Nov 2, 2021
The ABRS has introduced Director Identification numbers (Director ID) as of 1 November 2021. This is a new requirement for all directors of Australian companies.
What is the Director ID?
The Director ID is a unique 15 digit number that is attached to the individual. This means even if you are a director of multiple companies you will just need to apply once and this number will be used across companies.
What is the purpose of a Director ID?
The Director ID is required by law, the implementation aims to assist in verifying company activity and management by:
- - Preventing the use of fraudulent or false director identities
- - Allowing director involvement with companies to be traced and connected
- - Identifying (in order to eliminate) director involvement in unlawful activity particularly illegal phoenix activity
Illegal phoenix activity: this occurs where a new company continues the business of a previous company that has been liquidated or abandoned to avoid paying outstanding debts (to government, clients, creditors etc.)
Overall the director ID will make director involvement in companies over time more transparent. At this point in time director IDs will remain private information and will not be searchable by the public however.
Do I need a Director ID?
All directors of Australian Companies will require a Director ID number at some stage. Company secretaries are not required to register for an ID.
Foreign residents who are directors of Australian companies will still need to register for a Director ID.
How long do I have until I need a Director ID?
The timeline for the rollout of Director IDs varies depending on the date the director was appointed in their current director position. For most the appointment date would be the date of company registration
We’ve included a table below for reference alongside a summary of the dates.
For directors appointed prior to 31st October 2021 Director IDs will need to be applied for by 30th November 2022.
Directors appointed from the 1st November 2021 to 4th April 2022 will need to apply for their Director ID within 28 days of appointment.
Any directors appointed from 5th April 2022 will be required to apply for a director ID prior to their appointment,
Please note: Directors who are currently appointed fit the timeline for the dates of that first appointment regardless of whether they become director of a second company.
E.g. The director of “Cafe on Harris Pty Ltd” was appointed on the 1st October 2020, they still act as director of this company and now wish to register a second company “Cafe on Pitt Pty Ltd” that they will also be the director of on the 1st November 2021. The director still has until the 30th November 2022 to apply for their Director ID.
What will change in the company application?
There will be no changes to the information required for company registration. The process with EasyCompanies will remain the same. Whilst it is a requirement to apply for the director ID there are no requirements enforced by ASIC within the company application form itself. You will not need to provide proof of application when applying but you should be aware of the requirement to ensure you meet them.
How can I get a Director ID?
Directors will need to apply personally (someone cannot apply on their behalf) via the ABRS website. The simplest way to obtain the Director ID is online using the MyGovID phone app. If you are unable to use myGovID or are a foreign resident you will need to apply either via paper form or phone which can take longer.
When applying online MyGovID is used to verify the personal identity of the director, at least standard strength is required. However personal verification will also need to be linked to the ATO record of the individual. Directors will also need to supply their TFN as well as two forms of tax verification, this could include:
- - Bank account details
- - An ATO notice of assessment
- - Super account details
- - A dividend statement
- - A centrelink payment summary
- - PAYG payment summary
When you submit your application online you are issued your director ID instantly.
You can apply here.All information provided on this webpage is general information about our products and services. Nothing on this webpage is intended to be professional advice of any kind and should not be relied on as such. You should obtain specific financial, legal or other professional advice before relying on the content of this webpage. By not seeking such advice, you accept the risk that the information on this webpage may not meet the specific needs of your business. Our liability is limited to the maximum extent permitted by applicable law in accordance with our website terms and conditions.