Under a rewrite of Australia’s business registers, Directors will be required to register for a unique
identification number that they will keep for life, much like a tax file number.
The introduction of the Director Identification Number (DIN) regime is part of the Government’s Modernisation of Business Registers
(MBR) Program creating greater transparency and tracking the movements of individuals over time. The MBR will unify the Australian Business
Register and 31 ASIC business registers, including the register of companies. In effect, the system will create one source of truth across
Government agencies for individuals and entities and will be managed by the Australian Taxation Office (ATO).
Current Australian directors or corporate trustees in an SMSF will now have one year to apply for their unique director identification
number before fines of over $1.1 million kick in for non-compliance.
Existing company directors will now be required to apply for a director identification number (Director ID / DIN)
by 30 November 2022, while directors of Indigenous corporations that are governed by the Corporations (Aboriginal and Torres
Strait Islander) Act 2006
(CATSI Act) will be required to apply for the unique identifier by 30 November 2023.
For those who are a director or a corporate trustee of a self-managed super fund (SMSF), they will also need to apply for a director ID by
30 November 2022.
The deadline, first floated by Treasury earlier this year, has now been confirmed in a legislative instrument made last week
by the Minister for Superannuation, Financial Services and the Digital Economy, senator Jane Hume.
Whilst retention payments are very common in the building and construction industry we continually see them being incorrectly accounted for,
or not accounted for, and therefore often overlooked, resulting in advance payment of taxes and/or lost income.
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We are heading into a period of opening up the economy after COVID, with the need to repair the budget, an election looming by May 2022, the threat of inflation and a withdrawal of central bank stimulus.