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About Director ID

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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.

Travel Expenses – carrying bulky tools

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To ensure individual taxpayers are claiming deductions eligible under the tax law, the Australian Tax Office (ATO) places certain emphasis on particular areas each year. Work related travel expense for transporting bulky tools or equipment is one of the frequent topics under the ATO’s spotlight.
Generally, expenses incurred by a taxpayer for travelling between home and the workplace are not deductible as this is considered to be a private purpose. However, there are some exceptions. If you transport bulky tools and equipment required for work, the related motor vehicle and travel expenses might be deductible, provided that certain requirements are met:
It is essential to carry the tools and equipment for work as there is no other practical method to access them in the workplace. This would apply to individuals whose work is typically carried out off-site.
The equipment transported is bulky in the sense of being cumbersome, and
There is no secure place at work for the taxpayer to store the bulky equipment.
Generally, tools and equipment that weigh in excess of 15-20kg are considered as bulky and cumbersome to carry.
The deduction can only be claimed where the transportation of tools is expected by the employer, or it is a practical necessity for the tools to be readily available at each work site for the taxpayer.
Further, the security of equipment in the workplace is also one of the determinative factors. It must be established that the employer or off-site workplace has no secure facilities provided to store the tools and equipment outside of working hours. The Taxpayer cannot just transport the tools as a matter of convenience or personal choice. Otherwise, the travel expense would be considered to be for private purposes and no deduction is allowable.
In certain circumstances the ATO will contact the employer to verify the taxpayer’s claims. Therefore, to claim work related travel expenses correctly for transporting bulky tools, it is recommended that you have considered all the above factors.
If you need help in understanding the above, please contact us on (08) 7325 8427, or admin@advantagebusinessgroup.com.au.

2017 Federal Budget – Newsletter

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On Tuesday, 10th May 2017, Federal Treasurer Scott Morrison handed down his second

Federal Budget and the Australian economy is expected to rebound from the slowdown caused

by Cyclone Debbie that hit the coast hard at the end of March this year. The economy is

expected to expand at a rate of 2.75 percent next financial year and 3 percent the following

year. Treasury now expect a budget deficit of $29.4 billion in 2017/18 but project a surplus

budget of $7.4 billion in 2020/21.

Click Here to view Federal Budget 2017-2018

TAX CALCULATION

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Tax Calculation

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FRS 102 bears more than a passing resemblance to the International Financial Reporting Standard for SMEs, as issued by the International Accounting Standards Board in 2009, although it has been amended to be more compliant with the Companies Act and EU directives, and incorporate some old UK GAAP options.

The new standard impacts a huge swathe of businesses, as it applies to the vast majority of large and medium-sized UK businesses and organisations, including charities, retirement benefit plans and financial institutions. Effective of January this year, ‘small entities’ was broadened to encompass small companies and LLPs not excluded from the small companies / LLPs regime. In addition, FRS 102 applies to all entities that are neither required nor elect to apply EU-adopted IFRSs.

As regulatory changes go, this has been a big one, hence early adoption was encouraged. Bigger still is the official documentation that practitioners have had to acquaint themselves with, at around 350 pages – but on the plus side, it is only a tenth the length of the old GAAP documentation!