New Director ID to help boost fairer Business Environment

 

The director identification number (director ID) obligation is the first initiative to be delivered as part Australian Business Registry Services (ABRS), and all directors need to apply.

 

A director ID is a unique 15-digit identifier that directors or someone who intends to become a director applies for once and keeps forever. 

 

 

 

The director identification number (director ID) obligation is the first initiative to be delivered as part of Australian Business Registry Services (ABRS), and all directors need to apply.

 

A director ID is a unique 15-digit identifier that directors or someone who intends to become a director applies for once and keeps forever. 

 

Over time, director IDs will help build a fairer business environment by preventing the use of false or fraudulent director identities. This will make it easier for external administrators and regulators to trace directors’ relationships with companies over time and identify director involvement in unlawful behaviours, including illegal phoenix activity. 

 

By getting a director ID you’ll be doing your bit to protect the community from those doing the wrong thing.

 

Do all directors need to apply for a director ID?

 

Director ID is a new requirement and all eligible directors need to apply. As a franchise owner, if you are also an eligible director of a company, you will need to apply for a director ID.

 

Eligible directors are set out in legislation as anyone who is a director of a company, a registered Australian body, or a registered foreign company under either the Corporations Act 2001 (Corporations Act) or the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). This includes directors of: 

 

  • companies 
  • a corporate trustee of a self-managed super fund
  • a charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
  • a 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
  • a foreign company registered with (ASIC) and carrying on business in Australia (regardless of where you live).

 

How long do directors have to apply?

 

The good news is that the director ID application is available now to all current and intending directors by visiting ABRS.gov.au. If you are intending on becoming a director for the first time, you can apply up to 12 months in advance.

 

When you need to apply for a director ID depends on the date and under which Act you were appointed. Directors appointed under the Corporations Act 2001:

 

  • before or on 31 October 2021 need to apply by 30 November 2022
  • between 1 November 2021 and 4 April 2022 need to apply within 28 days of appointment
  • on or after 5 April 2022 need to apply before they are appointed.

 

Directors appointed under the Corporations Aboriginal and Torres Strait Islander (CATSI) Act 2006:

 

  • before or on 31 October 2022 need to apply by 30 November 2023
  • from 1 November 2022 need to apply before they are appointed.

 

What happens if I don’t get a director ID?

 

Running a small business in today’s environment means staying on top of new requirements. ABRS will help and support directors who haven’t applied in time and will notify them to make them aware of the obligation and encourage them to apply. 

 

If you can’t apply by the date you need to, you can complete an Application for an extension of time to apply for a director ID.

 

How easy is it to apply?

 

Applying for a director ID is a simple 3 step process, and the quickest way to do so is online via ABRS.gov.au

 

To apply online, directors will need a myGovID with a Standard or Strong identity strength. Once you have a myGovID with a Standard or Strong identity strength, and information to verify your identity, you can log in and apply for your director ID. The application process should take less than 5 minutes.

 

If you can’t get a myGovID, phone and paper applications are available. 

 

Can other people apply on behalf of a director? 

 

It is important to note that while registered tax, BAS or ASIC agents can offer advice and guidance, directors will need to prove their identity using myGovID and apply for their director ID themselves.  

 

You’ve got a director ID, what happens now?

 

When applying online, a director will receive their director ID almost immediately. Once they have received it, it should be kept safe until it is needed. It can be provided to an accountant, company secretary, ASIC registered agent or tax professional for record keeping purposes. If a director needs to update the details of their director ID, this can be done using your myGovID to log in via ABRS.gov.au

 

Directors will only ever have one director ID. They’ll keep it forever even if they:

 

  • change companies
  • stop being a director
  • change their name
  • move interstate or overseas.

 

As work to establish ABRS continues, director IDs will be used to link directors to relevant companies listed on the companies register. The ABRS will provide more information on this as it happens and affects the business community.

http://www.ABRS.gov.au/directorID

 

 

Martin Jacob’s Bio: 

Martin Jacobs is Assistant Commissioner Business Registry Services at the Australian Taxation Office. He is currently leading introduction of director ID, a foundational step in establishing Australian Business Registry Services. He has more than 20 years’ experience in taxation and registry design and implementation.