Director ID numbers - an introduction
November sees the introduction of compulsory ID numbers for company directors that will be used as a verification tool and will seek to reduce the instance of fraudulent director identities. The ID is a unique 15 digit number that will remain with a person for life. Who will need a director ID?
You will require an ID if you are an appointed director (or alternate director acting in that capacity) of one or more of the following:
a registered Australian body
a registered foreign company (Corporations Act)
an Aboriginal and Torres Strait Island Corporation (CATSI Act)
Charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander Corporation
It is important to note that if you are a director or corporate trustee of a self-managed super fund you will also need to apply for a director ID.
You don't require 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 do I apply for a director ID?
Applications are free and can be submitted from 1st November, 2021 onwards via myGovID. Your identity strength on myGovID must be at least standard or strong for the application to be successful.
It will also be possible to apply for your director ID by phoning the Australian Business Registry Service or via a form downloaded from the ABRS website.
Information you will need includes your tax file number, residential address (as recognised by the ATO), and information from two documents to verify your identity, such as:
bank account details
an ATO notice of assessment
superannuation account details
a dividend statement
a Centrelink payment summary
PAYG payment summary.
When am I required to apply for a director ID? This will depend on when you became, or plan on becoming, a Director.
If you become a director on or before 31st October 2021, you must submit an application by 30th November, 2022.
If you became a director between 1st November 2021 and 4th April 2022, you must submit an application within 28 days of your appointment.
Anyone who becomes a director after 4th April 2022, must have submitted an application prior to their appointment.
Different dates apply for directors under the CATSI Act and can be found on the ABRS website.
Failure to obtain a Director ID where and when required will incur infringements notices and may result in civil or criminal penalties.
Your accountant is unable to apply for a director ID on your behalf. They may, however, be able to assist in advising whether or not one is required.