Monthly Archives

November 2021

Single Touch Payroll

By | Payroll

Single Touch Payroll (STP), is an Australian Government initiative to reduce employers’ reporting burdens to government agencies.

With STP, you report employees’ payroll information to us each time you pay them through STP-enabled software. Payroll information includes:

  • salaries and wages
  • pay as you go (PAYG) withholding
  • superannuation.

STP started on 1 July 2018 for employers with 20 or more employees and 1 July 2019 for employers with 19 or fewer employees and is a mandatory obligation.

The ATO have provided several concessions depending on business, industry, or employer types. Most of these ended on 1 July 2021. If you have a current concession you will need to be reporting each pay day through STP by this date.

If you haven’t started reporting through STP, you need to start reporting as soon as possible as penalties may apply.

Expanding data collected from STP

In the 2019–20 Budget it was announced that the ATO would expand the data collected through STP.

This expansion of STP (also known as STP Phase 2) reduces the reporting burden for employers who need to report information about their employees to multiple government agencies. It also helps Services Australia’s customers – who may be your employees – get the right payment at the right time.

The mandatory start date for STP Phase 2 reporting will be 1 January 2022.

The ATO is working closely with digital service providers who will update your STP-enabled solutions for you. When your STP-enabled solution is ready, your provider will let you know what you need to do.

Contact Advantage Business Group to discuss your reporting responsibilities and what digital service provider is right for your business.

 

About Director ID

By | Uncategorized

A director identification number (director ID) is a unique identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.

How director ID works

A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with us.

A director ID:

  • starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166
  • ends with an 11-digit number and one ‘check’ digit for error detection.

Directors need to apply for their own director ID. It’s free to apply.

Directors will only ever have one director ID. They’ll keep it forever even if they:

  • change companies
  • stop being a director
  • change their name
  • move interstate or overseas.

Why you need a director ID

Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.

All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help to:

  • prevent the use of false or fraudulent director identities
  • make it easier for external administrators and regulators to trace directors’ relationships with companies over time
  • identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.

Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:

  • employees miss out on wages, superannuation and entitlements
  • suppliers or sub-contractors are left unpaid
  • other businesses are put at a competitive disadvantage
  • the community misses out on revenue that could have contributed to community services.

Who needs a director ID

You need a director ID if you’re an eligible officer of:

  • a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
  • an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).

An eligible officer is a person who is appointed as:

  • a director
  • an alternate director who is acting in that capacity.

You must apply for your own director ID to verify your identity. No one can apply on your behalf.

When you need to apply

You can apply for a director ID now.

If you’re planning on becoming a director, you can apply before you’re appointed.

Corporations Act directors

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

Date you become a director Date you must apply
On or before 31 October 2021 By 30 November 2022
Between 1 November 2021 and 4 April 2022 Within 28 days of appointment
From 5 April 2022 Before appointment

To be a director under the Corporations Act, you must:

  • be an individual who is at least 18 years old
  • not be disqualified from managing corporations, unless the appointment is made with the permission of ASIC or the Court.

For more information on the Corporations Act, visit the ASIC website

 

CATSI Act directors

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

Date you become a director Date you must apply
On or before 31 October 2022 By 30 November 2023
From 1 November 2022 Before appointment

To be a director under the CATSI Act, you must:

  • be an individual who is at least 18 years old
  • be a member of the Aboriginal and Torres Strait Islander corporation and an Aboriginal and Torres Strait Islander person (unless the corporation’s constitution or rule book says otherwise)
  • not be disqualified from managing an Aboriginal and Torres Strait Islander corporation, unless the appointment is made with the permission of the Registrar of Aboriginal and Torres Strait Islander Corporations or the Court.

Meeting your obligations

Your director ID obligations include:

  • applying for a director ID within the relevant timeframe for your situation
  • applying for a director ID when directed by the Registrar to do so
  • not applying for more than one director ID (unless directed by the Registrar to do so)
  • not misrepresenting your director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation
  • not being involved in a breach of the above director ID obligations.

If you don’t meet your obligations:

  • there may be civil or criminal penalties
  • you may be issued with an infringement notice.

Help and support

If you use an authorised tax, BAS or ASIC agent they can help you decide if you need to apply. However, they can’t apply for a director ID on your behalf.