16 September 2022
The deadline of 30 November 2022 is fast approaching, it is important that you apply for your Director ID as soon as possible if you haven’t already done so.
PLEASE NOTE: OBTAINING A DIRECTOR ID IS A LEGAL REQUIREMENT
What is a Director ID?
The director ID is a 15-digit unique identifier a director applies for once only and keeps forever, like a Tax File Number. It confirms a director’s identity and (once the functionality is available) will show which companies they’re linked to. The director ID will help prevent the use of false or fraudulent director identities.
How to apply
All directors must apply for your Director ID yourself as you will need to provide proof of your identity.
There are three ways you can apply:
Ø Online – via myGovID
Ø By Phone
Ø By paper
Step 1 – Setup myGovID
You will need a myGovID with a standard or strong identity strength to apply for a Director ID online. You can set up your myGovID here. When setting this up please make sure to include your middle name to help with data matching. It is also a good idea to ensure that the residential address on your proof of identity documents is the same as the address that is held by the ATO.
PLEASE NOTE: myGovID is different from myGov account.
Step 2 – Documents Required
You will need to gather some information that can be compared to information held by the ATO in order to verify your identity when you apply for your director ID. This includes:
· Tax file number
· Residential address as held by the ATO
· Need to provide information from two documents to verify your identity.
Examples of the documents you can use include:
- Bank account details (must be the same as what the ATO has on record)
- An ATO notice of assessment
- Super account details (must match the ATO records)
- A dividend statement
- Centrelink payment summary
- PAYG payment summary
If you require our assistance in finding this documentation, please contact your local Boyce team member.
Once you have your myGovID and two documents from the above list to verify your identity, you are now ready to apply for your Director ID online. You can get started online here.
Once you receive your Director ID you will need to pass onto the company secretary and Boyce team member or your ASIC agent.
Applying by phone – 13 62 50
To apply by phone you will need your Australian tax file number (TFN) and the information to verify your identity (see the list above).
Applying by paper form
If you are unable to apply online or by phone, you can apply by clicking on the following link for a paper form at Application for a director identification number. Please note this is a slower process and you will need to provide certified copies of your documents to verify your identity.
There are penalties for non-compliance
ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.
More information about the director identification number can be found on the ABRS website here.
Please contact your local Boyce office if you require further assistance.
9 September 2022
Work test removal and contribution flexibility
Are you looking to increase your superannuation balance and have cash or shares personally?
Are you aged between 67 and 75 and no longer working?
Or are you over 60 and planning on selling your home?
Removal of the work test requirement for personal non-concessional contributions
The work test changes have created a unique opportunity for individuals aged 67 to 74 who are interested in making additional contributions to super, but were previously ineligible to contribute.
From 1 July 2022, the work test has been removed for non-concessional contributions, meaning eligible individuals can make these until they turn 75. Non concessional contributions are those where you do not claim a tax deduction.
If you are over 67, you were previously restricted in the type and value of superannuation contributions that you could make – mainly due to the requirement to meet the “work test” – that is you would have had to meet a requirement of 40 hours of gainful employment within a 30 consecutive day period before you were eligible to make most types of superannuation contributions.
Now, as long as your total superannuation balance was below the $1.7 million threshold on the 30 June prior to the contribution, you may be eligible to make new contributions to your superannuation balance, for example, by transferring shares or cash into a super fund.
Eligibility for bring forward non-concessional contributions also extended
The age restriction on using the bring forward provisions to make up to three years of contributions in one year has also been lifted.
This means a contribution of up to $330,000 (based on the current limits) could be made up to age 75. The timing and value of the total potential contribution will depend on your individual circumstances but may present an opportunity to add to your superannuation balance.
From an estate planning perspective, adult children pay tax on the taxable component of their parent’s super benefits at a maximum rate of 15% (plus Medicare), if received directly from the super fund.
By converting taxable super components to non-taxable via a “recontribution strategy”, adult beneficiaries can potentially eliminate the tax on these amounts.
If you do not have additional funds to make a contribution to super, instead the new contribution rules can be used to reduce the taxable component within your superannuation fund.
It is important to note any recontribution strategy will use an individual’s existing contribution cap space, without directly increasing their super balance. If you have, or plan, to make additional contributions in the short to medium term, care should be taken to determine the merits of a re-contribution strategy.
Eligibility for downsizer contributions extended to age 60
The downsizer contribution allows many older Australians to make additional contributions to their super when they sell their main residence as there is a separate contribution cap.
From 1 July 2022, if you are over 60 and sell your principal residence (which you and/or your partner has held for more than 10 years) then a contribution of $300,000 per member of a couple may be made to superannuation.
Having more savings inside superannuation and gaining the longer-term benefits from investing in the tax effective environment of super, is a great incentive to utilise this change.
But there are strict rules around advising your super fund that these types of contributions are being used– and the timing of the contributions – so specialist advice is recommended.
If any of the above situations apply to you contact your Boyce adviser.