In this article, we’ll explore what myGovID is, why ASIC company directors, businessowners and anyone who has an entity (company, trust, SMSF, partnership) will need it, the importance of linking it to your business via ATO online services, and how it differs from a myGov account.
What Is A myGov Account?
A myGov account is a centralised platform for accessing government services for an individual, such as the ATO (your personal and sole trader tax matters), Medicare, Centrelink, Child Support and a range of other government services.
For tax purposes, linking your myGov account to the ATO service provides you with access to Income Tax Returns, ATO correspondence and Activity Statements (if you are a sole trader) in relation to your personal tax affairs.
What Is myGovID?
A myGovID is a digital identity used to unlock participating government online services for businesses, including to obtain a Director ID. To setup a myGovID account, download the myGovID app on your mobile device and following the instructions.
What Is A Director ID?
A Director ID is required by anyone who will be/is a director of an ASIC registered company. This is a mandatory and confidential identification number for all company directors, similar to a Tax File Number for a taxpayer.
A Director ID is unique to each director in Australia and only one ID per director is required, regardless the number of companies they are a director for.
The application can be lodged through the Australian Business Registry Services website which requires a myGovID login and linking to their individual ATO account. A director ID is unique to each director in Australia and only one ID per director is required, regardless the number of companies they are a director for.
What Is Online Services for Business
It is a secure and user-friendly online platform provided by the Australian government. It acts as the entry point for individuals who run a company, trust, SMSF or partnership for business or investment purposes, to access these ATO accounts. Sole traders can access their ATO accounts through a myGov account.
The Online services for business portal is a valuable tool, simplifying access to government services, including the ATO. Businessowners can access Tax Returns, ATO correspondence, Activity Statements, Employee reporting (STP and Superstream) and other business services for your entities.
By linking your myGovID to your individual myGov account and online business account, you can enjoy paperless correspondence, real-time notifications, and improved security.
Submitting Tax Agent Nominations Through Online Services for Business
As of 13 November 2023, the ATO has changed their security measures to make it mandatory for any company, trust, SMSF or partnership with an active ABN (excluding sole traders) to nominate their desired tax agent via the Online Services for Business portal before that tax agent is able to access their business’ ATO account.
This is relevant for existing entities first appointing a tax agent or changing tax agents.
Contact your trusted Altitude Adviser if you would like to discuss how linking an online business account can impact your business interactions with the ATO.
