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We've been advising and updating for a little while now about the new director ID regime proposed – and now enacted – by the Government.

Key dates for the implementation have now been released:

  • From 1 November 2021 – existing company directors have to apply for a director ID by 30 November 2022;
  • From 1 November 2021 – directors appointed from 1 November 2021 to 4 April 2022 will have just 28 days after appointment to apply for their director ID
  • From 5 April 2022 – new directors appointed will be required to apply for their director ID before appointment.

Other points to note:

  • Essentially, the director ID confirms a director's identity and will, in future, show which companies a director is linked to
  • As it is about identity confirmation, directors must apply for their director ID themselves – no agent can do it on behalf of a client
  • The fastest way to get a director ID is to apply online you  will need to make sure you've set up your myGovID
  • It is free to apply and open for applications from November 2021
  • The director ID will be attached to a director permanently
  • The law (currently) does not authorise the ABRS to disclose director IDs to the public without the director's consent. For now, director IDs will not be searchable by the public – this may change in the future.
  • Penalties do apply for failing to apply for a director ID within stipulated timeframes.

For more, see our newsletter here.

Sole Trader Grant - apply now

The Office of State Revenue has just announced that applications are now open for the $1000 non-employing sole trader grant.

The $1,000 grant is available to non-employing sole traders affected by Queensland COVID-19 lockdowns in August 2021.

This is a one-off grant and you must meet the eligibility criteria at the time of making your application.

You need to have applied and had your information verified by 30 November 2021.

You should check if you are eligible for a COVID-19 disaster payment from the Australian Government instead, if your income has been affected by the Queensland lockdowns.

Go to: Business Queensland business support grants for all details.


The ATO has begun utilising new powers allowing it to disclose business tax debts of more than $100,000 to credit reporting bureaus.

There are reports of businesses with over $100,000 in tax debts recently receiving letters (orange coloured we hear) from the Tax Office, warning of the agency's intent to disclose if the business/es do not make an effort to manage the debt within 28 days. There are reassurances that businesses that actively work with the ATO to manage their tax debt will not be reported to credit agencies.

These new powers passed into law in late 2019, but then 2020 hit and ATO debt and lodgement compliance activity was suspended. There is an argument that now is not the time to start, but it's reported that around 5,000 businesses are potentially 'caught' by the $100,000 threshold - which includes income tax debts, activity statement debts, superannuation debts, FBT debts and penalties & interest charges.

 

Applications for the 2021 COVID-19 Business Support Grants will open at 12noon today - Monday 16 August 2021.

Applications for these grants will remain open for three months and Guidelines on how to apply are now available at: www.business.qld.gov.au/supportgrant.

The grants will provide $5000 to employing small and medium businesses and large businesses in the hospitality and tourism sectors across Queensland that have been impacted by the recent SEQ or Cairns lockdowns - subject to those businesses meeting the criteria of a 30% reduction in turnover as a result of the lockdowns as well as meeting other eligibility criteria. Check your eligibility here.

Importantly:

  • Creating a QRIDA profile is the first step in the application process - so if you don't have one and wish to apply for a grant, you will need to create a QRIDA profile prior to applying. Step by step instructions on how to create a QRIDA (Queensland Rural and and Industry Development Authority) portal profile are available at: www.business.qld.gov.au/supportgrant - along with answers to FAQs.  You can create your QRIDA profile here now.
  • eligible businesses who apply for a grant during the 3-month application period will receive a grant - and businesses or NFP organisations do not have to be located in one of the lockdown areas to be eligible.

COVID grant announced

The Queensland Government has just announced a COVID grant - a round directly related to this most recent/current lockdown - which may be worth checking out.

They are for small and medium business with turnover more than $75,000 and payroll up to $10 million and must show a 30% decrease in turnover as a result of the current lockdown period.  According to the announcement made this morning it is a $260 million package and grants will be processed in the order they are received.

Covid-19 business support grants - August 2021

Launch date: 2 August 2021

Opening Date: mid August 

Closing date: anticipated mid-November

For updates you can subscribe to their small business newsletter: Small Business Connect.

Business Basics (Round2) Regional Queensland

Launch Date: 17 August 2021

Opening Date: 9am 31 August

Closing Date: until funds are exhausted

Lifestyle assets - ATO eyeing off

The Tax Office has now extended its lifestyle assets data-matching program for the 2020–21 financial year through to 2022–23, allowing it to acquire insurance policy information for certain asset classes.

