Tighten payroll and advisory contracts after ATO UPE guidance shift

What happened

The ATO released an impact statement on the Bendel High Court decision and withdrew taxation determination TD 2022/1, but made clear other provisions including subdivision EA and section 100A remain active. The statement gives some comfort on one technical point but leaves unresolved exposures that make supplier liability and contract language operationally important. Watch for further ATO guidance or budget changes that could change the liability picture for trust‑related services

Why the category manager should care

Do not treat the TD 2022/1 withdrawal as a clean pass for trust work; continue to require supplier controls and explicit contractual liability allocation

Key facts

• ATO issued an impact statement withdrawing TD 2022/1
• Subdivision EA and section 100A remain under review
• Practitioner warnings to remain cautious about unpaid entitlements

What happened

A CreditorWatch conversation highlights that high levels of late payments and other behavioural signals are appearing before financials deteriorate. That makes early intervention services more needed and means procurement should expect more short‑notice requests for restructuring, advisory and contingent staffing support

Why the category manager should care

Treat advisory sourcing as contingent capacity planning: pre‑qualify turnaround firms and test retainer willingness to avoid emergency premium spends

Key facts

• CreditorWatch Business Risk Index shows increased late payments
• Advisers urged to detect behavioural warning signs before financials collapse
• Focus on earlier intervention and support for SMEs

What happened

A profile of a growing local CPA practice shows deliberate investment in in‑house marketing and new hires that doubled revenue and significantly expanded client base. The firm’s growth and local hiring are operationally real: they increase onshore capacity but also make the supplier more likely to use retainers or shorter quote windows as it scales

Why the category manager should care

View boutique growth as a real capacity change but expect changed commercial posture—use procurement leverage for defined mobilization or fixed‑scope pilots

Key facts

• Firm expanded from a single admin hire to multiple new staff
• Client base grew substantially and revenue doubled year on year
• Hired internal marketing/digital specialist to scale client acquisition

What happened

A profile of an established advisory firm highlights a focus on early intervention and resilience for clients, showing advisory demand for restructuring and strategic work remains meaningful. The firm’s emphasis on cross‑discipline services (finance, operations, risk) makes it a practical candidate for contingency panels and early‑engagement retainers

Why the category manager should care

Prioritise firms that emphasise early intervention for contingency panels; they are more likely to provide predictable playbooks for rapid engagement

Key facts

• Firm winner of Advisory Firm award with long experience in restructuring and insolvency
• Emphasises early intervention, cross‑discipline approach and client education
• Positions advisory services as strategic rather than emergency‑only