MYOB AE/AO release notes—2022.0 (Australia)

• CPI rates: Updated to 123.9 for the quarter ending March 2022
• Government super co-contributions: The income thresholds are updated to the 2022 rates.
• Interest on Overpayments - Updated to 0.07% for the period April 2022 to 30th June 2022.
• Early Payment Interest - Updated to 0.07% for the period 1 April 2022 to 30th June 2022.
• Foreign currency exchange rates: Updated for the calender year ending December 2021.
• Private health insurance rebate rates: Updated to 2022 rates.
• Medicare levy reduction for low-income earners: Updated to 2022 rates.
• occupation standard deductions ratios
• Low and middle income tax offset: As part of the 2022-23 Budget announcement, the Low and middle income tax offset is increased to $420.
• Small business tax offset: The tax offset available for unincorporated small business entities (with an aggregated turnover of less than $5m) was increased to 16% and capped at $1,000 per individual for each income year.
  
• The Motor Vehicle Depreciable Car Limit (DCL) is updated to $60,733.

• Working holiday maker changes: The ATO has made changes for working holiday maker calculation if they are a citizen of an NDA country.
  
• Interest income worksheet (int): The ATO has enhanced the pre-fill service for interest income by providing a certainty indicator for interest amounts. So 2 new fields have been added to the int worksheet. You need to complete the fields if you need to make adjustments to the interest income. This is also part of the ATO pre-fill.
  
• Temporary full expensing (TFE):
  
  • SBE assets:
    
    • Any pooled asset that is ready to use in the 2022 financial year will be written off under the TFE (TFE applies from 7:30 pm on 6 October 2020 to 30 June 2023). There is no upper limit for the asset value.
    • For non-pooled items ready to use in the 2022 financial year, you can choose a Depreciation method based on the Stimulus method election selected.

Stimulus Method election	Depreciation method available
Not a business asset or category not eligible for TFE/Opt out of Temporary full expensing
Using Temporary full expensing (TFE)

• Items removed:
  • BBI depreciation: You can't apply BBI depreciation to newly acquired assets in the 2022 financial year. Businesses that have previously depreciated their asset using BBI can continue using the existing rules.
    As a result of that, the ATO has removed Item P12 Backing business investment opt-out - labels - Q,R,T.
    
    

• Company tax rate: The rate is updated from 26% to 25% for companies with aggregated turnover of less than $50 million
• Loss carry back change in choice (2021 and 2022 Amended Company returns only)

If you have made a loss carry back choice in your company tax return and you want to change that original choice, you can do that using the change in loss carry back choice form in a 2022 Amended Company return.

We've added a new Loss Carry Back Change in Choice (cic) schedule. This schedule will be visible only on an Amended company return.

• R&D schedule
  • The R&D expenditure threshold is increased from $100million to $150 million.

  • For companies with an aggregated turnover below $20 million, the current 43.5% refundable offset is replaced with an 18.5% offset above the claimant's company tax rate.

  • Part B - Feedstock and Part C - Clawback - R&D recoupment tax are merged into Part B - Clawback amounts.
  • Part D R&D expenditure to associates has been updated to Part C R&D expenditure to associates.
  • Part D is updated to Part D - Aggregated turnover.
  • Part E is updated to Part E - R&D tax offset calculation.
  • 
    
• Other deductible expenses - Label X worksheet
  • A new field - R&D Balancing adjustments (From Part B, label Q R&D tax incentive schedule) has been added under the Deductible balancing adjustments section. This field integrates from Item 21 Lable X and will be included in the Total other deductible expenses field.
    
• Items removed:
  • Item 11 Consolidation deductions - Pre rules deductions, Interim rules deductions.

• Backing Business Investment depreciation: You can't apply BBI depreciation to newly acquired assets in the 2022 financial year. Businesses that have previously depreciated their asset using BBI can continue using the existing rules. As a result of that, the ATO has removed the following labels.
  • Company: Item 9 Capital Allowances - labels - V,W,X,M,O.
  • Partnership: Item 49 Capital Allowances - labels - V,W,X,M,O.
  • Trust: Item 50 Capital allowances. Labels V, W, X, M, O

• The Motor Vehicle Depreciable Car Limit (DCL) is updated to $60,733.

Trust and Partnership returns

• Items updated:
  • Item 49 Aggregated Turnover. Label P from Select your aggregated turnover range to Aggregated turnover range.
  • Item 50 Capital allowances > Depreciating assets first deducted in this income year: Label C Have you self-assessed the effective life of any of these assets? is moved under Item 50B, Other depreciating assets first deducted.

Change in the number of members

You can now have 12 members in an SMSF. There can up to 6 current members (Section F) and 6 supplementary members (Section G)

2022 lodgment

You can start lodging 2022 tax returns from 20 June 2022.

2022 tax return processing

The ATO will start processing 2022 returns from Friday 7 July 2022.

Refunds

Taxpayers should start receiving 2022 tax refunds from Tuesday 16 July 2022. 

Workpapers

We have updated the following workpapers with 2019, 2020, 2021 & 2022 rates:

• Division 7A loan summary
• Division 7A loan summary - 10 years
• Division 7A loan summary - 25 years

Basis of Preparation of the Accounting Policies paragraph:
In the second paragraph, the word Described has been changed to Presented for Company, Unit Trust, Other Trust, Partnership, and Individual entities.

Basis of preparation - Associations paragraph:
We've deleted some paragraphs under Basis of Preparation and added new paragraphs. You'll need to edit the Basis of Opinion paragraph with the relevant details, wherever specified.

