If you’re an existing Australian company director, you will have one year to apply for your unique director identification number before fines of over $1.1 million come into effect for non-compliance.
Current company directors will have to apply for a director identification number (director ID) by 30 November 2022, while directors of Indigenous corporations that are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) will be required to apply for the unique identifier by 30 November 2023.
Background on director IDs
In June 2020, the Federal Government passed legislation to improve business registrations and create a registry. The Modernising Business Registers (MBR) follows the government’s Digital Business Plan.
The main result from this legislation is the introduction for all Directors to have a unique Director Identification Number (DIN).
What is a Director Identification Number?
A Director Identification Number (DIN) is a unique identifier that a director will use to identify themselves. The aim of a DIN is to increase the director’s accountability and traceability. This is done by data matching between the ATO and other regulatory bodies. Once you have a DIN, you will have it for life.
How to apply?
Applications for a director ID are free and will open next month on the new Australian Business Registry Services (ABRS) that brings together ASIC’s 31 business registers and the Australian Business Register.
You need to have applied for a DIN by 30 November 2022.
Directors must apply for a director ID themselves, and will be required to produce their myGovID alongside two identity documents from a list including their bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary, and PAYG payment summary.
New directors appointed between 1 November 2021 and 4 April 2022 will have just 28 days after appointment to apply for their director ID. New directors who are appointed from 5 April 2022 will be required to apply for their director ID before appointment.
Find out more about the director ID regime on the new new ABRS website or contact the team at MWM if you have any questions.