As part of better reforms and accountability, the government has announced an implementation of Director Identification Number (Director ID). This will be administered by the new and improved Australian Business Registry Services website. (https://www.abrs.gov.au/director-identification-number)
What is Director ID?
A director identification number (director ID) is a unique identifier you need to apply for once and will keep forever. It will help prevent the use of false or fraudulent director identities. It is a 15 digit identification number that would be unique to you and permanently attached to your name.
Why you need it?
It is a requirement by law to have a director ID to:
- prevent the use of false or fraudulent director identities
- make it easier for external administrators and regulators to trace directors’ relationships with companies over time
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Who needs to apply?
You need a director ID if you are a director of a company, corporate trustee, or charity organisation.
When do you need to apply for the Director ID?
The director ID application is now open. Below is the guideline of due dates:
|Date you become a director||Date you must apply|
|On or before 31 October 2021||By 30 November 2022|
|Between 1 November 2021 and 4 April 2022||Within 28 days of appointment|
|From 5 April 2022||Before appointment|
How to Apply for your Director ID?
You will need to set up MyGovID account (which is different from mygov) and gather some information for prove of identification:
- your tax file number (TFN)
- your residential address as held by the ATO
Some of the following documents for identification:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
- PAYG payment summary.
Can your Accountant or ASIC agent apply for director ID on your behalf?
Absolutely NOT!!. You will need to apply for Director ID yourself.
Are there penalties or fines if you do not comply?
YES YES!!. Director ID is a legislation and breaking the law will enforce hefty penalties and discharge of directorship.