The Australian Business Registry Services have started contacting directors who are required to apply now for a director identification number (director ID).

Our clients who are currently directors or who are planning to become a director will need to apply for a director ID. Directors appointed under the Corporations Act:

before 1 November 2021, must apply by 30 November 2022

between 1 November 2021 and 4 April 2022, must apply within 28 days of being appointed

from 5 April 2022, must apply before being appointed.

You can find more information about who needs to apply for a director ID at abrs.gov.au/deadlines.

Applying for a director ID online

Allan Hall cannot apply for a director ID on a client’s behalf. A director must apply for a director ID themselves. Apply for a director ID online at abrs.gov.au/directorIDapply.

Directors must set up their myGovID with a standard or strong identity strength before they apply for a director ID.

Applicants will need at least two of the following Australian identity documents to prove their identity:

Driver’s licence or learner’s permit

Passport

Birth certificate

Visa (using a foreign passport)

Citizenship certificate

ImmiCard

Medicare card

You can find a list of documents that you can use to prove your identity at www.mygovid.gov.au/verifying-your-identity.

Directors will need additional information that the Australian Taxation Office (ATO) knows about you when applying for a director ID online.

Tax file number (not essential, but recommended)

residential address as held by the ATO, and

information from two documents to prove your identity — applicants can use any two of these documents:

Bank account details held by the ATO

ATO notice of assessment

Super account details

Dividend statement

Centrelink payment summary

PAYG payment summary

You can find more information about which documents can be used to prove your identity at abrs.gov.au/verify.

Directors who don’t apply online

The Australian Securities and Investment Commission (ASIC) is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if directors do not apply on time, for more information about the penalties that may be applied, visit asic.gov.au/director-id.

A new corporate requirement has been introduced in Australia

A Director Identification Number (‘Director ID’) is a unique identifier which must be obtained by all existing and prospective company directors.

It is aimed at preventing the use of false or fraudulent director identities, including illegal “phoenixing” activities and will increase director accountability and traceability.

The Director ID must be personally applied for and kept forever by a director.

You need a Director ID if you are an “eligible officer” of a company, a registered Australian body, a foreign registered company, or an Aboriginal and Torres Strait Islander corporation. An “eligible officer” is a person appointed as a director or alternative director who is acting in that capacity.

When to Apply

There is no cost to apply for a Director ID and you can apply on and from 1 November 2021.

For directors appointed under the Corporations Act 2001 (Cth):

Date you become a director	Date you must apply
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

How to Apply

The Director ID regime will be administered by Australian Business Registry Services (ABRS), a newly established function of the Australian Taxation Office (ATO). The quickest way to receive your Director ID is to apply online through ABRS.

Apply for your director ID | Australian Business Registry Services (ABRS) »

Directors must apply themselves because it is necessary to identify their identity. For an online application, a director will need:

a standard or strong identity strength MyGov ID. If you are an eligible director and do not already have a MyGov ID, you can set up your MyGov ID on https://www.mygovid.gov.au/set-up
your Tax File Number
your residential address as held by the ATO, and
information from two documents to verify your identity.

The types of documents which can be used to verify your identity include:

bank account details
an ATO Notice of Assessment
Superannuation account details
a Dividend Statement
a Centrelink Payment Summary, and
a PAYG Payment Summary.

In addition, a director can apply for a Director ID by telephone and by post (for applicants within and outside Australia).

Director ID Obligations

A Director must:

apply for a Director ID within the relevant time frame, or when directed by the ABRS Registrar to do so;
not apply for more than one Director ID (unless directed by the Registrar to do so);
not misrepresent the Director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation; and
not be involved in a breach of the above obligations.

Directors who do not comply with their obligations may face substantial civil or criminal penalties of 5,000 penalty units, which currently stands at $1.11 million dollars.

Privacy

The ABRS Registrar has advised, at the present time, that a Director ID will not be searchable by the public. Once your Director ID is obtained, it should be provided to your company secretary or other record-holder.

The ABRS will only disclose your Director ID to you or to:

someone the director gives permission to disclose
certain Commonwealth, State and Territory government bodies, and
Court and Tribunals.

What to do once you have received your Director ID?

Allan Hall will be sending reminders between now and the target dates advised in this communication to ensure that you have your Director ID Number by the due date. Once you have received your Director ID Number please email this through to [email protected] so that we can record this on our database.

Tag: tax file number TFN

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