Do you have an SMSF with a corporate trustee or are you a director of a charity or not-for-profit organisation? Do you know you have to register for a director identification number (director ID) by 30 November 2022?
Both the ATO and ASIC have recently expressed concern that many individuals are unaware that they need to apply for a director ID and others may miss the deadline.
What is a director ID?
As part of the government’s Modernising Business Registers (MBR) program it is a requirement for all company directors to have a director ID.
A director ID is a unique identifier every corporate director will need to apply for once and will keep forever. A director can only have one director ID that they must use for all companies.
Why is the director ID being introduced?
The director ID 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
- prevent director involvement in unlawful behaviour
Directors keep their director ID forever, even if they change companies, cease to be a director, move interstate or overseas, or change their name.
Who needs a director ID?
All company directors need a director ID. A director can only have one director ID that they must use for all companies.
Some of the most common companies include a:
- company registered with ASIC
- corporate trustee of an SMSF
- charity or not-for-profit organisation that is a company.
When do I need to have obtained a director ID?
When you need to apply for a director ID depends on when you first became a director. If you:
- were appointed on or before 31 October 2021, you have until 30 November 2022 to apply
- were appointed between 1 November 2021 and 4 April 2022, you need to apply within 28 days of your appointment
- are appointed on or after 5 April 2022, you need to apply before you are appointed.
The requirement also applies to anyone who is not currently a director of a company but was at 31 October 2021.
How do I apply for a director ID?
You must apply for your director ID yourself; no one can apply for you.
To apply for a director ID you can visit www.abrs.gov.au and select the ‘Apply for your director ID’ link. It will also step you through setting up a myGovID, which you will need to login to the Australian Business Registry Services online. Note that myGovID is different to an individual’s myGov account.
You can also phone the Australian Business Registry Services on 13 62 50.
Resources
If you have any questions regarding director IDs, please visit www.abrs.gov.au. You can also watch this ATO video designed to assist directors of SMSF corporate trustees on applying for a director ID.
Julie Steed is Senior Technical Services Manager at Insignia Financial Ltd (formerly Australian Executor Trustees). This article is in the nature of general information and does not consider the circumstances of any individual.