Over half of SMSF directors yet to apply for director ID
Directors of corporate trustees for SMSFs will need an ID by 30 November.
Fewer than half the 690,000 directors in the SMSF sector have yet to apply for an ID with the deadline just weeks away.
Anyone who is a director of a corporate trustee of an SMSF will need to have the unique number by 30 November 2022.
In data supplied this week to SMSF Adviser, the ATO estimated that just 48 per cent, or 330,000, SMSF directors had already been issued an ID.
That left 360,000 either in the process of applying or yet to start the process.
The uptake is even worse for the overall director population, with ATO figures to 19 October revealing around 1 million directors had applied for an ID from an estimated population of 2.5 million.
Speaking at a recent CA ANZ conference, ATO assistant commissioner SMSF risk and strategy Justin Micale said that directors needed to lodge their own application as they are required to verify their identity. Authorised tax agents and other intermediaries are unable to apply on their behalf.
“We know obtaining a myGovID has been difficult for some people, particularly older Australians as they might not have digital identity documents,” said Mr Micale.
“In these circumstances, we are providing them with access to alternate non-digital application channels on the phone or in writing. Additional certified documents are required for these options, so the process takes a little longer.
“As there is not a lot of time left before the due date, any support you can provide to your clients by sharing this message will be greatly appreciated.”
The government this week launched a campaign aimed at raising awareness about the need for directors to apply for their director ID.
The government has raised concerns that some people might fail to realise they are directors, so the campaign targets those running SMSFs, small businesses, charities, not-for-profits and even some sporting clubs.
“Interestingly, some people don’t actually realise they are a director of a company. If you run a company that is a small business, SMSF, a not‑for‑profit or even a large sporting club, it’s quite likely that you’re a director, and you’ll need to apply for your director ID,” said Assistant Treasurer Stephen Jones.
“Don’t leave it to the last minute — if you’re a company director, you must apply by 30 November — so make sure you make time to get it done.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
