As of 2nd November 2021 the ATO confirmed the implementation of new requirements for Directors regarding the director identification number has come into effect. 

What is a Director Identification Number?

The Director ID is a 15 digit unique identifier that will help prevent the use of false or fraudulent director identities with the new registry services of the ABRS. This will make it easier to trace director relationships across companies and help identify and eliminate involvement in illegal activity such as illegal phoenix activity. 

Who will need a director ID

From 1 November 2021, all directors (or an alternative director who is acting in the capacity) of;

  • a company
  • Aboriginal and Torres Strait Islander corporation 
  • Corporate trustee, for example, of a SMSF
  • charity or not-for profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
  • Registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investment Commission (ASIC) and trades outside the state or territory in which it is incorporated
  • Foregin company registered with ASIC and carrying on business in Australia (regardless of where you live)

must apply for a director ID online from the Australian Business Registry Service (ABRS) website and will be required to log in using the myGovID app. 

When will you need a director ID?

The ATO has indicated there will be a transition period for directors to complete their registration.

How to apply for a Director ID

A director needs to complete the application themselves, it cannot be completed on their behalf by an authorised agent such as accountants or financial advisor. 

There are three steps to follow to complete the application

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations for a Director of a Company

As a director of a company, you have an obligation to:

  • apply for a director ID, within the relevant timeframe
  • applying for a director ID when directed by the Registrar to do so
  • not apply for more than one director ID (unless directed by the Registrar to do so)
  • not misrepresent your director ID to a Commonwealth body, company registered Australian body or Aboriginal and Torres Strait Islander corporation.
  • not being involved in a breach of the above director ID obligations.