New rules have been set out by the Australian Taxation Office (ATO) for Australians who are the directors of companies and now have less than two weeks to take action to avoid a big fine of $13,000.
The Australian directors of companies covered by the Corporations Act now need to have a director identification number (director ID). Meanwhile the ATO has said that a grace period will apply for those who apply for the director ID before December 14.
According to the policy-executing body, the Australian Business Registration Service (ABRS), 1.8 million company directors have already applied for a director ID. However, about 700,000 directors still yet applied.
The Director ID is a unique 15-digital number aimed to deter illegal schemes such as phoenix activity.
Who needs to apply?
The rules apply to all directors in Australia in the structure of companies, self-managed superannuation fund with corporate trustee, charities and not-for-profit entities. If you are operating your business as a sole trader or partnership, you do not need to apply for this identification number.
You can apply online through the ABRS website. Once completed, you will be issued with a Director ID instantly.
How to apply
Prior to applying for a Director ID online, you will need a myGovID with minimum a standard strength of identity.
You will need your myGovID to apply for a Director ID online by logging into the ABRS website.
If you are unable to register a myGovID with standard strength or above of identity, how you apply will be up to where you reside. If you currently reside in Australia and are unable to apply online, please call the ABRS to apply for a director ID. If you currently reside outside of Australia and are unable to apply online, you can use the Director Identification Number paper application form (NAT 75433, PDF 651KB) to apply. However, in the meanwhile, you must provide a certified copy of your identification documents.
If you are not sure whether you need to apply, you can find out by checking the ABRS website or by contacting us.
The ABRS states that you need to apply for a director ID in your own name and verify your identity so generally speaking, we as tax agents cannot make the application on your behalf.
Should you please have any question in regards to above, please feel free to contact our friendly team in Pitt Martin Tax at 0292213345 our info@pittmartingroup.com.au.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Experienced Tax Accountant and Business Advisor with a demonstrated history of working in the accounting industry. Skilled in Tax, Accounting, Business Advisory and SMSF. Strong entrepreneurship professional with qualification Master of Professional Accounting, CPA Public Practice, Registered Tax Agent, Registered ASIC Agent, NSW Law Society External Examiner, Trust Account Auditor and Diploma of Finanical Planning. Specialised in SME, tax planning and international tax, he helped client save ample money and create wealth.