Month: November 2021

 

Being introduced in November 2021 in Australia, a Director ID is a way in which to detect unlawful activity. If you’re a company director, take a look below.

 

What is it?

A Director ID is a 15 digit identifier that all Australian company directors will need to possess. It is unique to that person and will follow the individual across any companies that they are a part of.

 

Why are they being introduced?

They are designed to track the activity of directors, rather than just the company. This is so any unlawful behaviour can be more easily identified and stamped out.

Phoenixing is one such illegal activity that will be tracked and eliminated with the introduction of the Director ID in Australia. This is when a director transfers assets from one company to another with the intent of avoiding debt. They continue their business under a new company name whilst the original company goes into liquidation.

 

Do I need one?

If you are the director of an Australian business, a registered foreign company, a registered Australian body or Aboriginal or Torres Strait Islander corporation, then yes. You will be required to register for and receive a Director ID in the coming weeks and months.

If you run a business as a sole trader or partnership or you are the director of an incorporated association without an ABN, a company secretary or acting as an external administrator of a business or are registered with the Australian charities and Not-for-profits commission, then you are not required to apply.

 

How do I apply?

You must apply yourself because part of the process is confirming your identity. This doesn’t mean you need to do this on your own, the team at Glance Consultants can help you through this new process.

You can apply online, by phone on 13 62 50, or through the post. Please have all relevant, identity documentation handy with certified copies being included with any postal forms.

Applications are open for the Director ID from the 1st November 2021. We encourage all directors to get onto this immediately for peace of mind and again.

You have until November 30 2022 to receive your Director ID. For new directors between now and  April 4, 2022, you have 28 days to apply and those who become a director of a company from the 5th of April 2022, they must have a Director ID before their appointment as a Director.

For more information please contact Glance Consultants on 03 9885 9793

 

 

When family members are involved, self-managed super funds (SMSFs) can be vulnerable to disputes and unfortunately be difficult to avoid and work through should they emerge.

Such disputes can be triggered by a range of factors including relationship breakdowns between parents and siblings when in a member/trustee relationship or due to a simple, fundamental difference in opinions. 

Investment strategy disagreements can cause a lot of confusion and frustration between members of a SMSF and when it comes to payouts, there can also be many disputes surrounding the distribution of death benefit payments between surviving members.

In order to avoid any potential disputes surrounding an SMSF, it is critical that members consider the following methods as a guideline:

 

1. Clear decision making procedures. 

Money is unfortunately a root cause of many arguments even between very closely bonded family members. By having concise decision making provisions put in place at a time when no disputes have yet to emerge, then boundaries are immediately put in place to protect the wellbeing of all involved. 

By making these clear decision making procedures available and understood by all, at everyone’s earliest convenience, then potential issues can immediately be ironed out during a period of lower emotional volatility to ensure that procedures are kept fair for all. 

For example, trustee decisions can be a majority rule rather than a unanimous decision and should there be a deadlock, a particular trustee can be appointed to cast a deciding vote. In addition, voting rights can be based on the value of a member’s account balance on a factor of percentage, to ensure those members with minority interest cannot out-vote those with larger contributions. 

 

2. Keep reevaluating, keep updating. 

In order to prevent any unwanted beneficiaries and claims, it is essential that SMSFs and trustee information is kept up to date. Unfinalised divorces or changes to a relationship status that have not been legally confirmed will mean that those connected to a member will be able to benefit from their former spouse’s superannuation death benefits. 

By simply being proactive about the processes and the information kept in a SMSF, then you are able to avoid any potential disputes that may arise throughout the course of the fund’s lifetime. 

Here at Glance Consultants in Australia, we understand that a family member’s situations are constantly changing and we seek to provide tools for our clients to ensure that such changes do not have a negative impact on everyone’s financial health and future. 

Contact our friendly team of trusted advisors on 03 98859793 or at enquiries@glanceconsultants.com.au to discuss your needs and our full service offering. If you cannot attend our office located at 217A High Street, Ashburton VIC 3147, Australia, we can organise a meeting via Zoom, phone or assist via email depending on your circumstances.