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Compliance, Regulation

Director ID process still confusing many

director ID process

The specific process to apply for a director ID remains confusing for SMSF trustees who are seeking help from service providers.

The unique way in which directors of companies must apply for an identification number via a mobile app and in different time frames is causing confusion for many, including SMSF trustees, who are struggling to get through the process, according to an SMSF administration provider.

SuperConcepts SMSF technical and strategic solutions executive manager Phil La Greca said his team was receiving three to five calls a week about director IDs from trustees with existing SMSFs using a corporate trustee and who had until November to apply and from trustees setting up new funds who have until 4 April to do the same.

“The main reasons for the calls are related to timing and for an SMSF trustee how many times should they apply for a director ID,” La Greca told selfmanagedsuper.

“They are asking if they need an ID for the trust, for the fund and for any companies they may have or if it is just one ID for all of those things.

“There is confusion about when to apply and what they are applying for and there should be a further communication campaign to directors after April to remind them they only have six months left to apply.”

He added the requirement to use a myGovID and a mobile app was also creating confusion with the more widely known myGov system and its online access and apps.

“The requirement to apply via a mobile app is not popular with some people who are concerned about the security aspects of that process compared to that available via a computer,” he said.

“Supplying documents, many which have gone electronic, is also creating difficulties in this process and we are seeing a generation difference in the ability of people to use the app and adapt to providing new information through new processes to record directors.”

The prescription that professional advisers cannot carry out the application for a director ID on behalf of trustee clients has also been raised with SuperConcepts.

“They can’t outsource it to any professional practitioner because it is a trustee obligation to apply for a director ID and the application seeks direct input from whomever is to be listed as a director, so the only way they can be assisted is if a practitioner sits with them as they walk through the process,” he said.

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