Under introduced changes by the Australian Business Registry Service (ABRS), Company Directors (of all types of companies) are now required to register with ASIC and gain a unique 'Director Identification Number' (Director ID) identifier.
A Director ID is compulsory by law for current and newly appointed Directors, verifying their identity and is to be held indefinitely. The introduced 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.
As an important reminder, pre-existing Directors appointed on/before 31 October 2021, you have until 30 November 2022 to secure your Director ID identifier.
Who Needs to Apply?
All Company Directors are required to apply for a unique Director ID - including those for the following:
- a Company
- an Aboriginal & Torres Strait Islander corporation
- a Corporate Trustee (SMSF)
- a Charity or Not-for-Profit that is a company structure
- Registered Australian Body
- a Foreign Company - registered with ASIC
Those who fail to register, ASIC will be in a position to issue significant penalties for non-compliance. These penalties can include:
| Offence | Legislative Section | Maximum penalties for Individuals |
| Failure to have a Director ID when required to do so | S1272C |
$13,200 (Criminal) $1,100,000 (Civil) |
| Failure to apply for a Director ID when directed by the Registrar | S1272D |
$13,200 (Criminal) $1,110,000 (Civil) |
| Apply for multiple Director IDs | S1272G |
$26,640, one year-imprisonment, or both |
When Do You Need to Apply?
As highlighted above, immediate action is required by pre-existing Directors, who have until 30 November 2022 to apply and gain their Identification Number.
However, the table below also acknowledges other key dates to secure an identifier for Directors per their date of appointment:
| Date you first 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 |
Additionally, existing CATSI Act Directors appointed before 31 October 2022, must apply for a Director ID before 30 November 2023. New CATSI Act Directors appointed after 1 November 2022 must apply for a Director ID before appointment.
How to Apply?
To apply for an Identification Number, Directors have the following methods available to them:
- Online - by using the myGovID App to log into ABRS online
- via Phone - by calling 13 62 50 (in Australia) or +61 2 6216 3440 (from overseas)
Directors based in Australia may also contact the ABRS in order to obtain a paper Director Identification Number Form (NAT75433) application. However, those based overseas may download the form via the ABRS website.
It is important to highlight that during the application process, 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 supporting documents - verifying your identity
- Bank Account Details
- Super Account Details
- ATO Notice of Assessment
- Dividend Statement
- CentreLink Payment Summary
- PAYG Payment Summary
Please note, a copy of all supporting documents is not required, and it is recommended using both your Bank Account Details & ATO Notice of Assessment as the supporting materials for verifying your identity.
Once you have registered and received your Director ID, it is important you notify your accountant who will ensure your identification number is appropriately attached with your company and who can lodge a Form 484 on your behalf.
Failure to notify and lodge the form within the highlighted 28 day period will result in late lodgment penalties from ASIC.
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 | info@agredshaw.com.au.
