2022 Year-End Tax Planning – Our Tips

YML Group’s tips for small and medium businesses for EOFY tax planning can help prepare your business to avail itself of tax deductions and other tax-time financial strategies.

It is important to get your financial records in order and up to date, so you have all you need to complete and lodge a tax return. Your company data should have records for assets, liabilities, expenses, invoices, payments and receipts, bank statements, as well as evidence to support relevant deductions.

Your single-touch payroll (STP) system will be key to ensuring your business has accurate employee payment records.

Instant Asset Write-Off

Take advantage now of this deduction, allowing eligible businesses with a turnover of less than $50 million to claim a full tax deduction of eligible assets. For the next two income years – 2021/22 and 2022/23 – you can claim the full business portion of an asset up to $150,000, first held, used or installed for a taxable purpose between 6 October 2020 and 30 June 2023. Second-hand and new assets may be eligible. You can claim more than one asset each year.

The instant asset write-off will cease after financial year 2023, so now is the time to reap the benefit to your business.

Superannuation Concessional Contributions

On 1 July 2021 your superannuation concessional contributions cap rose from $25,000 to $27,500 for all ages. As the EOFY approaches it is time to add together concessional contributions – from any, and all, funds you hold – to determine whether your amount falls below the concessional contributions cap. If it does, up to $27,500 of your concessional contributions will be tax-deductible.

Concessional contributions include employer contributions and salary sacrifice contributions, as well as personal contributions claimed as a tax deduction.

Bad Debt Write-Off

Before claiming bad or unrecoverable debts as a tax deduction and to claim any applicable GST repayments, your business must write off any, and all, bad debt amounts prior to 30 June 2022. You must also have evidence on record showing the bad debt is unrecoverable, was initially included in assessable income and what actions you took to collect the debt within the current financial year.

Bring Forward Expenses

One tactic to reduce your current financial year’s taxable income is to consider bringing forward expenditure that might ordinarily be incurred in July and or August of the following income year. Paying or pre-paying future costs prior to 30 June 2022 will reduce your taxable income.

Defer Income

First making sure that your business has enough cashflow, consider deferring income by delaying invoices until after 1 July 2022. This is another tactic to reduce your taxable income.


If your business requires you to perform stocktaking, then undertaking a valuation of your trading (closing) stock prior to 30 June 2022 will ensure you have accounted for stock losses since stocktaking after 1 July 2021 (opening stock). This exercise prevents you from overpaying tax on stock.

As a business strategy, you might wish to use this data to review your pricing strategy for the next income year.

Next Steps

YML Group’s tax planning tips will get you ready for tax time. It pays to understand where you might be able to save on your tax and we have the knowledge and expertise to review your tax strategy and find tax deductions in your business.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your tax planning. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

NOW is the time to re-look at your SMSF loan’s interest rate

Whilst the Reserve Bank of Australia (RBA) holds rates at record lows – 0.1% cash rate, there are some economic conditions such as falling unemployment and growing wages that could foreshadow the RBA increasing rates in the coming months.

As the financial-year end nears, consider having another look at what rate you can secure for your SMSF loan. Currently, rates as low as around 3.9% are available and refinancing your SMSF loan can reward your fund and set you up before the RBA announces any increase to the current rates.

The RBA is keeping its focus on inflation and although Australia’s economy remains resilient, any actual inflation rise combined with other factors such as employment levels could see rates change. Therefore, NOW is the time to appraise your SMSF loan.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with your SMSF loan. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Superannuation Contribution Laws are changing – Boost your Retirement Savings from 1 July 2022

The Australian Government has recently passed a Treasury Laws Amendment Bill, awaiting Royal Assent, through Parliament to change the ways that retirees may contribute to their superannuation funds. These are important changes that will include older Australians being able to make personal contributions without meeting the ‘work test’. Likewise, changes to the ‘bring forward’ rule and to the ‘downsizer’ contribution will help to boost retirees’ financials and thereby help to improve their retirement lifestyles.

‘Work Test’

The near abolition of the work test from 1 July 2022 is the dominant change for people aged between 67 and 75 years. For those retirees making concessional and non-concessional contributions, the requirement to work 40 hours in a 30-consecutive-day period in the financial year in which they choose to make contributions will no longer be law.

The original work test was an exemption granted some years ago whereby retirees over 65 years could make cash contributions in the financial year after retirement, so long as their superannuation fund’s balance was under $300,000.

Removing the work test will simplify the rules around contributions and enable more Australians to save for retirement through superannuation.


