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
  • Announcements

NALE & NALI = NASTY as a 120% tax rate can apply to contributions

Many believe super is tax effective. However, Australia has the highest tax rate in the world on retirement savings in certain situations. This article focuses on the potential impact of the non-arm’s length income (NALI) and non-arm’s length expenditure (NALE) provisions found in s 295-550 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997) on contributions made to superannuation funds. The impact of these provisions can be very severe, and the executive summary below shows that a 75% tax rate applies if a member has excess concessional contributions (CCs) and a 120% tax rate applies if a member has excess non-concessional contributions (NCCs).

Age for downsizer super scheme to drop to 55

Tax amendments widen eligibility for the one-off bump to retirement savings. Anyone over 55 will be able to make downsizer super contributions if tax amendments introduced to Parliament last week are passed and the revised rule could apply as soon as October, according to one superannuation specialist. The reduced age limit, proposed by the Coalition during the election, will widen eligibility for the scheme by a decade in a matter of months, with a reduction to 60 only in place from July.

Retain staff with employee share schemes, SMEs urged

Businesses should adopt employee share schemes (ESS) as a way to grow and retain staff but most are missing the trick with fewer than 1 per cent using them, said one advisory firm. Companies that implemented ESS had lower employee churn, increased sales and better productivity, according to research by the former Department of Industry, Innovation and Science, with SMEs benefiting most. Director of DMCA advisory, Tania Tonkin, said that advising businesses to set up share schemes and seeing the benefits encouraged the firm to set one of its own.

Small-business debt a key target, ATO reveals

“Targeted strategies” to collect small-business debt with the goal of returning to pre-pandemic levels are one of the key focus areas for the ATO in 2022–23, it says in its latest corporate plan. The debt collection effort would “use data-driven insights” and “resume firmer and stronger lodge and pay activities” to address the growth in debt during COVID, although the ATO would be “balancing debt recovery with small business support” as it revitalised its tax function.

Director IDs a ‘silent compliance bomb’

With significant numbers of directors yet to apply for their director IDs, meeting the deadline may be challenge for the SMSF industry. In its annual Benchmark Report released this week, software provider Class said the process involved in obtained in obtaining a director identification number (Director ID) “has been likened to a ’silent compliance bomb’ and the pressing deadlines to get one will be a struggle for both professionals and their clients”. “Even with the best intentions around SMSF compliance, it will be a struggle for the industry to meet the deadline,” the report stated.

Sick pay for casuals and contract workers

Eligible casual, contract and self-employed workers now have access to 38 hours of sick and carer’s pay each year. Business Victoria has encouraged employers to tell their workers about the Victorian Sick Pay Guarantee, a fully funded Victorian Government program that covers 38 hours of sick and carer’s pay per year. The two-year pilot initiative covers eligible workers in industries such as hospitality, food trades or food preparation, supermarkets, retail, sales, aged and disability care, cleaning and laundry, security.

Exemption Eligibility – Building or renovating your home

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.

What to do when a candidate ghosts you

You’ve sifted through your applications, whittled it down to a select few, found a favourite, and then…*crickets*. If a candidate has gone missing right at the pointy end of the recruitment process, you’ve likely been ghosted.

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.



This month we  congratulate Nicole for bringing up another work anniversary, her 8th!

Nicole De Zoete


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,
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
August monthly activity statements 21/09/2022

Other News

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.

For more information

Application Form

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.

Read more..

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

 MYOB Changes

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.

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!