October 2022 Newsletter
Contents:
- Fair Work blitz forces farmers to digitise payroll
- How To Legally Acquire Assets from a Related Party
- Using paid parental leave to attract more workers
- ATO homing in on valuation disclaimers
- Small business exposed to major cybersecurity attack
- 5 onboarding mistakes and how to avoid them
- Important changes to award wages in hospitality & tourism
- Dining and entertainment program returns
- Announcements
Fair Work blitz forces farmers to digitise payroll
Farmers are being forced to make the leap from traditional accounting to digital records and payroll following a series of inspections by the Fair Work Ombudsman in September. It was just the latest in a blitz of almost 200 agribusinesses across four states since last December, which have revealed the difficulties farmers have in meeting payroll compliance requirements. For example, site inspections of farming communities at Coffs Harbour and Grafton in NSW at the end of 2021 found 60 per cent were non-compliant with workplace laws, including breaches of record-keeping and payslip obligations.
How To Legally Acquire Assets from a Related Party
Legally acquiring assets from a related party seems almost too good to be true, especially when s66 SIS forbids it. But the SIS legislation is cleverly drafted to ensure all the rules work together, meaning that SMSFs can acquire assets from a related party in limited circumstances. Under s66 SIS, an SMSF must not intentionally acquire an asset from a related party. Some exceptions exist.
Using paid parental leave to attract more workers
As the competition for talent continues to heat up nationally, employers from virtually every industry and sector are forced to find new ways to stand out and attract candidates. Offers of flexible working, competitive salaries, sign-on bonuses, and office perks are increasingly common amongst businesses trying to lure workers, and now according to Indeed data, a growing number of employers have added parental leave policies to the list, too. While Australia has had a federal paid parental leave policy for over a decade, an increasing number of private employers are supplementing the federal system and offering the benefit to both primary and secondary caregivers.
ATO homing in on valuation disclaimers
The ATO is now closely analysing the terms and conditions of valuations which may raise risks for SMSFs in relation to non-arm’s length income, warns a specialist lawyer. Speaking at a recent Tax Institute event, DBA Lawyers director Daniel Butler said with the ATO paying close attention to the finer details of valuations, SMSFs need to be very precise in this area. “We’re getting comments from ATO officers saying that there’s a disclaimer on the valuation by the independent valuer so we’re not going to accept that or they want an expert report to drill down on it,” explained Mr Butler.
Small business exposed to major cybersecurity attack
A massive cyberattack potentially exposing the personal data of millions of Optus customers has highlighted the vulnerability of Australia’s small business community to hackers, industry observers say. On Thursday, Optus, Australia’s second-largest telco, revealed it had fallen victim to a major cyberattack that exposed sensitive information to unauthorised parties. “The information which may have been exposed includes customers’ names, dates of birth, phone numbers, email addresses, and, for a subset of customers, addresses, ID document numbers such as driver’s license or passport numbers,” the company said in a statement.
5 onboarding mistakes and how to avoid them
Onboarding is much more than creating a good first impression, says Nerissa Chaux, Co-Founder at outsourcing digital and commerce talent firm, Filta. It’s about laying the foundations for a strong, lasting and productive working relationship. “If you have someone cemented in your business, who understands your business goals and objectives – and who understands their value to the business and culture and is rewarded accordingly – they want to come to work, they treat the business as if it’s their own,” she says.
Important changes to award wages in hospitality & tourism
It is important that Labour hire providers and hosts are across recent changes to a number of awards covering the hospitality, tourism and aviation sectors. These changes include increases to minimum wages and new rules for annualised wage arrangements for restaurant, café and hospitality workers. Changes to minimum adult wages From the first pay period on or after 1 October, minimum adult wages will change under the following awards:
Dining and entertainment program returns
Victorians can enjoy the best dining and entertainment this Spring and receive money in return as they support hardworking businesses across the State. The Victorian Government’s popular Victorian Dining and Entertainment Program – Eat, Play, Cash Back is back open, allowing customers to claim 25 per cent cash back when they spend $40 or more. The program is designed to encourage more consumers to support hospitality and entertainment businesses by spending more.