The work test exemption will enable retirees to make bring-forward contributions until 75 years of age (or within 28 days of the end of the month in which they reach 75 years). What has not changed are the current bring-forward contribution limits.

Currently, bring-forward contributions are limited to $110,000 or one year for those retirees with a total balance of $1.59 and $1.7 million in their superannuation fund; $220,000 for those retirees with a total balance of $1.48 and $1.59 million; and the maximum $330,000 for those retirees with a total balance below $1.48 million.


To assist the property market and keep it in motion, the ‘downsizer’ contribution provides for Australians to contribute – once only – the sale (or part sale) of their principal home up to an amount of $300,000 to their superannuation funds. From 1 July 2022, the eligible age will fall from 65 years to 60 years. Other criteria around capital gains tax (CGT) still apply.

With the changes to take effect from 1 July 2022, the future looks promising for Australia’s seniors as superannuation laws change for the benefit of retirees and their families.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your fund contributions. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Be ready before refinancing or applying for a new loan

Documentation for a new loan is lengthy and requires personal and financial information. You will need to have proof of identification, along with proof of income, and you will need to show your living expenses and assets and liabilities.

YML’s Finance Team can help you with valuations of properties. If it has been over 12 months since your last valuation, then it is time for a new valuation to keep a record of your equity availability up to date.

Purchasing property is a process that is simplified by having your finance lined up and ready to be accessed when a purchase occurs.

Be ready with your application and lenders will be even readier to assess it for you.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with your refinancing and loan applications. For more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Do yourself a Service – Partner with YML’s Bookkeeping Service and be ready for FYE 2022

What if you could focus on your organisation’s day-to-day business operations and put your customers first whilst knowing that your business financials are being maintained to the highest order?

Having access to a virtual bookkeeper who understands Australian business, its dynamics and regulations has many benefits including saving you time to focus on customer service and new business development.

Your virtual bookkeeper via YML’s Business Process Outsourcing (BPO) provides financial information in management-level reports at any given time of the day or night, giving you the opportunity to review your business’s financial health and convey this information to internal and external stakeholders in a timely manner.

You will save time spent stressing and gain peace of mind that your business will stay in control of its financial processes. You can sigh a sense of relief that a paperless, virtual strategy can empower you to take the reins and continue to build your organisation without having to do the bookkeeping yourself.

Up-to-Date Financial Accuracy

When you, as business owner, need to deliver fast, informed decisions requiring up-to-date financial information, the benefit of YML’s bookkeeping service is that it manages your financial information, improving your business by providing ready knowledge of whether it can, for example, hire a new employee, increase office space or issue a purchase order for a new asset. Make sure your business is financially accurate as it heads towards the end of the financial year 2022.

2022 Tax-Time Compliance

With a swathe of regulations around company taxes, including GST, BAS and PAYG withholding tax, it is important that your business keep financial records that enable accurate and timely reporting to the Australian Taxation Office (ATO).

If you, or someone else in your organisation, are trying to manage the books without the necessary qualifications or experience, there is a risk that financial data might be incorrectly entered and ATO penalties could be incurred. Missed tax payments due to human error or lack of knowledge can be avoided by using YML’s bookkeeping service to stay on top of your business’s regulatory financial obligations and thereby reduce unwelcome costs to your business.

Do yourself a service…

Be a credible, professional, and efficient enterprise by partnering with one of YML’s highly qualified, specially trained, Australian-focused bookkeepers who will be ‘at your service’ via video chat or via phone as often as you choose.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with Bookkeeping. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

It’s time to apply for a Director Identification Number (DIN)

As part of the 2020 Budget – Digital Business Plan, the Australian Government requires all Australian company directors to mandatorily register for a Director Identification Number (DIN).

A DIN is a unique number assigned by the Australian Taxation Office (ATO) to a director for eternity, even if you change companies. A DIN your unique identifier. Any director of a company or of a registered entity under the Corporations Act 2001 must acquire a DIN. It is free to apply.

A Director Identification Number is: The new digital registry system, Australian Business Registry Services (ABRS), is maintained by the ATO and will enable names and certain details of company directors to be known to regulators, external administrators, shareholders, employees, as well as creditors and consumers.

The purpose of this DIN register is to help: A director will be able to view and update their details. From November 2021, a director may log in to ABRS online to do so.

What do you need to do? 

Click the below link and follow the instructions on how to get your Director ID.

How to apply for your Director ID?

Note: If the Director cannot apply by the due date they can complete an Application for an extension of time to apply for a director ID (NAT75390, PDF, 271KB).

