Menu

Perrier Ryan blog

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."

 

FBT Season has arrived

FBT annual returns will be due soon - for those clients of ours to whom FBT applies, please note we will be sending our annual FBT Questionnaire next week.

We will post the link to the Questionnaire here on our website for ease of reference in case you need to come back to it and don't want to have to sort through your emails to find the link :)

What is all the noise about DIN?

ATO, ABR, MBR, ASIC, CBRS - quite a bit of DIN!

In 2020, legislation giving effect to the new Director Identification Number (DIN) regime passed and will be administered by the new Commonwealth Business Registry Service (CBRS) as part of the 2020 Budget Digital Business plan via the Modernising Business Registers (MBR) Program.

The MBR Program will (apparently) unify the Australian Business Register (ABR) and 31 registers administered by ASIC, on a contemporary, digital registry system. The unified government business register will be operated by the ATO.

The MBR Program will also include the introduction of a director identification number (DIN) - a unique identifier that a director will keep forever. It will be used by Regulators to verify the identity of directors and map out their relationships between entities - and thereby facilitate the traceability of the director.

Whilst key details of the regime - including what details will need to be provided - have yet to be publicly released, the established legal framework shows that the DIN will require all existing and new directors to confirm their identity to a unique identifier. It also appears that new directors will have to apply for a DIN before they are appointed as a director. A transitional period for existing directors will be specified by a legislative instrument. We also know that there will be civil and criminal penalties for directors who fail to apply for a DIN within the applicable timeframe and for conduct that undermines the new requirements (e.g. providing false identity information to the registrar or intentionally applying for multiple DINs).

There is no published timeline for the introduction of DIN, but it's coming, so it's best to be aware and ready to implement procedures to ensure compliance with the new law/s and the timely appointment of directors.

Modernising Business Registers and the Discussion Paper

ATO audit activity looks set to ramp up

ATO heats up their audit activity - targetting privately owned and wealthy groups

With compliance activities having been deferred at the height of COVID-19, it appears likely that the ATO will now start to ramp up its auditing activities. It seems that the interest in privately owned and wealthy groups of more than $10million, or controlled wealth of more than $5million, is a result of recent tax gap reports which highlighted a gap in the sector worth $772million.

There are reports that the ATO will look to its Top 55 and Next 5,000 programs to address the short fall - as well as take an industry-by-industry approach following COVID-19 as it appears that these groups have been less afflicted by the pandemic.

So the message is: be ready and ensure that appropriate steps are being taken to comply with tax obligations.

Following advice from the ATO, Employers with closely held payees will now have three options to report payments through Single Touch Payroll (STP).

The ATO has confirmed that STP reporting for closely held payees will commence from 1 July, after it had granted these employers a one-year exemption in the midst of the pandemic last year.

For more information see our news article.

Activity statement delivery - ATO reverts

We recently shared the news that the ATO's changes to client correspondence had caused some issues for some clients. 

The issue relates to the recent change in the clients' correspondence preferences for delivery of the quarterly PAYG instalment notices (also known as instalment activity statements) from paper to digital due to the decommissioning of an old ATO system known as Electronic Commerce Interface (ECI), and affects activity statements from the December 2020 quarter onwards. While clients can access their myGov account to see if an activity statement has been issued, and agents can check on Online Services for Agents (OSfA) for each client, this is proving to be not a practical solution moving forwards.

The ATO recently advised that they will recommence issuing paper PAYG and GST quarterly instalment notices, starting with the June 2021 quarterly notices. The ATO have since been able to bring this solution forward and the interim measure will begin with the March 2021 quarterly instalment notices, not June 2021 as previously advised. 

This measure applies to agents, who lodge for clients, but does not extend to self-preparers. Self-preparers will continue to receive an email reminder 21 days before the due date, where the ATO has an email address for them.  Clients who are self-preparers should have already received an email notification for the December 2020 PAYG and GST instalment notices (due for payment by 2 March 2021) reminding them that their instalments were due.

ATO communication preferences

 

Market Watch - top 3 themes

The Top 3 themes that The Market will be watching are:

  1. Inflation - all things considered the RBA's outlook for inflation in 2021 seems reasonable, however, higher inflation may be a risk for 2022.
  2. Currency - expectation is that we will see the AUD rising across the first half of the year against the USD and then slipping back in the second half of the year.
  3. Speed and success of the COVID-19 vaccine rollout - delays, shortages, slow uptake and/or discovery of new variants could derail markets' confidence, but it is expected that vaccination rates (rather than infection rates) will be the new barometer of equity market sentiment in 2021. 

When did that Director resign?

18 February 2021 marks the date that grants new powers to ASIC such that:

  1. If ASIC is not notified of a person's resignation as a Director within 28 days, then the resignation as a Director will be recorded as effective on the day that written notice is lodged with ASIC;
  2. The person or the company would need to apply to ASIC (within 56 days) or the Court, for the record to be corrected to the actual date of resignation.

This move is part of new legislation to hold Directors accountable in the context of illegal phoenixing activity and to prevent the improper backdating of Director resignations.

Wow, what a year 2020 was, and now 2021 has given us a little touch up to kick start the year - but Brisbane has responded well and seems to have things under control. For an economic review of 2020, see the latest snapshot from PRFA. 

Greater Brisbane lockdowns

Please note: in line with current Government directives, the Perrier Ryan offices will be closed on Monday 11/1/2021 pending further advice.

From our blog...

Keep up to date with our latest news
and information.

View all posts

Contact Us

Ph. 07 3391 7566
Fax. 07 3391 7726

E. contact@perrierryan.com.au

Level 1, 30 Lisburn Street
East Brisbane Qld 4169
PO Box 1420
Coorparoo DC Qld 4151

Tools