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25 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

Director penalties 

If you are a director of a company, you must ensure that your company complies with its tax and superannuation obligations. Failure to do so will result in a personal liability. 

If a company does not meet its pay as you go (PAYG) withholding, GST or superannuation guarantee charge (SGC) obligations, the ATO may recover these amounts from you personally as a director of the company. 

More information can be found here. 

Loss carry back tax offset tool now available 

Use the ATO’s new loss carry back (LCB) tax offset tool to determine if your client is eligible for the refundable tax offset. 

The tool calculates the maximum LCB tax offset your client can claim. It also displays a helpful report with all the LCB labels they need to complete in their company tax return. 

Single Touch Payroll Phase 2 employer reporting guidelines 

Single Touch Payroll (STP) is the way you report your employee’s tax and superannuation information to the ATO. 

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

Most employers are now reporting through STP. You will need to start reporting if you have not transitioned yet unless you have an exemption or a deferral. 

Reminder of STP finalisation obligations

Most employers should have finalised their employees’ STP data for the 2020–21 income year by 31 July. If your employer clients haven’t yet finalised their employees’ STP data, the ATO may write to your clients directly, or to you.  

More information can be found here

Ban on electronic sales suppression tools 

Electronic sales suppression tools (ESSTs) can be a hardware or software feature connected to a point-of-sale system. ESSTs can falsify a business’s sales record by reducing the value of, or deleting and re-numbering, the remaining transactions. They are illegal to produce, supply, promote, use, or possess. 

If you are worried that ESSTs could be affecting your clients and need guidance on what to do next, get in touch with the ATO 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.  

Key dates for November and December 2021 

29 November 

21 December 

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