For more information, kindly visit: 

https://www.abrs.gov.au/director-identification-number/about-director-id https://www.abrs.gov.au/director-identification-number/who-needs-apply-and-when

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your Director ID. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Trust Distributions – Draft Section 100A – What you need to know?

In the late 1970s, then-Treasurer John Howard introduced Section 100A (S 100A), a provision designed to overcome ‘trust-stripping’ and to address the integrity of trusts and their income distributions.

Treasurer John Howard’s press release in 1980 read in part, “Last year’s measures are contained in Section 100A of the Income Tax Assessment Act. This section applies so that, where amounts of trust income are directed to persons not intended to have the benefit of them, the amounts are treated as income to which no beneficiary is presently entitled, and thus taxable at the maximum personal rate.”

Pointedly, S 100A relates to the ATO’s consideration of trust entitlements and arrangements created to distribute income to beneficiaries where there is no intention for the beneficiaries to receive the benefit of those trust entitlements and arrangements.

In 2014, the Australian Taxation Office (ATO) sent out a Fact Sheet giving a heads-up on S 100A and where the ATO saw the future of trust distribution compliance heading. Those who heeded the 2014 Fact Sheet are now likely quite versed in the direction the ATO is wanting to take its S 100A draft ruling.

The newly-released draft guidance has some differences from the 2014 Fact Sheet such as working capital properly done left in a trust would not cause a S 100A to be brought nor would loans on commercial terms, however any differences are outlined in the draft guidance available now.

It is worth noting that The Tax Institute’s senior advocate, Robyn Jacobson, has stated that this draft guidance is the most significant guidance on trusts in over 10 years. Let’s look at it more closely…

The draft guidance includes: Reimbursement Agreements – TR 2022/D1

There is no limit to what might be a ‘reimbursement agreement’, an agreement that provides for the transfer of money or property to a person other than the beneficiary or to the beneficiary and some other person/s (including persons, companies, trustees).

It should be noted that the onus is on a taxpaying beneficiary to show that they would be entitled anyway to distributed trust income but for a reimbursement agreement.

Trust distributions for the purpose of tax reduction might see a trustee’s past transactions reviewed under S 100A. For example, trustees who use trust distributions to take advantage of lower marginal tax rates of beneficiaries (see Taxpayer Alert – TA 2022/1) could be non-compliant with S 100A where there is any purpose of tax avoidance.

To avoid invoking a S 100A, a trust will be tax-driven within the scope of an ‘ordinary’ family or commercial dealing as S 100A does not apply to arrangements entered in to in the course of ‘ordinary’ family or commercial dealings.

This exception of ‘ordinary’ family or commercial dealing applies when the transactions between family members and their entities within a trust can be explained as regular familial or normal commercial acts without the need for further explanation. Although the definition of ‘ordinary’ is not yet clearly defined, the draft ruling contains examples that would or would not be classified as ‘ordinary’ family or commercial dealings.

The ATO has to date taken a rather broad view of TR 2022/D1 when S 100A has been applied and considered in the Federal Court, as set out in the full decisions of the Federal Court in the cases of FCT v Prestige Motors Pty Ltd [1998] FCA 221 and Idlecroft Pty Ltd v FCT [2005] FCAFC 141.

Taxpayer Alert – TA 2022/1

The ATO’s taxpayer alert concerns family trusts wherein arrangements are made to distribute trust income to adult children, or other lower-taxed family members, and parents benefit via repayments and reimbursements then made by the adult children back to the parents. Where it is not intended that the adult children retain any benefit of the distributed trust income, rather their acquisition of the income is purely based on tax avoidance, then the ATO will assert its concern and authority. (Note: Minors are not affected by S 100A)

Trust income distributions to adult children still living at home and studying will face tougher inspection, especially if the parents have used this method to access lower tax rates for the parents’ own benefit. Although a commonplace activity, the ATO will assess whether such a trust income distribution event falls within an ‘ordinary’ family dealing.

Robyn Jacobson of The Tax Institute has said that although not uncommon for adult beneficiaries to receive trust income distributions, “the ATO is being very clear that it will be watching these arrangements very clearly” and that these “common set-ups… [may be] subject to tax under Section 100A”.

What else do you need to know?

It is anticipated that the ruling would possibly commence on 1 July 2022, however there will be a period for consultation and feedback and how much longer the guidance will be in draft form is unknown at this time.

It would be wise to start note-taking on what your trust has done so far in relation to S 100A, relative to both FYE22 tax planning and whether past distribution arrangements of your trust need to be reviewed.

The draft ruling allows for ATO not reviewing arrangements entered in to prior to 1 July 2014.

