Yahoo Finance ATO deadline: Last chance to avoid $13,000 fine
Aussies have one last chance to avoid a hefty fine from the Australian Taxation Office (ATO) following new rules introduced this year.
It is now mandatory for Aussies who are directors of companies to have a director ID. This includes directors of small businesses, trustees of self-managed super funds, charities and not-for-profit organisations.
The new rules came into effect on November 30, but the ATO has applied a grace period for Aussies to apply by December 14.
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Aussies who miss the deadline risk being fined up to $13,200.
The Australian Business Registry Services (ABRS) previously said it would take a “reasonable approach to support people to apply”.
The new rules have been introduced to help crack down on illegal activities, including phoenix activity.
“This is really dodgy behaviour and it’s where business owners illegally shut down their company and transfer assets into a new company to avoid paying what they owe to employees and suppliers,” ABRS deputy registrar Karen Foat previously explained.
Last month, the ABRS estimated that 700,000 Aussies still needed to apply.
How to apply
All Australian directors need to apply for a director ID, including directors of companies, corporate trustees of self-managed super funds, charities and not-for-profits. People who are running a business as a sole trader or partnership do not need to apply.
You can apply for a director ID through the ABRS website, which will issue you with a director ID instantly once your application is complete. This is a unique 15-digit identifier that you can keep with you forever.
If you’re unsure whether you need to apply, you can check the ABRS website or speak to your registered tax agent. However, you will need to apply for the ID yourself, tax agents cannot do it on your behalf.
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