Living and working overseas as an Australian expat, or as a non-resident of Australia means that it’s easy to overlook your Australian tax and compliance obligations, because these things are often “out of sight, out of mind”!
If you are a director of a company or business in Australia then you cannot afford to ignore this article.
Australia has recently introduced legislation that requires company directors to register for a “Directors ID” number, with harsh penalties in the tens of thousands of dollars, for those who fail to register by 30th November 2022.
Yes, you read that correctly – there’s only 5 days from the date of today’s article to apply for a Directors ID and avoid penalties hence the reason for our flash update in today’s article!
If you are a director of an Australian company or business, who lives outside Australia (overseas) you MUST apply for a director ID number by 30th November 2022.
Note that this is NOT optional.
Regardless of whether you reside in Australia or overseas, and regardless of whether you are an Australian Permanent Resident or citizen or not, ALL directors of all Australian companies, foreign registered businesses (in Australia), small businesses, non-profit organisations, charities, community groups and corporate trustee’s MUST register for a 15 digit director ID with the new law coming into affect on November 30th 2022 – next Wednesday!
Failure to comply could result in fines of $13,200.
It is possible that you and other expatriates may not realise that these new rules could impact you.
In an article published on the Daily Mail Australian Business Registry Services Deputy Registrar Karen Foat warned that:
‘Some people might not actually realise they are a director of a company. You don’t have to wear a suit or work in an office to be considered a director,’
‘If you run a small business, a self-managed super fund, a not-for-profit or even a large sporting club, you may be a director, which means you’ll need a director ID.’
Registering for a director ID can be done via the Apply for a Directors ID Online page located on Australia’s Australian Business Registry Services website.
To register you will need your proof of ID documents, so be sure to have your passport, driver’s licence or other similar ID documents handy.
If you do not know whether you are a director or you don’t understand what your obligations are, or if you’re not sure if you’re impacted by these changes, contact us urgently. We can check your obligations (including checking whether you are registered as a director of an entity in Australia), and we can explain what your obligations are if you are affected by this legislation.
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- Update: Thailand Clarifies Tax on Foreign Income - 25/11/2023
- Remote Workers – Australia’s Opportunistic Tax Grab - 11/11/2023
