semester, here’s a quick guide to help you get the most from your time on campus.

1. Set realistic expectations

You may have been a top performer at high school, but at university you’ll meet other high achievers. Don’t get too precious about ranking, just focus on learning as much as you can. Getting your parents to understand the reality of university will also help relieve some pressure.

2. Keep on top of study

Orientation week is a party, but you’ll hit the ground running in week two. Do all required study when you’re supposed to. Doing little chunks on a regular basis is better than trying to read an entire textbook before the exam. It means you can ask your tutor questions about the bits you don’t understand so that references don’t go over your head later.

You’ll also occasionally take subjects that are too difficult or that you don’t find interesting. Keep these in check – you don’t want to do them again!

3. Start networking

Socialising is a big part of university life. In addition to your classmates, you’ll also find an array of clubs and societies that cater for different interests, from sports to religion, politics to partying. This is your chance to meet a range of people, not only the undergrads who’ll be future industry peers, but others who’ll widen your worldview.

4. Know your deadlines

Your lecturers and tutors may have already scheduled exams and assignments, so familiarise yourself with this timetable and set yourself some soft deadlines – for example, a due date for the first draft of an assignment.

Lecturers and tutors often have hundreds of students, so asking for an extension is incredibly difficult without a very good excuse (e.g. medical issue, death in the family), and they often attract penalties.

5. Find study/life balance

Identify what you want from your time at university. If you’re working part-time and/or getting involved in various clubs and societies, make sure your commitment is in line with this goal. Are you doing too much studying and not enough of anything else, or vice versa? No one will tell you what the right balance is – you need to figure it out for yourself.

Enjoy your return to study this semester and stay tuned to the Careers in Tax blog for more helpful tips and advice.

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Three big tax issues to watch out for in 2014

The tax industry is always changing, with new legislation constantly on the cards. Find out what the big issues will be for 2014.

As long as there is government, there will be taxation. Yet despite this constancy, the tax industry is constantly changing. It will be no different in 2014 as government-led tax reform and shifts in the industry make their mark.

1. Government tax reform

The new Coalition government will be looking to make its mark this year following six years of a Labor government. Expect a number of their tax reform policies to be introduced into parliament, including the big one: scrapping the Carbon Tax.

The Carbon Tax is Prime Minister Tony Abbott’s number-one tax-related target, although there are a number of other initiatives on the table, including reducing company tax and introducing a paid maternity leave scheme. If any of these come through, there will be complex tax implications for businesses, so it will be a big year for business tax advisors.

2. Digital disruption

New, easier-to-use software will help businesses automate some tax-compliance work, but on the flipside this will reduce the form-filling role of some tax accountants so they can concentrate on adding business value. Low-value compliance services will see margins shrink as a result, and tax professionals will see a shift to high-value accounting and advisory roles. Tax professionals whose main bread and butter are audit and/or compliance services will therefore need to step up their skills and expertise.

3. Diversification of the industry

The accounting sector has been in turmoil for the past year as poor economic conditions have caused accounting clients to pull back on spend. The big winner from this is diversification. Firms that offer tax and business advisory services are, in opposition to trend, thriving. According to BRW, “tax advisory and business advisory remained the fastest-growing areas… and tax compliance and business advisory were the biggest fee contributors.”

For graduates and undergraduates, this will mean those with a diverse knowledge area will fare well in the new environment with business and communication skills at the top of the list.

The tax industry is changing. A new government will ensure reform is on the agenda this year, but the evolution of the industry itself will also see a shift towards specialist skills with tax professionals taking on higher-level advisory roles due to digital disruption and the changing needs of business.

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Understanding roles in the tax industry

What can you expect of a role in the tax industry? Using this snapshot you’ll be able to see if a career in the tax sector is for you.

The tax industry is a broad and important one. Because tax affects everything we do, Australia requires tax professionals to ensure individuals, businesses and governments are well served by the tax system.

