Are you involved with a company as a director? If so, you will need to apply for a mandatory director identification number (director ID) that is currently being rolled-out over the next 12 months, from November 2021 to November 2022. This is part of the government’s Modernising Business Registers (MBR) program.
Up until now, there had not been a unique identifier for directors. This has meant that government agencies have struggled to follow phoenix activity, or even verify director information where spelling of names are incomplete, which has allowed fictitious company directors to fly under the radar.
The director ID initiative proves your identity using the myGov ID system (different from myGov) and provides each director with a unique identifier. This director ID number is to be kept forever, with the one number kept even where the director changes companies, stops being a director, changes their name or moves interstate or overseas.
So what do you have to do now?
The director must apply for the director ID themselves. We, as your tax agent or corporate registry services agent will not be able to complete this process for you. We are however happy to assist you with the process.
Applying for a director ID will require the myGovID app. Documents required for the director ID application include:
- Tax file number
- Residential address as held by the ATO
- Information from two documents to verify identify. Examples include bank account details, an ATO notice of assessment, super account details, a dividend statement, a Centrelink payment summary, a PAYG payment summary etc.
Completing the director ID application on the myGovID website should only take about 5 minutes.
Where a director is unable to obtain a myGovID with a standard or strong identity strength, they can apply by phone or paper form by submitting certified copies of identity documents and documents required for director ID as listed above.
Due dates for director ID
| Director appointment | When required to apply |
| Existing directors, appointed on or before 31 October 2021 | By 30 November 2022 |
| Directors appointed between 1 Nov 2021 and 4 April 2022 | Within 28 days of appointment |
| Directors appointed from 5 April 2022 | Before appointment |
Operation of director ID
The new Australian Business Registry Services (ABRS) (managed by the ATO) is responsible for the administration of the director ID initiative. Guidance for applying can be found here: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
The Australian Securities and Investments Commission (ASIC) is responsible for enforcing director ID offences set out in the Corporations Act 2001. ASIC has stated that it is a criminal offence if a director ID is not applied on time.
It is suggested that directors start the director ID process in the soonest time possible. This provides directors with sufficient time to bring any issues to us for assistance. Our clients will be receiving reminders regarding the director ID regime in the Annual Statement Process and reminder emails as we get closer to due dates.
Key Takeaway:
- Existing directors will have up to 30 November 2022 to apply for a director ID number.
- A myGovID allows easy director ID registration.
- Without a myGovID, director ID application can be done by phone or paper form.
- The director ID regime will be managed by the new Australian Business Registry Services (ABRS).
- Contact Accru Hobart for assistance and troubleshooting.
