InFocus October 2022 - Volume 31 Issue 7
- Director ID: Directors strongly encouraged to apply now to beat the rush
- Missing payments
- Thinking of registering a business name? Make sure it's available
- Three things to do before closing your company
Director ID: Directors strongly encouraged to apply now to beat the rush
If you are a director of a company in Australia, you must apply for a director ID through Australian Business Registry Services (ABRS).
The Australian Securities and Investments Commission (ASIC) strongly encourages all directors to apply online immediately. The fastest way to apply for a director ID is online using the myGovID app to log in to ABRS online.
While existing directors have until 30 November 2022 to apply, it is important to beat the rush and to apply immediately. All new directors are required to apply prior to appointment.
If you are a director of an Aboriginal or Torres Strait Islander Corporation, you must apply for your director ID by 30 November 2023. New directors of these corporations must apply prior to their appointment from 1 November 2022.
Over 900,000 directors have successfully applied, with close to 90% of directors applying for their director ID online and receiving their director ID instantly.
The Australian Taxation Office (ATO) is responsible for delivering the director ID service through ABRS, while ASIC is responsible for enforcing related offences.
Encourage your director clients to watch the ‘How to apply for a director ID’ video and find more information about who needs to apply and when, on the ABRS website.
Missing payments
If you've made a payment and it's missing from your account, it could be for a number of reasons.
If you've paid a fee using a different reference number or paid multiple accounts in the same transaction, send us an online enquiry and include the following details:
- your reference number
- the incorrect reference number used (if applicable)
- account name
- date of payment
- amount paid, and
- proof of payment (e.g. bank statement).
This will allow us to allocate the payment to the correct account, and any late payment fees no longer applicable will be automatically cancelled.
Fee waivers
ASIC can only waive late payment and lodgement fees under certain circumstances.
If you believe you meet the criteria, you’ll need to lodge an application and attach any supporting evidence, such as a medical certificate or insurance forms.
Once lodged, please keep note of the date and reference number. Also, ensure any outstanding annual review fees are paid prior to applying, but do not pay the late fee.
In the meantime, you will continue to receive invoices until the fee waiver is reviewed.
Learn more about fee waivers on our website.
Thinking of registering a business name? Make sure it's available
If you're thinking of registering a business name, you can use our 'Check business name availability' search to see if it's available.
You won't be able to automatically register a business name if:
- it's identical or nearly identical to a name that's already registered,
- it's 'undesirable' (for example, it's considered offensive),
- it contains a 'restricted' word or expression like 'charity' or 'police', or
- it includes invalid characters, like umlauts (ä).
When you check to see if your name is available, you'll get one of three results:
- Green – The name is available and you can apply to register it.
- Amber – You can apply to register the name, but we'll have to review your application to make sure that it's available.
- Red – The name is not available.
For more information about the business name availability rules and the tests we apply, visit our website.
Three things to do before closing your company
One of the most common questions we're asked is 'what do officeholders need to do before closing their company?' To keep it simple, here are the three key things:
- Ensure your company has no fees outstanding
If your company has any fees outstanding, we'll automatically reject your deregistration application. You can check your current account balance online. - Ensure your company meets all the criteria for deregistration
Your company must also meet the deregistration criteria which includes, all members agreeing to deregister and the company's assets totalling less than $1000. Visit voluntary deregistration for the full list. - Apply for deregistration at least two weeks before your annual review fee due date
Finally, you should apply for deregistration at least two weeks before your annual review date. If you don't, your annual review fee will be charged and you'll need to pay it before the company can be deregistered.
If you are planning to deregister your company, we recommend you apply as early as possible.
For more information about closing your company and what you need to do, visit our deregistration page.