July 2022 Newsletter


  • Tips and traps: a final check for your tax return this year
  • Annual Wage Review delivers a $40 per week increase
  • If you asset wash you’ll wear it, warns ATO
  • Power of attorney: six things you need to know
  • SMEs suffering post-pandemic mental health hangover
  • Car allowance increase ‘welcome news’
  • Announcements

Tips and traps: a final check for your tax return this year

The end of the 2022 financial year is fast approaching and it’s time to collate your information to ensure you pay the right amount of tax. Given the ongoing impacts of the pandemic, it’s important for PAYG employees to be across their obligations and the COVID concessions implemented by the Australian Tax Office (ATO).

Annual Wage Review delivers a $40 per week increase

Following the Annual Wage Review 2022, the Fair Work Commission has made two important announcements.

National Minimum Wage increase
The National Minimum Wage will increase by $40 a week.

The new National Minimum Wage will be $812.60 per week or $21.38 per hour.

If you asset wash you’ll wear it, warns ATO

“Asset wash sales” that artificially increase losses or reduce gains are a form of tax avoidance, warns the ATO, and it is making them a compliance focus this year.

 It said wash sales typically involved the disposal of assets such as crypto or shares just before the end of the financial year and then reacquiring them – or similar assets – shortly after.

“This is a wash sale and is done to create a loss to offset against a gain already derived, or expected to be derived, in certain circumstances, in a tax return,” the ATO said.

Power of attorney: six things you need to know

With advancements in medicine and constant improvements to Australia’s healthcare delivery, Australians are living longer. According to the Australian Institute of Health and Welfare, one-in-six Australians are aged 65 or over, and by 2066, it is predicted this age demographic will make up 21-23% of our total population.

As the population of older Australians increases, it is a sad reality that more Australians will lose capacity in their final years due to chronic illness and disorders such as dementia.

SMEs suffering post-pandemic mental health hangover

Small businesses are suffering a mental health hangover from the pandemic with one-third naming it as their number one concern, an increase of almost 20 per cent over the past two years, according to the latest survey.

 In addition, more than half of SME owners reported increased stress compared with 2020-21 while 44 per cent experienced anxiety and one in five have been depressed in the past year.

Car allowance increase ‘welcome news’

Earlier this month, ATO Deputy Commissioner of Taxation Ben Kelly confirmed the cents-per-kilometre deduction rate for car expenses would be lifted to 78¢, rather than 75¢ as initially promised in mid-March.

 The new rate applies to eligible taxpayers who elect to use the cents-per-kilometre method when calculating income tax deductions for their work-related car expenses.

“The Commissioner of Taxation has determined that the rate is 78 cents per kilometre and applies to eligible taxpayers who elect to use the cents per kilometre method when calculating income tax deductions for their work-related car expenses,” Mr Kelly said.



This month we wish Xavier, Paula & Jo a very Happy Birthday!
Paula Toll Joanne Dreckow

Farewell Margaret!

After 11 years at Knights Accounting, Margaret has decided it is time to retire and undertake the next chapter in her and Rob’s life.
We will all miss Margaret after the 15th of July. During Margaret’s time at Knights Accounting she has run a very tight ship through exceptional management, unsurpassed efficiency and excellence.
Margaret has developed many lasting friendships over this time and we will all miss her very much.
Best wishes Marg!


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

Lodgement Program  Date
End of financial year – Start preparing STP Finalisation Report 30/06/2022
June monthly activity statements 21/07/2022
Quarter 4 (April–June) activity statements 28/07/2022
Quarter 4 (April–June) PAYG instalments notices (forms R and T) 28/07/2022
Quarter 4 (April–June) GST instalment notices (forms S and T) 28/07/2022
Quarter 4 (April–June) super guarantee contributions 28/07/2022

Other News

Important Superannuation Changes

From 1 July 2022, two important super guarantee (SG) changes will apply:
  • 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.

Amounts paid to closely held payees must be reported in STP

The Single Touch Payroll (STP) reporting exemption for reporting amounts paid to closely held payees ended on 30 June 2021. From 1 July 2021, amounts paid to closely held payees must be reported through STP. If you are a small employer with 19 or fewer payees there are concessional reporting methods available.  

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.

Finalising Your Employee Wages

As you are aware, Group Certificates were phased out and replaced with an Single Touch Payroll (STP) Finalisation Report.
The End-of-financial-year finalisation declaration of your employees wages is required to be lodged by 14 July of each year.
Until the finalisation report is lodged employees are unable to get their wage and salary returns processed correctly.
For more information read the ATO’s Finalising your STP data or contact our office!

SMSF Audit Changes

Please 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

ABARE Surveys

For those clients in primary production please note that ABARE are starting to seek involvement in their annual voluntary Australian Agricultural and Grazing Industries Survey.
For those wanting to participate, queries about the survey should be directed to the ABARE Survey Collection team by telephone 1800 026 308 or email surveysabare@agriculture.gov.au.
If you have any queries about the content in this newsletter please let us know!
All the best from the Watts Price Team!