December 2022 Newsletter
- Victorian restaurant first to be criminally charged over wage theft
- Big issues can arise for failing to pay the minimum pension before 30 June
- Employee dismissed for unreasonable personal texting
- MoneySmart: What to do if you’ve been scammed
- 7 things you need to do every time you change job
- SEEK annual report reveals trends from a tumultuous year
- How to avoid getting caught in the in-house asset trap
- Common STP Phase 2 reporting questions and mistakes
Announcements:This month we congratulate Phoebe on achieving her 6th work anniversary and we wish Lee a very happy birthday!
Situation Vacant: Accountant
We are currently seeking a highly motivated, enthusiastic and well organised person with accounting/bookkeeping skills to join our team.
Whether you are a senior or junior accountant looking to further your career or a graduate or bookkeeper looking to get into the industry, an opportunity awaits for you now at Watts Price Accountants!
- Great variety of work
- Flexible work arrangements
- Plenty of client contact
- Excellent workplace facilities
- You’ll be working with great clients & team members
- Excellent communication skills.
- Great attention to detail.
- A great work ethic and time management along with the ability to multi-task.
- Be able to work as part of a team toward common goals.
- A willingness to go above and beyond for our clients.
- Be competent in MS Outlook, Word & Excel.
Important ATO Dates
|Director Identification Number Deadline
|November monthly activity statements
|Super Clearing House – SGL Processing Payments Deadline
Director Identification Numbers (DINs)
By 30 November 2022, all existing directors of an Australian company and directors of a corporate trustee of a Self Managed Superannuation Fund (SMSF) or trust need to have applied for a Director ID with the Australian Business Registry Service (ABRS).
Failure to do so may result in substantial fines for the director enforced by Australian Securities and Investment Commission (ASIC).
- If you have a Director ID and have not informed us please advise us of your 15 digit DIN.
- If you have applied by paper form and are awaiting the DIN please let us know
- If you plan on deregistering as a director please let us know
- If you need assistance in applying please contact us asap
- Otherwise, we encourage you to apply as soon as possible using the instructions below
The fastest way to apply is by using the myGovID app to log in to the ABRS website. The Director ID demonstration video has step-by-step instructions on how to verify your identity and apply for the Director ID online. The full application process can be viewed here.
For more information, please visit abrs.gov.au/directorID.
Can directors apply for an extension?
If directors are unable to apply for their Director ID before the 30 November 2022 deadline, there is an extension form available on the ABRS website.
Do resigned directors require a Director ID?
The Registrar of the ABRS has released draft legislative instruments for public comment, removing the obligation for ceased and corporate directors to obtain a Director ID. The instrument has been released for public comment and will have a retrospective commencement date of 1 December 2022. This will ensure that those directors covered by the instruments will not face prosecution for not obtaining a Director ID by 30 November 2022. More information can be found on the ATO website.
The ABRS has made changes to further streamline the online application. If directors log in to ABRS online with a ‘strong’ identity strength myGovID at the proof of ownership of record step, they will only need one of the following to complete the step:
- Tax file number
- Residential address as held by the ATO
If you need assistance in applying for a DIN or want to discuss whether it is appropriate to resign a director before the deadline please contact Andrew or one of our team!
SMSF Market valuations
The ATO recently clarified the evidence that is required to support real property valuations within SMSFs. Under SMSF regulations, assets must be valued at market value in an SMSF’s accounts and financial statements each year. SMSF auditors need to have in their possession sufficient, appropriate audit evidence to support the value of a fund’s investments.
It is the trustee’s responsibility to provide their auditor with the documents that are requested to support the market valuation of SMSF assets, including real property. This should include how the asset was valued, including the method used and the data on which the valuation was based.
Where an independent appraisal from a real estate agent (ie, kerb side valuations) is used then at least two comparable sales need to be included in the valuation letter.
If, the comparable sales are materially different to the assessed property’s value, there needs to be justification provided. Generally, the differences arise due to the valuer assessing the following factors:
o Soil type
o Crop type
Therefore, where this situation arises, please ensure the valuer has stated that they have assessed the above factors as being the reason why the underlying property’s value is different to that of the comparable sales.
If there are no comparable sales, the valuer must have used some other form of data to base their value on. One of the most common approaches is a yield-based calculation. For example, the valuer assesses the annual market rent for the property, then divides that by the average yield % for farming land in the area, which should give a property value or a range of values.
Once again, if a higher or lower yield % has been used, generally, this arises due to the valuer assessing the factors mentioned above, which needs to be stated in the valuation letter. For this method, comparable lease amounts for properties, at least two, in the area should be included in the valuation letter.
If the valuer, has used any other method, so long as the data/information is included in the valuation document and it is reasonably quantified it should be acceptable.
Please note that until the audit of your Fund’s Financials has been successfully completed, we cannot lodge the tax return.
Therefore, we ask that you please liaise with the real estate agent or external valuer that you have used at your earliest convenience, about obtaining a new valuation letter with the required supporting evidence, i.e. generally having at least two comparable sales or leases being included.
If you would like to discuss this matter or require an example of an acceptable market valuation letter, please contact our office on 5382 3001 (Horsham) or 5385 5330 (Rupanyup).