Accounting Policies - Property, Plant and Equipment - Association paragraph:
We've added the following wording Property, Plant and Equipment accounting policy for the Association entity.
Plant and equipment is depreciated on a straight‑line basis over the assets useful life to the Association, commencing when the asset is ready for use.

Other income paragraph:

• For the accounting policy, Revenue and Other Income, we've changed the subheading from Other to Other Revenue.
• For the accounting policy, Revenue and Other Income > Investment Property, we have added the heading Investment Property that was missing.

SMSF entities:

• Audit report

In Part A, the option for Disclaimer of opinion paragraph had incorrect wording - I/We have audited the special purpose financial report and this is now changed to I/We was/were engaged to audit the special purpose financial report…
When Qualified option is selected, the heading under Part A - Qualified opinion was incorrectly displaying to as basis of qualified opinion. We've changed this to basis for qualified opinion.

We've changed the following on the cover page:

• • Approved SMSF auditor details has been changed to Approved self-managed superannuation fund (SMSF) auditor details.

  • Self-managed superannuation fund details has been changed to SMSF details.

  • Self-managed superannuation fund (SMSF) name has been changed to Fund name.

  • Address has been changed to Fund address.

  • To the SMSF ((trustee/trustees)) of : [[Client Details.Client Name]] has been changed to of the : [[Client Details.Client Name]].

Motor vehicle Cost limit: The cost limit for motor vehicles is updated to:

• $59,136 for 2021 tax year.
• $60,733 for 2022 tax year
• $64,741 for 2023 tax year

The Temporary Full Expensing (TFE) depreciation rule is extended to the 2023 year for General assets and Small Business Pool assets. You can apply the Temporary Full Expensing (TFE) depreciation method to assets that have been first used/installed on or after 6 October 2020 till 30 June 2023.

When adding an asset under the Temporary Full Expensing depreciation method, we've added validations for the date fields.

You'll see an error when:

• the Acquisition date is not 6 October 2020 or after

• the Start date is not between 6 October 2020 and 30 June 2023.

Opening balance review changes

When reviewing the opening balance for the prior year and posting journals:

• your journals will be posted in the prior year if the journal date is in the prior year.
• if you select a post journal date in the current year, we will rollover the journal data from the prior year to the current year automatically.

When reviewing the opening balance for the prior year and posting journals, as long as you select a post journal date in your prior year, journals will be posted in the prior year.

If you select a post journal date in the current year, we will rollover the journal data from prior year to the current year automatically for you.

Add Account

If you use New Essentials/MYOB Business ledger when adding accounts, previously, a particular format needed to be followed for the chart of accounts.

Now you can add an account without a format restriction such as account numbers starting with 7, which previously was not allowed. This is particularly helpful when assigning an account during the opening balance review.

Opening review wizard

When mapping an account and adding a new account with a quick add account function, you'll now see more fields in the opening review window. Some of these will be pre-filled based on the source account.

Known issue

If you're configuring a New Essential or Accountright ledger and haven't started a new financial year, you'll see an error message - Object reference not set to an instance of an object when reviewing the Opening balance for the prior year and posting a journal.

This error message is appearing incorrectly and will not affect any of the journals posted. Go to the configured leger to confirm that the journals are posted to the correct account. Once you've confirmed it, click OK and close the opening review window manually.

Adding a file to a Report

When inserting documents into Reports, we recommend you set the margins of the inserted report so it aligns properly with the rest of the pages. This will be useful if you need to insert documents like Statement of Cashflow, advisory reports, etc for your clients.

You can insert documents of any size — A4, A3, and smaller sizes. Due to Microsoft office component limitations, we don't recommend adding documents with Letter page sizes. This shows an extra blank space at the report’s header and footer area in Statutory reporter.

You can insert up to 20 pages into a report. This can be one file or multiple files but cannot exceed 20 pages in total.

After you've inserted a file, you'll see the following message that will suggest the margins on the top, bottom, left, and right. Based on this, you can make changes to the original file and then insert it into the report.

Your document has been inserted. For best results, we will dynamically cut your document to fit into the report. We suggest you set the margins in your inserted file as follows.

Top margin in X cm,
Bottom margin in X cm,
Left margin in X cm,
Right margin in X cm.

If the margins are different, some content from your document might be hidden. For more information, click here. 

Statutory reporter

• Income statement: When there is no appropriation in the Income Statement, the same total is printed twice. This is now fixed.

• SMSF entities: In the Operating Statement, the account groups under Expenses for Contribution Surcharge and Others, were incorrectly showing the net movements rather than the closing balance. This is now fixed.
  

• Statutory Reporter: When selecting the PTD/LY layout, the report was incorrectly showing For the year ended... This has been corrected to show For the period ended....

Assets:

• Error: SME Platform responded with an unexpected result" or "GeneralJournal_CreditDebitLinesRequired when posting journals to AssetsLive from workpapers. This is now fixed.

• AST file seems corrupted when trying to run  LVP Schedule Report. This is now fixed.

• The small business pool opening balance was not showing when printing the General Small Business Pool schedule report. This is now fixed.

Client Accounting:

• Error: There was a problem trying to open this version of AccountRight file when using AccountRight version 2022.4 Server Edition ledger. This is now fixed.
• Error: Tax code NTR is not found when posting a system-generated balance forward journal to AccountRight ledger. This is now fixed.
• Unable to open workpapers when using Essentials ledger. This is now fixed.
• Error: unknown account type 7023 when tryting to do an opening review. This happens for accounts created with number starting with 7. This is now fixed.
• Error: Exception type - MYOB.clientaccounting.common,generalledger.Exceptions.PostJournalException when trying to post an adjustment journal using Opening Review with an inactive account. You can now see the inactive accounts in the error message so you can post the journals to the correct account.