Blog

It’s that time of the year!

Christmas and New Year Closure

We’ve enjoyed working with all of our valued clients during the year but we’re going to take a break.  Therefore, we’ll close at 3.30pm on Wednesday, 22 December 2021 and will re-open at 9.00am on Tuesday, 4 January 2021.

We wish you a happy and safe festive season and we look forward to working with you again in 2022.

Merry Christmas!

Kevin and the team

Director ID is now required for all directors

The Australian Business Registry Services (ABRS) now require existing company directors and directors of corporate trustees to make application for a “director ID” from November 2021 and by 30 November 2022 if you were appointed director on or before 31 October 2021!

When you need to apply

When you must apply for your director ID depends on the date you became a director.

Date you become a director Date you must apply
On or before 31 October 2021 By 30 November 2022
Between November 2021 and 4 April 2022 Within 28 days of appointment
From 5 April 2022 Before appointment
Apply for your director ID online

Unfortunately, Tax, BAS and ASIC agents cannot apply for a director ID on your behalf – all directors need to apply for their own director ID.  The fastest way to do this is online using the myGovID app.

Step 1 – Set up myGovID

You will need a myGovID with a Standard or Strong identity strength to apply for your director ID online.

If you:

  • already have a myGovID, you can apply for your director ID now.

MyGovID is different from myGov

  • myGovID is an app you download to your smart device.  It lets you prove who you are and log in to a range of government online services, including myGov.
  • myGov is an account that lets you link to and access online services provided by the Australian Taxation

Office (ATO), Centrelink, Medicare and more.

Step 2 – Gather your documents

You will need to have some information the ATO knows about you when you apply for your director ID:

  • your tax file number (TFN)
  • your residential address as held by the ATO
  • information from two documents to verify your identity.

Examples of the documents you can use to verify your identity include:

  • bank account details
  • an ATO notice of assessment
  • super account details
  • a dividend statement
  • a Centrelink payment summary
  • a PAYG payment summary (this is different to your income statement, and/or your PAYG instalment activity statement).

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.

How to set up myGovID

Download the myGovID app, enter your details and verify your identity documents.

Before you start

To set up your myGovID, you need:

A smart device – the myGovID app is compatible with most smart devices and is only available from the Apple App Store or Google Play.

An email address – as it’s your personal Digital Identity, you should set up your myGovID using a personal email address.  It should not be a shared or work email address.

Three easy steps to set up your myGovID

1. Download the myGovID app.

2. Enter your details. Open the myGovID app on your smart device and follow the prompts. You need to enter your full name, date of birth and email address.

3. Choose your identity strength. You will need to set up either a Standard or Strong myGovID identity strength to apply for your director ID.

Standard identity strength

A Standard myGovID allows access to most participating government online services.

For a Standard identity strength, you need to enter your personal details and verify at least two of the

following Australian identity documents (your name must match on both):

  • driver’s licence or learner’s permit
  • passport (not more than three years expired)
  • birth certificate
  • visa (using your foreign passport)
  • citizenship certificate
  • ImmiCard
  • Medicare card.
Strong identity strength

A Strong myGovID allows access to all participating government online services.

For a Strong identity strength, you need to enter your personal details and verify the following

Australian identity documents (your name must match on all):

  • passport (not more than three years expired), and
  • one of the following – birth certificate, citizenship certificate, driver’s licence (including learner’s permit) or Medicare card.

Verify your photo – you also need to complete a face verification check. This is a one-off scan that checks that you’re a real person, the right person and verifying in real-time. It’s like a selfie which is compared to the photograph on your passport.

How to apply if you cannot get a myGovID

If you can’t get a myGovID with a Standard or Strong identity strength, the best way to apply for a director ID will depend on your situation.
Apply by phone
You can apply by phone if you have:

  • an Australian tax file number (TFN)
  • the information you need to verify your identity.

Apply with a paper form
If you can’t apply online or over the phone, you can apply using a paper form. This is a slower process and you will also need to provide certified copies of your documents to verify your identity.

Should you intend to apply using either the phone or paper method, please advise and we will forward you informative notes to assist.

 

Super choice – new employees

From 1 November 2021 new employees should be provided with a superannuation standard choice form and have superannuation contributions paid into their nominated fund.

If the new employee does not nominate a superannuation fund, then the employer is required to request the employee’s “stapled” super fund details from the ATO.  The stapled super fund is an existing super account of an employee which follows the employee as they change jobs!

Where the employee doesn’t make a super choice and the ATO advises there is no stapled fund, then the employer may pay contributions into a default fund.

For more information on super choice CONTACT US today!

Novated lease – are you considering one?

The novated lease is a three way agreement between employer, employee and finance company.  The employee leases a car of his or her choice from the finance company, then novates or transfers the underlying lease obligation to the employer for as long as the employee remains with that employer – lease payments and running costs are met through a salary packaging arrangement.

The employee is able to access their car of choice and take a tax advantage through salary sacrifice, while the employer generally is entitled to use concessional valuation rules for fringe benefits tax purposes. Although the vehicle is privately owned by the employee it is treated as if it were a company car.

*A novated lease precludes you from claiming motor vehicle expenses.

 

To find out more CONTACT US today!

Casual employee? What you need to know

Changes to workplace laws relating to casual employees, took effect on 27 March 2021 and dictate you are a casual employee if:

-       you are offered a job

-       the employer makes no firm advance commitment that the work will continue indefinitely with an agreed pattern of work

-       you accept the offer knowing there is no firm advance commitment and become an employee.

Whether or not you are a casual employee is assessed at the time you are offered and accept the job.  However, this may change if you work a regular pattern of hours which continues for 12 months – you may be entitled to casual conversion.

For more information CONTACT US today!