Director Identification Numbers

Australian directors have a year to apply for their unique director identification numbers before fines of more than $1.1 million kick in.

Company directors must apply for a DIN by 30 November next year, and directors of Indigenous corporations that are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 must apply for the unique identifier by 30 November 2023.

The deadline was confirmed in Corporations (Director Identification Numbers—Transitional Application Period) Instrument 2021 made by the Minister for Superannuation, Financial Services and the Digital Economy Jane Hume.

DIN applications are free and will open next month on the newly established Australian Business Registry Service, a single platform administered by the taxation commissioner that brings together ASIC’s 31 business registers and the Australian Business Register.

Directors must personally apply for DINs and will be required to produce myGov IDs, and two identity documents from a list that includes bank-account details, super-account details, ATO notices of assessment, dividend statements, Centrelink payment summaries, and PAYG summaries.

Directors appointed between 1 November and 4 April next year will have just 28 days after appointment to apply for DINs. Directors appointed from 5 April 2022 will be required to apply for DINs before being appointed.

Directors who fail to apply for DINs within the stipulated deadlines can face criminal and civil penalties of 5000 units, which at the moment amounts to $1.11 million. Directors of a CATSI organisation can face penalties of up to $200,000.

Penalties will also apply for conduct that undermines the new requirements, including providing false identity information and intentionally applying for several DINs.

More than 2.5 million directors will need DINs. They will be permanent, even if holders cease to be directors, change their names, or move interstate or overseas.

More information can be found at  https:/www.abrs.gov.au/director-identification-number.

Fines for late Lodgement of Tax Returns

After many years of not being punitive, the tax office are now imposing fines for late lodgement of income tax returns.

Due dates for lodgement of tax returns are set by the tax office and vary from 31^st October 2021 and  May 2022 depending on lodgement history and likely tax payable.

Landholder Duties

The Victorian State Revenue office has issued a Ruling in relation to obligations in relation to a new premium rate of duty that took effect from 1st July 2021 for transactions with a dutiable value of more than $2m.

The rate of duty on the acquisition is $110,000 plus 6.5% of the excess over $2m.

Where fixtures are held separately from the land on which they are located then the fixtures became dutiable after 19^th June 2019. However, duty will not be calculated with reference to the value of the interest in the fixtures unless the total value of the fixtures exceeds $2m.

Primary production land continues to be exempt provided the relevant rules regarding exemption are satisfied.

State Revenue office duties and land Taxes continue to grow as a significant impost to the ownership of land and regular review of the relevant regimes are recommended

Construction grants now open

Applications for the Business Costs Assistance Program Round Four – Construction are now open. The program provides one-off payments to eligible employing and non-employing businesses in the construction sector more detailed list link is here.

Grant amount is Once off payments up to $8400 further details can be found in this link.

You can apply for a grant yourself with this link, Please feel free to contact our office should you wish us to assist you with the application and we will get application underway. Cost of application is $300.

Eligibility criteria for grant is as follows:

• hold an Australian Business Number (ABN) and have held that ABN on and from 24 September 2021
• be registered with the responsible Federal or State regulator
• be located within Victoria
• be registered for Goods and Services Tax (GST) on and from 24 September 2021
• have an annual Victorian payroll of up to $10 million in 2019-20 on an ungrouped basis
• operate in an eligible sector listed in the list of eligible ANZSIC classes for this program
• have been contracted (prior to the restriction period being announced) to undertake, or supply workers to undertake, work at a construction worksite that was shut down due to the COVID-19 restrictions announced 20 September 2021 in one of the following areas:
  • Local Government Areas (LGAs) in metropolitan Melbourne
  • City of Greater Geelong
  • Mitchell Shire, and
  • Surf Coast Shire
• have incurred direct costs because of the restrictions in effect from 21 September to 4 October 2021 and cannot and were not able to operate remotely.

If you would like to discuss anything raised in the newsletter, please contact our Team.