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.

We believe these changes will ultimately improve the level of service we currently provide but if you have any queries, please feel free to contact Pete, Grant, Lee or any one of our team.

---

 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!

---

Power Savings Bonus

On 24 March 2023, a new round of the PSB program commenced. Victorian households are now able to receive a new $250 payment, including any households that received a payment through previous rounds of the program. The Power Saving Bonus (PSB) is a one-off $250 payment to Victorian households who look for a better energy deal on the Victorian Energy Compare website. The new $250 payment builds on the existing PSB program, previously available to eligible concession card holders. Eligibility To be eligible for the PSB you must be:

• a Victorian residential energy consumer (i.e. have a residential electricity account) the account holder.
• Only one payment is available per household.

---

Superannuation Guarantee Increase from 01/07/2023

From 1 July 2023, the Superannuation Guarantee (SG) rate will rise to 11% p.a.

It’s important to notify your employees about this change so they can understand how it will impact their take home pay if they receive their salary as part of a Total Remuneration Package.

For those on higher incomes, the increase could also cause them to reach the concessional contribution cap of $27,500 if they are also making additional concessional contributions (e.g. salary sacrifice).

---

Working From Home Deductions

The ATO has made changes to the way that working from home deductions can be claimed by eligible taxpayers for the 2023 income year.

If you have genuinely worked from home at any time from 1 July 2022 to 30 June 2023, you may be eligible to use the ATO’s revised fixed-rate (67 cents per hour) method to claim for:

·       energy expenses (i.e., electricity and gas) for lighting, heating/cooling, and to run electronic items used for work or business;

·       internet expenses;

·       mobile and home telephone expenses; and

·       stationery and computer consumables (e.g., printing paper and printer cartridges).

Under the revised fixed-rate method, a claim for the above running expenses is calculated at a fixed rate of 67 cents for each hour that you worked from home during the 2023 income year. This is an alternative method to claiming for the above running expenses using the actual method, which would require a separate claim for the work/business portion of each expense. Claims for deductible running expenses not covered by the revised fixed-rate method (e.g., depreciation of a computer used for work or business) can only be made using the actual method.

You will need to keep some receipts, bills or invoices of the running expenses you have incurred in order to verify your claim.

You will also need to keep a record (e.g., a timesheet, diary or similar record – see attachment) of the number of hours you worked from home during the year, basically as follows:

·       From 1 July 2022 to 28 February 2023 – The ATO will generally accept a record of the number of hours worked from home over a representative period (e.g., a diary for a four-week period).  This can then be used to estimate the total number of hours worked for this entire period.

·       From 1 March 2023 – You need to keep a record of the total number of actual hours worked from home.  This effectively means that you will need to make a record (e.g., a diary entry) of the number of hours worked from home on each occasion that you worked from home.

 If you have worked from home during the 2023 income year, please contact our office to discuss your situation further as you are likely to be affected by the above changes.

---

All the best from the Watts Price Team!