Motor vehicles with values of $65,000 and above will fall within the ATO's data collection scope, as well as marine vessels above $100,000, thoroughbred horses over $65,000, fine art over $100,000 per item, and aircraft over $150,000.

The ATO will acquire the data from 25 insurance providers, with the agency expecting 300,000 individuals to be identified each year.

EOFY 2021 Things to think about

As the 2021 EOFY year rapidly approaches, now is the time to take some time to consider what needs to be done. It is a period of review and of forward planning - but first let's look at what's on the immediate horizon. 

  • Superannuation changes - when to pay June's SGC to claim the deduction in 2021FY
  • new SGC rate - check your software 
  • Work Test requirements
  • JobKeeper reminder

For more see here

Queensland Government Grants announcements

Just announced - Small business grants!

The Qld Department of Employment, Small Business and Training has just announced new grants available now to small business clients:

Business Basics Grants Program -  launched today and opens on 31 May 2021

  • will offer grant funding to new and emerging businesses
  • grants available for up to $5,000 each to increase core capabilities and adopt current best practice - such as website development and upgrades, strategic marketing, training and coaching, advisory services and planning for business continuity and succession
  • Guidelines and FAQ's available 17/5/2021
  • Applications open 31 May

Business Boost Grants Program - opens in July

  • will support established small businesses
  • grants available for up to $15,000 to improve efficiency and productivity through organisational development and upgrades through automated software and CRM systems
  • Guidelines and FAQ's available mid-July 2021
  • Applications open - late July 2021

Business Growth Fund - opened last week

  • Will help evolving and fast growing small and medium sized businesses
  • grants available up to $50,000 to buy highly specialised equipment to seize and accelerate growth opportunities
  • Guidelines/FAQ's available 1 May 2021
  • Eligibility tool available 5 May 2021, but to be eligible, your business must:
  • have fewer than 20 employees at the time of applying for the grant
  • have an active ABN and be registered for GST
  • have a Queensland HQ
  • have a turnover of $300,000 or less for the current financial year
  • not be insolvent or have owners/directors that are an undischarged bankrupt
  • Applications open 11 May 2021

As tax time looms, the ATO has pointed to several key ineligible work from home claims that it will be watching closely as taxpayers look to make the most of flexible working arrangements.

Whilst the temporary shortcut method will remain some expenses cannot be claimed through any method, for example:

  • personal expenses like coffee, tea and toilet paper (and apparently Tim Tams!) cannot be claimed
  • expenses related to a child's education - like online learning courses, or laptops
  • rent, mortgage interest, property insurance or other land taxes and rates can not be claimed

Claiming occupancy expenses could expose some taxpayers to Capital Gains tax when they leave their homes

If you decide not to use the simplified 80c/hour claim method, make sure you have good records.

For more, see here.

Please note: The ATO has also signalled that work-related car expense claims - which have been closely scrutinised over recent years - will again be on their radar. They make the point that they are "still concerned that some taxpayers aren't getting the message that overclaiming will be detected, and if it is deliberate, penalties will apply."

 

DIN update

ATO assumes registrar role for the new Director ID regime 

ASIC staff will begin moving to the ATO as the government prepares for the imminent rollout of the new DIN regime and the Commissioner of Taxation is appointed as the Commonwealth Registrar of the new ABRS.

The DIN will be the first function of the ABRS. Once current testing concludes (31 October), directors will be able to access the ABRS using their myGovID to supply a number of identity documents to acquire the unique identifier. They will keep this number permanently, even if they cease to be a director, change their name or move interstate/overseas.

Provisional deadlines will see all directors required to obtain a DIN by 30 November 2022. Individuals who seek appointment after 30 November 2022 will be required to obtain a DIN prior to being appointed. It's interesting to note that this regime is expected to cover 10% of Australia's 25.7 million population.

The next move will be the companies register, the business names register and the ABN register to the ABRS.

The end goal is to improve the user experience, simplify the way people interact with business registers and provide business owners with a single entry point to establish their business.

As Senator Jane Hume, Minister for Superannuation, Financial Services and the Digital Economy put it: "Modernising business registers with a one-stop shop, replacing the current 31 registers, is part of our government's commitment o Australia becoming a leading digital economy and society by 2030."

 

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