Though many tax professionals may wear more than one hat, there are five main roles in the tax industry (figures in parentheses represent people registered in the occupation):

1. Accountants (169,700).
2. Analysts/economists (1300).
3. Lawyers (solicitors, not specifically focused on tax: 69,700).
4. Policy developers/advisors (not specifically focused on tax: 22,700).
5. Tax agents/advisors (unknown).

Of these, accountants comprise the biggest population of tax professionals with about 170,000 registered in Australia in 2012, according the Australian Government’s Job Outlook.

Are you a future tax accountant?

Accountants work with clients to plan and develop financial systems as well as advise on recordkeeping and compliance, including tax obligations. The skills you need to be a good accountant are active listening to best serve your clients, an ability to use systems and mathematics to solve problems, and critical thinking to evaluate problems and propose solutions.

Accounts clerk salaries begin at about $35,000 per annum, but those with a bachelor degree with a tax specialisation usually start higher, on $48,000. The average salary is $80,000, going up to about $150,000 for highly experienced tax accountants. Pay generally differs with the employer, whether the organisation is public or private, big or small.

Are you a future tax lawyer/solicitor?

Solicitors are legal advisors who prepare legal documents and represent clients in negotiations in matters related to the law. In addition to the skills required of accountants, solicitors and lawyers are expected to have complex problem-solving skills and to exercise a high degree of judgement and decision making.

The starting salary for law clerks/paralegals is about $40,000 per year with solicitors starting at around $50,000. Due to the higher education baseline required to go into tax law, the entry-level salary for specialist tax lawyers is $70,000. A mid-level tax solicitor/lawyer can expect to earn $115,000-140,000 per annum and those at the top generally earn above $200,000.

Are you a future tax policy advisor?

Government intelligence and policy analysts collect and analyse information to inform and develop policy that will in turn affect government and commercial operations and programs. To do well at this role, you’ll need to have solid research and critical thinking skills as well as be able to solve complex problems, evaluate systems and communicate your findings and recommendations.

This role is generally not for graduates; most graduates will support activities in this department before moving into this position. Because this is a government role, the starting salary is a healthy $55,000 with the average employee bringing in $90,000. At the highest level you can expect to earn $145,000 per year.

If you’re intelligent and can solve complex problems, are comfortable performing technical calculations and keeping up with legislation changes, the tax industry wants you for a stable and well-paid career.

Give yourself the edge with free Student Membership

If you are a tertiary education student, The Tax Institute can help you progress in your career journey.

Find out about Student Membership.



[Sources]

http://joboutlook.gov.au/keyword.aspx?keyword=tax
http://www.taxinstitute.com.au/careers/a-career-in-tax
http://content.mycareer.com.au/salary-centre

The best graduate programs to start a tax career

Graduate programs are an excellent way to start your career in a work environment built for learning. Here are some programs you might consider applying for.

Graduate programs are designed to orientate and develop candidates in an environment catered for their skills and knowledge, but they are also sympathetic to the fact they may be unfamiliar with the workplace.

Graduates will often start in an intake with other graduates and gain exposure to different roles in a department relevant or complementary to their degree. This allows you to find out what you like and what you’re good at, as well as help you transition into the rhythm of work life.

Here are the best graduate programs to start a tax career.

Government

Australian Tax Office (applications open from 11 March – 8 April 2014)

If you’re interested in getting to know the ATO, this is the graduate program for you. The ATO’s 12-month program promises a dynamic business environment that builds depth and breadth of expertise that is particularly relevant to the ATO. If you have a knack for tax administration, the post-program salary starts at $64,000 with all the perks of a government role, including flexibility.

http://www.destination.ato.gov.au/Our-Programs/Graduate-Development-Program/Apply-here/

Treasury (applications open from 1 March – 1 May 2014):

Not sure about whether the ATO is right for you? Apply for the general Treasury graduate program and work across any of a range of departments, including the Australian Prudential Regulation Authority, the Reserve Bank of Australia and the Australian Securities and Investments Commission. This is ideal for those with an accounting or financial management qualification who are interested in a policy or analyst role.

http://graduates.treasury.gov.au/content/application_process.asp

Corporations

Multinational accounting and consultancy firms are known for taking on several graduates in each office every year and competition is usually fierce. Corporate graduate programs often allow you to work in a range of departments to give you a taste of where your skills are best employed. Many also support further education and professional development, including chartered accountancy certification, and may also provide opportunities to apply for international roles in overseas branches.

