Sky Update – July 2022
On the 20th of July, Federal Treasurer Jim Chalmers announced a review of the Reserve Bank of Australia (RBA).
The review will consider the RBA’s objectives, mandate, governance, culture and operations. It will also consider the interaction between monetary, fiscal and macro-prudential policy.
The terms of reference and biographies of the independent reviewers can be found at the link above.
With the RBA coming under fire in recent times concerning the perceived broken promise on interest rate rises, it will be interesting to see the findings and recommendations when they are handed down in March 2023.
DIRECTOR IDENTIFICATION NUMBERS
We last wrote about the new Director ID regime back in January. Under the Director ID regime, all company directors must obtain a unique 15 digit identifier by the 30th of November 2022.
Time is passing quickly and we recommend that Directors apply for their ID sooner rather than later to avoid any last minute hiccups. Particularly bearing in mind that failure to obtain a Director ID can result in ASIC imposing penalties.
Additionally, we note that circumstances may arise that will require a Director to obtain their ID earlier. For example, setting up a new company or being appointed as a director of another company.
In order to apply, directors need to have setup a MyGovID (not to be confused with a MyGov account).
Setting up a MyGovID involves downloading the official App onto a smart-phone and completing the identification procedures. This can usually be done quite easily with your driver licence and Medicare card.
Once you have a MyGovID, you can then proceed to apply for a Director ID here.
When applying for a Director ID, you will need to have your Tax File Number handy as well as some additional information to verify your identity.
This additional information can be any two of the following items:
- Bank account details;
- ATO Notice of Assessment;
- Superannuation account details;
- A recent dividend statement;
- Centrelink payment summary; and
- PAYG payment summary.
Once the application is submitted, you will be issued your unique 15 digit Director ID straight away.
If we assist you to manage the ASIC compliance for your company, please advise us of your Director ID so that your ASIC corporate records can be updated.
And if you need assistance to apply for a Director ID, please get in touch.
FAIR WORK OMBUDSMAN 2022/23 PRIORITIES
The Fair Work Ombudsman, Sandra Parker, has published the FWOs priorities for the 2022/23 year.
Those priorities include the following sectors and issues:
- Fast food, restaurants & cafes;
- Sham contracting;
- Large corporates & universities; and
- Contract cleaning.
The focus is said to be on industries that are at significant risk of non-compliance and emerging issues that are of considerable public interest and concern.
Whilst the FWO has emphasised that they will continue to support workplaces as they recover from the impacts of COVID-19, the expectation is that all employers must comply with their obligations.
As always, we encourage businesses to take their employer obligations seriously and to seek advice to support them in maintaining their compliance.
In the current tight employment market, good HR practices are a point of difference that can help businesses to attract and retain the best staff. Good compliance is also insurance against the significant fines and reputational damage that can arise from a run-in with the FWO.
If you need help to understand your employer obligations, please get in touch.
EMPLOYEE VERSUS CONTRACTOR
Back in February, we wrote about the landmark Personnel Contracting and Jamsek High Court decisions that have set a new legal precedent that the terms of the contract between the parties are of utmost importance when making a determination of the legal relationship between the parties (contractor v employee).
On the 29th of June, the Federal Court handed down the decision in JMC Pty Ltd v Commissioner of Taxation, being the first significant case to be heard since the High Court decisions reported on back in February.
This case involved a determination of whether a person was considered to be an employee for the purposes of establishing JMCs obligation to pay superannuation contributions.
The Federal Court applied the new precedent and made the finding that the worker was both an employee within the ordinary meaning of the word, and also an employee under the extended definition in Section 12(3) of the Super Guarantee legislation.
As such, JMC had an obligation to pay super contributions on behalf of the worker.
The JMC case is yet another in a long line of cases that highlights the pitfalls of engaging contractors.
This will no doubt have been a costly experience for JMC and will not have done its reputation any good either.
We urge businesses engaging contractors to regularly review their position, with the assistance of experienced advisors, to ensure that arrangements are compliant and that there are no risk exposures.
If you need help to understand how contractor relationships are required to be dealt with, please get in touch.
COVID-19 SUPPORT PAYMENTS
The Pandemic Leave Disaster Payment was instituted by the Morrison Government in order to provide financial support to workers that were required to isolate, and that did not have access to paid personal/carer’s leave through their employers. Eg casuals and those who had exhausted their leave entitlements.
The scheme was always intended to be temporary and had expired on the 1st of July.
However, following the recent National Cabinet meeting to discuss the escalating COVID-19 situation, an announcement was made that the scheme would be reinstated until the 30th of September 2022.
With case numbers increasing dramatically in recent weeks, this announcement will ease the minds of many workers who face the prospect of losing much needed income whilst they are required to self-isolate.
As was the case previously, applications can continue to be made through the myGov app.
SINGLE TOUCH PAYROLL (STP) FINALISATION
Employers had to the 14th of July to make a finalisation declaration in respect to the financial year ended 30 June 2022.
Finalisation declarations are done by filing a finalisation event through your businesses STP compliant payroll software, which is typically a straightforward exercise.
If you have not yet completed your 2021/22 STP finalisation, please do so at your earliest opportunity.
If you need assistance, please do not hesitate to contact us.
SMSFs, ARE THEY GOOD FOR YOU?
We frequently field questions about how Self-managed Superannuation Funds (SMSF) work and whether they are a good option.
To answer all your questions on SMSF we have arranged for our experienced SMSF advisor, Tracey Hunter to deliver a seminar on the evening of Thursday the 1st of September at Oscar’s Hotel in Ballarat.
We have also arranged for Head of Sky Wealth, Patrick Quigley to talk about Managed Discretionary Accounts – What are they? And how do they work?
We will soon be sending out invitations so that those who are interested can book-in to attend.
We encourage you to come on down to hear the guys talk, and to have the opportunity to ask a few questions.
QUOTE OF THE MONTH
We recently came across the following quote from the New York Times best selling author and psychology professor, Angela Duckworth.
“Without effort, your talent is nothing more than unmet potential. Without effort, your skill is nothing more than what you could have done but didn’t”.
What prof. Duckworth is trying to get at is that effort is the most important ingredient. Whilst talent and skill are important, they are nothing without effort.
Coming from an accomplished academic and researcher, we should take this quote not as some off-the-cuff comment. But rather a statement of fact based on empirical research.
That being the case, we should all pause and reflect on the level of effort that we apply to the things that matter to us in our lives.
Is there anything that comes to mind where a more effortful approach could help you to achieve better outcomes?
Sky Accountants Ballarat
Phone: 1300 328 855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 97444522
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437