A new director identification number regime commences from 1 November 2021 which will see all company directors being required to register for a director identification number (Director ID).
Why Director IDs?
By requiring all directors to verify their identity, it is hoped that this 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; and
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Failure by directors to meet their Director ID obligations can result in civil or criminal penalties.
Who needs to apply and when?
A Director ID is a unique identifier you need to apply for once and will keep forever. It is a 15-digit identifier given to a director (or someone who intends to become a director) by the Australian Business Registry Services (ABRS).
If you want to become a director or are already one, you’ll need a Director ID. This includes directors of a:
- company;
- Aboriginal and Torres Strait Islander corporation;
- corporate trustee, for example, of a self-managed super fund;
- charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation;
- registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated; and
- foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).
The timetable for obtaining a Director ID is as follows:
| Date you become a director | Date you must apply |
| On or before 31 October 2021 | By 30 November 2022 |
| Between 1 November 2021 and 4 April 2022 | Within 28 days of appointment |
| From 5 April 2022 | Before appointment |
The timeframe is different for directors of Aboriginal and Torres Strait Islander corporations which have until 30 November 2023 to apply for director appointments on or before 31 October 2022 and from 1 November 2022 the application must be before director appointment.
How to apply
From 1 November 2021, directors can apply for a Director ID through the ABRS website (see https://www.abrs.gov.au/director-identification-number).
You will need the myGovID app to do this. It is recommended that directors set up the myGovID app in readiness.
When applying you will also need to provide the following documents to verify your identity:
- your tax file number;
- your residential address as held by the ATO; and
- information from two documents to verify your identity (such as bank account details, an ATO notice of assessment, super account details, a dividend statement, a Centrelink payment summary, PAYG payment summary).
If you are unable to use the myGovID app, the ABRS have also provided options to apply over the phone or through paper form lodgement.
What companies need to do now
In anticipation of the Director ID requirements commencing from 1 November 2021, companies should inform directors of the new obligations and encourage directors to commence setting up the myGovID app and collating documents for identify verification. Come 1 November 2021, directors should be encouraged to apply for their Director ID.
If you have any questions, please get in touch with our team.