If you are or plan to become a director of a company, you need to be aware of the new director identification obligations. If you don’t meet your obligations by the relevant deadlines there may be civil or criminal penalties, and you may be issued with an infringement notice.
What is a Director ID?
A director ID is a unique 15 digit identifier that a director applies for once and which stays with a company director for life, as they move through different roles, businesses and even countries.
Director IDs can now be issued online in a matter of minutes on the new Australian Business Registry Services (ABRS) Website (www.abrs.gov.au). It is free to apply. Director IDs can be obtained via a paper form if needs be.
The purpose of a director ID is to provide greater identity security and to guard against fraud and illegal activity such as phoenixing. Director IDs are the first of many business focused solutions to be delivered as part of the “Modernising Business Registers (MBR) Program” lead by the ATO in partnership with the Australian Securities and Investments Commission (ASIC). This program aims to bring together more than 30 government registry services to streamline and simplify how businesses interact with government.
If you are appointed as a director of a company:-
- on or before the 31st October 2021, you must apply for a director ID by the 30th November 2022;
- between 1st November 2021 and 4th April 2022, you must apply within 28 days of appointment;
- from the 5th April 2022 onwards, you must apply before being appointed.
Different deadlines apply to Aboriginal & Torres Strait Islander corporations.
Does this apply to me?
This requirement only applies to directors of a registered Australian body or a registered foreign company under the Corporations Act 2000 or an Aboriginal & Torres Strait Islander Corporation registered under the Corporations (Aboriginal & Torres Straight Island) Act 2006 with the Australian Securities & Investments Commission (ASIC). Company secretaries, sole traders, partnerships or persons who are referred to as “director” in their job title but who have not been appointed as a director under the Corporations Act do not need to apply.
Please contact our commercial team if you would like to confirm whether or not you need to apply for the director ID or if you need any assistance with the application process.