From November 2021, all company directors will be required by law to verify their identity as part of a new director identification number requirement (director ID). This has been introduced to prevent the use of false or fraudulent director identities. The director ID confirms your identity and traces your relationships to companies. The application for director ID is managed through the Australian Business Registry Services (ABRS) and ASIC will be responsible for the enforcement of associated offences.
A director ID is a unique identifier that a director will apply for only once and keep forever, even when they change companies, stop being a director, change their name or move interstate / overseas.
All directors must apply for their director ID themselves as they will need to verify their identity. No one can apply for a director ID on their behalf.
IMPORTANT DATES
Application for director ID will commence from November 2021. You must apply for your director ID by the following due dates:
DATE YOU BECOME A DIRECTOR |
DATE YOU MUST APPLY FOR YOUR DIRECTOR ID |
On or before 31 October 2021 |
By 30 November 2022 |
Between 1 November 2021 and 4 April 2022 |
Within 28 days of appointment |
From 5 April 2022 |
Before appointment |
Please note, there may be infringement notices or penalties applied to the directors who fail to apply for director ID by the required timeframes above.
Who needs a director ID
You will need a director ID if you are a director of a:
- Company
- Aboriginal and Torres Strait Islander corporation
- Corporate trustee, for example, of a self-managed super fund
- Charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
- Registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated
- Foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).
You don’t need a director ID if you are:
- a company secretary but not a director
- acting as an external administrator of a company
- running a business as a sole trader or partnership
- referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act
- a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia
- an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body.
How to apply for your director ID
All directors must apply for their own director ID. The fastest way to apply and receive your director ID is to apply online via ABRS website.
STEP 1: SETUP MYGOVID
You will need to setup a myGovID if you wish to apply for your director ID online. You will need a Standard or Strong identity strength on your myGovID.
If you do not have a myGovID, you can find information on how to download the app at myGovID How to set up.
Please note, myGovID is different from myGov. myGovID is an app you download onto your smart device. It lets you prove who you are and log in to a range of government online services.
STEP 2: GATHER YOUR DOCUMENTS
You will need the following information when completing your application:
- your tax file number (TFN)
- your residential address as held by the ATO
- information from TWO documents to verify your identity
Examples of the documents you can use to verify your identity include:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
- PAYG payment summary
For more information regarding Verifying your identity documents, please visit: ABRS Verify your identity
STEP 3: COMPLETE YOUR APPLICATION
Once you have a standard or strong identity strength myGovID, and your documents, from November 2021 you can complete your director ID application on the ABRS website.
Alternative application process
If you cannot setup a myGovID, you can apply for director ID by phone or through a paper form from November 2021 (please contact us for more information).
Manage your director ID
Once you receive your director ID, you will need to provide the director ID to your company or organisation. This could be your company secretary, another director, contact person or an authorised agent of the company.
If you have a myGovID, from November 2021 you can log in to ABRS online to view your director ID or update your details when your personal details changes.
If you don’t have a myGovID, and you want to find your director ID number or update your details from November 2021 you can contact the ABRS directly.
In addition to updating ABRS, if there is a change to your personal details, such as your address, role and/or name, you must notify your company within seven days, for the necessary documents to be prepared to notify ASIC of the change.
MGI Parkinson here to assist
Whilst we cannot make the application on your behalf, if you would like more information, or need assistance, please contact our office on 08 9388 9744.