Director ID Deadline Looms
From 30 November 2022 all company directors are required by law to have a director ID. A director ID is a unique 15-digit identifier given to a director or someone who intends to be a director. A director will only ever have one director ID.
Why have director ID’s been introduced?
The director ID project is part of the new Australian Business Registry Services (ABRS) rollout. The ABRS will bring together the Australian Business Register (ABR) and more than 30 Australian Securities and Investments Commission (ASIC) registers in one place. The ABRS was formed to streamline the business registration process and help them to meet registry obligations, in addition 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.
The introduction of director ID’s is fundamental to achieving the ABRS’s objectives.
Applying for your director ID
You need to apply for your own director ID. It is not something you can delegate to someone else to do on your behalf. The fastest way to do this is online, using the myGovID app to log into ABRS online. Further details on setting up your myGovID app and link to completing your director ID application can be found on the ABRS website here.
If you are unable to complete your application online and reside in Australia you can apply for your director ID by phone on 13 62 50. You will be asked to verify your identity and will need:
your tax file number (TFN) (optional)
your residential address as held by the ATO
answers to 2 questions based on details we know about you
If you reside outside of Australia you can complete a paper application form, in addition to providing certified copies of your identity documents.
Documents you will need on hand to apply for your director ID
Before applying for your director ID you will need to gather your information. You will need:
your tax file number (TFN)
your residential address as held by the ATO
information from 2 documents to verify your identity, which can include:
bank account details
an ATO notice of assessment
APRA fund account details
a dividend statement
a Centrelink payment summary
a PAYG payment summary (this is different to your income statement or your PAYG instalment activity statement).
What happens if you don’t apply for your director ID by the due date?
Under the Corporations Act it is a criminal offence not to apply for your director ID by 30 November 2022. The maximum penalties for individuals who fail to have a director ID, when required to do so, is $13,200 (criminal) and $1,100,000 (civil).
What next?
Apply for your director ID before 30 November 2022. Do not leave it to the last minute as websites can go down and phones can get congested.
If you have any questions in relation to applying for your director ID please contact us.
If you would like specific advice tailored to your business and circumstances, Accounting Heart offers affordable service packages where you can work with Sonia one-on-one to help you get your business where you want it to be. Book your FREE Discovery Call to find out more.
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by Accounting Heart Pty Ltd as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.