POSTED: 30 Dec, 2021
What is Director ID all about and who needs one?
Based on the recent ATO announcement, the Australian Business Registry Services (ABRS) will be introducing and maintaining the Director Identification Number as of 1 November 2021.
What is a Director Identification Number?
The Director Identification Number (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.
Why do you need a Director Identification Number?
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and specific details of the directors of a company.
All directors are required by law to verify their identity before receiving a director ID. This is important because it will help to:
- prevent the use of false or fraudulent director identities;
- make it easier for external administrators and regulators to trace directors’ relationships with companies over time;
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Who needs to apply for a Director ID?
- Company directors appointed under the Corporations Act
- Company directors appointed under the Corporations Aboriginal and Torres Straight Islander Act
- Member of an SMSF for which there is a corporate trustee
- Directors of a family trust
- Directors acting in the capacity of an alternative director (even if appointed for a specified period or on a temporary basis)
Who doesn’t needs to apply for a Director ID?
- director of an incorporated association (with no ABRN) registered with the Australian Charities and Not-for-profits Commission (ACNC);
- company secretary but not a director;
- acting as an external administrator of a company; or
- run your business as a sole trader or partnership.
What you need to do as of 1 November 2021?
Individuals who are currently a director or will be acting as a director in the future must apply for a Director ID based on the transitional arrangements specified in the table below:
How do individuals apply online for a Director ID?
- Go to the ABRS website to access the ABRS Director ID service and learn about the Director ID requirements
- Verify your identity using your myGovID credentials or create a myGovID using your smartphone and Australian identity documents. For more information visit How to set up myGovID.
- Conduct a proof of record ownership by answering two questions about the individual’s ATO record. See below for further information.
- Complete a Director ID application on the ABRS platform to receive the Director ID instantly.