Business Advisory and Taxation Specialists
DIRECTOR'S ID REQUIREMENTS
Important Information
DIRECTOR IDENTIFICATION NUMBER: Company Directors need to verify their identity as part of a new director identification number (Director ID) requirements.
A director ID is a unique identifier that a director will apply once and keep forever-Which will help prevent the use of false or fraudulent director identities.
All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director ID.
Directors will only ever have one directors ID.
They will keep it forever even if they:
• Change companies
• Stop being a director
• Change their name
• Move interstate or overseas
WHO NEEDS A DIRECTOR ID : You need a director ID if you’re an eligible officer of:
• A company, a registered Australian body or a registered foreign company under the Corporations Act 2001(Corporations Act).
• An aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006(CATSI Act). An eligible officer is a person who is appointed as:
• A director
• An alternate director who is acting in that capacity.
WHY YOU NEED A DIRECTOR ID: This is important because it will help to:
• Prevent the use of false or fraudulent director identities.
• Make it easier for external administrators and regulators to trace directors’ relationship with companies over time.
• Identify and eliminate directors involvement in unlawful activity, such as illegal phoenix activity. Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts.
A new company is then started to continue the same business activities without the debt.
When this happens:
• Assist employees who miss out on wages, superannuation and entitlements.
• Assist Suppliers or sub-contractors are left unpaid.
• Assist other businesses are put at a competitive disadvantage.
WHEN YOU MUST APPLY: -Existing directors at 31st October have until 30 November 2022 to apply.
New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
From 5 April 2022, intending directors must apply before being appointed
HOW TO APPLY FOR A DIRECTOR ID :
Step 1- Set up myGovID: https://www.mygovid.gov.au/set-up
You will need a myGovID with a standard or strong identity strength to apply for your directors ID online.
If you already have a myGovID, you can apply for your directors ID straight away.
You can apply through “Australia Business Registry Services” https://www.abrs.gov.au/
Step 2 – Gather your Documents:
you will need to have some information the ATO knows about you when you apply for your director ID, for example:-
• Your tax file number (TFN).
• Your residential address as held by the ATO.
• Information from two documents to verify your identity. Example of the documents you can use include:
• Bank account details.
• An ATO notice of assessment.
• Super account details.
• A dividend statement.
• A Centrelink payment summary.
• A PAYG payment summary.
Step 3- Complete your application:
Once you have a myGovID with a standard or strong identity strength, and information to verify your identity, you can log in and apply for your director ID.
Note 1– you don’t need to do anything to “Link” your Director ID to your company, outside the process of applying for the Directors ID.
Note 2– the Maximum Civil and Criminal penalties for NOT applying for a Directors ID are substantial.
Note 3 – the application for the Director’s ID must be done by you personally, not by someone else on your behalf.