September 2022 Newsletter
- NALE & NALI = NASTY as a 120% tax rate can apply to contributions
- Age for downsizer super scheme to drop to 55
- Retain staff with employee share schemes, SMEs urged
- Small-business debt a key target, ATO reveals
- Director IDs a ‘silent compliance bomb’
- Sick pay for casuals and contract workers
- Exemption Eligibility – Building or renovating your home
- What to do when a candidate ghosts you
If you build a dwelling on land you already own, the land normally is not exempt from capital gains tax (CGT) until the dwelling becomes your main residence.
However, you can treat the land as your main residence for up to 4 years before you move in if you:
- have an ownership interest (other than a life interest) in the land
- build, repair or renovate a dwelling on the land, or finish a partly constructed dwelling
- move into the dwelling as soon as practicable after it is finished and continue to use it as your main residence for at least 3 months.
It may help to know you’re not alone. In fact, two thirds (66%) of hirers say they’ve had at least one candidate they were interested in not respond to their messages. And one in five candidates admit they’ve ignored a hirer in the past, simply because they didn’t want the job.
Announcements:This month we congratulate Nicole for bringing up another work anniversary, her 8th!
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
|August monthly activity statements
Specialist Advice Pathway Program
The Victorian Government announced the $5 million Specialist Advice Pathways Program as part of the 2022-23 State Budget. The program supports established employing businesses who have remained in business despite the challenges presented by COVID-19. To do this they have had to re-invest, change core business activities, or limit operations in response to supply-chain issues or a change in their customer base.
The purpose of the program is to provide $2,000 grant funding to support businesses to access accounting or legal professional advice as a contribution towards costs associated with professional service fees where the minimum project cost is $2,000 (ex GST).
The project is eligible for funding if expenditure supports at least one or more of the following scope of services listed below:
- Advice and analysis regarding the management of cash flow, preparation or cash flow budgets and projections,
- Profitability analysis and formulation of financial management and/or operational business strategies,
- Strategic analysis to revise business planning and/or governance arrangements,
- Advice regarding the management of debts and liabilities, or
- Advice and/or representation regarding commercial agreement contract terms (i.e. commercial leases or commercial supply contracts).
The program will be open for applications until 4:00 pm 30 September 2022 or when funds are exhausted, whichever is earlier.
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.
Small Business Skills and Training Boost
Small businesses with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20% of expenditure incurred on eligible training courses provided to employees.
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 firstname.lastname@example.org.
MYOB has announced that from September 2022, existing MYOB Essentials subscriptions will change to the closest equivalent MYOB Business subscription and pricing as below:
MYOB Essentials Starter with up to two employees or two linked bank accounts, will change to MYOB Business Lite at a new base subscription of $28 + $1.50 per employee, per month.
MYOB Essentials Starter with more than two employees or two linked bank accounts, will change to MYOB Business Pro at a new base subscription of $53 + $1.50 per employee, per month.
MYOB Essentials Accounting will change to MYOB Business Pro at a new base subscription of $53 + $1.50 per employee, per month.
MYOB Essentials Accounting + Payroll will change to MYOB Business Pro at a new base subscription of $53 + $1.50 per employee, per month.
All prices above are recommended retail prices (RPP) and include GST.
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.