November 2022 Newsletter

Reminder – Director identification number 

 All company Directors must apply for a director identification number by 30 November 2022.
If you do not yet hold a Director ID, you must obtain a Director ID asap.

What happens if you do not apply for a Director ID within the required time frame?

A failure to have a Director ID when required to do so is an offence under the Corporations Act.
Civil penalties up to $1.1 million and criminal penalties up to $13,200 apply.
 
How to apply for a Director ID?
The Director ID application can be completed in three ways:
  1. If you have a myGovID the application can be completed online here: Apply for your director ID | Australian Business Registry Services (ABRS)
  2. You can complete a paper application which is available from our office. This will require proof of identity documents to be certified by a Justice of the Peace and copies posted along with your paper application.
  3. The application can also be completed over the phone by calling Australian Business Registry Services on 13 62 50.

 Each of these processes require you to have access to certain documents to prove your identity. These requirements can be viewed here: Verify your identity | Australian Business Registry Services (ABRS)

For information on how to setup a MyGovID please go to https://www.mygovid.gov.au/set-up

If you require assistance from us to apply for your Director ID, please contact Ashlea.
E: ashlea@ottopartners.com.au

When you receive your Director ID, please notify us of the number for inclusion with your company records.



CSHC income thresholds increase effective from 4 November 2022

Legislation increasing the income limits for the Commonwealth Seniors Health Card (CSHC) has passed and received Royal Assent, which means the new income limits will be effective from 4 November 2022.
    

Family SituationIncome limits
20/9/2022 to 3/11/2022
Income limits
4/11/2022 to 19/9/2023
Single$61,284$90,000
Couple (combined)$98,054$144,000
Couple (illness separated)$122,568$180,000
For each additional child$639.60$639.60

The government estimates that approximately 50,000 additional older Australians will be eligible for the card.

Both the legislated increase in income limits, plus frozen deeming rates of 0.25% and 2.25% that apply to deemed account based pensions, will assist more clients to be eligible for the card.

For further information on how to apply for the card, see How to claim on Services Australia or contact Ashlea.
E: ashlea@ottopartners.com.au



2022/23 October Federal Budget

On 25 October 2022, Treasurer Jim Chalmers handed down an updated 2022/23 Federal Budget, the first for the Albanese Labor Government.

The budget was uneventful from a small business taxation perspective with no significant, immediate changes to the tax laws.

However, the government did announce an extension to accessing the superannuation downsizer contribution by reducing the eligibility age from 60 to 55.

The eligibility age for clients to make downsizer contributions had already reduced from 65 to 60 on 1 July 2022. From the start of the first quarter after Bill receives Royal Assent; the Government has announced a further reduction to allow eligible clients aged 55 or over to make downsizer contributions.

The Bill to implement this change is currently before Parliament but it has not yet passed or become law.



Super changes apply, don’t get caught short 

To avoid additional costs (including the superannuation guarantee charge (SGC)), you must pay the right amount of super for all your eligible employees by the quarterly due date.

Whether you’re paying super weekly, monthly, or quarterly it’s important to check that the super guarantee (SG) you pay takes into account changes that started on 1 July 2022.

These were:
>    the increase in the SG rate from 10% to 10.5%
>    the removal of the $450 per month eligibility threshold when paying SG.
 
All other eligibility requirements for super remain in place. For example, an employee aged under 18 years must still work for you more than 30 hours in a week to be eligible for super.

What you need to do
You need to make sure:
>    your payroll and accounting systems are up to date and include the recent changes to SG
>    you’ve calculated and paid the right amount of SG for all your eligible employees
>    you pay SG amounts in full by the due date.
You’ll have to pay the SGC if your total SG amounts for the period 1 October 2022 to 31 December 2022 aren’t received by your employees’ super funds by 28 January 2023.
If you need help meeting your SG obligations, please contact your Client Manager for assistance.

What happens if you don’t pay the right amount of Super?
If you don’t meet your SG obligations, you’ll have to pay the SGC. You’ll need to lodge an SGC statement and pay the SGC to the ATO.

This will cost you more than paying the correct SG on time. SGC is not tax deductible.
You may also have to pay additional penalties or charges.

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