Announcements:
This month we congratulate Tony for bringing up another work anniversary, his 17th!Also, we wish a very happy birthday to Nicole, Grant & Tony!
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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 |
| September monthly activity statements | 21/10/2022 |
| Quarter 1 (July–September) PAYG instalment activity statement | 21/10/2022 |
| Annual PAYG instalment notice | 21/10/2022 |
| Quarter 1 (July–September) activity statements | 28/10/2022 |
| Quarter 1 (July–September) instalment notices (forms S and T) | 28/10/2022 |
| Final date for electing to pay GST by instalments | 28/10/2022 |
| Quarter 1 (July–September) instalment notices (forms R and T) | 28/10/2022 |
| Quarter 1 (July–September) – super guarantee contributions | 28/10/2022 |
Other News
Director Identification Numbers (DINs)
The deadline is fast approaching (30/11/2022) for acquiring the mandatory DIN (Director Identification Number) for anyone acting as a director of a company. If you have yet to attend to this, the information below outlines the necessary steps to obtain one. Once you have obtained your DIN please let us know so we can take you off our follow up list.
Note: Each company director needs to obtain their own DIN and you only need to apply once even if you are a director of multiple companies.
Applying for a DIN:
For those with a smartphone and email, the fastest way to apply for a director identification number (director ID) is online at Australian Business Registry Services. To access the online application, you will use the myGovID app with at least a standard identity strength to log in to ABRS Online. Watch the demonstration video showing the steps to apply online.
Note: myGovID is different from myGov and you will need to setup myGovID prior to using the online application for a Director ID. For more information on setting up a myGovID, visit https://www.mygovid.gov.au/.
For those that can’t get a myGovID (no smartphone or email etc) you can phone 13 62 50 between 8.00am and 6.00pm Monday to Friday.
To apply by phone, you’ll be asked to verify your identity. You’ll need:
- your tax file number (TFN) (optional)
- your residential address as held by the ATO
- answers to 2 questions based on details ABRS know about you
- a primary and secondary Australian identity document.
With the potential treat of $13,200 fines for non-compliance we encourage you to attend to this as soon as possible!
If you need any help setting up either the myGovID and/or applying for the DIN please contact our office.
120% Deductions for Spending on Skills, Digital!
Small Business Technology Investment Boost Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud based services.Fax Number
Please note that the Knights Accounting fax number has changed to 03 9960 7582.
This change is due to the existing fax machine dying and the service being replaced with a ‘virtual’ fax service, where the fax sent to the above number is automatically converted to a pdf and is emailed as an attachment to info@knightsaccounting.com.au.Contractors & Cash Economy Warning
The ATO has warned that dodgy contractors trying to keep income “off-the-books” and businesses helping them do so are being “put on notice”. In particular, the ATO warns that by the taxable payment reporting system (TPRS) allows the ATO to investigate this type of conduct and that around $350bn in payments made to 950,000 contractors were reported to the ATO in the last financial year. The ATO reminded taxpayers that TPRS obligations apply to businesses in the building and construction industry, as well as businesses that provide cleaning, courier, road freight, information technology and security, investigation, or surveillance services and have paid sub-contractors in relation to these services. The ATO also reminded these businesses that they will have to lodge a TPAR with the ATO by 28 August.
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.
Do You have a Company Folder to be Collected?
Just a reminder that due to recent changes in legislation we no longer need to retain paper copies of certain documents. Hence we have been busy scanning your Company Folders and we can now return these to you.
If you have a Company and have not collected your Company Folder yet, this can be done at any time during office hours!
If you have any queries about the content in this newsletter please let us know!
All the best from the Watts Price Team!