New requirements for all Australian Company Directors - get your Directors ID - asap
Are you a Director of a company?
Perhaps you have a Self Managed Super Fund (SMSF) and you're the Director of your SMSF Corporate Trustee? If so you’re caught up in the latest new regulation from the Australian government.
- All company Directors are now required to register for a unique 15 digit identifier.
Read in this article:
- 5 FAQs about the new Director ID’s
- 1. Does every Director have to hold a Director ID?
- 2. What is the impact if I don't apply for a Director ID by the required time?
- 3. Do directors of a Self Managed Super Fund, including Special Purposes Companies, Family Trust, and Unit Trusts need to apply even if they are non-trading?
- 4. If I don't like my number can I change it?
- 5. Can my Financial Adviser or my Accountant get the number issued for me?
- 6. What's the cost to apply for an Australian Director ID?
A Director ID is a new 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with The Australian Business Registry Service (ABRS).
All Corporation Act-defined company directors will now need to verify their identity as part of the new director identification number (Director ID) requirement, and this applies to Directors of Corporate Trustees of SMSF’s too, with most existing directors needing to complete registration before November 30th, 2022.
What is it and what does it do for me?
A director identification number (Director ID) is a unique identifier designed to promote a fairer business environment through;
- preventing 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.
How will it be used?
The Director ID will be used to associate directors with companies.
Keys dates to remember
- Existing directors appointed before 1 November 2021 have until 30 November 2022 to apply.
- New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
- From 5 April 2022, intending directors must apply before being appointed.
How to get one
You need to apply for your own Director ID. The fastest way to do this is online using the myGovID app.
5 FAQs about the new Director ID’s
1. Does every Director have to hold a Director ID?
Yes. Every person who acts as a Corporation Act Director (Pty. Ltd.) must now have a Directors ID.
2. What is the impact if I don't apply for a Director ID by the required time?
The government in its wisdom has declared it a criminal and civil offense.
3. Do directors of a Self Managed Super Fund, including Special Purposes Companies, Family Trust, and Unit Trusts need to apply even if they are non-trading?
Yes. All Directors must apply for a Directors ID regardless of the trading status of the Pty Ltd company.
4. If I don't like my number can I change it?
Your Director ID is a unique number once issued, you will hold for life, and even if you cease being a company director (and you can’t change it).
5. Can my Financial Adviser or my Accountant get the number issued for me?
No. Applying for a Director's ID is not able to be outsourced to another person to do. You will need to apply for it yourself and verify your own identity with the Australian Business Registry Services (ABRS) within ATO records. This includes your Notice of Tax Assessment.
6. What's the cost to apply for an Australian Director ID?
No cost. It's free to apply for a Director ID via your myGOV ID.
Call us today on 1300 137 403 or email us here for a no-obligation private chat about your situation.
Drew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses. He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn. Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.
