What is a Director ID?

A Director ID is a unique identifier that is issued by the Australian Business Registry Services (ABRS).  Similar to a Tax File Number, directors will only ever need one Director ID – it is an offence to have multiple Director IDs and so directors will use the same Director ID if they become a director of other companies or corporations.

The purpose of the Director ID is to prevent the use of false or fraudulent director identities and unlawful director behaviour such as illegal phoenix activity.

Who is required to have a Director ID?

Directors are required to have a Director ID if they are a Director (or act as an Alternate Director) of a:

• Company;
• Aboriginal and Torres Strait Islander corporation;
• corporate trustee, for example, of a self-managed super fund;
• charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation;
• registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated;
• foreign company registered with ASIC and carrying on business in Australia (regardless of where the director lives).

When do you need to have a Director ID?

Depending upon when you become a director, the deadline for applying for a Director ID is as follows:

• Existing directors have until 30 November 2022 to apply, and
• From 5 April 2022, intending directors must apply before they are appointed.

How to apply for a Director ID?

As directors are required to verify their identity, directors will need to apply for their Director ID themselves.  Directors cannot have their tax agent apply for a Director ID on their behalf.

ABRS is responsible for administering Director ID and will provide the requisite support and guidance necessary to directors to help them to understand and meet their Director ID obligation.  The best and quickest way to obtain your Director ID is online, using the myGovID app, to receive your Director ID instantly.

If you are unable to get a myGovID, the best way to apply for a Director ID will depend on your situation.  You can read more details on how to apply for a Director ID on the ABRS website.

Penalties

ASIC is responsible for enforcing Director ID offences set out in the Corporations Act 2001. It is a criminal offence if directors do not apply for a Director ID on time and penalties may apply.

If you are, or will be, affected by this legislation, you should apply for your Director ID on or as soon as possible after 30 November 2022. Lack of a Director ID may impact your commercial or investment activities.

Disclaimer

The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. We endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.