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’
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.
“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.
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.
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.
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.
Announcements:This month we wish Xavier, Paula & Jo a very Happy Birthday!
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!
Important ATO Dates
|End of financial year – Start preparing STP Finalisation Report
|June monthly activity statements
|Quarter 4 (April–June) activity statements
|Quarter 4 (April–June) PAYG instalments notices (forms R and T)
|Quarter 4 (April–June) GST instalment notices (forms S and T)
|Quarter 4 (April–June) super guarantee contributions
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.
Amounts paid to closely held payees must be reported in STPThe 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
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.
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.
|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