Tag Archive: ATO

  1. Cyber Security

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    With the growth of the online world, the importance of strong cyber security and cyber awareness is becoming increasingly important. Cyber security is not just important for businesses but also for individuals and families. Scams are becoming more and more common, and it is important to be aware of the signs of a scam to safe online.

    What are Cyber Scams?

    A cyber scam is when someone uses emails, messages, phone calls and any other online platform to pretend to be another individual or organisation. This could be someone you think you know or someone you think you should trust. They do this to try and get you to send them usually some sort of currency or personal information.

    ATO Impersonation Scam

    There has been a recent email being sent impersonating the ATO. This email mentions a security update and asks for you to update your multifactor authentication through scanning a QR code. This then leads you to a fake myGov page designed to steal your sign in details. It is important to note that the ATO will never send you an email with a QR code or a link to log into the portal.

    Some Signs of a Scam

    • The message is unexpected and comes out of the blue.
    • The message is not the same formatting or written as it normally would be.
    • Theres an unreasonable deadline or sense of urgency.
    • There is a promise of a benefit or threat of punishment (debt, fine, jail).
    • There are links to follow, QR codes to scan.
    • They may be asking for money, gift cards, log in details and other personal details.

    If You Think You Have Received a Scam

    1. Go Straight to the Trusted Source – Visit the official website, log on to your account, call the official phone number and discuss what you have received to confirm if it was real. Do not get this contact information from the scam.
    2. Do Not Click on Links, Open Attachments or Reply – Scammers may try to trick you into giving personal information. They may ask for your bank account details, passwords or credit card numbers. They may also ask you to download files, software, or allow remote access to your computer. Do not click on these!
    3. Use Identification to Confirm if Genuine. – You can check website links by looking at them if they are claiming to be a government body and the link does not end in “.gov.au” it is a sign it is fake. You can also confirm phone numbers on official websites.

    As always, don’t hesitate to contact one of the friendly Greenlight Super Services team members if you require further assistance on (02) 6273 1066 or info@glss.com.au.

    This newsletter is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The newsletter has been prepared without taking in to account any personal objectives, financial situation or needs. The information contained is correct as of 11 December 2023.

  2. Director ID – CALL TO ACTION

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    Welcome to our latest newsletter, Director ID Edition, in which we remind you of an important deadline coming up.

    About Director ID

    All company directors are now required to apply for a Director ID.

    A director identification number (‘Director ID’) is a unique identifier given to a director who has verified their identity with Australian Business Registry Services (‘ABRS’).

    The Director ID system is designed to help prevent the use of false or fraudulent director identities.

    Note that it is a criminal offence if you do not apply for a Director ID by the deadline. ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001.

    Who needs to apply and when

    Any person that is a director of a company will need to apply for their own Director ID and they will keep that same Director ID forever.

    Exactly when you need to apply depends on when you became a director, as illustrated by the following table:

    Date you first became a directorDate you must apply
    On or before 31 October 2021By 30 November 2022
    Between 1 November 2021 and 4 April 2022Within 28 days of appointment
    From 5 April 2022Before appointment

    This means that if you were already a director of a company before 31 October 2021, you need to apply for your director ID as soon as possible as the deadline is 30 November 2022.

    How to apply for your Director ID

    The fastest way to get a Director ID is to apply online using the myGovID app. There is no fee, and you only need to apply once. Note that no one can apply for you, as you need to prove your identity when you apply.

    Step 1 (only necessary if you don’t already have myGovID set up)

    You need to set up a myGovID with a Standard identity strength which requires at least 2 of the following Australian identity documents to verify your identity:

    • Driver’s licence or learner’s permit
    • Passport (not more than 3 years expired)
    • Birth certificate
    • Citizenship certificate
    • Medicare card
    • Visa (using your foreign passport)
    • Immicard

    You can set up myGovID by downloading the app and following the prompts.

    If you do not have at least two of the documents listed above, then go to Step 4.

    Step 2 – Gather your documents

    Once you have set up your myGovID, you must have further information that the ATO knows about you in order to apply online for your Director ID. You will need:

    • Your tax file number
    • Your residential address as held by the ATO
    • Information from 2 documents to verify your identity (eg ATO Notice of Assessment, APRA fund account details, a dividend statement, a PAYG or a Centrelink payment summary)

    Step 3 – Complete your application

    Log in to ABRS online using your myGovID to complete your application (best to do this on your computer rather than mobile phone, but you need to have both devices, as a code will pop on the mobile that will need to be accepted). The process does not take long if you have already gathered your documents as per Step 2. The link is https://www.abrs.gov.au/director-identification-number/apply-director-identification-number

    Step 4

    If you are unable to set up myGovID, or you don’t have the required Australian identity documents to apply online, how you apply depends on where you live.

    If you live in Australia, you can call 13 62 50. Note that you will be asked to verify your identity.

    If you live outside of Australia, you can apply by using a paper application form:

    Application for a director identification number (NAT 75433, PDF 651KB).

    Once you have your Director ID

    Please contact us to provide your Director ID once you have it, and make sure that you keep the number in a safe place as this is a number that you will have for life.

    As always, don’t hesitate to contact one of the friendly Greenlight Super Services team members if you require further assistance on (02) 6273 1066 or info@glss.com.au.

    This newsletter is for general information only. Every effort has been made to ensure that it is accurate, however it is not intended to be a complete description of the matters described. The newsletter has been prepared without taking in to account any personal objectives, financial situation or needs. The information contained is correct as of 7 September 2022

  3. SuperStream rollovers and release authorities

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    SuperStream is the electronic system used to transfer data to super funds and is used to process employer contributions and for rollovers between super funds. It can also be used for certain ATO release authorities. The idea behind SuperStream rollovers and release authorities is to make the processing faster, more efficient and with fewer errors.

