InFocus March 2022 - Volume 31 Issue 2
- Director ID Transitional Arrangements
- ASIC issues industry funding invoices
-
Thinking of registering a business name? Make sure it’s available
- Things you should do before closing your company
Director ID transitional arrangements
From 5 April 2022, new directors appointed for the first time now must apply for their director ID prior to their appointment. Under current arrangements, new directors appointed for the first time between 1 November 2021 and 4 April 2022 have 28 days to apply for their director ID.
Australian Business Registry Services (ABRS) is responsible for the new director ID service. ABRS are contacting new directors who have not met their obligation to apply for their director ID under the current arrangements.
To help get the message out, it’s important for Registry Gatekeepers providing services to incorporate new companies, or facilitate the appointment of new directors, to communicate director ID requirements.
Registry Gatekeepers include:
- Digital Service Providers (DSPs),
- registered agents, and
- other trusted private service providers.
Registered agents may already be receiving enquiries from their clients who may be looking for their support regarding director ID. Registered agents play a key role in communicating director ID requirements and can encourage the clients who are yet to apply to do so.
Directors who cannot apply for their director ID within the specified timeframes can apply for an extension of time. There is information about applying for an extension available on the ABRS website.
Director’s legal obligations
ABRS will continue to engage new directors who have not met their obligation, to make them aware of the obligation and encourage application. Initially, the focus will be on education, awareness and helping directors to do the right thing. ABRS will notify and support directors who haven't applied in time.
Directors who fail to act on applying for their director ID within the specified period, that have not been granted an extension of time to apply, will be referred to ASIC for enforcement action. ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if directors do not apply on time.
Do director IDs need to be provided to ASIC?
There is currently no need to provide director IDs to ASIC unless otherwise requested. At this point in time, there are no changes to ASIC online services (or forms) to make provision for the notification of a director ID.
In the future, the ASIC companies register will be transferred to ABRS. When this occurs, a person’s director ID will need to be linked to the companies they are a director of. ABRS will communicate the linking arrangements closer to the transfer date.
For more information about director ID visit abrs.gov.au.
ASIC issues industry funding invoices
ASIC recently issued industry funding invoices to recover its 2020-21 financial year regulatory costs. Entities must pay their levy invoice by 5 April 2022 to avoid penalties.
For more information about industry funding, including invoices and payment options, visit the ASIC Regulatory Portal.
Thinking of registering a business name? Make sure it's available
If you're thinking of registering a business name, you can use our 'check business name availability' search to see if it's available.
You won't be able to automatically register a business name if:
- it's identical or nearly identical to a name that's already registered,
- it's 'undesirable' (for example, it's considered offensive),
- it contains a 'restricted' word or expression like 'charity' or 'police', or
- it includes invalid characters, like umlauts (ä).
When you check to see if your name is available, you'll get one of three results:
- Green – the name is available, and you can apply to register it.
- Amber – you can apply to register the name, but we'll have to review your application to make sure that it's available.
- Red – the name is not available.
For more information about the business name availability rules and the tests we apply, visit our website.
Things you should do before closing your company
If you’re planning to close your company, you’ll need to do some checks to make sure your application won’t be rejected. To keep it simple, here are the key things to be aware of:
- Your company must meet all the criteria for deregistration
Your company must meet the deregistration criteria which includes, all members agreeing to deregister and the company's assets totalling less than $1,000.
Visit voluntary deregistration for the full list.
- Ensure your company has no fees outstanding
If your company has any fees outstanding, we'll automatically reject your deregistration application. You can check your current account balance online.
- Apply for deregistration at least two weeks before your annual review fee is due
If your deregistration application falls within the period of an annual review cycle, the timing of your application is important if you want to avoid paying the annual review fee.
We recommend you apply at least two weeks before your annual review fee due date; this gives enough time for us to receive your application and publish the notice of proposed deregistration. If the notice is not published before the review fee is due, the annual review fee will need to be paid in full before your application can be approved, even if the company is no longer in use.
- Pay the application fee
If you don’t pay the application fee, your application may be rejected. To avoid re-lodging and paying a new application fee, you should make payment at the time of your deregistration application.
You can find payment methods on our website.
If you are planning to deregister your company, we recommend you apply as early as possible.
For more information about closing your company and what you need to do, visit our deregistration page.
Small business wellbeing webinars
The ‘Ahead for Business’ webinar series are designed to help small business owners with their mental health and wellbeing. This series consists of four episodes which includes:
- mental health and your business,
- how to talk about mental health in your business,
- looking after yourself, and
- wellbeing in the workplace.
Each episode is approximately 20 minutes long and can be accessed on the Ahead for Business website.
ABN holders can now include four additional ANZSIC codes
Businesses can now include up to four additional Australian and New Zealand Standard Industrial Classification (ANZSIC) codes when updating their ABN details.
Previously ABN holders only had the ability to register only one main business activity, meaning government agencies were not able to capture the full range of operations undertaken by businesses who have multiple activities at the one location.
For example: Julie is the owner of a café which comprises of a bookstore and accommodation in the upstairs apartment. Julie also offers catering services for private functions. Julie has her main business activity listed as Cafe operation (45110). However, this new feature means Julie’s ABN provides a wholistic picture of her business by including:
- bed and breakfast operation (44000)
- book retailing (42442)
- catering services (45130)
Events such as COVID-19 and natural disasters have highlighted the importance of accurate business information to allow government agencies and emergency services to provide tailored support and services to businesses when needed.
Take advantage of this new feature by Updating your ABN details at abr.gov.au.