Sky Update – November 2021

2021

Director ID Regime

Last month we wrote about the new Director ID regime that requires all company directors to obtain a unique 15 digit identifier.

The application process is now open and we encourage company directors to apply for their Director ID sooner rather than later.

In order to apply, directors need to have setup a MyGovID (not to be confused with a MyGov account).

Setting up a MyGovID involves downloading the official App onto a smart-phone and completing the identification procedures.  This can usually be done quite easily with your driver licence and Medicare card.

Once you have a MyGovID, you can then proceed to apply for a Director ID here.

When applying for a Director ID, you will need to have your Tax File Number handy as well as some additional information to verify your identity.

This additional information can be any two of the following items:

  • Bank account details;
  • ATO Notice of Assessment;
  • Superannuation account details;
  • A recent dividend statement;
  • Centrelink payment summary; and
  • PAYG payment summary.

If you have all of the right information handy, the Director ID application can be completed quite quickly and easily.

Once the application is submitted, you will be issued your unique 15 digit Director ID straight away.

If we assist you to manage the ASIC compliance for your company, please advise us of your Director ID so that your ASIC corporate records can be updated.

And if you need assistance to apply for a Director ID, please get in touch.

 

Superannuation changes are coming

Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021 was recently introduced to Parliament for consideration.

When passed into law, this Bill will enact a number of changes, including:

  • Removing the monthly $450 minimum threshold for mandatory employee super contributions;
  • Removing the work test for salary sacrifice and non-concessional (non-deductible) personal contributions made by those aged between 67 and 75; and
  • Increasing the limit on the amount that can be released from super under the First Home Super Saver Scheme from $30,000 to $50,000.

The super changes in the Bill are expected to commence from the 1st of July 2022.

Additionally, the Bill includes an extension of the Temporary Full Expensing of Depreciating Assets arrangements by 12 months to the 30th of June 2023.

We will provide updates as this Bill moves through the Parliamentary process.

In the meantime, please get in touch if you require additional information on any of the measures included in the Bill.

 

Vaccination status record keeping

With many State and Territory Governments mandating COVID-19 vaccination of staff in various settings, employers are compelled to collect and retain evidence of the vaccination status of their workforce.

The Office of the Australian Information Commissioner (OAIC) has developed guidance to assist employers in understanding and managing their privacy obligations to their staff.

Key points from this guidance include that:

  • Employers can only collect information about employee’s vaccination status where the employee consents and the collection is reasonably necessary;
  • There must be clear and justifiable reasons for collecting employee vaccination status information for it to be reasonably necessary;
  • Collection of vaccination status information without consent is allowable only in circumstances where the collection is required or authorised by law (including a state or territory public health order or direction);
  • Only the minimum amount of personal information reasonably necessary should be collected, used or disclosed;
  • Vaccination status information should only be used or disclosed on a ‘need-to-know’ basis;
  • Employees must be informed about how their vaccination status information will be handled; and
  • Reasonable steps must be taken to keep employee vaccination status and related health information secure.

We recommend that all employers review this guidance to ensure that their practices are in-keeping with the Privacy Act requirements.

 

ATO fact sheets for rental property owners

The ATO has recently published two very good fact sheets for rental property owners.

The first fact sheet deals with when interest expenses will be tax deductible.

The fact sheet deals with a number of common scenarios such as the impact of private use of the property, re-draw versus offset accounts and use of loan funds for private purposes.

The second fact sheet deals with issues around body corporate (strata) fees and charges.

The fact sheet confirms the deductibility of payments to administrative funds and general-purpose sinking funds.  It also highlights that a payment to a special purpose fund for capital works will be a capital item and non-tax deductible.

These two fact sheets are a recommended read for all rental property investors to assist them in claiming tax deductions correctly.

If you have any questions around the deductibility of expenses for your rental property, please get in touch.

 

Quote of the month

In recent years we have seen an ever-increasing focus in our society on attaining happiness. However, researchers are observing a steady decline, not increase in happiness levels.

One of the preeminent studies in Australia is the Household, Income and Labour Dynamics in Australia (HILDA) Survey which commenced in 2001 and collects information about economic and personal wellbeing, labour market dynamics and family life from 17,000 participants annually.

Interestingly, data drawn from the HILDA Survey shows that happiness levels peaked in 2009 and have been declining since that time.

This data has us wondering whether this increased focus on being happy is hindering not helping.

The renowned modernist artist Georgia O’Keeffe once said “I think it’s so foolish for people to want to be happy. Happy is so momentary–you’re happy for an instant and then you start thinking again. Interest is the most important thing in life; happiness is temporary, but interest is continuous.”

Would we as a society, and as individuals, report improved wellbeing if we were to focus not on our happiness, but on endeavours that stimulate and challenge us?  In other words, to see happiness as the by-product, not the objective?

 

Sky Accountants Ballarat

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437