    For the SMSF to be SuperStream ready, it needs:

    • An electronic Service address (ESA)
    • An Australian Business Number (ABN)
    • To ensure that its details are up to date with the tax office, including the SMSF’s bank account.

    The super fund paying the rollover also needs to ensure that the receiving super fund has complying or regulated status with the tax office, and that it has received the Tax File Number of the relevant member. Whilst the paying fund has three days to process a payment from when a rollover request is received, incomplete information will cause delays. Note that we are finding that many retail funds are requesting certified copies of bank statements.

    More information about this change can be found at the tax office’s Super Stream for Self-managed Super funds or their SMSF SuperStream FAQ.

    Please do not hesitate to contact us here at Greenlight if you have further questions in relation to the changes.

  4. Superannuation Guarantee frozen until 2021

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    The government has just announced that it had been successful in gaining support for the repeal in the Mining Tax Tax, but with that comes a freeze on the increase in Superannuation Guarantee Contributions (SGC). Until this year’s budget, the Labor government had SGC reaching 12% by 2019. This change sees it staying at 9.5% until 2021 before increasing in 0.5% increments until 2025. Adding fuel to the fire is suggestion that with the change comes increased powers to current and future Treasurers, allowing them to make further changes to this without parliamentary approval.

    The bad news in this of course is the fact that our compulsory retirement savings will potentially fall further short of where they need to be to fund future retirement income needs. This comes at a time when the government has also increased the Age Pension age to 70 for those born after 1966, and there are grave concerns for the nation being able to fund our ageing population.

    The good news in all of this is that for the large percentage of people on Total Remuneration Packages (TRP), it means that the money stays in “take home pay” and can fund current debt and lifestyle needs. This “take home pay” though is of course taxed at Marginal Tax Rates, which for many people is far higher than the 15% that superannuation enjoys. Take someone earning $150,000 a year. If they contributed 12% to super instead of 9.5%, the tax saving would be $900 per year. That $900 saved year and invested, (assuming a 12% return incl CPI) over 15 years is over $31,000.

    Extra $900 super savings
    With contribution caps now making it difficult to contribute to super later, the smart money will likely look to increased Salary Sacrifice strategies to make up likely income shortfalls later. For more about Salary Sacrificing, check out the ATO Website, and keep an eye out for next month’s Super Vision where we’ll explore the benefits in more detail.

  5. New ATO Penalties mean more likely cash fines!

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    Historically, the ATO only had extremely harsh penalties in the form of Trustee Disqualification, or rendering a Fund Non-Compliant and imposing the loss of all tax benefits.  Because the “time” far outweighed most crimes, the ATO rarely took these courses of action.

    However from 1 July, the ATO will be providing either “education” or “rectification” directions along with fines for tardy responses, as well as raft of explicit Administrative Penalties carrying significant cash fines to be met by the Trustees themselves, rather than the Fund.

    An “Education Direction”, as the name suggests, will likely be used for first time offenders and requires the Trustee to better understand their obligations via the completion of an ATO designated course or program. The Trustee must then complete the course and notify the ATO appropriately (via a SMSF Trustee Declaration Form), or incur a fine of $1,700 and an $850 administrative penalty.

    A “Rectification Direction” refers to an ATO instruction to remedy the breach.  Where the Trustee cannot or does not provide evidence of the rectification, the fine is $1,700 for each breach.

    Further Administrative Penalties are also on offer ranging from $850 up to $10,200 for each contravention!  The proposed table of penalties are detailed as follows:

    Section and Rule

    Proposed Penalty

    s35B – failure to prepare Financial Statements


    s65 – prohibition on lending or providing financial assistance to members and their relatives


    s67 – prohibition on super fund borrowing, except as permitted (LRBA)


    s84 – contravention of In-House Asset rules


    s103(1) & (2) – failing to keep trustee minutes for at least 10 years


    s103(2A) – failure to maintain a s71E election, where applicable, in relation to a fund with an investment in a pre-11/8/99 related unit trust


    s104 – failing to keep records of change of trustees for at least 10 years


    s104A – failing to sign Trustee Declaration within 21 days of appointment and keeping for at least 10 years


    s105 – failing to keep member reports for 10 years


    s106 – failing to notify ATO of an event that has significant adverse effect on the fund’s financial position


    s106A – failing to notify ATO of change of status of SMSF, eg. fund ceasing to be a SMSF


    S124 – where an Investment Manager is appointed, failing to make the appointment in writing


    s160 – failing to comply with ATO Education directive


    s254(1) – failing to provide the Regulator with information on the approved form within the prescribed time upon establishment of the fund


    S347A(5) – failing to complete a form with requested information provided by the Regulator as part of the Regulator’s Statistical Program


     The way the legislation is written penalty amounts will be issued to each trustee of an SMSF.  For Corporate Trustees, this will mean that one penalty will be issued, with all directors jointly and severally liable.  Where Individual Members exist, technically the penalty may be imposed on each trustee.

    The bottom line

    With ASIC now monitoring Auditor capability and compliance, the pressure is on all Auditors to report any imperfections with financial reporting and fund activities.  These penalties now also mean that Auditor calls cannot be ignored.

    It all makes for more reasons to make the most of Greenlight’s expertise and technological innovation.  Ask us for a Greenlight Online demonstration today or talk to us about how our specialists can help you steer clear of any ATO penalties!