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Director identification numbers – time is ticking!

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.

 

12 Comments
David O
November 12, 2022

We used the online method. It was quick and easy. From memory, once we had entered name and DOB details, most of the information was populated by the system. We had one minor issue with a recent change of address, however, that was resolved in one phone call to our accountant.

Raju Kelkar
November 10, 2022

Fistly, thanks to Firstlinks for making readers aware of this 'legal obligatory requirement' and providing a great service too.
ATO did send email advising requirements of Director Identification Number to all businesses registered directors.
Moreover, ignorance of law is not a pardonable excuse. As a director one has some obligations and this one is at no cost.

Christian
November 09, 2022

This is the first I've heard of it. Amazing how the ATO and ASIC can send out a reminder about lodging your BAS an ASIC annual return, but not send any letter out to company directors about this.
Ditto re. STP - I was bombarded with emails and letters.
Director ID ? Crickets ?
From my read of Section 1272A of the Corporations Act it says that a "director may apply" or if "may be requested be the Registrar".

So I until I get a format request, I won't.

Joe
November 10, 2022

Christian, you have no choice but to meet the requirements. It's the law. Or do you refuse to wear seatbelts, stop at red lights and drive under the speed limit ... until you receive a 'formal request's?

SMSF Trustee
November 10, 2022

Christian, as I've said elsewhere, being a Director - even of something as humble as your own SMSF Trustee Company - is a significant corporate responsibility. Part of it is to stay informed. No one can or should blame the ATO or ASIC for them not knowing about this - you are supposed to have been tapping into sources of updated information about your obligations! If you aren't willing to do that then maybe you should cease being a Director.
That's a bit harsh, I know. The more positive way of looking at it is this. You read Firstlinks. That's a source of information and it has now informed you of what you have to do. How about a comment thanking Firstlinks for giving this issue coverage in time for you to apply and get your ID.

Personally, I use an admin service that includes education and updates. So I knew about this month's ago. But I do say thanks to Firstlinks for providing a great service too.

AlanB
November 10, 2022

Christian: The ATO did not write directly to directors to inform them of the DIN, but relied on advertising and accountants to convey information to the 2m+ directors impacted by the change. Some people didn't get the information, some delayed their application, some are having difficulties applying online with error messages and/or with phone delays. Not all applicants want to use an app or mobile phone, some prefer paper applications. There is an ABC report on this. Unhelpfully, the link to the paper application has gone, maybe because the ATO found paper applications too inconvenient to process. You are right that Corporations Act s.1272A states that an eligible officer (a director) "may" apply to the Registrar for a director identification number. However, S.1272C(1) states that an eligible officer "must" have a director identification number - unless, under s.1272C(2), they have already applied for a DIN. So a director must apply for a DIN (by 30 Nov), but will not be penalised if they don't have a DIN by 30 Nov. Given inefficient communication of the new DIN requirement, but mainly because of the technical failures to provide a streamlined, accessible, efficient and workable application facility, it is likely there will be an announcement soon from the ATO that the deadline for applying will be extended. After that we can expect the ATO to use accountants to identify and chase up non-applying client directors, and directors still without a DIN, as well as those with a DIN. Although without the cooperation of directors it may be problematic to identify who has or hasn't applied and who has or hasn't got their DIN. What a mess. This process does not meet my concept of access, equity and efficiency. Maybe it'll become the ATO's version of RoboDebt. We'll see how they go explaining this debacle at Senate Estimates.

Harry
November 17, 2022

Christian, I'm with you buddy. So many emails. Government agencies wanting you to give them another bit of your time to do some piece of crap for them. The impositions just keep on coming. We're busy, and when we're done, we want to chill, not navigate yet another process dreamt up by a bored bureaucrat. PHEW ! Feel better now. Had my rant !! lol

Jane
November 09, 2022

It is free ... we both chose to do it over the phone as this avoided intermederies and so to our aging suspicious untrusting of new fangled technology minds it seemed more secure.. just make sure you use originals or photocopies of paperwork so no numbers are wrong... if the wait list is long they "at times" provided a call back service... good to note they also record the call ...mostly they are polite

AlanB
November 09, 2022

Those who are quite justifiably suspicious and untrusting of an app that comes off Google Playstore (myGovID), or want to avoid waiting in a long phone queue can still lodge a paper application:

https://www.abrs.gov.au/sites/default/files/2021-10/Application_for_a_director_identification_number.pdf

mark
November 09, 2022

How much does it cost?

AlanB
November 09, 2022

It's a bad time for the government to be asking us to provide them with our passport, Medicare details, drivers licence, address, TFN, date of birth......... Just so we can prove our identity to get an identity number (DIN).

SMSF Trustee
November 09, 2022

Um, AlanB, the government already has all that info. As for whether it's "just an identity number" well, no. It's a particular ID number for a group of people who wish to take a role in the governance of companies or trusts. That's a much bigger responsibility than you seem willing to accept it is, based upon your cynical comments here and on other articles where this topic has come up.
I cannot disagree more strongly with all you've said on this matter.
Anyone who wants to be a Director should just do this.

 

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