Corporate graduate programs are best suited to candidates looking for a career as an auditor, tax accountant or consultant

Deloitte (from 19 February 2014)
http://mycareer.deloitte.com/au/en/students/programs/graduateprogram

PwC (various dates)
http://www.pwc.com.au/careers/student/application-dates/index.htm

EY (from 24 February 2014)
http://www.ey.com/AU/en/Careers/Students/Your-role-here/Students---Programs

KPMG (from 24 February 2014)
http://www.kpmg.com/AU/en/careers/Graduates-Students/How-to-apply/Pages/default.aspx

Grant Thornton (various dates dependent on location)
http://www.grantthornton.com.au/Careers/How_to_Apply.asp

BDO (various dates dependent on location)
http://fsr.cvmail.com.au/bdo/main.cfm

Generally only large organisations such as governments and corporations have graduate programs, though some smaller organisations will run programs with fewer graduates in the intake. Be aware that many graduate programs will be location dependent with most government programs located in Canberra and the corporate programs concentrated in the capital cities, so factor in relocation costs if you need to move. Good luck!

Give yourself the edge with free Student Membership

If you are a tertiary education student, The Tax Institute can help you progress in your career journey.

Find out about Student Membership.



[Sources]

http://australia.gov.au/topics/graduate-programs
http://au.gradconnection.com/

What’s in store for tax professionals in 2014?

In this world nothing can be said to be certain, except death and taxes, wrote Benjamin Franklin. And because of this, a career focused on tax will always be a stable one. This year, however, expect an upward curve and a diversity of roles.

According to the Australian Government’s Job Outlook, roles for accountants, economists, and policy analysts are expected to grow strongly over the next five years due to a number of factors.

Firstly, the Coalition government installed in Canberra last September plan to act on a number of their policies, which include scrapping the Carbon Tax introduced by the Gillard government, lowering company tax and introducing schemes such as paid maternity leave that will require adjustments to the tax system. This will keep economists, analysts and tax lawyers on their toes throughout the year.

Secondly, the business outlook in Australia remains positive with thousands of new businesses starting last year and more to come in 2014. Pair this with the Australian Taxation Office’s (ATO) new campaign to educate businesses about their tax obligations and you have scope for more tax advisers and accountants to help businesses meet these.

Thirdly, trade will become an important hinge on which tax policy may swing. At the recent World Economic Forum, Prime Minister Tony Abbott brought up the issue of globalisation and how having different taxation regimes means some businesses “chase tax opportunities rather than market ones,” a practice he believes is detrimental to free and fair trade. This is a key area for economists and tax policy advisers, particularly those with international business knowledge and/or experience.

Two trends that tax graduates should note is the rise of self-managed superannuation funds (SMSFs) and a business startup culture that will come to fruition in a few years. SMSFs fall under a tax structure that depends on compliance. SMSF tax specialists and advisers who understand both the rules and the market will do well here.

Traditionally, startups in Australia have struggled, not from a lack of business ideas but from a lack of funding and commercialisation opportunities. Expect this to change as venture capitalists recognise undervalued Australian startups and domestic lenders rethink their risk appetite. Many entrepreneurs are product or service focused so will benefit from business and financial advice.

Any changes to the tax system or to the way people or businesses manage their finances will have tax implications and tax professionals who keep up with the trends will always do well in a moving market.

Give yourself the edge with free Student Membership

If you are a tertiary education student, The Tax Institute can help you progress in your career journey.

Find out about Student Membership.



[Sources]

http://www.liberal.org.au/lowering-company-tax
http://www.liberal.org.au/scrapping-carbon-tax-and-reducing-cost-living
http://www.ato.gov.au/Media-centre/Media-releases/Tax-tips-for-Australian-businesses/