InFocus June 2022 - Volume 31 Issue 4
- Fee indexation 2022
- Corporate collective investment vehicle framework coming soon
As of 1 July 2022, some ASIC fees may change based on an increase in the Consumer Price Index (CPI).
Our fees for commonly lodged documents page was recently updated to compare the current fees against the new indexed fees.
For more information about fee indexation, visit our website.
In the 2021–22 Federal Budget, the Australian Government committed to progressing the tax and regulatory framework for a corporate collective investment vehicle (CCIV). The Corporate Collective Investment Vehicle Framework and Other Measures Act 2022 amends the Corporations Act 2001, the Australian Securities and Investments Commission Act 2001 and the Personal Property Securities Act 2009 to allow for the regime to come into effect from 1 July 2022.
A CCIV is a new type of company limited by shares that will operate as a collective investment vehicle. With similar characteristics to some other internationally recognised investment structures, the CCIV regime will enhance the international competitiveness of the Australian funds management industry by allowing it to use a structure that is more familiar to overseas investors.
Each CCIV must appoint a corporate director upon registration that holds an Australian financial services (AFS) licence authorising it to operate the business and conduct the affairs of the CCIV. A CCIV can operate as a retail or wholesale provider and should have at least one sub-fund registered. A sub-fund can also be registered as an Australian passport fund for the purpose of the Asia Region Funds Passport.
On 1 July 2022, further information will be available on our website regarding the process to register a CCIV, and what conditions must be met to comply with the requirements of the CCIV regime.
Consultation Paper 360 Corporate collective investment vehicles: Preparing for the commencement of the new regime (CP 360) was released on 17 March 2022 seeking feedback for proposed guidance on how we will assess AFS licence applications and administer licensee obligations in relation to corporate directors. Comments for CP 360 have now closed and feedback provided will be considered in relation to potential draft Regulatory Guide updates.
Australian Business Registry Services (ABRS) is providing the following guidance to agents and intermediaries to assist them in supporting their director clients to apply for their director identification number (director ID).
When directors must apply for their director ID depends on the date they first become a director:
- Intending new directors must apply before being appointed.
- Directors appointed on or before 31 October 2021 have until 30 November 2022 to apply.
- New directors appointed for the first time between 1 November 2021 and 4 April 2022 had 28 days from their appointment to apply.
While those appointed on or before 31 October 2021 have until 30 November 2022 to apply, all directors are strongly encouraged to apply now.
Directors of companies registered with the Office of the Registrar of Indigenous Corporations (ORIC) have a different time frame in which to apply. More information is available from the ABRS website.
The fastest way to get a director ID is to apply online using the myGovID app.
Helping your clients
You can assist your director clients to successfully apply for their director ID by ensuring they have all the information they need.
Setting up myGovID
Most successful applicants use two of the following Australian identity documents that verify their identity to set up their myGovID:
- passport (not more than three years expired) and
- Medicare card.
Alternatively, the following can also be used:
- driver’s licence or learner’s permit
- visa (using your foreign passport)
- citizenship certificate
- birth certificate
Applying at ABRS online
Directors will log on to ABRS online using their myGovID, and will need additional information the ATO knows about them, including:
- tax file number (TFN)
- residential address as held by the ATO
- information from two documents to verify identity.
Most successful applicants use two of the following:
- bank account details (to which the individual’s tax refunds or payments are made and received)
- an ATO notice of assessment.
Alternatively, the following can also be used:
- superannuation account details (must be the individual’s account, not an entity’s account)
- a dividend statement
- a Centrelink payment summary
- a PAYG payment summary (this is different to your income statement or your PAYG instalment activity statement).
How to apply if your director client can’t get a myGovID
If your director client is an Australian resident who cannot obtain a myGovID or interact online, they’ll need to call ABRS to obtain their director ID.
If your client currently resides outside Australia and doesn’t have the required Australian identity documents to apply online, they will need to apply using a paper application form.
Visit the ABRS website for more information on who needs to apply, when and how.
Director’s legal obligations
ABRS is contacting new directors who haven't applied for their director ID within prescribed timeframes. Agents of non-compliant directors are also being contacted to prompt their clients to apply. It is a criminal offence if directors do not apply on time and penalties may apply. ASIC is responsible for enforcing the director ID offences set out in the Corporations Act 2001.
Do director IDs need to be provided to ASIC?
There is no need to provide the director ID to ASIC unless requested. There are no changes to ASIC online services (or forms) to make provision for the notification of the director ID.
The Fair Work Commission has introduced a minimum hourly wage guarantee and a requirement to record hours worked by pieceworkers into the Horticulture Award. These changes took effect from the first pay period on or after 28 April 2022.
To help employers, two new education resources have been published on the Fair Work Ombudsman’s (FWO) website:
These will help employers learn about and create piecework arrangements and records that meets the new requirements under the Horticulture Award.
Visit the FWO’s Horticulture Showcase for further information.