The Federal Government has passed the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 designed to centralise Australian Business Registers.
The Act introduces a requirement for all current and future directors of Australian corporations to apply, and permanently hold their own unique Director Identification Number (Director ID).
A Director Identification Number is a unique identifier and has been introduced to prevent the false or fraudulent use of Directors’ Identities by other parties
So, who needs to apply for a Director ID?
Under this new legislation, each person who holds the position of an eligible officer of Director for an Australian or Registered Foreign Registered Corporation, will be required to confirm their identity by obtaining a personal Director ID, which they will use for all Director appointments. These requirements therefore extend to any Director of a Trustee Company as well as Directors of Corporate entities including Companies limited by guarantee.
You need a Director ID if you are an “eligible officer” of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
- Charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander Corporation, for instance public companies limited by guarantee
- Director of Incorporated Associations which have an Australian Registered Body Number (ARBN) – an incorporated association that is registered with ASIC and trades outside of the state or territory in which it is incorporated will be affected even if they are not ACNC registered.
So, when do you need to apply for a Director ID?
The Director ID application is available now, with transitional arrangements for existing and new directors. However, WHEN you need to apply for a Director ID will depend on when you became or become a Director:
|Date person becomes an eligible officer||Must apply|
|On or before 31 October 2021||By 20 November 2022|
|Between 1 November 2021 and 4 April 2022||Within 28 days of appointment|
|From 5 April 2022||Before appointment|
What’s the application process?
To apply for your Director ID you will need to go through one of the following process:
- ONLINE at: www.abrs.gov.au/directorID – Make sure you have a MyGovID setup first https://www.mygovid.gov.au/set-up – A myGovID account is a mechanism used to verify your identity and is used in a number of different circumstances. Please note that a myGovID account is different to your myGov login, or
- TELEPHONE: 13 62 50 (overseas? +61 2 6216 3440), or
- PAPER: download ATO form NAT 75329-10.2021
This application process must be done by the Director themselves.
Larkin Partners can assist you.
Larkin Partners are here for assistance, support and guidance. So, please reach out to us at our office if you would like some help with the completion of the forms.
Our fee for this service will be $330.00 for your application assistance and document preparation.
We have a Justice of the Peace in our building who is happy to certify any documents requiring certification. This service is free of charge.
Once you have obtained a Director ID currently there is no requirement to provide your Director ID to ASIC or to the Companies you are a Director of, however, the ASIC companies register will be transferred to the ABRS around September 2023 and this is when your Director ID will need to be linked to the companies you’re a director of. This Director ID will be retained permanently by you, similar to the way a tax file number is applied to each individual.
How long does your Director ID last?
The Director ID will be permanently attached to the Director, even if they cease to be a Director, change their name, or move interstate or overseas. If a Director ID has not been used for a period of 12 months, the number will have its status changed to inactive. If you then need to use your director ID again you will need to reapply and request your inactive Director ID be reinstated to active status.
Julie Doyle at our Ivanhoe office is ready to assist you to get this done. Don’t leave it and not act as there are penalties for non-compliance. (Maximum $13,320 and one year imprisonment.)