Newsletter September 2022

Oct 19, 2022 | News



Director ID Mandatory by November 2022

Obtain a Director ID Now or Get Penalised!

All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporations are now required to obtain a director ID.

A director ID is a unique identifier that a director will apply for once and keep forever and is aimed at preventing the use of false or fraudulent director identities.

If your small business is set up under a proprietary limited (“Pty Ltd”) structure then you are most likely a company director. Anyone else closely involved in your business – typically a spouse, sibling, or parent – could also be a director.

Directors of a company will appear on the company’s ASIC extract, a listing of the company details that is held with the Australian Government.

What Does it Mean to Have a Director ID?

The Director ID will be a unique identifier that a Director will keep forever, enabling regulators to better track Directors of failed companies who use fabricated identities. The introduction of these IDs is aimed at preventing the use of false or fraudulent director identities. Regulators will be helped to trace directors’ relationships with companies over time and better identify director involvement in unlawful activity. The new system will help overcome issues with data integrity, which have always been a constant battle in regulating phoenixing and the illegal activities around this dilemma. This compliance regulator will further support small businesses by keeping out operators that are breaking the law.

The Law Applies Now – Penalties Soon

  • New Directors / New Entities:
    • Since 5th April 2022: a person must apply before being appointed as a director.
  • Existing Directors / Existing Entities:
    • Must obtain ID prior to 30th November 2022 (transition period).
  • Future Directors:
    • A person who intends to be appointed, may apply up to 12 months before.
  • Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) have an extra 12 months. Current CATSI Act directors must apply by 30th November 2023.
  • Charities & NFP Sector:
    • Directors of incorporated associations registered with the ACNC do not need a Director ID. A very limited exception to this is directors of incorporated associations that have an Australian Registered Body Number (ARBN) to operate outside their ‘home’ state or territory. Directors of an incorporated association with an ARBN will need a director ID even if they are not ACNC registered.

Australian Business Registry Services (ABRS) is responsible for administering director ID and will provide support and guidance to directors to assist them to understand and meet their director ID obligation. Please visit the ABRS website for more information about director ID.

Your Bookkeeper’s Role

  • Bookkeepers cannot apply for a business owner (even if they log you in).
  • Bookkeepers cannot advise to set up companies / trusts etc. It is tax and legal advice that is out of scope for Bookkeepers and BAS Agents and has too many legal consequences.
  • Bookkeepers can provide information – help your businesses to understand and implement the Director ID process.
  • Bookkeepers cannot pretend they are the client and apply for them.
  • A Bookkeeper can only help the business owner.
  • Directors must apply themselves – using their myGovID.

There has now been further clarification regarding the penalties which will be imposed.

Directors who fail to apply within the time frame could face fines of up to 5,000 penalty units. Currently, penalty units are measured at $222 per unit for breaches of Australian Government Law, which means fines of up to $1.1 million may apply. There is also the consequence of possible imprisonment for up to 12 months.

Additionally, further penalties may be imposed on directors who knowingly apply for multiple director IDs, misrepresent their identification numbers to a Government or registered body, or provide false information during their application process.

ATO Lodgement Dates

These dates are from the ATO website and do not take into account possible extensions.

You remain responsible for ensuring that the necessary information is with us in time.

See ATO Due dates by month to check monthly lodgment and payment dates.

BAS/IAS Monthly Lodgements
Final dates for lodgements and payments:

September Activity Statement:
21 October 2022

October Activity Statement:
21 November 2022

BAS Quarterly Lodgements
Final dates for lodgements and payments:

1st Quarter 2023 Financial Year:
September Qtr (incl. PAYGI)

28 October 2022

2nd Quarter 2023 Financial Year:
December Qtr (incl. PAYGI)

28 February 2023

When a due date falls on a Saturday, Sunday or Public Holiday*, you can lodge or pay on the next business day.

*A day that is a public holiday for the whole of any state or territory in Australia.

Due date for super guarantee contributions:

1st Quarter 2023 Financial Year:
July to September 2022 FY – contributions must be in the fund by 28 October 2022

2nd Quarter 2023 Financial Year:
October to December 2022 FY – contributions must be in the fund by 28 January 2023

Late payments of superannuation are not tax deductible. If your business has overdue superannuation guarantee payments and you are unsure of how to proceed, please contact us to discuss.

What is a FWO Compliance Notice?

The Fair Work Ombudsman is increasingly using compliance notices as a tool to recover unpaid wages. They have developed a new online course to assist employers and their professional advisers to better understand the requirements of a compliance notice.

The interactive short course provides step-by-step guidance, video scenarios and real-life case studies to help employers understand:

  • What a compliance notice is.
  • Why they are issued.
  • How to respond to a compliance notice.
  • The possible consequences if they don’t respond to a compliance notice.
  • How to calculate an underpayment and make back-payments.
  • Common mistakes to avoid in their workplace.

The course takes about 30 minutes to complete. Learners who complete the course can download a completion certificate.

The Fair Work Ombudsman invite you to view the new course at Compliance Notices – Fair Work Ombudsman.

Disclaimer: All or any advice contained in this newsletter is of a general nature only and may not apply to your individual business circumstances.

For specific advice relating to your specific situation, please contact your accountant or contact us for further discussion.

Symmetrii Pty Ltd
Tel: +61 (02) 4339 7870
Address: Suite F 78 York St, East Gosford NSW 2250

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