The SMSF Association has expressed its concerns over the awareness individuals who are directors of a company acting as a corporate SMSF trustee have of the obligation to apply for a director identification number before 30 November this year.
Companies acting as trustees of SMSFs are classified in a particular manner and this is where some of the confusion over this legal obligation may exist, SMSF Association deputy chief executive and director of policy and education Peter Burgess said.
“You may have set up a company for a client as part of their SMSF, a special purpose company that does nothing other than act as a trustee for a self-managed super fund. The directors of that company still need to have a director ID and they’re the ones that have got me worried because they may not realise [it],” Burgess told delegates at the SMSF Association Technical Summit 2022 held on the Gold Coast recently.
He pointed out advisers need to recognise they have a significant role to play with regard to this legal obligation.
“We have to do what we can to educate our clients to get one of these director IDs as the deadline is fast approaching,” he suggested.
He noted around 65 per cent of SMSFs have a corporate trustee and as such the requirement to secure a director ID number will impact about 388,000 funds.
“So far there are a lot of self-managed super funds that still need to apply for a director ID,” he said.
He also took the opportunity to clarify circumstances where directors of an SMSF corporate trustee may not need to apply for a director ID number in that capacity.
“The other point to make here is if your client was a director of a company before 31 October last year and you’re now setting up a self-managed super fund with a company as a corporate trustee, they don’t need to apply for a director ID until 30 November,” he revealed.
The application process for obtaining a director ID number began in November last year.
The SMSF Trustee Empowerment Day 2022 to be held on 15 September in Sydney will provide a special offer for individuals who need assistance with the director ID number application process. If you or your clients can benefit from this offer, visit https://smstrusteenews.com.au/events/smsf-trustee-empowerment-day-2022/ to register for the event.
