Under introduced changes by the Australian Business Registry Service (ABRS), effective from 31st October 2021, Company Directors (of all types of companies) will need to register with ASIC and gain a unique 'Director Identification Number' (Director ID) identifier.
A Director ID will be required by law for current and newly appointed Directors, verifying their identity and is to be held indefinitely. These changes aim to help eliminate director involvement in unlawful activity and prevent the use of false/fraudulent director identities - which has increased in recent years with the rise of illegal phoenix activity.
Applying for your Director ID & Timeframe
Existing Directors will have 13 months to apply for their Director ID, whilst new Directors appointed between 1 November 2021 and 4 April 2022 will have 28 days after their appointment to apply for their Identification Number.
Any new Directors (existing or new company) who are appointed from 5 April 2022 will be required to apply for their Director ID before their appointment.
|Date you become a Director||Date you Must Apply|
|On or before 31 October 2021||By 30 November 2022|
|Between 1 November 2021 - 4 April 2022||Within 28 days of Appointment|
|From 5 April 2022||Before Appointment|
The change also outlines any existing Director newly appointed as a 'Director' after 1 November 2021 of an existing company, must still apply for the Director ID within 28 days of appointment.
Similarly, Directors of any new company incorporated after 1 November 2021, who hold or have held the same position with another company prior to the date, will also need to comply with the 28 day application requirement.
To register, Directors must apply themselves either online, by phone application or paper lodgment. It is important to note that authorised Tax, BAS or ASIC Agents are unable to apply on the Director's behalf.
During the application, you (as a Director) will be required to produce:
- myGovID (online only);
- Tax File Number (TFN);
- Residential Address - as held by the ATO; and
- Two support documents verifying your identity (including any of the following - Bank Account Details, Super Account Details, ATO Notice of Assessment, Dividend Statement, CentreLink Payment Summary, or PAYG Payment Summary).
Applications will open via online portal (ABRS website), phone, or paper submission from November 2021.
What happens if I don't apply on time?
Failure to apply for a Director ID within the stipulated timeframe can result in penalties. Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple Director IDs.
For More Information
Should you require any further information on applying for your Director ID or for assistance in determining if you need to apply, please contact the Archer Gowland Redshaw office on (07) 3002 2699 | email@example.com.