Taking the new ATO draft guidance on trusts in to consideration, trustees might be highly likely to incur higher tax payments on future trust distributions or the ATO might want to examine past income distributing executions.

Next Steps

We encourage you to contact YML Chartered Accountants now about your FYE22 planning and look at prior trust distributions in light of the new draft guidance.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your trust compliance under S 100A. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Transferring asset ownership to a SMSF is an in specie contribution

In specie is from Latin and means ‘specified in its actual form’. Therefore, a business or a related party or individual transferring an ATO-approved asset – shares, property or managed funds – to a SMSF, without first selling the underlying investment, is, in fact, making an in specie contribution.

In general, contributions to superannuation funds may incur taxation liabilities, so what is the benefit of transferring an asset in specie?

What is the benefit of an in specie transfer?

The most likely benefit is reduced tax payable on the transfer of an asset. Where a cash transfer is not possible in to a SMSF, then an in specie transfer can reduce the amount of income tax and capital gains tax (CGT) which would be incurred on any prior sale of an asset.

For example, if a SMSF member transfers real estate property to their member account, the SMSF will need to take in to consideration the transfer cost consequences as the beneficial ownership of the asset will change upon transfer. No longer would the individual (outside of the context of SMSF membership) benefit from owning the property, rather it would be the SMSF as the entity owner of the property benefiting.

Once an in specie contribution has occurred – a SMSF member has transferred ownership of an asset they own to their member account – the increase in the capital value of the SMSF is considered a contribution by the SMSF member. As the SMSF member has thereby disposed of an asset, any financial gain realised by the SMSF member may be subject to CGT. However, there is a benefit to transferring commercial property used in an SMSF member’s own business where a concessional contribution may be relevant.

Non-concessional contribution (NCC) and concessional contribution (CC) caps will determine how the market value of an in specie transfer will be divided between members of a SMSF. For example, a married couple’s commercial property in specie transfer amount will be considered in relation to each party’s non-concessional cap (up to $300,000 each over three years), so as to avoid exceeding any caps which would result in tax payable.

What should be considered before transferring in specie?

Before transferring an asset, the specific circumstances of the transfer need to be considered, such as: Guidance from YML’s Super Solutions can help you make these assessments of your in specie transfers, as well as help ensure that full compliance with both the ATO and the receiving SMSF is fulfilled by all involved parties.

What about moving assets out in specie?

Assets can be transferred out of SMSF member accounts upon retirement age being reached. A common practice is for an SMSF member to buy a property for future use in retirement. Whilst still working, an SMSF member transfers the retirement property in specie to their SMSF member account and upon retirement, the property is taken as a lump sum in specie transfer, rather than as an SMSF asset sale requiring the SMSF member to fund a purchase price.

Is an in specie transfer difficult to do?

The decision to transfer in specie to a SMSF is a complex decision and to avoid complications around the process, seeking guidance from expert financial advisers such as YML is encouraged prior to commencing an in specie transfer.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your SMSF in specie transfers. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Superannuation Guarantee – Quarter 2 Late Payments Due and New 2022 Threshold Removal

Employers – Are you late paying your compulsory SGC?

Superannuation guarantee contribution (SGC) percentage for the 2021 financial year is 9.5 per cent. Superannuation guarantee is the compulsory contribution amount calculated on base salary paid to an employee in each quarter and payable by employers. From the 2022 financial year the SGC will increase to 10 per cent.

The maximum SGC base means employers have limited liability. For the 2021 financial year, the income per quarter threshold is $57,090 and for the 2022 financial year the income per quarter threshold will be $58,920.

Employers were obliged to pay SGC for Quarter 2 (1 October – 31 December 2021) to their employees’ superannuation fund accounts by 28 February 2022. Those employers who have not yet paid or who have not paid in full are being audited as information is now being sent by superannuation funds to the Australian Taxation Office (ATO).

Superannuation Guarantee Charge Statement – Due Date

It is important that employers notify the ATO of their late SGC payments via the ATO’s process of lodging a Superannuation Guarantee Charge Statement within 28 days of the due date of 28 February 2022 (that is, by 28 March 2022) and by also paying the Superannuation Guarantee Charge which is made up of: The ATO will more likely consider favourably those employers who make a genuine effort to meet SGC obligations, especially if an employer has a good record of past compliance. Where an employer manages to lodge their SGC Statement after the due date but prior to being notified by the ATO of non-compliance, the ATO may reduce or waive penalties.

$450 Income Threshold – Removal from 1 July 2022

As part of the changes to the superannuation guarantee contribution (SGC) announced in the 2021/22 Federal Budget, the SGC will be paid to all employees at the new rate of 10 per cent (commencing 1 July 2022) commensurate with employees satisfying relevant superannuation guarantee eligibility criteria.

