Beat the rush and apply for your director ID soon
Australia is becoming more susceptible to cyber-attacks and fraudulent activity, so it is important for Australians to have confidence and trust in the organisations that house our information. An initiative introduced by the Australian Government intended to prevent the use of false or fraudulent director activities now requires Company Directors to apply for a Director ID prior to November 30, 2022.
With the deadline to apply for your Director Identification Number closing soon, here’s what you need to know if you are a Company Director.
What is a director ID?
A Director ID is a unique 15-digit identifier that is kept by the individual forever and will be used across companies if various directorships are held. All directors (or people intending to become directors) must apply for it. Director IDs are free to apply for and only need to be applied for once.
Why is director ID being introduced?
Director IDs are being introduced with the intention to prevent the use of false director identities. A Director ID will allow regulators to monitor the activity of directors (as opposed to the activity of the organisation only) and their relationships with companies over time. These efforts will assist to identify and cease unlawful involvement with organisations, such as illegal phoenix activity.
Phoenix activity refers to when a company is liquidated, wound up or abandoned to avoid paying outstanding debts and a new company is then started to continue similar business activities without the burden of debt.
What kinds of organisations require directors to hold a director ID?
You will need a Director ID if you’re an eligible officer of an organisation registered under:
- The Corporations Act 2001
- The Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
- A registered Australian body
- A registered foreign company
Important dates for director ID applications
Although applications to register for a Director ID have been available since November 2021, directors are encouraged to take note of the below cut off dates to register for a Director ID:
- Existing directors have until November 30, 2022 to apply.
- New directors appointed between November 1, 2021, and April 4, 2022, must apply within 28 days of their appointment.
- New directors appointed from April 5, 2022, onwards need to apply for their Director ID before their appointment.
Exceptions may apply for directors of a corporation that is registered with ORIC. View more information here.
How to lodge my director ID application
Directors must lodge their application for their Director ID before the November 30, 2022. This application must be completed by the individual and cannot be applied for by an authorised tax, BAS or ASIC agent on behalf of the director. Follow the below steps to lodge your application, or watch the step by step video here.
How to apply for a Director ID online
You will need a smart device, at least 2 Australian identity documents and some personal documents that include information registered with the ATO.
- Set up an account and complete the steps to verify your identity using myGovID.
- Head to abrs.gov.au/directorID to lodge your application online, ensuring to use the same email address as registered with your myGovID account.
- After you have read and completed the prompts through the Director ID portal, you will receive your Director Identification Number instantly once your application is complete. This number should then be supplied to the appropriate person in your organisation.
You do not need to supply your Director ID number to ASIC unless requested.
Directors living in Australia who are unable to apply online can phone the ABRS. Directors living outside of Australia can submit a paper application form to apply for their Director ID.
