In June 2020, the Federal Government passed legislation intended to improve the integrity of Australian business registers and create a central Commonwealth Business Registry.
A key element of this program was to introduce the requirement for all Directors to acquire a unique Director Identification Number (DIN).
The Director ID regime is intended to prevent illegal ‘phoenixing’ activities and increase Director accountability and traceability, while also preventing the use of false or fictitious identities, such as Elvis Presley or Bob Marley.
DIN’s will be recorded in a new database to be administered and operated by the Australian Tax Office and be made available to the public.
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 just 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.
Applications for a director ID are free and will open next month on the newly established Australian Business Registry Services (ABRS), a single platform administered by the Commissioner of Taxation that brings together ASIC’s 31 business registers and the Australian Business Register.
Directors must apply for their director ID themselves, and will be required to produce their myGovID alongside two identity documents from a list including their bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary, and PAYG payment summary.
Applications for a director ID commences in November 2021.
To find out more about the director ID regime see the links below.
- About director ID
- Who needs to apply and when
- How to apply for your director ID
- Verify your identity
- Manage your director ID
Under the law, directors who fail to apply for a director ID within the stipulated time frame can face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million.
Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple director IDs.
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.
