From 1 November 2021, Australian Company Directors are required by law to verify their identity with the Australian Business Registry Service (ABRS) and obtain a Director ID.

A Director Identification number (Director ID) is a unique 15-digit identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.

Directors need to apply for their own director ID. It’s free to apply. Existing Directors need to apply for their Director ID by 30 November 2022.

From the transitional period start date of 1 November 2021, any new directors will have 28 days to register after an appointment. This transitional period for new directors is in effect until 4 April 2022. After this date, new directors will require a DIN before appointment, or when instructed to apply by the registrar.

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The table below provides further details on the transitional period.

Date of appointment of directorship	Due date for application of DIN
On or before 31 October 2021	By 30 November 2022
Between 1 November 2021 and 4 April 2022	Within 28 days of appointment
From 5 April 2022	Before appointment

Directors will only ever have one director ID. They’ll keep it forever even if they:

• change companies
• stop being a director
• change their name
• move interstate or overseas.

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Why You Need a Director ID?

Shareholders, employees, creditors, consumers, external administrators, and regulators are entitled to know the names and certain details of the directors of a company.

All directors are required by law to verify their identity with ABRS 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.

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Apply for your Director ID

To apply for your Director ID, you will need to do the following:

Step 1: If you don’t already, register for a myGovID (view instructions on how to set this)

Step 2:  Gather the follow documents to verify your identity

• Your TFN (an individual Australian tax file number)
• Your residential address, as recorded by the ATO
• Be prepared to answer two questions from ANY of the following options based on details / records available to ABRS. These might include:
  • The BSB number of a bank account you receive an income tax refund in, or that has earned interest in the last two years. Arrange for you to sign these updated documents as soon as possible.
  • The date of issue (dd/mm/yyyy format) and reference number (no spaces) from a notice of assessment (NOA) issued by the ATO in the last five years.
  • The member account number (it may be up to 16 characters) and super fund’s Australian business number (ABN) of a superannuation account statement from the last five years.
  • Your investment reference number from a dividend statement from the last two years.
  • The gross income in whole dollars from a PAYG payment summary issued in the last two years.
  • Use the taxable income in whole dollars from a Centrelink payment summary issued in the last two years. If your myGov account is linked to Services Australia, you can log in and access the details online.

Step 3: Complete your application

• We recommend completing your application online as this is the fastest and most secure method. Other methods available include by phone or submit a paper application (from within or outside of Australia).
• If you do choose to use the paper application method do not send original documents to support your application as these will not be returned to you.

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How to Manage your Director ID

If you have a myGovID, from November 2021 you can log in to ABRS online to view your Director ID or update your details whenever you need to:

• check your Director ID number and status, including when it was issued;
• view things to do, actions in progress and past activity; and
• edit your profile preferences and some of your personal details.

Your Director ID obligations include: 

• applying for a Director ID within the relevant timeframe for your situation;
• applying for a Director ID when directed by the Registrar to do so;
• not applying for more than one Director ID (unless directed by the Registrar to do so);
• not misrepresenting your Director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation; and
• not being involved in a breach of the above Director ID obligations.

If you don’t meet your obligations:

There may be civil or criminal penalties and you may be issued with an infringement notice.

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NEXT STEPS

We recommend that if you are a Company Director, you should immediately go to the ABRS website to apply for your Director ID.

If you need assistance to apply for your Director ID or if you have any difficulties with this application please contact us by (08)7120 2384 or support@tagaus.com.au