Tax Tips

Director Identification Number

The Australian Government has announced the introduction of a new mandatory Director Identification Number (DIN/director ID) as part of the Modernising Business Registry (MBR) Program. The roll-out will start from November 2021.

The DIN will provide accountability and traceability of a director's relationships over time, across all companies and will provide information on a director's involvement in what may be repeated unlawful activity, including illegal phoenix activity.

Key Points:

• A DIN will be a legal requirement for all new and existing directors to hold.
• A DIN is a unique 15-digit numerical identifier that an existing or intending director will apply for once and keep forever.
• Only one DIN will be issued to each individual, once their identity has been verified.
• The issued DIN will remain the same even if that person stops being a company director, changes their name or moves overseas.
• This will apply to directors of a company, body corporate or corporation.
• It is not applicable to secretaries.
• Alternative directors are also required to apply for a DIN.
• Directors must apply for their director ID themselves. No one can apply on their behalf, including registered agents and accountants.

How to apply for a DIN.

Directors will need to apply online, please "Click here", from November 2021 and will require a MyGovID (an app you download on your smart device, different from MyGov) to complete the application process.

For information on how to setup a MyGovID, please "Click here".

When will a director need to apply for a DIN?

Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.

You became a director;

• on or before 31 October 2021, you must apply by 30 November 2022.
• between 1 November 2021 and 4 April 2022, you must apply within 28 days of appointment.
• after 5 April 2022, you must apply before appointment.

Once you have your Director ID, what next?

Your Director ID is like your tax file number, keep it safe and secure.

Single Touch Payroll obligations

Single Touch Payroll (STP) is a Government initiative aimed at improving employer reporting obligations by sending ‘real time' payroll reporting directly to the ATO. From 1 July 2019 every Australian employer will need to be using a STP enabled system to report all business obligation such as:

• Salary and wages and similar payments
• Pay As You Go (PAYG) withholding
• Superannuation information

Employers with 20 or more employees have been required to use the system since 1 July 2018 and this has now been extended to all employers who are required to be using the system from 1 July 2019. It won't alter current payroll cycles and employees can continue to be paid as normal weekly, fortnightly or monthly. There are multiple software providers including MYOB and Xero providing low-cost solutions for micro-employers (1-4 employers) at or below $10 per month. For employees this means that via STP, they will be able to view their year-to-date tax and super information through their myGov account.

Lost Superannuation

More than 17.5 billion dollars remains unclaimed in Superannuation in Australia. The ATO website shows the amount of super unclaimed for your postcode. Click here to find out how much super is unclaimed in your postcode. Log into your MyGov account with the ATO online services and find out if you have any lost or unclaimed super.

Phone Scams

It is terrifying when someone steals your identity or removes money from your accounts or racks up thousands of dollars in debt on credit cards. This happens all the time and Australians are considered a soft target by criminal organisations.

Keep your data safe:

• Ensure that your passwords are updated regularly. Never use passwords that could easily be worked out, for example your date of birth, your Mother's date of birth, your postcode, your phone number etc.
• Ensure that you have virus protection on computers, tablets and phones. Yes, you protect your computers but what about your phone?
• Be vigilant when receiving an unsolicited phone call and never provide personal details over the phone.
• If someone from the ATO calls you and you are not sure about the call. Hang up and call us, as our client we have a direct connection to the ATO for your account and can confirm any issues the ATO may contact you about.

Claiming deductions on home office expenses

If you're an employee who regularly works from home, you may be able to claim a deduction for expenses relating to that work. These are generally home office running expenses, phone and internet expenses.

Running expenses

Employees who work from home can claim the work-related proportion of their running expenses. These expenses are the cost of using equipment and utilities at your home for work and include: lighting heating and cooling cleaning the decline in value of equipment, furniture and furnishings in the area you use for work the cost of repairs to this equipment, furniture and furnishings, and other running expenses including computer consumables (such as printer paper, ink) and stationery There are two methods for calculating running expenses for heating/cooling, lighting, cleaning and furniture value declines etc. Either you can claim a fixed rate of 52 cents for each hour you work from home, or you can record the actual expenses for your dedicated work area.

Phone and internet expenses

If you use your phone or internet for work, you can claim a deduction for the work-related percentage of your expenses if you paid for these costs and have records to support your claims. You need to keep records for a four-week representative period in each income year to claim a deduction of more than $50. These records include phone bills (paper or electronic) from which you can identify work-related calls. Diary entries and evidence that your employer expects you to work at home or make some work-related calls will also help you demonstrate that you are entitled to a deduction.

Want more information about claiming work expenses?

The ATO link is at "Working from home expenses".

The ATO tax deductions link is at "Deductions for home-based business expenses".