The time to apply for a director identification number (Director ID) is almost upon us. Under the 2020 Budget Digital Business plan, the Federal Government announced the establishment of the new Australian Business Registry Services (ABRS). Importantly the ABRS introduced the Director ID initiative, which requires all company directors to apply for their own personal Director ID.

1. What is a Director ID

The Director ID will be a unique 15-didgit identifier issued to all company directors in office from 1 November 2021. All directors will need to apply for a Director ID and it will then be kept forever, even if a director changes companies, stops being a director, changes their name or moves interstate or overseas.

2. How do I obtain a Director ID

From November 2021, all directors will need to apply for a Director ID using their myGovID. We note that a myGovID differs from a myGov account. The myGov ID is an app that is downloaded to your smart phone and allows you to verify your identity and log into various government accounts (including myGov).

The application process does not incur a cost. However, in order to be verified, a director will need to produce their myGovID and tax file number in addition to two identity documents, which include any of the following:

2.1.    bank account statement:
2.2.    ATO notice of assessment;
2.3.    superannuation account details;
2.4.    PAYG payment summary;
2.5.    Dividend statement; or
2.6.    Centrelink payment summary

Each director must undertake their own application for a Director ID in order to ensure the verification of their identity.

We note that directors may apply over the phone or via a paper form if they do not have access to the myGovID.

3. When do I need to get my Director ID

The final date for a director to apply for a Director ID depends on the date the director was appointed. The table below sets out these key dates:

4. Why are these changes being made

It is expected that these new regulations will apply to over 2.5 million directors, including directors of Australian companies, registered foreign companies, registered Australian bodies and Aboriginal and Torres Strait Islander corporations.

Director ID’s will be administered by the ATO, reflecting broader government administrative changes as the ATO moves to adopt registry functions previously undertaken solely by ASIC. Meanwhile, the introduction of the initiative seeks to target illegal phoenixing activity as well as preventing the use of false identities. Failure to meet the Director ID requirements may result in criminal or civil penalties.

If you would like further information about Director ID’s or the application process please contact:

Meagan O’Connor
Principal
T +61 3 9611 0106| M +61 438 531 978
E: moconnor@sladen.com.au

Dean Beaumont
Senior Associate
T +61 3 9611 0129
E: dbeaumont@sladen.com.au

Ed Cameron
Senior Associate
T: +61 3 9611 0179 | M: +61 409 183 975
E: ecameron@sladen.com.au