InFocus February 2022 - Volume 31 Issue 1

• Director ID: a requirement for company directors
• Why it is important provide the right information the first time

• Ensure your business is prepared for an emergency

• Events

• ASIC in the media

• Resources for small business

Director ID: a requirement for company directors

A director identification number (director ID) is a unique identifier that a director applies for once and keeps forever. Director ID is now a requirement for all directors. To help you or your clients understand the director ID requirement and how to apply, watch this introduction video.

Following the public beta launch of the director ID service in November 2021, over 240,000 directors have applied for their director ID. Around 94% have applied online and received their director ID instantly.

Applications for a director ID are available at Australian Business Registry Services (ABRS). You’ll need a myGovID with a ‘Standard’ or ‘Strong’ identity strength to apply for a director ID online.

It's important to note that directors need to apply for their director ID themselves to verify their identity. Authorised tax, BAS or ASIC registered agents cannot apply for one on their behalf. However, they can provide advice about the requirement, if an application is required and by when.

When directors need to apply for a director ID, depends on when they became a director. If they:

• become a director from 1 November 2021 to 4 April 2022, directors must apply for a director ID within 28 days of their appointment
• become a director on or after 5 April 2022 they will need to apply prior to their appointment
• were a director on or before 31 October 2021, they have until 30 November 2022 to apply.

If they’re a director of an Aboriginal or Torres Strait Islander corporation (CATSI), they will have longer to apply.

ABRS is currently identifying those newly appointed directors who have not applied for their director ID within 28 days of appointment. ABRS will begin making contact with those directors to make them aware of the obligation and encourage application.

Visit ABRS - director ID for information about the requirement and other options which are available to apply for a director ID.

Why it is important to provide the right information the first time

ASIC administers more than 30 legal registers and works to collect, store and make publicly available, information from these registers.

The work we do ensures that the information on our registers is accurate, up to date and available in a timely manner, enabling business and consumer stakeholders to make informed decisions.

You are reminded to check that any information provided to us is accurate upon lodgement, and unlikely to require typographical correction at a later stage.

This is particularly important for company registration where we see a large number of Form 492 Request for Correction (Form 492) lodgements due to incorrect date of birth or spelling of name.

Lodging inaccurate information can have impacts for company directors as they attempt to open bank accounts, enter financial contracts and commence other business critical operations.

Corrections made via a Form 492 may not be reflected on ASIC’s registers for up to 28 days after lodgement.

Registered agents lodging on behalf of customers must ensure documents are accurate. Our registered agent terms and conditions outline this requirement. 

Examples of checking the accuracy of the information may include confirming the spelling of full names (including middle names) and checking that dates and places of birth are correct.

Ensure your business is prepared for an emergency

In Australia, natural disasters such as floods and fire can strike without warning, so it’s important to make sure your business is resilient in times of crisis.

Make sure your business is prepared and know what to do in an emergency situation. Find out more at business.gov.au

If you have experienced hardship as the result of a natural disaster, we may be able to assist. To find out more about how to apply for natural disaster relief, visit our website.

Events

ASIC Annual Forum 2022

The ASIC Annual Forum will be held in Sydney on 21-22 March 2022.

Hear from ASIC Commissioners and thought leaders as we explore how the finance sector has evolved and what the future may hold as we continue down the path of change.

Registrations are required to attend the event, find out more on our website.

Council of Small Business Organisations Australia (COSBOA) – 2022 National Small Business Summit

The COSBOA National Small Business Summit will be held in Sydney on 5–6 April 2022.

Over two days you will hear from regulators, politicians, policy-makers and small business leaders, as they challenge the issues constraining the productivity of Australian small businesses.

The COSBOA Summit is your opportunity to make your voice heard, to influence the important policy issues for small business across digitisation and cybersecurity, pandemic policy, insurance, landlords and insolvency, industrial relations, mental health, competition, sustainability, banking and finance and regulation change.

Most of all you will hear the voice of small business people – find out about their experiences, how they are reviving, and what they need and demand from us to help them thrive in the future.

Registrations are required to attend the event, find out more on the COSBOA website.

Australian Taxation Office hosted Small Business webinars

Access a range of free interactive webinars for small business, hosted by the Australian Taxation Office (ATO). Each webinar is presented by experienced tax officers, and includes the opportunity for you to ask questions to help you apply information to your own situation.

Topics covered include connecting online with the ATO, introduction to business records, claiming small business tax deductions, and more.

Each webinar will be delivered via Webex, and requires you to pre-register.

Find out more on the ATO website.

ASIC in the media

• Warning: Self-managed super funds and crypto investments
• 22-001MR Statewide Superannuation to pay $4 million penalty for misleading correspondence to members
• 21-368MR ASIC issues information for tax financial advisers under Better Advice Act
• 21-364MR Mayfair 101 Group to pay $30 million penalty for misleading advertising

To stay up-to-date with ASIC news, visit our News Centre.

Resources for small business

Release of the Payments Times Reports Register dashboard

The Payment Times Reporting Scheme (PTRS) aims to improve payment times for Australian small businesses.

Under the scheme, large businesses and government enterprises must report their payment terms and times for small business.

The PTRS dashboard has been released. The dashboard visually shows how reporting entities pay their small business suppliers.

You can use the dashboard to find and compare:

• payment terms offered to small businesses by reporting businesses,
• actual payment times for reporting businesses, and
• average payment terms from all reports.

To find out more, visit the PTRS website.

Supporting the transition to Single Touch Payroll Phase 2 reporting

Single Touch Payroll (STP) Phase 2 reporting started on 1 January 2022. If the payroll solution an employer uses is ready they should start STP Phase 2 reporting if they can. Employers will be reporting on time if they start STP Phase 2 reporting before 1 March 2022.

Digital service providers needing more time to update their solutions to support Phase 2 reporting have applied for a deferral. A provider's deferral will cover their customers, and providers will let their customers know they are covered. If so, employers won't need to separately apply for more time.

The Australian Taxation Office (ATO) has a wide range of support available to help your transition such as:

• detailed STP Phase 2 employer reporting guidelines, and
• STP news events and resources, including a short podcast which summarises the changes and webinar series providing more detailed information.

For more information see Expanding Single Touch Payroll (Phase Two).

Loss carry back tax offset tool now available 

Looking to claim the loss carry back tax offset in your company tax return? The ATO’s new loss carry back (LCB) tax offset tool will help you work out if you are eligible to claim the refundable tax offset. It also calculates the maximum amount you can claim if you are eligible and provides a printable report which can be kept for your records.

This interactive tool works through the eligibility criteria using a series of simple tick box style questions. If you are eligible, you will then be asked a series of questions to help calculate the maximum amount of LCB tax offset you can choose to claim.

Once you have completed all questions, a report will be provided displaying the labels you need to complete in your company tax return to make your claim.

You can print a copy of the report with the results for your records. For more information go to Loss carry back tax offset tool.

Information about changing your loss carry back choice

Treasury Laws Amendment (2021 Measures No. 5) Bill 2021 has received royal assent, allowing eligible entities to make a change to a loss carry back choice.

To make a change, you will need to wait for an approved form to be available. Further information on this will be available on the ATO website shortly.