The amendment to remove the $450 per month income threshold received Royal Assent on 22 February 2022 and will first apply after the 2022 financial year, benefiting casual and part-time workers who currently do not receive the SGC due to the $450 per month income threshold.

The changes required will be made through Single Touch Payroll (STP) and businesses must prepare to meet their new obligation of SGC payments being made to ALL their SGC-eligible employees – regardless of income level – on their payroll from 1 July 2022.

Next Steps

YML’s Chartered Accountants can help employers with SGC Statement preparation and lodgement by 28 March 2022 and with STP adjustments from 1 July 2022.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your ATO compliance. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Economic Stimulus 2022 – Latest Government Incentives – What can your business receive?

2022 Small Business Support Program - NEW

If you’re a business, sole trader or not-for-profit organisation in NSW and you've been impacted by the Omicron wave of COVID-19, you may be eligible for a payment under the 2022 Small Business Support Program.

The program provides cash flow support to help eligible businesses survive the impacts of COVID-19 and maintain their NSW employee headcount.

Eligible businesses will receive one payment covering the 4-week period of February 2022. Businesses will not receive payment for January 2022.

If you’re an employing business, the payment will be equivalent to 20% of weekly payroll for work performed in NSW: If you’re a non-employing business, such as a sole trader, you may be eligible to receive a payment of $500 per week.

Eligible businesses can use funds to cover business costs incurred due to the impacts of the Omicron strain of COVID-19 in NSW. These costs may include: Applications close on 31 March 2022.

NSW Small Business Fees and Charges Rebate

The NSW Government has announced that the small business fees and charges rebate will increase from $2,000 to $3,000. Eligible employing businesses will be able to use the rebate against 50% of the cost of rapid antigen tests from late March. More information will be available soon.

Sole traders and small business owners must: Whilst running a business, NSW state and local government fees and charges befall most small business owners and sole traders: costs such as council rates, outdoor seating fees, event fees, food authority and liquor licences and tradesperson licences.

Eligible applicants can lodge multiple claims – as these types of expenses arise and are paid – until the $2000 rebate cap is reached.

The NSW Government stipulates that for a fee or a charge to be eligible, it must be due and paid from 1 March 2021.

There are some costs that may NOT be claimed: Applications end on 30 June 2022.

Dine & Discover NSW Vouchers

The NSW Government has launched Dine & Discover NSW to encourage the community to get out and about and support dining, arts, and recreation businesses.

Once approved as a Dine & Discover NSW business, you’ll be able to accept and redeem vouchers straightaway. You'll be able to do this through the Service NSW for Business app.

Businesses that register to accept Discover NSW vouchers can also accept Parents NSW vouchers.

Takeaway businesses are eligible to register for the scheme.

Vouchers are available to all NSW residents aged 18 or over and are valid to 30 June 2022.

Alfresco Restart Rebate

If you are a small or medium food and beverage business wanting to create or expand your outdoor dining area, you may be eligible for a $5,000 rebate under the NSW Government’s Alfresco Restart package.

The rebate is available to the first 5,000 eligible small or medium food and beverage businesses that register.

There are 2 steps involved in the Alfresco Restart rebate:

1. Register for the rebate 2. Claim the rebate NSW Commercial Landlord Hardship Grant

The NSW Government has announced that this grant has been extended until 13 March 2022. Applications for eligible landlords who provided rent relief from 15 November 2021 to 13 January 2022 are now open.

Grants of up to $3,000 per month (GST inclusive), per property, are available for eligible landlords who have provided rental waivers to affected tenants. Rent waived must comprise at least half of any rental reduction provided. The remaining portion may be a rental deferral. The grant does not apply to rent deferrals. For more information, see the guidelines.

Grants will be paid as a lump sum amount for the rent waived from: Applications close 31 May 2022

JobMaker Scheme

The JobMaker Scheme offers an incentive for small- and medium-sized businesses to expand their workforce and employ younger Australians in need of a job and, in turn, deliver growth potential for those businesses.

Eligible employers must register with the Australian Taxation Office (ATO) who are administering the scheme. JobMaker Hiring Credits are paid each quarter – from 1 February 2021 – for each eligible additional employee hired from 7 October 2020 until 6 October 2021.

Eligible employers may receive a JobMaker Hiring Credit of $200 a week for an employee aged 16 years to 29 years of age AND $100 a week for an employee aged 30 years to 35 years of age.

Scheme will end on 6 October 2022.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with government financial assistance. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.