March 2022 Newsletter
- Superannuation Guarantee Threshold Scrapped
- Victorian Government Business Stimulus Package
- Single Touch Payroll Phase 2 Reporting Guidelines
- AGM Reforms – Electronic Document Delivery
Australians earning less than $450 per month from a single job will begin receiving super guarantee contributions from their employer after the Parliament passed legislative changes on Thursday (10 February).
The changes, which were announced by the government in last year’s budget, will take effect from 1 July and will benefit 300,000 lower-income workers, 63 per cent of whom are female.
Single Touch Payroll (STP) is the way you report your employee’s tax and superannuation information to the ATO.
These guidelines will help you understand what is required for STP Phase 2 reporting through your STP Phase 2-enabled software.
Most employers are now reporting through STP. You will need to start reporting if you have not transitioned yet unless you have an exemption or a deferral.
Reforms to AGMs and electronic documents to deliver $450 million in annual red tape savings.
Around a million businesses will save around $450 million in red tape each year after the Morrison Government today passed legislation making permanent the temporary changes introduced at the height of the coronavirus crisis relating to AGMs and the signing and sending of electronic documents.
Announcements:This month we wish Margaret a very happy birthday from all the team at Knights Accounting and Watts Price Accountants!
Important ATO Dates
|February monthly activity statements||21/03/2022|
Vic stamp duty: no exemption for transfer of farm to SMSF
The Victorian Civil and Administrative Tribunal (VCAT) has ruled that the exemption from stamp duty under the family farm exemption in s 56 of the Duties Act 2000 (Vic) did not apply to the transfer of a farm from an individual to the corporate trustee of his self-managed super fund (SMSF). This was essentially because the transfer was not between relevant individual persons as required. In addition, the VCAT found that there was a clear change in beneficial ownership of the land following the transfer which disentitled the taxpayer to any relief otherwise available under s 35 of the Act. (ANO Property Pty Ltd v Comr of State Revenue  VCAT 71, 20 January 2022.)
ATO: New digital activity statement instalment notice
The ATO has issued a notice advising that the new digital instalment notice for quarterly GST and PAYG instalments is now available in Online services for clients with a digital preference. This follows the decision to stop sending paper GST and PAYG quarterly instalment notices for clients with a digital preference on our systems. The ATO notice can be downloaded from Communication history in Online services for agents. However, The ATO also advised that if the client’s registered delivery preference is paper, they will continue to send paper instalment notices and that they do not change its delivery preferences from paper to electronic unless an agent has lodged electronically.
Work Test Amended
Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021, which contains a number of different superannuation measures from the budget, has passed through both houses of Parliament today.
One of the measures in the bill repeals the work test for individuals 67 to 75 years of age for non-concessional contributions and salary sacrificed contributions.
The bill also amends the ITAA 1997 to allow superannuation trustees to choose their preferred method of calculating exempt current pension income when they have member interests in both accumulation and retirement phases for part, but not all, of the income year.
With the shift to electronic sending, filing and signing of documents, ASIC has confirmed that we no longer need to hold hardcopies of the Company Folders we hold on behalf of our clients. Therefore we are currently in the process of scanning all Company Folders and relevant documents to our secure in-house server and will maintain an electronic (softcopy) version going forward. Once scanned we will contact clients and let them know that we are returning the original folder and its current content to them for safe keeping.
Rather than risk losing your folder in the post we will hold these folders at our office for collection next time you drop in.
Please note that this does not change the ASIC compliance services we provide to you in anyway, we are simply maintaining your Company Folder electronically rather than in paper form going forward!
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
IF YOU HAVE ANY QUERIES OR NEED ASSISTENCE PLEASE CONTACT OUR OFFICE!
Single Touch Payroll Phase 2
- Your first STP Phase 2 report is required by 31/03/2022 (where not covered by a deferral) or 31/12/2022 (with deferral from your software provider).
- QuickBooks Online & Keypay deferral ends 28/02/2022.
- MYOB & Xero deferral ends 31/12/2022.
- Your software provider will be providing guidance on how to get STP 2 ready.
- Where Watts Price or Knights Accounting process your payroll we will ensure that you are STP Phase 2 compliant by the appropriate date. Our wages template will be re-issued to accommodate the new pay and leave categories required.
If you have any queries at this time please let us know!
All the best from the Watts Price Team!