The degree of difficulty associated with the preferred application process for a director identification number via the myGovID facility is proving so problematic advisers are directing clients to bypass it in favour of the manual option.
“The elderly clients are less IT literate; they’re struggling with it. So I just get them to fill out the manual form,” HLB Mann Judd Sydney superannuation director Andrew Yee revealed at a media briefing held in Sydney last week.
“So I’ve been telling clients just fill it out, send it to the tax office and let them do the rest.
“The myGovID app is just too hard for them … [it’s easier for them to use] the manual form because you’ve got until November [to complete the task]”.
HLB Mann Judd Sydney wealth management partner Michael Hutton admitted he struggled with the process himself.
“I tried to get [a director ID number via the myGovID app] and I had to get one of my younger colleagues in the office to sit opposite me and run me through the process,” Hutton noted.
“I didn’t find it that easy at all.”
Further, he expressed concern that the trouble with the director identification number application process did not prompt SMSF clients to question the value of putting a corporate trustee in place for the fund.
“For a few years we’ve been telling [members of] self-managed super funds they should have a corporate trustee, [meaning] you’ll find yourself a director of a company. They’re all getting older [and now they have to go through this process],” he noted.
Further, the new requirement is anticipated to have an impact on aspects of investing outside superannuation.
“Quite often you’ll get someone calling up to say ‘I’m making an investment tomorrow and I need a company set up [to do so]’ and now they have to have a director identification number before we can set up the company. So they need to do this additional step,” HLB Mann Judd Sydney tax director Peter Bardos said.
“So if it is cumbersome, you can see that being an issue.”
