Category: Superannuation

Director Identification Number (Director ID / DIN)

What is a Director Identification Number (DIN)?

The Director Identification Number (director ID) is a unique identifier that a director will apply for once but will stay with a director for life, offering greater identity security. You will need a director identification number if you’re a director of a company or a corporate trustee of a self-managed super fund (SMSF), registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation. The objective is to prevent the use of false and fraudulent director identities.

How and when to apply for DIN?

Directors will be able to apply for a Director ID from November 2021 on the new Australian Business Registry Services (ABRS) online at https://www.abrs.gov.au/director-identification-number/apply-director-identification-number and log in using the myGovID app to complete the application process. Furthermore, they will need to provide proof of identity documentation to verify their identity. A director can choose to provide their tax file number when applying for a DIN, which should expedite the application.

myGovID is not the same as myGov. If you have provided identity information to set up a myGov account, you will have to do it again for a myGovId app.

Directors will need to apply for their director ID by themselves to verify their identity. No one can apply for it on their behalf. There is no fee to apply.

When will directors need to apply?

It is being phased in. When you need to have a director ID will depend on when you were appointed as a director. The table below illustrates this.

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 ABRS.

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?

All directors are required by law to verify their identity with ABRS 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.

ATO providing financial education resources for schools

The ATO is helping teachers add tax and super to their classes this year with dedicated educational resources.

In partnership with the Australian Curriculum, Assessment and Reporting Authority (ACARA) and the Australian Securities and Investment Commission (ASIC), the ATO has developed resources that align to the Australian Curriculum for students in years seven to 10.

“Understanding tax and super is an important skill for young Australians, and we are pleased it is now part of the Australian curriculum,” Assistant Commissioner Kath Anderson said.

“We want to make it easy for teachers to help their students learn about the tax and super system, so we’ve designed a range of resources for them to use which are available from our website. Teachers can learn about how our resources align to the Australian Curriculum through ACARA’s new Curriculum Connections.

“Our educational resources include Tax Super and You, an online teaching resource containing lesson plans and interactive activities, as well in-school visits, webinars and videos.

ATO staff are also available to conduct school visits and webinars to cover a range of topics including tax file numbers, preparing for work, how to lodge tax returns, and how to use our teaching resources.

Ms Anderson said the ATO can also tailor presentations for students upon request.

For more information about Curriculum Connections, visit resources.australiancurriculum.edu.au/curriculum-connectionsExternal

Superannuation clearing houses

We recently attended an ATO forum where a question about superannuation clearing houses was asked. We had always thought the same rules applied to the one run by the government as did to the ones run by banks etc. But no, if you use the Small Business Superannuation Clearing House you can crib and extra day or two to pay your SGC contributions.

Question:

 

What are the guidelines for superannuation clearing houses to transfer funds to superannuation funds? How many days is it supposed to take? Some clients are reporting that a well-known clearing house is taking a long time to transfer payments.

 

 

 

Response:

 

We suggest that employers check the fine print with the superannuation clearing house when registering, as all superannuation clearing houses must advertise how long they take to allocate the money to the fund.  If an employer is unhappy with the lag between payment and allocation, they have the option of moving to another superannuation clearing house that may better meet their requirements.

 

 

 

For example, the ATO Small Business Superannuation Clearing House allocates the money the day after it is received, although the employer meets their Superannuation Guarantee obligation the day they pay the clearing house, not the day the fund receives it (which is different to commercial clearing houses).