In the latest Business Concepts Group podcast, Chris Reed, an SMSF specialist adviser, said the shortfall in SMSF trustees without a director’s ID is going to be an area of focus for the ATO in coming months.
“I think potentially fund auditors might even be asking about this as we get into the audit of the superfund for the 2023 financial year,” Mr Reed said.
“And of course, there are fines that can be applied for those who don’t have a director’s ID.
“So if you are in that boat, if you have a corporate trustee of your funds, make sure that all workers have their directors ID.
“It’s already eight or nine months past the extension date for everyone to get one and I guess the ATO is going to have to do something at some stage to enforce this.”
According to the regulator, the number of SMSF directors obtaining a director ID continues to grow, with over 90 per cent of Australia’s 700,000 SMSF directors now having obtained one.
The Tax Office said although the deadline for directors to apply for a director ID has now passed, directors can still apply for their director ID.
“The Australian Business Registry Service is taking a reasonable approach to those directors who are trying to do the right thing, focussing predominantly on help and support activities,” a spokesperson from the ATO said.
“This includes issuing letters/emails and making calls to directors advising them of the requirement and providing guidance about how to apply.”
ASIC is responsible for enforcing director ID offences, which includes failing to obtain a director ID.
It is important that those who are new to having an SMSF and are a corporate trustee understand the requirement to obtain a director ID.
The spokesperson said ABRS recognises the support that agents and advisors provide their clients to help meet their obligations when establishing an SMSF.
For further information on those who do and don’t need a director ID see Who needs to apply and when | Australian Business Registry Services (ABRS)
