Wrights CA Blog

Director ID Registration (DIN)

Director ID Registration



From 1 November 2021, Australian Company Directors are required by law to verify their identity with the Australian Business Registry Service (ABRS) and obtain a Director ID.

What is a Director ID?

A Director Identification number (Director ID) is a unique 15-digit identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.

Directors will only ever have one director ID. They'll keep it forever even if they:

  • change companies
  • stop being a director
  • change their name
  • move interstate or overseas

Existing Directors need to apply for their Director ID by 31 October 2022.


Why you need a Director ID

Shareholders, employees, creditors, consumers, external administrators, and regulators are entitled to know the names and certain details of the directors of a company.
 
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help to:

  • prevent the use of false or fraudulent director identities
  • make it easier for external administrators and regulators to trace directors' relationships with companies over time
  • identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.

Illegal phoenix activity is when a company is liquidated, wound up, or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:

  • employees miss out on wages, superannuation, and entitlements
  • suppliers or sub-contractors are left unpaid
  • other businesses are put at a competitive disadvantage the community misses out on revenue that could have contributed to community services.?

 

Apply for your Director ID

To apply for your Director ID, you will need to do the following:
 
Step 1: If you haven't already, register for a myGovID with a Standard or Strong identity strength.

We would recommend that you apply for myGovID by phone. 

You can apply by phone if you have:

  • an Australian tax file number (TFN)
  • the information you need to verify your identity, as listed below

If you are in Australia, phone 13 62 50 between 8.00 am and 6.00 pm Monday to Friday.
               
Step 2:  Gather the following documents to verify your identity:

  • Your TFN (an individual Australian tax file number)
  • Your residential address, as recorded by the ATO
  • Be prepared to answer two questions from ANY of the following options based on details/records available to ABRS. These might include:

 
Step 3: Complete your application:

Once you have a myGovID with a Standard or Strong identity strength and information to verify your identity, you can log in and apply for your Director ID. The application process should take less than 5 minutes through the myGovID app.


Get the myGovID app

How to Manage your Director ID

If you have a myGovID, you can log in to ABRS online to view your Director ID or update your details whenever you need to:

  • check your Director ID number and status, including when it was issued;
  • view things to do, actions in progress and past activity; and
  • edit your profile preferences and some of your personal details.


Your Director ID obligations include: 

  • applying for a Director ID within the relevant timeframe for your situation;
  • applying for a Director ID when directed by the Registrar to do so;
  • not applying for more than one Director ID (unless directed by the Registrar to do so);
  • not misrepresenting your Director ID to a Commonwealth body, company, registered Australian body, or Aboriginal and Torres Strait Islander corporation; and
  • not being involved in a breach of the above Director ID obligations.

 
If you don't meet your obligations:
There may be civil or criminal penalties, and you may be issued with an infringement notice.

 




We hope this article has been of assistance to you. 

Warm wishes, 

The Wrights Chartered Accountants Team





 

Closing Your Business

Closing Your Business Checklist

When you're facing the possibility of closing your business permanently, it can be a very emotional and overwhelming time. There are many things to consider when winding up your business, such as GST, Capital Gains Tax, Division 7a loans, Employee and Contractor Obligations, plus more. We understand this can seem like a daunting task ahead, which is why we've put together a checklist to help you through the process. 

Download our Closing your business checklist.pdf here. 

For further information or advice on how to wind up and close your business, contact our office today!

Phone: 02 6566 2200

Email: admin@wrightsca.com.au

Website: wrightsca.com.au

 

 

Avoid Super Guarantee Charges


 

Recently, we have noticed more activity around the enforcement of employers' superannuation obligations by the ATO. 

We'd like to remind you that to avoid the super guarantee charge, payments must be made at least four times a year. This applies from the day an employee starts working for you.

 

Payment due dates occur quarterly, as follows:

Quarter 1:

Period: 1 July – 30 September

Payment due date: 28 October

 

Quarter 2:

Period: 1 October – 31 December

Payment due date: 28 January

 

Quarter 3:

Period: 1 January – 31 March

Payment due date: 28 April

 

Quarter 4:

Period: 1 April – 30 June

Payment due date: 28 July

 

We believe the stricter enforcement falls in line with the ATO's movement towards Single Touch Payroll (STP). STP means that the ATO now receives each employers' superannuation obligations for their employees whenever a business's payroll is completed and wages are paid to employees. This, coupled with increased data matching capabilities, mean that the ATO is more easily able to match which employers are not meeting their superannuation obligations and who are not paying these on time.


Super obligations for employers checklist

Source: ATO

Paying super is an important part of being an employer.

Here's how to run a quick check of your super, to make sure you've got everything sorted.

1.    Check you're paying for the right people. You need to pay super for all of your eligible workers. Most employees and some contractors are eligible for super.

2.    Check you're paying the right amount.

3.    Check you're paying on time. At a minimum, you need to pay super quarterly. Some super funds, awards or agreements, may require more frequent payments.

4.    Check you're paying to the right place. You must pay super into a complying super fund or Retirement Savings Account.

5.    Check you're paying the right way.

6.    And of course, you need to keep records, to show you've met your obligations, including how much you paid, when you paid, and that you offered a choice of fund.

 

The ATO has a range of online tools and calculators, to help you understand your super obligations in more detail. Visit ato.gov.au/superquickcheck to find out more information.

 

As always, if you have any questions please feel free to contact the Wrights team.

 

2021 Tax Deduction Checklist


Is it tax deductible?

Everyone wants to pay less tax, right? To do that you need to know what you can claim… and what you can't.

It's not about cheating the system, or creative accounting. It's all about claiming what you're entitled to. That's why we've developed the "Is it Tax Deductible?" checklist designed for the individual taxpayer.

CLICK HERE TO DOWNLOAD YOUR CHECKLIST

If you'd like more information on any of the above items, please feel free to contact us today.

The Balancing Act Budget 2021-22

THE BALANCING ACT BUDGET 2021-22

 

The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit ($106 bn), an impending election, and the need to invest in the long term.

The key initiatives we believe are relevant to you, our clients, include: 

  • The low and middle income tax offset will be extended to the 2022 tax year – provides an offset up to $1,080 for individuals earning up to $126,000, which is in place for the current year;
  • The temporary full expensing of assets purchased has been extended to 30 June 2023, meaning that eligible businesses can continue to claim a full deduction in the year of purchase for eligible assets.

We have a full guide available to you which breaks down the budget. You can access it for free here

 

If we can assist you to take advantage of any of the Budget measures, or to risk protect your position, please contact us