Breaking: Director IDs are coming. Action required for all company directors by 30 November 2022.

Critical-information-you-need-to-know-about-the-new-ID-requirements-for-company-directors

Update: Information changed on the date directors must obtain a director ID. This date is now 30 November 2022.

Are you a director of a company or planning on becoming one? From November 2021, you will need to apply for a Director ID from the Australian Business Registry Services (ABRS). This is not optional and will come with harsh penalties if not done. It's easy to do, but there are a couple of steps involved, so get started now.

 

What is a director ID?

A Director ID is a unique 15-digit identifier issued by the ABRS to a director or someone who is planning to be one. It is mandatory to verify your identity before the ABRS will issue you with a director ID.

A Director ID confirms a director’s identity and ensures that directors’ relationships to the companies are traceable. It helps to prevent the use of false or fraudulent director identities and director involvement in unlawful activity.

Imagine a Director ID is similar to your Tax File Number (TFN) – it is unique to you as a company director.

Once you have a Director ID, you will keep it forever. This applies even if you:

  • Stop being a director
  • Become a director of another company
  • Change your name
  • Move overseas or interstate

When do I need to apply?

Existing directors

If you are already a director of a company or become one prior to 31 October 2021, you will need to apply to the ABRS by 30 November 2022 to register your Director ID

New directors after 1 November 2021 to 4 April 2022 (Transitional period)

If you become a director between 1 November 2021 and 4 April 2022, you must apply for a Director ID within 28 days of being appointed a director.

New directors from 5 April 2022

If you become a director anytime from 5 April 2022 onwards, you will need to apply for a Director ID before you are appointed a director.

 

How do I apply?

The quickest way to apply is online. You will need to:

 

1. Have a MyGovID (Get this ready now)

  • Ensure you have an existing MyGovID or, register for a MyGovID if you don’t already have one.
  • You’ll have a MyGovID if you interact online with the ATO for your business.
  • Note that this is different from your MyGov which is for personal tax, Medicare, etc only.
  • To set up a new MyGovID, you’ll need the following information handy:
    1. driver’s licence or learner’s permit
    2. passport (not more than three years expired)
    3. birth certificate
    4. visa (using your foreign passport)
    5. citizenship certificate
    6. ImmiCard
    7. Medicare card.

For more information on setting up a MyGov account see here.

 

2. Submit your application for a Director ID (This will become available from 1 November 2021)

  • Use your MyGov ID from step 1 to register for a Director ID on the Australian Business Registry Services (ABRS) website https://www.abrs.gov.au/
  • The ABRS portal will be up and running from 1 November 2021, and you will have until 30 November 2022 to do this. Do not delay, there is only a 1-year window to get your Director ID registered
  • The whole process will only take a few minutes.

Applications for a Director ID are free and will open next month on the newly established ABRS, a single platform administered by the Commissioner of Taxation that brings together ASIC’s 31 business registers and the Australian Business Register.

 

Why is this being implemented?

This unique ID will assist ASIC, the ATO, and businesses with verifying and identifying company directors in Australia. This will provide an additional layer of security for company directors by bolstering accountability for director actions and help to combat illegal phoenixing (continuing business of an existing company that has been liquidated or otherwise abandoned to avoid outstanding debts).

It’s imperative that shareholders, suppliers, and customers know who the directors of the company actually are. This unique ID will ensure that Directors are account

 

Next steps?

Take action now to:

  • Ensure you have a MyGov ID ready by 1 November 2021
  • Register for your new Director ID from 1 November 2021 and before 30 November 2022.

If you have any questions about these new rules or need assistance with registering your Director ID, contact Link Advisors and we can guide you through the process.