De Kretser’s Measure for Success in 2022

Success is a term that can be perceived in many different ways simply because one’s success isn’t synonymous with another’s. This topic has always spiked interesting conversations amongst our team members. We believe that if we are responsible for our own happiness then we must surely be responsible for our own success.

As a team, we managed to put forth the unique elements that contribute to de Kretser’s success. As we head towards a new year, and with a clear vision in mind, we thought we would share with you just what that means. We wouldn’t be in this line of work if we didn’t understand numbers. That is why when it comes down to measuring de Kretser’s success, we use Key Performance Indicators such as client and performance based metrics to evaluate the impact on our overall company productivity.

Success can be measured by cumulating the wins

Whether big or small, individual or organisational, all wins impact on the productivity and success. It’s not always about celebrating the Big Wins like on-boarding new clients but the importance of celebrating the small wins along the way. It’s been crucial for our team to highlight daily successes, especially during tax season. Our team has often managed to tick off even the most arduous tasks on a To-Do list. Although this may not be considered an actual win, for our team completing these tasks meant that we were able to help more clients with issues involving taxes and compliance.

With this said, we definitely achieve more as a group. We strongly believe in teamwork and have been a lot more productive because of it. We must admit, being able to work collaboratively is an attribute that we look for in potential employees. Many people think that Accountants are introverts and would assume that we work best alone but this couldn’t be further from the truth. Our natural ability to collaborate and work in unison has given us an advantage over the competition.

Celebrating employees and creating engagement

There are many imaginative ways to celebrate success. Most recently, Kirsty, our Senior Accountant, celebrated her 10-year work anniversary. Kirsty’s work anniversary was a great way to underline her strengths but also our way of showing appreciation. Kirsty’s milestone work anniversary was not something that we took lightly.

Our team decided to hold a Cork and Canvas to celebrate Kirsty’s loyalty and dedication to the de Kretser team. The group activity and workshop had wonderful outcomes. It increased employee engagement, allowed for team bonding opportunities and helped communicate and translate our brand values to our newest team members.

We found that the more we highlight success the more our employees feel valued and have a sense of belonging. It also helps in communicating the brand, which can eventually lead to boosting company productivity. We have a high employee retention rate and this contributes to our success.

Success is determined by the strength of our relationships

We build and create strong relationships with other team members and clients alike. It must be said that we have a loyal client base and some have been with the company for over 40 years. Through the years, the relationships built have helped establish de Kretser as a brand. Today we are honoured to consider so many clients part of our family. In our many years of practice, we are certain that there is nothing more valuable than building positive client relationships, which have directly translated to our success.

From individual achievements and work anniversaries to 40-year client relationships- small or big wins, the way we measure our success is always through specific goals, setting targets and KPIs, which we’ve met and exceeded year after year. As we approach 2022, we look forward to kicking more goals and celebrating with you.

And to whatever your success may look like for you in 2022 and beyond, we will support you along the way…

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How to Obtain your Director ID

The director identification number(director ID) regime is now in place with Australia’s newest company directors having to comply first. Director IDs are a unique 15-digit identifier that a director will apply for once and will keep forever, similar to a tax file number (TFN). A director can only have one director ID and they must use it for all relevant entities.

Background

In the 2020 federal budget, as part of its Digital Business Plan, the government announced the full implementation of the Modernising Business Registers (MBR) Program. This program unifies the Australian Business Register and 31 business registers administered by ASIC into a single platform and introduces the director ID initiative. Director IDs are intended to prevent false or fraudulent registration of directors, to enable regulators to better trace directors’ relationships with companies, so as to facilitate accountability and traceability. Director IDs will also assist the reduction in phoenixing activities where by a company is deliberately placed into liquidation, wound up or abandoned to avoid paying its debts (such as superannuation owed to employees, tax owed to the ATO, or debts owed to suppliers/contractors). Under phoenixing, a new company is then started to continue the same business activities, but without the debts.

Who Needs to Apply?

The table on the following page outlines who is and is not required to apply for a director ID. As can be seen, it applies not only to company directors, but to non-business people as well. The time by which a director ID application must be made depends on the date of appointment as follows:

Date of AppointmentDate for Director Application
On or before 31 October 2021By 30 November 2022
Between 1 November 2021 and 4 April 2022Within 28 days of appointment
From 5 April 2022Before appointment

Therefore, there is some urgency if you are a newly-appointed director from 1 November 2021. You may need to apply for a director ID within 28 days of your appointment.

How do you Apply?

Directors will need to apply for a director ID themselves in order to verify their identity. This means that advisers and accountants/tax agents are unable to apply for a director ID on behalf of their director clients. Directors will need to visit the ABRS website (abrs.gov.au)and click on “Director identification number” near the top of the homepage. Otherwise, directors can scroll down and click on “Apply for your director ID”. Directors can then follow the three-step process set out on the website:

  • Step 1 – Set-up a myGovID (not the same as myGov)
  • Step 2 – Gather documents required for identification
  • Step 3 – Complete your application
Must ApplyNo Need to Apply
Directors appointed under the Corporations ActCompany secretaries who are not directors
Company directors appointed under the Corporations Aboriginal and
Torres Strait Islander Act
Directors of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia
Member of an SMSF for which there is a corporate trusteeIndividuals who are sole traders or partners in a partnership
Directors of a family trustAn officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body
Directors acting in the capacity of an alternative director (even if
appointed for a specified period or on a temporary basis)

The application process should take less than five minutes and, once complete, the director will instantly receive their director ID. Applicants must provide their TFN, their address as recorded by the ATO, and two basic identification documents. If preferred, directors can also apply for their director ID by telephone or by using paper.

Penalties

The harsh penalties that can be imposed, offer a great incentive to obtain a director ID on time and comply with the ongoing rules. Civil and criminal penalties of up to 60 points ($13,320), or a criminal penalty of up to one year imprisonment can apply where an individual:

  • Fails to apply for a director ID when required to do so(see earlier timeframes)
  • Intentionally applies for more than one director ID
  • Provides a false director ID, or is actively contravening one of the above offences.Directors of an SMSF corporate trustee who fail to obtain a director ID may be forced to step down as a trustee and potentially leave the fund.

Take-home messages

  • All directors should apply for their director ID well before the relevant deadline.
  • Directors should also take care when applying for their director ID. They must only apply via theabrs.gov.au website as it is a secure site that will keep your information safe

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This is a de Kretser Client Information Newsletter keeping you on top of the issues, news and changes you need to
know. Should you require further information on any of the topics covered, please contact us via the details below.

T: +61 3 9550 6900 E:admin@dekretser.com.au