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18 Nov 2021 Business Measures

Director ID applications are now available

Your clients can now apply for their director identification number (director ID) on the new Australian Business Registry Services (ABRS) website and will log in using the myGovID app. From 1 November 2021, new directors have a set period to apply. 

Director ID is a new requirement for all company directors, designed to help combat illegal activity by making it easier to trace directors’ relationships with companies. 

The dates for when your clients need to apply, depends on when they become a director. 

  • If you are already a company director at close of 31 October 2021, you must apply for a director ID by no later than 30 November 2022.
  • If at close of 31 October 2021 you are already a director and you are appointed to a new director post (or as an alternate), you still have until 30 November 2022 to apply for a director ID.
  • If you become a director from 1 November 2021 until 4 April 2022 (and you were not already a director at close of 31 October 2021), you must apply for a director ID within 28 days after your appointment.
  • If you become a director on or after 5 April 2022 (and you were not already a director at close of 31 October 2021), you must apply on a day before your appointment day.

For a full list of key dates including directors of Aboriginal and Torres Strait Islander corporations, see Director IDs: Who needs to apply and when

The ATO has also released a short video for tax professionals to explain how you can help your clients understand the new requirements and how to apply. 

Updated member-only guide 

A member of The Tax Institute, Stephen Page, CTA, Partner at Sydney accountancy firm, Stephen Page & Co has written an updated member-only guide ‘Director Identification Numbers’.

The guide takes you through all that you need to know about director IDs. Some highlights of the guide include: 

  • Dates by which a director must apply for a director ID
  • How and where do you apply for a director ID?
  • How do you identify yourself?
  • What if you are not an Australian citizen and/or are outside Australia?
  • What if I’m appointed without getting a director ID? 

Members can access the guide here.

Private company directors – lodge or review your return 

If you are a director of a private company and your tax returns are not up to date, or you did not report all your income, now is the time to speak to a trusted adviser and lodge a tax return or make a correction. 

The ATO will be commencing reviews on lodgment and correct reporting for these company directors and their connected entities soon. 

More information can be found here.  

Tax and superannuation when engaging an employee 

When you hire an employee, you need to meet your tax and superannuation obligations.  

You can use the Hiring employees checklist and Employment Contract Tool to help you meet all your obligations as an employer under Australian law.  

Mortgage interest expenses factsheet 

The ATO has found that almost one‑third of people made mistakes when claiming their interest deductions on their investment property.  

The ATO has released a new tax practitioner factsheet Rental mortgage – interest expenses, which lists what you can and cannot claim. It is now available for you to download for discussions with clients who have rental properties.  

STP Phase 2 – Correspondence to employers 

The ATO is writing to let employers know what they need to do to get ready for Single Touch Payroll (STP) Phase 2 where:  

  • their digital service provider’s solution is ready from 1 January 2022;
  • they are covered by a digital service provider’s deferral which expires on or before 1 March 2022.  

Depending on their communication preferences, the ATO may write to your employer clients directly, or to you. Your clients may seek your support through the transition.  

More information can be found here

STP Phase 2 employer reporting guidelines 

The ATO has released STP Phase 2 guidelines to help you understand what is required for STP Phase 2 reporting through your STP Phase 2 enabled software. 

More information can be found here. 

STP Phase 2 – ATO podcast 

ATO Acting Assistant Commissioner, Julia Cook, and Senior Director, David Jepsen, discuss STP Phase 2 with Assistant Commissioner, Jason Lucchese, in the latest episode of their Tax inVoice podcast. They discuss: 

  • benefits of STP Phase 2 for employers and employees;
  • changes to STP reporting and key dates;
  • elements of STP reporting that won’t change;
  • what you can do to prepare. 

The podcast also covers: 

  • the extension of the 80% hour shortcut method for calculating working from home expenses
  • Director ID
  • the new stapled superannuation fund rules (which started on 1 November 2021);
  • the difference between myGov and myGovID. 

Listen to the ATO’s podcast here

Overdue Taxable payments annual reports

Remind your clients if they make payments to contractors, they may need to report these in a Taxable payments annual report (TPAR) by 28 August each year. If your clients’ TPAR is overdue, it’s important they lodge online now. 

More information can be found here

Latest findings from reviews of Australia’s largest public and multinational taxpayers 

Obtain insights about Australia’s largest public and multinational taxpayers by reading the recent findings from the ATO’s assurance reviews of top 100 taxpayers and the Reportable tax position schedule disclosures. 

The Top 100 findings report shows outcomes of the ATO’s income tax and GST assurance reviews of top 100 taxpayers for 2020–21. The report shows a 20% increase in the number of top 100 taxpayers who have attained overall high assurance (justified trust) for income tax compared to the ATO’s last findings report in 2020. The report also outlines the benefits to taxpayers of reaching high assurance, and areas that attract the ATO’s attention. 

Read the report here.  

Is your organisation contactable in an emergency? 

Updating your Australian Business Number (ABN) details might be the last thing on your mind, but it is important to keep your contact details up to date, especially as the risk of natural disasters like bushfire and storms increases at this time of year. 

During times of emergency or natural disaster, your ABN details are used by emergency services and government agencies to help identify businesses in affected areas that might need help or support. If your ABN details are out of date, you risk missing out on important assistance, updates or opportunities such as grants. 

More information can be found here. 

Key dates for November 2021 

22 November 

29 November 

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