Watch Out! You may be liable for a maximum criminal penalty of $16,500 if you have not acquired your Director ID Number.

Introduced in 2021, the Australian federal government’s Director Identification Number (DIN) scheme is designed to reduce illegal and unfair corporate activities, such as the creation of ‘dummy’ directors and company ‘phoenixing’.

The DIN is a unique 15-digit numerical identifier that remains with a director for a lifetime, including when a director changes companies.

Offences and penalties for late or non-acquisition of a DIN

ASIC enforces the legislative requirement of a DIN on directors. To avoid a substantial financial penalty for refusal or failure to obtain a DIN, you must reach out to the ABRS. Here are the four offences and their associated penalties that are upheld by ASIC under the Corporations Act 2001:

Am I a company director?

YML Group has the expertise to determine your company position status and to guide you through your DIN application.

There is no time to delay any further. If you are a company director, apply NOW for your DIN.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with acquiring a DIN. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

What can you do if you do not agree with a Notice of Valuation of your land?

Australian property owners are required to pay land tax on the value of their land. Each year in NSW land value is assessed at 1 July and in line with the Valuation of Land Act 1916. This Act states that an assessor must assume the land is vacant and value it on its highest and best permitted use, based on current zoning and planning restrictions determined by local councils.

Whilst this Act guides the valuing of land, property owners have a right to object to the Notice of Valuation if they are concerned about the value being too high or too low, the area, dimensions or description are incorrect, or other factors have been omitted or are wrong. If you are a property owner, you may challenge the assessed land value through a formal objection process.

The process of objecting to a valuation recently determined for your property is done through the relevant state or territory government authority, which in NSW is the Valuer General. A formal objection will be reviewed by the authority. The authority might adjust the land value if sufficient evidence is found to support your challenge.

Steps to lodge an Objection

If you believe that a Notice of Valuation for your land contains errors or is unfair, you’ll need to follow these steps to make a formal objection:

Carefully review the information provided in your Notice of Valuation, making sure to clearly understand the criteria that led the valuer to arrive at the valuation – such as land location, size, zoning regulations, property characteristics, recent property sales, economic conditions, as well as the date on which the valuation was conducted.

Gather relevant evidence to support your challenge – such as comparative sales data for similar properties in your area (minimum of 3 property sales), documentation of any significant changes, including renovations, to your property that could affect its value, as well as any other aspects that could demonstrate why the valuation is incorrect on your Notice of Valuation.

Submit a formal objection with the NSW Valuer General or other state authority. You must say what you think the true land value is; provide all documentation and evidence supporting your land value assertion. Note, each objection may only apply to one property. You must lodge separate objections if you have multiple properties. There is no opportunity to submit additional evidence after lodging an objection, so be sure to include all supporting material at the time of lodgement.

Note the time limit to make an objection – NSW Valuer General has a 60-day deadline as advised on the front of your Notice of Valuation, OR 60 days from the issue date on your Land Tax Assessment.

Await the resolution of your case and respond to any requests for further information or clarification of your supporting material. At the end of the review, it might be decided to adjust the valuation, uphold the original valuation, or negotiate a settlement with you.

Seek legal assistance should you be dissatisfied with the result of a review and want to consider appealing a decision. Call YML Legal for professional advice about property assessment and valuation. We will also provide you with the most up-to-date information about the Notice of Valuation objection process.

How can YML help?

Talk to YML Legal today to see how YML Group can assist you with your objection to a Notice of Valuation. For more information, view our website and contact us on (02) 8383 4499 or by using our Contact Us page on our website.

A General Guide to Property Transfers and ATO Clearances

Transferring property in Australia involves legal and taxation considerations, including dealing with the Australian Taxation Office (ATO) for clearances and pertinent notifications. Property laws are complex, so it is important to understand the general process to transfer a property legally and in accordance with ATO conditions.

Contract of Sale

To begin transferring a property, a contract of sale between a vendor (seller) and a purchaser (buyer) must be signed. The contract of sale outlines the details of the property, the purchase price, the terms of sale, including any special conditions of sale, and the date of settlement.

Conveyancing – Pre-settlement

Conveyance is the legal process of transferring property from one owner to another and is conducted prior to settlement. Administrative tasks – such as preparing and exchanging legal documents, checking that a property’s title is clear of encumbrances, arranging a property inspection and investigating the taxation obligations on both the seller and the buyer – must be completed.

Stamp Duty

Stamp duty is a tax imposed by state governments on property transfers. The amount is determined by a property’s location and value. Stamp duty must be paid prior to settlement.

ATO Clearance Certificate

The ATO plays a role in property transfers to ensure that relevant taxes are paid by both parties. A clearance certificate is provided by the ATO which confirms that a seller is an Australian resident – and not a foreign resident for taxation purposes – and is therefore not subject to a withholding tax obligation.

A seller of a property valued at $750,000 or more is required to supply a valid clearance certificate to a buyer at or before settlement to avoid a buyer withholding an amount of the sale price (currently 12.5%) to meet a Foreign Resident Capital Gains Withholding (FRCGW) tax obligation.

Once a clearance certificate has been issued, it is generally valid for 12 months.

Capital Gains Tax (CGT)

Any profit made from a property sale may incur a CGT liability. Capital improvements, such as renovations, and other factors must be recorded and the ATO will advise if CGT is payable by an Australian resident seller.

Settlement

On the date of settlement stipulated in a Contract of Sale, the final payment is made, and legal ownership of a property is transferred from one owner to another. Typically, legal representatives or conveyancers assist with the final payment and document exchange.

Transfer of Title – Post-settlement

After settlement a property transfer must be registered with the relevant state authority and the property title via a ‘Transfer of Title’ document is updated to reflect the new owner.

Seek Financial and Legal Advice

Due diligence in the transfer of property will alleviate the burden of what can be a complex undertaking for both sellers and buyers. It would be prudent to ask certified and experienced financial and legal professionals for guidance to ensure a smooth selling and buying process for all parties.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your property transfers. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.