The New Requirement for Director IDs

Daniel Wilkie   |   10 Dec 2021   |   4 min read

In June 2020 new legislation was passed that changes how directors are required to identify themselves. This change was the first step made in an effort to modernise business registrations. It means that all directors are now required to obtain a unique Director Identification Number (Director ID).

What is a Director ID?

A Director ID is a unique 15 digit number that all directors will soon be required to have. This identification number will help ensure that an individual can be correctly identified across all their roles as a director. The unique Director ID will stay with an individual regardless of name changes, location, or how many companies they become a director of.

Why is the Director ID being introduced

The Director ID is being introduced to mitigate the risk of fraudulent director nominations. It also increases the ability to trace relationships with directors and their companies. This is part of a broader plan to improve data integrity and security around company registrations and regulation.

What the Director ID means for you

If you are already a director it means that you will need to apply for a Director ID within the next year. If you are planning to become a director you will need to apply for a Director ID as part of your appointment as a director.

             New companies and new director appointments

Until 5 April 2022, any director appointed since 1 November 2021 has 28 days from the date of their appointment to verify their identity and apply for a Director ID.

From 5 April 2022 all individuals with new director appointments will need to apply for a Director ID prior to their appointment as a director. Anyone who is intending to become a director within the next 12 months is eligible to apply for a Director ID.

             Existing company directors

All existing directors (appointed prior to 1 November 2021) have until 30 November 2022 to identify themselves and apply for a Director ID.

In preparation for the application it is important to ensure that all existing company details relevant to your position as a director are up to date. If any personal details need to be corrected then Form 492 should be lodged to request corrections. This includes correcting errors in names, shortened forms of names, inaccurate dates or place of birth, or other information that may not have been submitted accurately with your initial nomination.

How do I apply for a Director ID?

Directors can only apply for a Director ID themselves. This is not something you can appoint an agent or representative to do on your behalf. You can make an application for your Director ID through one of the following methods:

  1. Apply through the myGovID app (preferred method). Please note that myGovID is different to myGov.
  2. Providing proof of identification documents over the phone.
  3. Completing a paper application and mailing in the form.

To complete the digital application you will need to install the myGovID app on a smart device. Note that myGovID is a separate app to your personal myGov app that you use to manage your personal tax and other government related matters. You will then need two forms of identification, such as your driver’s license, Australian passport, birth certificate, visa, citizenship certificate, ImmiCard or Medicare card.

For more detailed information on how to set up your myGovID please see here:

https://www.mygovid.gov.au/set-up

If you do not have relevant Australian identification documents (for example, due to being a non-resident) or do not have an email address, then you will need to use the alternative forms of application.

The link to access the paper application form is here:

https://www.abrs.gov.au/director-identification-number/about-director-id

This link will also give you more information about the proof of identity documents that you are required to provide.

What happens if I don’t apply for a Director ID?

If you are required to have a Director ID and fail to apply for one within the required timeframe then you may be liable for penalties. Failing to apply for a Director ID when required can leave you exposed to both civil and criminal penalties.

Australian Business Registry Services

The requirement for all directors to obtain a Director ID is the first step in modernising and streamlining Australian business registry services. Phase 2 will commence in 2023 and will involve linking of Director IDs to their respective companies.

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