Important information for company directors

As a company director, under new legislation, you are now required to obtain a director identification number (director ID).

A director ID is a unique identifier that you keep forever.  It will help prevent the use of false or fraudulent director identities.  It's free to apply and you only need to apply once.

If you are a company director appointed prior to 1 November 2021, you must obtain your director ID by 30 November 2022.  New directors should apply before they are appointed.

The fastest way to get a director ID is to apply online using the myGovID app.  If you can't get a myGovID, the best way to apply for a director ID will depend on your situation.  To find out more click on the link below to the ABRS website.  ABRS is a new service, managed by the Australian Taxation Office (ATO).
https://www.abrs.gov.au/director-identification-number

You must apply for a director ID yourself.  No one can apply for you.  The reason for this is you need to prove your identity when you apply.

Penalties may be applicable if you don't apply for a director ID.  

Once you have your director ID, keep it safe until you need to use it.  It can be shared with your accountant, company secretary, ASIC registered agent or tax professional.  

You don't need to provide your director ID to ASIC unless otherwise directed.  When the ASIC companies register is transitioned to Australian Business Registry Services (ABRS) in the future, your director ID will need to be linked to companies that you are a director of.
 
If you wish to discuss any of the above information please contact our office.  

The NSW Government has announced a Small Business Support Package to help small to medium businesses in response to the Omicron wave of Covid-19.
The 2022 Small Business Support Program is designed to help businesses survive the immediate impact of the Omicron COVID-19 strain.

• Eligible employing businesses will receive 20% of their weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week and a maximum payment of $5,000 per week.
• Non-employing businesses will receive $500 per week, paid as a lump sum of $2,000.

You may be eligible to apply for a payment under this program if you:

• have a business with a turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2021 or the year ended 30 June 2020; and
• experienced a decline in turnover of 40% or more due to public health orders or the impacts of Omicron during the month of January 2022, compared to January 2021 or January 2020; and
• experienced a decline in turnover of 40% or more due to the impacts of Omicron from 1 to 14 February 2022, compared to the same fortnight in February in the comparison year used above; and
• maintain your employee headcount as of 30 January 2022.

It is for the month of February only and businesses can apply through Service NSW from mid February.
For more information please see link below:
https://www.service.nsw.gov.au/transaction/2022-small-business-support-program/2022-small-business-support-program-guidelines

If you wish to discuss any of the above information please contact our office.  

The NSW and Federal Government have announced additional financial support for businesses in NSW impacted by the current restrictions and stay-at-home orders.

NSW business grants
Businesses impacted by may be able to apply for a grant of up to $15,000 through Service NSW from 19 July, 2021.  The grant can be used for business expenses such as rent, utilities and wages.  This is available for businesses and sole traders with a turnover of more than $75,000 pa.  The grant is based on decline in turnover, as follows:

• $7,500 for a decline of 30% or more
• $10,500 for a decline of 50% or more
• $15,000 for a decline of 70% or more

A new grants program for micro businesses with a turnover of between $30,000 and $75,000 which experience a decline in turnover of 30% was also announced yesterday. Businesses will be eligible for a $1,500 payment per fortnight of restrictions.
 Full eligibility criteria will be available shortly through the Service NSW website.  

Saving Jobs support program
This is a direct payment to eligible businesses with an annual turnover between $75,000 and $50 million, who can demonstrate a 30% decline in turnover with an equivalent 2 week period in 2019.  Eligible entities are required to maintain their full-time, part-time and long-term casual staff as of 13 July 2021 and will receive payments equal to 40% of their payroll with a minimum of $1,500 and a maximum of $10,000 per week.

Non-employing businesses, such as sole traders, can receive a set payment of $1,000 per week.

Please visit the Service NSW link to register interest for the grants and support available:
https://www.service.nsw.gov.au/covid-19-business-support-2021

​As a business owner, there are many obligations that you need to  consider.  We have outlined below these action points to assist you.

​Single Touch Payroll

• Single Touch Payroll (STP) finalisation declaration for the year ended 30 June 2021 should be submitted to the Australian Taxation Office (ATO) by 14 July 2021 or as soon as possible after this date to ensure that employees and tax agents can access the information to complete tax returns.  
• For payments to employees that were not reported through STP, employers will be required to supply employees with a Payment Summary and lodge an Annual PAYG Payment Summary Statement to the ATO by 14 August 2021.
• From 1 July 2021 all employers will be required to report through STP.  This now includes employers with associated employees.  Salaries, wages, pay as you go (PAYG) withholding and superannuation information will be required to be reported.

Superannuation

• Quarterly Superannuation contributions to employees are due 28 days after the end of the quarter.  Note: if you fail to meet your requirements you must complete a Superannuation Guarantee Charge Statement and forward it to the ATO together with underpaid superannuation plus administration fees and interest.  Superannuation Guarantee Charge payments are NOT tax deductible).
• On 1 July 2021, the super guarantee (SG) rate will rise from 9.5% to 10%.  Businesses will need to ensure that their payroll and accounting systems are updated to incorporate the increase to the super rate.
  The super rate is scheduled to progressively increase to 12% by July 2025.  Please see link below for the table of rates and future increases.
  https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?anchor=Superguaranteepercentage
  

Subcontractors

• 28 August 2021 - 2021 Taxable Payments Annual Report due for lodgement with the ATO for the Building and Construction Industry with Cleaning, Courier, IT, Security Industries now included.  The ATO can impose late lodgement penalties if not lodged on time

If you wish to discuss any of the above information please contact our office.

With the end of the financial year fast approaching, it is important to review your tax position.
​
Tax planning will provide a clearer picture of your situation and allow you time to consider and implement strategies to assist in minimising your tax.

It should be noted that preparing interim financial statements and projections will also give you an insight as to where your business is currently placed and allows you to implement measures to assist with tax planning strategies prior to 30th June, 2021.
 
If you would like to review this, then please contact our office.