Director Identification Number – Required for ALL Company Directors
What is a Director Identification Number?
As part of the Government's "Digital Business Plan", it recently enacted legislation introducing the new director identification number regime (Director ID).
The Director ID is a unique identifying number that a director will need to apply for once and will keep forever.
Why was it introduced?
The introduction of Director IDs is intended to create a fairer business environment by helping prevent the use of false and fraudulent director identities, which "will go a long way to better identifying and eliminating director involvement in unlawful activity".
It will mean better transparency of appointed directors of companies and also increased privacy protections.
Who does it apply to?
All directors will need to apply for a Director ID, including directors of corporate trustees of self-managed super funds (SMSFs) and family
Note that sole traders or individual trustees of trusts are not required to apply.
How and when do I apply?
You can apply for a Director ID from 1 November 2021 on the new Australian Business Registry Services (ABRS) website (click here), using the myGovID app (set to a 'Standard' or 'Strong' identity strength) to log in.
Tip – myGovID is different from myGov
myGovID is an app. You download the myGovID app to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
myGov is an account. Your myGov account lets you link to and access online services provided by the Australian Taxation Office (ATO), Centrelink, Medicare and more.
The date you became a director determines when you must apply for a Director ID. For directors under the Corporations Act:
- If you became a director on or before 31 October 2021, you must apply for a Director ID by 30 November 2022;
- If you become a director between 1 November 2021 and 4 April 2022, you must apply for a Director ID within 28 days of appointment; and
- If you become a director from 5 April 2022, you must apply for a Director ID before your appointment.
Individuals will need to apply for their director ID themselves to verify their identity. In other words, no one can apply for it on the director's behalf (including your tax agent).
- Start gathering your identification documents now.
- Set up your myGovID, if you haven’t already, and take note of the above director ID number deadlines.
- Be proactive and apply for your director ID now.
Should you require any assistance with director IDs or director obligations, please contact your Owen and Peach client manager