Super Guarantee increase on 1 July 2022

Businesses should be aware as of 1 July 2022 there will be an increase to the superannuation guarantee (SG), with the base rate rising from 10 per cent to 10.5 per cent. This will be followed by an incremental half percentage point increase each year to 12 per cent on 1 July 2025.

DirectorID

Reminder if you are looking to set up a new company you will need to acquire a Director ID before this can happen. Existing directors have until 30 November 2022 to obtain a Director ID. 

Low and Middle Income Earner Tax Offset (LMITO)

For all individuals who are entitled to an amount of the LMITO for the 2022 income year under the current law, their entitlement is proposed to increase by $420, as follows;

LMITO is scheduled to end on 30 June 2022, this will result in additional tax being paid in the 2023 income tax year.

Reminder the ATO has tightened the net on gig economy

Individuals with a side hustle, including online platforms such as OnlyFans, Patreon or Twitch are being warned by the ATO to declare all of their income. The ATO has already started to crack down on undeclared income from secondary work. By expanding their data-matching program in recent years, it has provided the ATO with oversight in cryptocurrency transactions, gig economy jobs, share transactions and property and rent data.

Home office expenses

If you are an employee working from home, you may be able to claim a deduction for the expenses incurred in relation to that work. This can include additional running expenses such as electricity, phone and internet and the decline in value of equipment and furniture.

If you are claiming home office expenses you will need to keep the following in your records;

  • A record of the number of hours worked from home during the financial year
  • A diary for a four-week representative period showing your usual at home work pattern 
  • To determine the decline in value of depreciating assets
    • Keep purchase receipts of each asset, other consumables and stationery
    • Record the percentage of the year the asset was used exclusively for work
  • To determine the cost of cleaning your designated work area, you will need to add up your receipts and multiply the total by the work floor area of your dedicated work area. This should be apportioned for;
    • Any private use of your home office
    • Use of the home office by other family members
  • Determining the cost of heating, cooling and lighting by working out the following
    • The cost per unit of power used by using your utility bill
    • Average units used per hour
    • Total annual hours used for work-related purposes
  • Determine the cost of phone or internet expense by using an itemised bill

Small Business Grants

There are only two weeks left to apply for the WA COVID government small business grants. If your turnover has declined in the January to April 2022 period, compared to the equivalent period in the previous year, your business could be eligible for some additional help.

Follow the below link to see if you are eligible to apply.

https://www.smallbusiness.wa.gov.au/coronavirus/grants