DIRECTOR ID REGIME
Since the introduction of the Director ID regime in November 2021 we have written in this forum about the need for company directors to obtain a unique 15 digit identifier by the 30th of November 2022.
The clock is now ticking loudly as that deadline approaches.
We urge any directors who have not already done so, to apply for their ID as a matter of priority as failure to obtain a Director ID can result in ASIC imposing significant penalties.
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.
Once the application is submitted, you will be issued your unique 15 digit Director ID.
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 at your earliest opportunity.
FUEL EXCISE
Back in April we wrote about the Federal Government decision to halve the Fuel Excise rate for a period of 6 months in order to help keep a lid on the skyrocketing cost of fuel.
With that 6 month period expiring on the 29th of September, the Federal Government has advised that there is currently no intention to extend the Fuel Excise reduction.
In a press release issued earlier in September, the ACCC noted that notwithstanding the Fuel Excise relief, retail fuel prices reached 14 month highs in the June quarter due to international factors.
However, since June prices have reduced in-line with international crude oil and refined petrol prices.
The ACCC also used the press release to put fuel wholesalers and retailers on notice that they will be watching closely for “uncharacteristic or abnormal wholesale and retail price increases”.
Whilst the ACCC may be on the lookout for price gouging and collusion, the removal of the Fuel Excise reduction guarantees that we will see higher fuel prices moving into October and beyond.
This will have an impact on households and business through their direct consumption of fuel. Additionally, there will be indirect impacts that will be felt as the higher costs work their way through supply chains.
Businesses and households are urged to be proactive in how they intend to manage those higher costs when they arrive shortly.
Additionally, businesses that participate in the Fuel Tax Credit regime should be aware of the updated rates that are applicable from the 29th of September.
If you would like to know more about the Fuel Tax Credit system and/or how to calculate your credits, please get in touch.
FEDERAL BUDGET
The new Treasurer, Jim Chalmers will hand down his first Budget on Tuesday the 25th of October 2022.
Dr Chalmers has been publicly playing down the recently revealed $50 billion improvement to last year’s budget bottom line, driven in large part by an unexpected spike in commodity prices.
Notwithstanding this improvement, Dr Chalmers has expressed a more sombre outlook and has noted that the upcoming Budget will seek to deal with some difficult spending challenges.
We will provide in depth analysis of the upcoming Budget shortly after it is handed down on the 25th of October.
1 OCTOBER MIMIMUM WAGE INCREASE
The minimum wage increased under most Awards to reflect the Fair Work Commission’s Annual Wage Review from the 1st of July 2022.
However, this increase was deferred for certain Awards in the aviation, hospitality and tourism industries.
This includes the Hospitality Industry (General) Award, Registered and Licensed Clubs Award and the Restaurant Industry Award.
For a full list of affected Awards, check-out the Fair Work Ombudsman’s website.
Businesses covered by the affected Awards should review the pay guides published by the Fair Work Ombudsman to ensure that they continue to pay staff correctly from the 1st of October.
If you need assistance to ensure that you are meeting your employer obligations, please get in touch.
NOT-FOR-PROFIT INCOME TAX EXEMPTION
In the 2022 Federal Budget, it was announced that from 1 July 2023, not-for-profit entities that self-assess as eligible for an Income Tax exemption, will be required to lodge an annual self-review form with the ATO.
This regime will cover all not-for-profits, other than charities registered with the ACNC, who self-assess as Income Tax exempt under Division 50 of the Income Tax Assessment Act 1997.
This includes community service, cultural (art/literature/music), educational, health, employment, resource development, scientific and sporting organisations.
Little is currently known about how the annual self-review system will operate.
However, the ATO have started publishing materials to assist not-for-profits to review and document their self-assessment.
Additionally, the ATO have refreshed the 25 old tax ruling on the “games and sports exemption” in the form of Tax Ruling TR 2022/2.
This ruling provides guidance to societies, clubs and associations on how to self-assess whether they are Income Tax exempt.
Those who are involved in not-for-profits are encouraged to take steps to get up to speed with the latest guidance to ensure that they are correctly self-assessing for the exemption and to be well positioned to complete the annual self-review process from 1 July 2023.
If you require advice on the tax-exempt status of a not-for-profit that you are involved in, please get in touch.
QUOTE OF THE MONTH
It is not uncommon to get stuck in a rut waiting for inspiration to strike. Time slips by while you wait and wait and wait and become ever more frustrated and restless.
But what if that is not how inspiration works? Is that waiting really just making inspiration more elusive?
The American author Madeleine L’Engle once said “Inspiration usually comes during work, rather than before it”.
If this is true, then it seems that the best thing to do when inspiration is absent is to get busy. Getting the mind and body active may be just what is needed to prime yourself for a lightning bolt of inspiration.
And even if inspiration doesn’t strike, at least you will have done something productive instead of nothing at all.
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