The November 30 deadline for all directors of an Australian company to obtain their Director Identification Number is looming. The Federal Government introduced a regulation that will need to be adhered to by anyone that is a director of an Australian company.  This applies to ALL companies, whether they are trading companies, trustee companies (i.e. Companies that are trustees of a Self-Managed Super Fund or a Family Trust), private companies and public companies.

ALL directors have to apply and receive a Director Identification Number by 30 November 2022.

A Director Identification Number (Director ID) is a unique identifier you need to apply for once and will keep forever. It will help prevent the use of false or fraudulent director identities.

According to the government:

All directors are required by law to verify their identity with us before receiving 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’ relationships with companies over time
  • identify and eliminate director 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:

  • employees miss out on wages, superannuation and entitlements
  • suppliers or sub-contractors are left unpaid
  • other businesses are put at a competitive disadvantage
  • the community misses out on revenue that could have contributed to community services.

Once you have your Director ID you will have this for life, much like you have your Tax File Number for life as well. Your Director ID will stay the same, even if you are a director of multiple companies.

While these were introduced on the 1 of November 2021, EXISTING directors have until 30 November 2022 to apply and receive the Director ID.

If you are a director, you will need to apply for this yourself, an accountant or a financial planner cannot do this for you.

How to Apply for a Director ID

  1. Set up a MyGovID (if you don’t have an account) – please note this is different to a MyGov account.
    1. You will need two of the following to set up a MyGovID
      • Driver’s License
      • Passport
      • Birth Certificate
      • Medicare Card
      • Australian visa
    2. Download the myGovID app
    3. Enter your details
    4. Choose an identity strength – you will need a Standard or Strong identity strength to apply for your Director ID online.
  2. Gather your documents for the ABRS (Australian Business Registry Services) website, you will need to have some information the ATO knows about you when you apply for your director ID:
    • your tax file number (TFN)
    • your residential address as held by the ATO
    • information from two documents to verify your identity.

    Examples of the documents you can use to verify your identity include:

    • bank account details
    • an ATO notice of assessment
    • super account details
    • a dividend statement
    • a Centrelink payment summary
    • PAYG payment summary
  3. Complete your identity online by applying for your Director ID via the ABRS website www.abrs.gov.au. The application process should take less than 5 minutes.

Alternatively, you can call the ABRS between 8.00am and 6.00pm Monday to Friday on 13 62 50 and they will be able to complete the application process over the phone with you. Please note you will need your ID on hand.

How to contact us

Please contact our office to advise us of your Director Identification Number so we can keep it on file.

If you have any questions, please don’t hesitate to contact your accountant.

Phone: 02 83782421

Email: [email protected]

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.