Company Director? You'll need a Director Identification Number
From 1st November 2021, a new requirement will be introduced for directors to hold a unique identification number (Director ID). Under the new law introduced by the government, all directors of companies registered under the Corporations Act 2001 will need to have one unique identifier.
This initiative has been implemented as part of a package of reforms to limit the opportunities for a company and its directors to engage in phoenixing activities.
What is a Director ID and who needs one?
Eligible directors will be issued with a unique Director ID, which will be a permanent number used to separately identify different directors and provide traceability of their profile and association with companies over their career.
You will need to apply for a Director ID if you are a director of either:
- a company, with an Australian company number (ACN);
- an Aboriginal and Torres Strait Islander corporation;
- a corporate trustee, for example, of a self-managed super fund;
- a charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation;
- registered Australian body, which will have an Australian Registered Body Number (ABRN). 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; or
- a foreign company registered with ASIC and carrying on business in Australia (regardless of where that individual lives).
Transition Period and Application Dates
A transitional period of 12 months will apply for current directors of Australian companies. All existing directors have until 30th November 2022 to apply for their Director ID.
Other registration rules will apply during the transitional period based on the date the director is appointed. When you must apply for your director ID depends on the date you become a director.
- Existing directors have until November 2022 to register for a director ID number.
- New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of being appointed as a director.
- New directors appointed from 5 April 2022 must obtain a director ID number before a director appointment.
- Prospective directors can apply for a director ID up to 12 months ahead of the appointment.
Applying for a Director ID
From 1st November 2021, directors will be able to start applying for their Director ID from the ABRS website. You’ll need proof of identity documents such as tax file number, ATO notice of assessment or bank details.
You’ll need a myGovID account to apply for your director ID number online. This creates an authenticated digital identity you can use when accessing government services online.
Please note that Directors must apply for their own Director ID as there are proof of identity requirements that cannot be completed on the individual’s behalf.
If you would like to speak to us about applying for a Director ID, please contact us on 03 9693 5000 or send us an email to office@dfknugents.com.au.
