April 2023 Newsletter
Contents:
- What is the Windfall Gains Tax?
- Interest Paid on Early Tax Payments
- Instant Write set to end 30 June 2023 – Brings Uncertainty
- Millions of Aussies to get Centrelink Payment Boost
- Property Ownership in SMSFs – The Rules
- Special extra tax for $3m super balances
- Retiring Young, is 50 the new 65?
- SMSF Members Should Have an Enduring Power of Attorney
- Announcements
What is the Windfall Gains Tax?
Landholders can accrue significant windfall gains when the value of their land increases due to the actions of government. These landholders may pay a tax on their windfall gains. From 1 July 2023, a windfall gains tax applies to land that is subject to a government rezoning resulting in a value uplift to the land of more than $100,000. In determining the value uplift, all land owned by the person or group and subject to that rezoning is taken into account.
Interest Paid on Early Tax Payments
You may receive interest when you pay certain tax liabilities more than 14 days before the due date. Interest on early payments (IEP) is interest we pay when you make a payment towards any of the following tax liabilities more than 14 days before the due date including income tax (including Medicare levy and Medicare levy surcharge).
Instant Write set to end 30 June 2023 – brings uncertainty
As the cut-off date for the instant asset write-off program approaches on June 30, 2023, many small to medium-sized enterprises (SMEs) are feeling the pressure to take advantage of the program before it ends.
The program has been a popular initiative for SMEs since its introduction in 2015, allowing them to immediately write off the cost of assets valued up to a certain amount instead of depreciating them over time.
Millions of Aussies to get Centrelink Payment Boost
Millions of Aussies are set to receive an increase in Centrelink payments this month, including Age Pension and JobSeeker recipients. More than 4.7 million Aussies will receive a major boost to their welfare payments on March 20, 2023. The increase is part of a twice-yearly indexation of welfare payments to ensure they keep pace with the rising cost of living.
Property Ownership in SMSFs – The Rules
When owning property in a SMSF, there are some important rules that you need to get right. We have recently seen some costly mistakes occurring. Here’s a handy list of some of the important ones: Acquisition of property; Property valuations; Rental appraisals; Lease agreements; Loan repayments; Insurance; Issues where property is jointly owned; Acquisitions from related parties; Cashflow; Vacant land.
Special extra tax for $3m super balances
Who is impacted? The measure is limited to those individuals who have more than $3m in super at the end of a financial year. Since it’s not due to start until 2025/26, it’s the balance in super at 30 June 2026 that matters initially. Presumably someone with an enormous super fund in 2025/26 who withdraws everything over $3m in June 2026 will not be impacted.
Retiring Young, is 50 the new 65?
Retiring in your 60s is considered by many as the right time to give up work for good. Out of 8,000 people surveyed by the Australian Bureau of Statistics for the most recent Retirement and Retirement Intentions data release (May 2020), the average age people said they intended to retire was 65.5 years. But, what about those who are currently in the workforce and are targeting an ‘early’ retirement?
SMSF Members Should Have an Enduring Power of Attorney
It is not an exaggeration to say that being a member of an SMSF without an appropriately drafted enduring power of attorney (EPoA) is courting with disaster. Indeed, the various potential pitfalls and problems that can arise for SMSFs where the fund member(s) do not have EPoAs mean that a person who is unwilling to have an EPoA should probably be strongly cautioned against having an SMSF in the first place.
Announcements:
This month we wish a very Happy Birthday to Richard, Laurie & Katrina. There are no work anniversaries this month!
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Important ATO Dates
| Lodgement Program | Date |
| March monthly activity statements | 21/04/2023 |
| Quarter 3 (January–March) PAYG instalment activity statement | 21/04/2023 |
| Quarter 3 (January–March) activity statements | 28/04/2023 |
| Quarter 3 (January–March) PAYG instalment notices (forms R and T) | 28/04/2023 |
| Quarter 3 (January–March) GST instalment notices (forms S and T) | 28/04/2023 |
| Quarter 3, (January–March) super guarantee contributions | 28/04/2023 |
Other News
Changes at Knights Accounting from 01/07/2023
Since Margaret’s departure back in July 2022 we have had to make a number of administrative changes to how we operate to ensure we continue to provide the high levels of service you have become accustomed to. To that end there are a few new changes from 1 July 2023 that we believe will help improve the level of service we provide. The main change being the merging of administration and compliance services into Watts Price Accountants. What doesn’t change- You will still have full access to Pete, Grant, Lee and Maree as there is no change to their hours or roles, plus you will have support from an additional 15 team members.
- Your current engagement or payment preferences
- The Rupanyup Office hours are not changing, they remain as follows –
- Tuesday 9.30 – 4.00pm (Lee)
- Thursday 9.30 – 4.00pm (Grant)
- Friday 9.30 – 3.00pm (Phoebe)
- Plus you have access to accountants and admin staff in Horsham five days a week between 8.30am and 5.30pm
- The contact details like email, phone and postal address remain unchanged. You also have access to support via –
- Email: mail@wattsprice.com.au
- Phone: 03 5382 3001
- Address: 44 Wilson Street, Horsham VIC 3400
- Postal: P.O. Box 118, HORSHAM VIC 3402
What does change
- The Knights Accounting name will be retired and replaced with Watts Price Accountants. This means the stationery, signage and other contact points will be changed from 1 July 2023.
- With the changing of the name there will be a few associated changes like a change in tax agent and new bank details. More details will be provided closer to the transition date.
Interest on Early Income Tax Payments
Please note that tax payers that pay their income tax more than 14 days prior to the due date maybe entitled to receive interest on the amount paid. This was an initiative started March 2022 and we are now starting to see a number of these payments come through.
If the ATO does not have your bank details on file they may send a cheque or deposit the amount in our trust account, at which point we will contact you to get your bank details and your authority to transfer the interest payment.
If you would like to know more about this please see the article above or call our office!