Starting from November 2021, all directors of a company will require a Director Identification Number (Director ID).
Existing company directors will need to apply for a Director Identification Number (Director ID) by 30 November 2022.
What is a Director Identification Number (Director ID)?
A Director ID is a unique identifier for company directors. The Director ID will require all directors to confirm their identity and will be a unique identifier for each person who consents to being a director.
The Director ID will interface with government agencies and databases to allow regulators to map the relationships between individuals and entities, allowing traceability of a director’s relationships across companies over time.
How do I set up my Director ID?
Applications for a Director ID are free and will open in November on the newly established Australian Business Registry Services (ABRS) platform. This platform is administered by the Commissioner of Taxation and brings together ASIC’s 31 business registers as well as the Australian Business Register.
You must apply for your Director ID yourself since the ATO will need to verify your identity. Unfortunately, no one can apply on your behalf.
This process will require you to provide your myGovID alongside two identity documents. These documents can be chosen from a list and may include: bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary, and PAYG payment summary.
What else do I need to be aware of?
While existing directors will have a year to apply for their Director ID, new directors appointed between 1 November 2021 and 4 April 2022 will have only 28 days after appointment to apply for their Director ID.
New directors who are appointed from 5 April 2022 will be required to apply for their Director ID before appointment.
Under the law, directors who fail to apply for a Director ID within the stipulated time frame can face criminal or civil penalties.
Penalties will also apply for conduct that undermines the new requirements. This includes providing false identity information to the registrar or intentionally applying for multiple Director ID’s.
The new regime has been passed in Parliament and is expected to cover over 2.5 million directors or roughly 10 per cent of Australia’s 25.7 million population.
The Director ID will be attached to a director permanently, even if they cease to be a Director, change their name, or move interstate or overseas.
The government expects that the Director ID regime will help prevent illegal phoenixing by ensuring directors can be traced across companies, while also preventing the use of false or fictitious identities.
Contact our office
Please contact us if you have any questions in relation to these changes.