As a result of the Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019, all Australian company directors are required to have a unique Director ID Number (DIN/ID). Existing Australian company directors registered under the Corporations Act 2001 will be required to apply for an ID by 30 November 2022. Alternatively, if you become a director between 1 November 2021 and 4 April 2022 you have 28 days to apply for your ID. Then from 5 April 2022, you must apply before you are appointed as director.

Current Directors of Indigenous corporations that are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 will have until 30 November 2023 to apply or must apply before their appointment if they become a director after 1 November 2022. Directors who fail to comply with these regulations can face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million. Directors of Indigenous Corporations can face penalties of up to $200,000.

 

How director ID works

A director ID is a 15-digit identifier. Directors will only ever have one director ID, even if they change companies, change their name, or move interstate or overseas. When you receive your director ID, you will need to pass it on to your company or Aboriginal and Torres Strait Islander corporation record-holder. From November 2021 you will be able to log into ABRS online to view your director ID and update details whenever you need to. A director ID aims to help prevent the use of fraudulent director identities, make it easier for external administrators and regulators to trace directors’ relationships with companies over time, and identify and eliminate director involvement in unlawful activity such as illegal phoenix activity.

 

Applications

Application testing is currently underway and will end by 31 October 2021. Assuming everything goes well, applications will open on November 1 2021 on the Australian Business Registry Services (ABRS) website. Applications are free and directors are required to apply on their own. Directors will be required to produce their myGovID, tax file number (TFN), residential address held by the ATO, and information from two documents to verify identity. Documentation to prove identity will include bank account details, an ATO notice of assessment, super account details, dividend statement, Centrelink payment summary, and PAYG payment summary. The fastest way is to apply online however applications can also be made over the phone or by paper submission.

 

 

Nicola Maltman – Law Clerk – Matthies Lawyers

Should you have any queries in regard to commercial law matters, please contact Matthies Lawyers for an obligation free consultation or call +61 3 8692 2517 today.

Disclaimer: This article contains general information only and is not intended to be a substitute for obtaining legal advice.