What is changing:
In April 2021, the Federal Government announced the introduction of Director Identification Numbers as part of a package of reforms to address illegal activity within corporations. Director Identification Numbers will be managed by the Australian Taxation Office pursuant to the Corporations Act 2001 and the Corporations Act (Aboriginal and Torres Strait Islander) Act 2006.
What is a Director Identification Number & who needs one?
The director identification number (director ID) is a unique identifier that a director will apply for once and will keep forever. If you’re a director or a corporate trustee of a self-managed super fund (SMSF) you will need to apply for a director ID.
A company secretary, sole trader or partnership are not required to obtain a Director Identification Number at this point in time
What date does a director need to apply by?
The date by which you must apply for a Director Identification Number varies depending on the date you became a director.
|Date you become a director||Date you must apply|
|On or before 31/10/2021||By 30/11/2022|
|Between 1/11/2021 and 4/4/2022||Within 28 days of appointment|
|From 5/4/2022||Before appointment|
What happens if I do not obtain a Director Identification Number by the due date?
Failing to apply for a Director Identification Number within the relevant timeframe may attract criminal and civil penalties of up to $200,000 for an individual and up to $1 million for body corporates.
How do you apply?
You can apply for a director ID from November 2021. You must apply for your own director ID because you need to verify your identity. No one can apply on your behalf.
There are 3 ways to apply for a Director Identification Number, with the preference being for online as it is the easiest and fastest process.
You will need a myGovID (please note this differs from a MyGov Account in that it is an app you download to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov) If you don't already have one, you can set this up now prior to November https://www.mygovid.gov.au/set-up
Once November hits you will be able to apply online at https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
You will need some documents with you to verify your identity.
If you can’t get a myGovID, the best way to apply will depend on your situation.
- Apply by phone
From November 2021, you can apply by phone with the ATO if you have:
- an Australian tax file number (TFN)
- the documents you need to verify your identity https://www.abrs.gov.au/director-identification-number/apply-director-identification-number/verify-your-identity
- Apply with a paper form
If you can’t apply online or over the phone, you can apply using a paper form. This is a slower process and you will also need to provide certified copies of your documents to verify your identity https://www.abrs.gov.au/director-identification-number/apply-director-identification-number/verify-your-identity
A downloadable application form will be available at How to apply for your director ID | Australian Business Registry Services (ABRS) in November 2021.
Please see the following link for more information: https://www.abrs.gov.au/director-identification-number
How can we help you?
As always, we are happy to assist you in any way we can. Please note that you must apply for your own Director Identification Number as you need to verify your ID.
If you are unsure if you are required to apply for a Director Identification Number, please contact us and we will advise.
If you have any other queries, please don't hesitate to contact us.