August 2022 Newsletter
- What happens when SMSF members don’t get along?
- Interest rate increase on related party LRBA loans
- Effective leadership the key to staff retention and attraction
- Small businesses ‘should race to register’ .au suffix
- Rival standard for savings and incomes in retirement
- Skills shortage driving SMEs to the brink, says Insolvency Australia
In June each financial year, the ATO release updated interest rates for superannuation funds who have borrowed monies from related parties, to ensure the loan terms remain at arm’s length, commercial terms under the safe harbour guidelines of PCG 2016/5. For 2022-23 the interest rate has increased to 5.35% for real property; and 7.35% for listed shares/units. This is unsurprising considering the Reserve Bank of Australia having increased interest rates over recent times.
Effective, quality leadership is the predominant factor in attracting and retaining talent, according to the inaugural Evolution of Leadership Report 2022. The report, launched this week by the Access Group and HR Leader, is based on a survey of over 1,000 professionals across a range of industries and company sizes. They were asked about the key factors in employee satisfaction to see if the phrase “people don’t leave bad jobs, they leave bad managers” was increasingly true.
Firms that fail to successfully add the shortened domain variant invite commercial disaster, says IPA. Time is running out for small businesses to register the “.au” version of their domain name or risk losing visibility, clients and goodwill, said the IPA. The Australian Cyber Security Centre (ACSC) made the shorter suffix available in March and said anyone with a connection to Australia would be able to register a “.au” variant of an existing web address that uses “.com.au”, “.net.au” and “.gov.au”.
There’s a new contender defining how much savings and income are needed in retirement. For many years, the ‘standards’ for both have come from the Association of Superannuation Funds of Australia (ASFA), and they are regularly used by policymakers and financial planners in setting goals. The new standards from Super Consumers Australia (SCA), now in partnership with CHOICE, aim “to counter the established industry lobby groups”. They claim that ASFA numbers are too high due to a vested interest campaign for more super so it is no surprise the SCA numbers are smaller.
With supply chain problems and rising inflation, an inability to find workers is the last straw for many. The nationwide skills shortage is becoming a key factor in forcing businesses into insolvency with SMEs hardest hit, said Insolvency Australia. Director Gareth Gammon said the hospitality, tourism and construction sectors were especially vulnerable. “We’re in uncharted waters, staff shortages are endemic across multiple industries and the unemployment rate at a record low of 3.5 per cent,” said Mr Gammon.
Announcements:This month we wish Phoebe, Paul & Hayley a very Happy Birthday, as well as congratulating Paul (16 years) & Jo (11 years) for bringing up another work anniversary!
A few changes regarding operations at Knights Accounting from 18 July 2022!With Margaret retiring Friday 15 July, there will be a few changes from Monday 18 July 2022!
The search to find a replacement for Margaret has been challenging in the current environment and we were unable to find a suitable person in the Rupanyup area. However, we have been fortunate enough to find an experienced office administrator in Horsham in Maree Tucker. Maree will be the point of contact for Knights Accounting clients once Margaret leaves.
As Maree will be based in Horsham, please note the following changes:
In the first instance, please direct phone queries to Maree at 5382 3001. The office number at Knights (5385 5330) will remain in operation but will only be attend during the new office hours. Outside of the below times you can leave a voice message (or contact Watts Price Accountants).
Office Hours – the Knights Accounting Office will be open:
Tuesday 9.30 – 4.00pm (Lee)
Thursday 9.30 – 4.00pm (Grant)
Friday 9.30 – 3.00pm (Phoebe)
You can continue to use the mail slot in the door outside of the hours above or post to PO Box 95 Rupanyup VIC 3388 or PO Box 118 Horsham VIC 3402, whichever you find more convenient.
You can continue to email us at info@knightsaccounting,com.au
Margaret has been a fantastic administrator and we greatly appreciate what she has managed to do over the last 11 years, she will be missed! If you have any queries please contact our office.
Important ATO Dates
|PAYG withholding payment summary annual report
|July monthly activity statements
|Final date for eligible monthly GST reporters to elect to report GST annually.
|Taxable payments annual report (Building & Construction services; Cleaning services; Courier or Road freight; Information Technology; Security, Investigation or Surveillance services)
Important Superannuation Changes
- the rate of SG is increasing from 10% to 10.5%
- Note: some payroll software like MYOB require you to manually change the SG rate
- the $450 per month eligibility threshold for when SG is paid is being removed, therefore all wages will now be required to have super applied to them.
Do you need to lodge a TPAR?Taxable payments annual reports (TPAR) for the 2022 financial year are due by 28 August 2022. You may need to lodge a TPAR to report payments you made to contractors if you provide:
- building and constructions services
- cleaning services
- courier or road freight services
- information technology (IT) services
- security, investigation or surveillance services.
SMSF Audit ChangesPlease note that the Self Managed Superannuation Fund (SMSF) auditor that we have used for the last 20+ years, Peter Monaghan, is retiring as at 30 June 2022.
We have sourced a new auditor, Richard Smith of ASF Audits, who will take over from 01/07/2022.
For those SMSF clients where we arrange the audit please note the following important change from 01/07/2022. When we send out the pre-audit documents you will need to sign and return the Members Statement as soon as possible as the audit can not be completed until these have been sighted by the new auditor.
Director Identification Numbers (DINs)A reminder that all company Directors are required to obtain a Director ID. This is particularly important as failure to comply with these new Director ID requirements may result in both civil and criminal penalties.
We recommend that company directors, including those that act as a corporate trustee of their SMSF or family trust, start the application process as soon as possible!
How do I apply for a Director ID?
Each individual director must apply for their own Director ID directly, to verify their identity via the ABRS website (abrs.gov.au), where you will click on the heading Apply for your Director ID.
When do I need to apply for a Director ID?
When you must apply for a Director ID depends on the date you became a director (as outlined below).
|Date you were/are appointed
|Date you must apply by
|On or before 31 October 2021
|30 November 2022
|Between 1 November 2021 and 4 April 2022
|Within 28 days of appointment
|From 5 April 2022
|Before appointed director
Do You have a Company Folder to be Collected?
Just a reminder that due to recent changes in legislation we no longer need to retain paper copies of certain documents. Hence we have been busy scanning your Company Folders and we can now return these to you.
If you have a Company and have not collected your Company Folder yet, this can be done at any time during office hours!
If you have any queries about the content in this newsletter please let us know!
All the best from the Watts Price Team!